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Google Search faces new UK probe

The UK’s Competition and Markets Authority (CMA) opened an investigation into Google’s search dominance, marking the first major probe under new digital market rules.

The investigation could force changes to Google’s search business in the UK, where it controls over 90% of general search queries and serves 200,000+ advertisers.

The big picture. This probe follows the U.S. Department of Justice’s recent move to break up Google’s search monopoly and comes as AI reshapes online search.

Key details:

  • The investigation falls under the Digital Markets, Competition and Consumers Act (DMCC).
  • CMA will assess if Google has “strategic market status.” Such a designation would give regulators the power to mandate changes.
  • The agency is concerned about Google’s impact on news publishers and emerging AI search competitors.

Why we care. This investigation could change how Google displays and ranks ads in search results, potentially affecting ad costs and visibility. If regulators force Google to be more transparent or alter its search algorithms, it could impact ad targeting capabilities and ROI on search advertising spend.

What they’re saying. “We want to ensure there is a level playing field for all businesses, large and small, to succeed,” said Sarah Cardell, CMA chief executive.

Google “looks forward to engaging constructively and laying out how our services benefit UK consumers and also businesses, as well as the trade-offs inherent in any new regulations”, the company responded in a statement today.

What’s next. If designated with strategic market status, Google could face new restrictions on how it operates search and handles user data in the UK.

Read more at Read More

LTV:CAC explained: Why you shouldn’t rely on this KPI

LTV:CAC explained: Why it isn't the ultimate KPI

Savvy PPC marketers often praise LTV:CAC as a superior KPI for measuring profitability and guiding budget decisions. 

While insightful, correctly leveraging LTV:CAC is far more complex than it seems – and certainly not as straightforward as ROAS, which itself can be misleading.

To avoid missteps, it’s crucial to understand when LTV:CAC is useful, its limitations, and how a poorly calculated metric can lead you to the wrong north star. 

If your agency recommends increasing your PPC budget based on a “great” LTV:CAC ratio, be cautious. There may be critical nuances (or even conflicts of interest) at play.

This article breaks down the fundamentals of LTV:CAC, including:

  • What LTV:CAC is and why it’s important.
  • Common pitfalls when using the metric.
  • How to refine LTV:CAC, plus alternative KPIs.

What is LTV:CAC?

LTV:CAC (customer lifetime value to customer acquisition cost) measures the relationship between the value a customer brings to a business over time and the cost of acquiring that customer. It’s calculated as:

  • LTV:CAC = LTV / CAC

This ratio helps businesses assess whether their customer acquisition efforts are profitable. 

A higher LTV:CAC indicates that customers generate more revenue than their acquisition cost, while a lower ratio could signal inefficiency or unprofitable marketing.

Breaking down the components

LTV (customer lifetime value) represents the total revenue a customer generates throughout their relationship with a business.

Formula

  • LTV = (Average order value x Total transactions) / Unique customers

CAC (customer acquisition cost) is the average cost incurred to acquire a new customer within a specific period.

Formula

  • CAC = Total marketing costs / Number of new customers

Note: Always calculate both metrics using the same time period to avoid skewed results.

Why is LTV:CAC important – and how can it be dangerous?

LTV:CAC serves one core purpose: ensuring profitability. 

This KPI is critical for a company’s future because it measures whether the value generated from newly acquired customers justifies the cost of acquiring them.

It’s often compared to return on ad spend, or ROAS, (revenue generated by ads / ad costs) but goes a step further. 

While ROAS focuses on immediate returns, LTV:CAC considers the long-term revenue potential of a customer. 

This broader view can encourage marketers to lower ROAS targets and increase budgets, assuming future revenue will balance acquisition costs over time.

For example, imagine a marketer spends $30 to acquire a new customer who generates $30 in immediate revenue (100% ROAS). 

Based on historical data, the finance team predicts that this customer will make three additional purchases of $30 each, totaling $120 in revenue over their lifetime.

  • Total revenue = $30 (initial purchase) + 3 x $30 = $120
  • LTV = $120
  • CAC = $30
  • LTV:CAC = $120 / $30 or 4:1

This 4:1 ratio might suggest strong profitability and justify increased spending.

However, it can be dangerous.

Profitability metrics like LTV:CAC often require deeper financial oversight, yet marketers may lack visibility into key cost components, such as payback periods, retention variability, and operational costs. 

Misunderstanding these factors can lead to overestimations of profitability and misguided budget increases.

Let’s break down some of the common traps that make LTV:CAC a potentially misleading metric.

Dig deeper: 5 KPIs to measure paid media success and 5 to measure business success

7 common pitfalls of using the LTV:CAC ratio

1. Ignoring the impact of customer retention

LTV:CAC is often praised by top marketers as a superior KPI, which might tempt you to adopt it too. 

While it can be valuable in scenarios with high retention and repeat purchase rates (like SaaS), it’s not always reliable.

Before using LTV:CAC, run a retention analysis to answer: “How many times do my customers purchase on average over a set period?”

In ecommerce, customer retention is typically around 30% at best. 

Using the earlier ROAS example, if you spend $30 to generate $120 in revenue (400% ROAS), you might assume retention will increase total revenue by 30%, raising it to $156. This would suggest a higher 520% ROAS.

While appealing, it’s far from transformative enough to justify dramatically increasing your budget. 

2. Overlooking payback period and cash flow

Even if your retention is strong enough to justify using LTV:CAC as your north star metric and your ratio slightly exceeds the standard 3:1, increasing your PPC budget blindly can be risky.

Why? Because LTV:CAC doesn’t account for the payback period – the time required to recover CAC expenses, or how long it takes for revenue to break even with acquisition costs.

If your payback period is 12 months, customers won’t become profitable until the 12-month mark. 

During that time, your balance sheet remains negative, putting strain on cash flow and limiting your ability to reinvest in PPC campaigns or other growth strategies.

To scale faster, you need cash on hand since existing funds are already tied up in customer acquisition. 

Options include raising capital or improving fundamentals (e.g., lowering CAC, raising prices, or encouraging prepayment).

Bottom line: A positive LTV:CAC doesn’t guarantee you can safely scale your budget.

3. Misunderstanding marketing LTV vs. finance LTV

Marketers often calculate LTV using basic metrics like revenue – sometimes even pre-tax figures – resulting in inflated and misleading values. 

Naturally, both LTV and CAC should accurately reflect the balance sheet, but this is where many marketers go wrong.

Finance teams often step in to correct these calculations, which can lead to uncomfortable conversations if marketers lack financial literacy. 

To avoid this, marketers need to understand finance-level metrics and how their stakeholders calculate profitability.

LTV is fundamentally a finance KPI. Some finance teams calculate it using gross profit margin (COGS), while others factor in operating expenses (OPEX), making it closer to an EBIT-based KPI.

Ultimately, it’s not about challenging their process but aligning with it. 

To collaborate effectively, marketers should understand key cost components like:

  • Support.
  • Infrastructure.
  • Materials (for physical products).
  • Sales and marketing expenses.
  • Development costs.
  • Other operational expenses.

By aligning with finance teams and using accurate metrics, LTV:CAC can become a far more reliable KPI.

Dig deeper: 3 PPC KPIs to track and measure success

4. Miscalculating CAC by ignoring non-marketing customer sources

PPC, marketing, and other customer sources are critical when assessing CAC and its impact on LTV:CAC. 

Lowering CAC is an obvious way to improve the LTV:CAC ratio, but it can complicate calculating CAC accurately.

A common issue is calculating CAC by dividing total marketing costs by total new customers, disregarding other customer sources. 

In some businesses, where marketing drives about 95% of customer acquisition, this approach might not significantly affect the LTV:CAC ratio and simplifies the calculation.

However, this often overlooks non-marketing customer sources like word of mouth, viral organic content, or baseline growth.

This inflates the customer count, artificially lowering CAC and boosting LTV:CAC, creating a misleading impression of growth.

In the long run, this can lead to structural issues.

While some argue that word of mouth stems from branding or top-of-funnel campaigns, this is only sometimes true.

Many customer sources, such as referral programs, sales initiatives, or product-driven growth, are independent of traditional marketing or PPC efforts.

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5. Assuming all customers are equal

Assuming all customers are equal can lead to inflated LTV:CAC ratios and dangerous strategies. 

You might attempt to boost LTV and make LTV:CAC look better quickly, but this approach can be misleading.

A common mistake is calculating LTV as total revenue divided by total customers over a period, creating an average that hides differences between customer segments. 

Not all customers contribute equally in terms of revenue and retention.

For instance, if the average LTV is $480, it likely doesn’t reflect the actual distribution of customer value:

  • 60% of customers spend around $280.
  • 30% of customers spend around $600.
  • 10% of customers spend around $1,300.

If you aim for a 3:1 LTV:CAC ratio based on the $480 average LTV, you would set a target CAC of $160. 

However, for 60% of your customers, who only generate $280 in LTV, the sustainable CAC should be $93 ($280/3). 

This highlights a significant gap, as the average target would be too high for most customers.

Additionally, the top 10% of customers with a $1,300 LTV likely aren’t acquired through marketing, which complicates the calculation further.

Bottom line: Targeting a $160 CAC could be harmful. Focus on increasing LTV through targeted PPC efforts.

6. Disregarding changes in LTV fundamentals

The purpose of LTV:CAC is to validate marketing investments, assuming that both CAC and LTV are accurately predictable. 

However, these metrics can fluctuate significantly.

Consider a more advanced formula for LTV:

  • LTV = Monthly recurring revenue x Growth profit margin / Monthly cancellation rate

Each of these components is dynamic and depends on the company’s ability to maintain or improve its fundamentals:

  • MRR: Can you cross-sell or upsell effectively?
  • GPM: Can you enhance overall efficiency?
  • Cancellation rate: Are new competitors entering the market? Is the market shrinking?

For example, HubSpot reportedly tripled its LTV in just 18 months. Now, imagine a smaller company experiencing the opposite trend.

Bottom line: LTV is a forecast, not a certainty. Don’t place too much confidence in LTV or your LTV:CAC ratio.

7. Treating LTV as a strategy

While this might seem slightly off-topic for PPC practitioners, it’s crucial to grasp when collaborating with stakeholders.

Holding the LTV flag high without fully engaging with others can lead to issues.

Imagine you secure additional budget for performance marketing – great news! 

But as spending increases, CAC rises, making the LTV:CAC ratio worse. 

In response, you might raise prices to boost LTV.

Problem solved?

Not quite.

Higher prices may lead to increased monthly cancellations. Even worse, the new customers acquired with that extra budget might be of lower quality, spending less and churning faster.

The customer support team steps in, confident they can resolve these issues by expanding their efforts, which increases costs and strains cash flow.

This scenario highlights how LTV is deeply interconnected with various aspects of the business. 

Mistaking this metric for a stand-alone strategy can lead to missteps. It’s essential to use LTV as a tool, not a strategy in itself, to ensure sustainable growth.

How to ‘fix’ LTV:CAC, plus alternative KPIs

LTV:CAC can be a useful metric, but its complexity and potential for misinterpretation mean it requires careful handling. 

To make the most of this KPI and ensure it accurately reflects your business’s health, consider the following tips.

Low retention? Don’t use LTV:CAC

In ecommerce, if your repeat purchase rate is around 30%, LTV may not be a relevant metric from a marketing perspective. 

Instead, focus on CAC alone and aim to be profitable from the first order. 

This approach, though tougher, is more sustainable and reflective of genuine growth – think ROAS.

Improve retention through upselling, cross-selling, customer support, or product enhancements.

Dig deeper: How to analyze PPC performance metrics

Collaborate with finance

If using LTV makes sense, build a strong relationship with your finance team. 

Understanding their perspective will help you grasp why certain LTV targets are set. 

To achieve this:

  • Learn key financial terms.
  • Schedule regular alignment meetings.
  • Use agreed-upon data sources to avoid conflicts.

Never report on LTV:CAC alone

Because LTV:CAC encompasses multiple variables, it’s not a standalone metric. 

Include core components like cancellation rate and MRR in your reports. 

This clarity will help identify which components have shifted and guide your next steps. 

Remember, LTV and CAC are dynamic, not fixed.

Segment by customer groups

Segmenting your customer base allows you to pinpoint areas for improvement and identify which customers to exclude. Consider:

  • Calculating LTV over different timeframes (30 days, 90 days, 12 months).
  • Segmenting customers by cohorts, behavior, and profitability.
  • Differentiating between PPC, organic, and non-marketing customers.

Use LTV:CAC wisely

LTV:CAC is valuable for comparing PPC channels and marketing programs, but it’s a complex measurement tool. 

To avoid potential pitfalls, make sure to:

  • Conduct a retention analysis before relying on LTV:CAC.
  • Partner with your finance team to align on metrics.
  • Always segment customers, sources, and micro-KPIs.

Dig deeper: The fallacy of CTR as a KPI: Redefining PPC ad success

Read more at Read More

Google Ads launches new promo code formats for Promotion Assets

How to use the new customer acquisition goal in Google Ads

Google Ads expanded its Promotion Assets with new barcode and QR code options, giving advertisers more ways to share promotional offers.

These new formats make it easier for customers to redeem online and in-store offers, bridging digital and physical shopping experiences.

Details:

  • Barcode option supports multiple formats, including Aztec, Data Matrix, and EAN-8.
  • QR codes can contain up to 720 characters of text.
  • Links are not supported in QR codes.
  • Advertisers must provide valid barcode numbers for barcode format.

How it works. Advertisers can select either barcode or QR code options when creating Promotion Assets, then input their specific promotional information within the format constraints.

Why we care. These new promo code options provide more flexibility in running cross-channel promotions and can improve redemption tracking. The barcode format enables better in-store integration, while QR codes make it easier for customers to claim offers on mobile devices, potentially increasing conversion rates.

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First seen. This update first came to our attention when Google Ads Strategist Thomas Eccel posted it on LinkedIn:

Bottom line. This update gives advertisers more flexibility in how they present promotional codes, potentially increasing redemption rates through easier customer access.

Read more at Read More

Supreme Court lets $7 billion Meta ad fraud case proceed

B2B audience targeting: Meta Ads as an alternative to LinkedIn

The Supreme Court on Monday declined to hear Meta’s appeal in a massive class action lawsuit that claimed Facebook and Instagram inflated their advertising reach metrics.

The decision could expose Meta to billions in damages. It raised questions about the accuracy of metrics advertisers rely on when spending money on social platforms.

The big picture. Advertisers allege Meta fraudulently inflated its “potential reach” numbers by up to 400% by counting multiple accounts belonging to the same users.

By the numbers:

  • The class action could exceed $7 billion in damages.
  • The case covers ads purchased since Aug. 15, 2014.
  • Meta generated $116.1 billion in ad revenue in the first 9 months of 2024.
  • Millions of individuals and businesses could be part of the class.

Why we care. This lawsuit could expose Meta’s potential overstatement of ad reach by up to 400%. If successful, you could be one of many advertisers compensated as well as the government enforcing more transparent reporting standards across social media platforms.

Additionally, it raises important questions about the reliability of Meta’s measurement metrics that advertisers use to make budget decisions.

Between the lines. The Supreme Court’s decision lets stand a March 2024 ruling from the 9th Circuit Court of Appeals, which said advertisers could pursue damages as a group since Meta’s alleged misrepresentation was consistent across all affected parties.

Meta’s argument. The tech giant claimed that different advertisers may have valued or relied on the reach metrics differently, thus leading to the inflation they see.

Meta also said that the 9th Circuit’s “common course of conduct” test conflicts with other federal courts.

What’s next. The case will now proceed as a class action, potentially affecting millions of Meta advertisers who bought ads over the past decade.

Go deeper. Advertising revenue remains Meta’s primary business driver, making the outcome of this case particularly significant for the company’s future.

Read more at Read More

How to tank your Google Ads account in 10 days

How to tank your Google Ads account in 10 days

Are you tired of the same snooze-fest PPC “best practices” on improving your Google Ads account?

It’s a new year, and we’re getting creative!

Instead of another optimization guide, let’s explore the fastest path to advertising disaster. 

What if two mysterious marketing execs named Judy make a bet with you that you can’t tank your account in a matter of days? 

Consider this your step-by-step guide to proving them wrong – and a sarcastic tour of common paid search pitfalls along the way.

(Our apologies in advance if any of this ends up in a Google snippet or Perplexity answer.)

Day 1: Make sure nobody wants your offer

If you’re looking to destroy your Google Ads performance, this is the single most effective strategy. 

You can’t bid-manage your way out of an offer that doesn’t convert.

Your offer – the product, price, and positioning – is what someone gets in exchange for converting. 

The less appealing or harder to understand it is, the less likely your ads will succeed.

Here are three sure-fire ways to dial up friction and frustration:

  • Attract the wrong crowd: Use lead magnets and incentives that aren’t specific to your target market. Your sales team will drown in leads who’ve never heard of you and don’t want your services. But hey, your CPL will look amazing!
  • Keep them guessing: Keep landing pages vague. Skip key info like features, benefits, and shipping details. On lead gen forms, don’t explain what happens after someone fills it out. If someone really wants it, they’ll figure it out, right?
  • Avoid product-market fit: Seven words: “If you build it, they will come.” Launch blindly without ever speaking to your target market. Get zero sales. Spend money on ads. Still get zero sales. But since you paid for clicks – voilà! It’s no longer an offer problem; it’s an ads problem!
Wrong offer

Day 2: Champion bad takes

Here’s another foolproof way to sabotage Google Ads without needing a login, and it’s perfect for leadership.

Grab on to the belief that “paid search doesn’t work” and never let go.

When reviewing paid search reports, always ask, “How do we know we couldn’t have gotten that organically?” and don’t even wait for an answer.

Invest in upper funnel campaigns, and demand immediate bottom-of-funnel results. Consider it a failure of the platform when that doesn’t work.

Hyperfocus on click costs. Make CPCs your KPI, and let “clicks should always cost less” be your mantra. Ask why your CPC isn’t lower each time you review the metric.

Set impossible growth goals that aren’t aligned with your ads investment, consumer demand, or past performance. 

Call them “stretch goals,” but become outraged when targets aren’t hit. You’re a luminary – people want this from you.

The important thing is to be uncurious, suspicious, and dismissive at all times. Even a brilliant paid search team can’t succeed if leadership refuses to let them.

Bad takes

Day 3: Trash your conversion tracking

What even is a conversion? Nobody knows.

It’s not standardized, so embrace the chaos and track whatever you want.

Here are some tried-and-true methods to mess up your data:

  • If it fires, it counts. Skip debugging and de-duping. Double the tags, double the sources, double the fun!
  • No judgment. Treat “scroll 50% for 30 seconds” the same as “purchase complete.” Give all actions equal weight, make them primary conversions, and stick to aggregate reporting.
  • What happens offline stays offline.
  • Keep it casual. Use names like “Event 1” or “Test Conversion,” so no one really knows what’s being tracked.
  • Trust, but don’t verify. Use platform data as your source of truth and never compare it to your CRM or actual sales numbers.

Not only will you have no idea what’s working, but Google won’t either, so it’ll optimize for all the wrong outcomes.

Bonus tip: If your conversion tracking breaks, don’t bother with the data exclusions feature. Always forward, never back.

What happens offline, stays offline

Day 4: Say ‘yes’ to every Google Ads recommendation

You’ve spent your whole life playing it safe – proceeding with caution, carefully analyzing, and looking both ways before crossing a busy street. 

It’s time to step into your main character energy and say “yes”… to Google.

Don’t overthink it. Actually, don’t think at all. Just say “yes” to every recommendation that comes your way. 

Broad match keywords? Sure, why not?

Raise your budget? Only one question: How high?

Auto-applied suggestions? Go ahead, Google, live your truth. 

Every word from your account rep is now a mandate. Every low optimization score or ad strength is now your top priority to address.

Watch your account do a complete 180. Because it was never really about the destination, it was about the journey.

Burn your permission slip to say no to Google. This is your moment of “yes.”

Say yes

Day 5: Use AI and ML to overcomplicate everything

“It’s not about refining your workflow; it’s about deploying generative AI at scale without a strategy.” 

Sure, there are smart ways to use AI to learn about your audience, create messaging, and process large data sets. 

But let’s be honest: narrowing in on appropriate use cases takes effort, and effort is so 2015.

Today’s hottest companies are blowing six figures a month on ChatGPT-generated ads with no sales to show for it. But you don’t need those budgets to get the same results!

And why stop at ad generation? 

You can use ML-driven algorithms to overcomplicate your account structure, automate decisions with zero context, and remove humans from tasks that desperately need human oversight. 

You’ll know you’re on the fast track to ruin when someone suggests prioritizing strategy over scaling, and your only response is, “But we’ve already invested so much in the tool!”

Because nothing says “visionary” like being so focused on the future that you let your account implode before you even get there.

AI Lab

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Day 6: Un-structure your account

Your Google Ads account likely includes multiple campaign types, segments, networks, bid strategies, and initiatives. 

Very confusing. Very complicated.

Why not throw it all into one giant, cozy, messy campaign? 

Call it “Campaign 1” for good measure.

Search + Display Network? Combine ‘em!

Top of funnel, competitor and brand terms? Put ‘em all in the same ad group with a DKI ad – let Google sort ‘em out.

There’s no better way to throttle the performance of high-intent, high-converting keywords than to mash them together with high-volume, low-converting keywords into a campaign that’s “limited by budget.”

Your chaotic structure will make it impossible to tell what’s working and what’s not. 

Reporting becomes a beautiful nightmare, and budget optimization is now rightfully impossible.

It’s not disorganized, it’s “hagakure*!”

(*Of course, accounts can also suffer from being overly granular. Hagakure, as a principle, isn’t inherently bad. It’s the blanket permission to abandon structure that turns it into a problem.)

Structure

Day 7: Turn the user journey into a maze

At its core, the paid search conversion sequence is pretty simple:

  • The keyword reflects the user’s intent (“I have a problem”).
  • The ad connects the problem of the keyword to the solution of the offer.
  • The landing page delivers the solution with a clear call to action, inviting a conversion.

Boooooring.

Paid search conversion sequence

Still, it’s a simple path. So how could anyone possibly mess it up? 

The answer is just as simple: misalignment. 

Whether you ignore the user entirely or overcomplicate every step, the result is the same: a chaotic journey that guarantees missed conversions. 

Here are two popular ways to get it wrong.

Option 1: The passive approach

Here’s where you don’t really think about the person behind the search. 

You just throw a bunch of unrelated keywords and ads into the system and hope that Google will serve the “right” message to the “right” audience. 

It’s a beautiful dream!

Option 2: The overcomplexity approach

This one requires a bit more effort and, more importantly, many more buzzwords. It sounds like this:

“Advertising used to be simple: see ad, buy product. But today’s sophisticated consumers need 50+ touchpoints, and the user journey takes a team of PhDs to track.”

Spoiler: Advertising has never succeeded without alignment. 

When you replace a basic understanding of your audience’s motivations with marketing mix models (MMM) and convoluted attribution tools, you end up just as lost as your audience.

Here’s the thing: whether you’re too passive or overly complex, both paths lead to the same questions when performance tanks:

  • Was it the keyword?
  • The ad copy?
  • The landing page?
  • Or just Mercury in retrograde again?

When your user journey becomes a maze, the answer doesn’t matter. Your customer is already gone.

Day 8: Madlib your way to ad copy

Why do your customers choose you over your competitors? 

If you don’t know – or better yet, don’t care – it’s time to throw together a bland word scramble that quietly vanishes into the SERP. Here’s how:

  • Write some cookie-cutter headlines filled with vague superlatives and uninspired CTAs. If that’s too much, let Google Ads auto-create them or get an AI tool to do it for you.
  • Leave your headlines unpinned, since the key to an effective headline is that it delivers the same message backward, forward, and in any random order.
  • Now let Google Ads work its magic by optimizing your headlines for clicks. Google’s revenue model depends on clicks, so it’ll prioritize ad combinations that drive the most clicks, not necessarily those that bring you qualified clicks or …(gross)… conversions.
  • Only measure ad success using metrics like clicks and CTR. These numbers are trending up across Google Ads accounts anyway, so you’ll feel accomplished watching the graph climb, even as your conversions plummet.

It’s a bit of a long game, but this system ensures your ads stay vague, attract untargeted clicks, and burn through your budget without reaching your ideal customers. 

Because really… who needs ‘em?

Madlibs

Day 9: Change everything, all the time

Want to master the art of campaign chaos? Here’s your step-by-step guide: 

  • Try something new.
  • If it doesn’t deliver instant results, panic and immediately reverse it. 
  • When that change doesn’t magically fix things either, try something totally different. 
  • Still no immediate success? Perfect! Pause or delete the campaign entirely. 

Bonus: this approach will keep your bid strategies in an indefinite “learning period.” 

Learning mode is Google’s way of saying, “Let’s experiment with your budget!” 

Expect sky-high CPCs, random placements, and risky behavior any brand manager would faint over as Google flails around trying to make sense of your constant changes.

This roller coaster guarantees maximum frustration, minimum ROI, and a campaign that never, ever stabilizes.

Who needs stability when you can chase the thrill of constant reinvention and keep your results unpredictable?

Shifting gears

Day 10: Expand, expand, expand

Success in Google Ads depends on qualifying, targeting, and speaking directly to your ideal audience.

Achieving the opposite effect is actually pretty easy: Go broad, baby!

Do whatever it takes to get the most impressions – qualified or not. After all, if 100% of the global population sees your ad, and even 0.01% take action, you’ll sell millions! 

  • Don’t limit location targeting to areas where you do business or see results. Be sure to use the default “Presence or Interest” to pay for clicks from locations you’re not actually targeting.
  • Don’t limit languages to the language your ads and offers are written in.
  • Don’t keep your ads from running on irrelevant apps or YouTube videos for minors.
  • Don’t exclude audience segments that are unlikely to convert.

Assume that all views and clicks are equally valuable, even if they’re generated accidentally, in bad faith, or by two-year-olds through the “suitable for families” content loophole.

If reach is the name of your paid search game, you’re definitely playing a losing game.

Expand, expand, expand

There are plenty of other ways to mess with your Google Ads account, but these 10 guarantee a disaster worse than an ad-libbed karaoke duet. Happy failing!

Read more at Read More

Reddit introduces business analytics tools and AMA ads

4 Reddit ad formats you need to know

Reddit today announced two significant product launches: a trends analysis tool for businesses and a new advertising format for its popular Ask Me Anything (AMA) sessions.

Reddit’s new business-focused offerings come as the platform hits major growth milestones, including its first time exceeding 100 million daily active users and reaching profitability.

The details. The new Reddit Pro Trends tool, available within Reddit Pro’s free suite, allows businesses to:

  • Track real-time conversations about their brands, products, and industry trends.
  • Visualize conversation volume across Reddit communities.
  • Monitor discussions across approximately 100,000 “smart” keywords.
  • Access a feed of relevant conversations.
  • Soon view related keyword suggestions.

Why we care. These new capabilities allow for monitoring real-time conversations about your products and directly promoting Q&A sessions, essentially helping you access communities that are actively discussing your market segment. The new AMA ad format, especially, provides a structured way for you to participate in these conversations rather than just observe them.

Between the lines. Early adopters like Wayfair and the NBA tested Reddit Pro Trends, with participating businesses seeing a 12% increase in post creation. Smaller companies like Nudge Security and Van Votz, also tested the analytics tool, using it to find niche audiences.

What’s next. The new AMA Ads format lets businesses promote Q&A sessions directly through Reddit’s ad dashboard, complete with RSVP tracking capabilities.

Bottom line. These launches reflect Reddit’s strategic push to monetize its massive user base while providing value to businesses looking to tap into authentic community discussions.

Read more at Read More

Google drops ad scheduling for Smart Bidding campaigns?

Google Ads logo on smartphone

Google quietly updated its policies to remove ad scheduling for campaigns using Smart Bidding, raising eyebrows across the paid search community.

Ad scheduling lets advertisers control when their ads show, aligning campaigns with business hours or peak performance times. Removing this feature for Smart Bidding campaigns reduces control and could impact budget efficiency.

Voices from the field. Scott Carruthers, paid search director at Journey Further, is not a fan of this at all:

  • “It’s a step further away from keeping your advertising aligned with your business goals. I fully understand not taking bid adjustments into consideration, but advertisers should be able to choose when their ads run.”

PPC expert Amalia Fowler had a different take.

  • “If it’s true, I don’t hate this. Many businesses restrict their schedules unnecessarily, but more transparency from Google would be appreciated.”

Why we care. When using smart bidding you can no longer limit ad visibility to business hours, potentially leading to wasted spend outside of peak times. While automation can optimize for performance, this update diminishes your control over ad delivery to align with operational hours or staff availability.

What’s next. Expect further clarification from Google as advertisers push for answers. Many are watching closely to see if this policy change sticks or evolves with additional feedback.

First seen. This change was shared by Adriaan Dekker on LinkedIn. He wondered whether Google will make an announcement about this change or whether this might be an error.

Maybe an error? This change happened two days ago. The last time Google’s “About ad scheduling” page appeared in Wayback Machine (Feb. 28, 2024), this page said:

  • “Ad scheduling is not compatible with both Smart Shopping campaigns and App campaigns.”

Bottom line. Google’s shift toward automation-first advertising continues to disrupt traditional PPC strategies, forcing advertisers to adapt or find creative workarounds to maintain control over their campaigns.

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Automated bidding in Google Ads: How to get the best results

Google Ads logo on smartphone

Automated bidding in Google Ads promises to simplify campaign management and boost results – but it’s not foolproof. 

With the right bidding strategy, you can take control, optimize performance, and drive better conversions.

Let’s break down the essentials to get started.

Manual CPC: The best starting point for new campaigns

The simplest way to launch a new campaign, especially in a new or low-budget account, is to start with Manual CPC bidding. 

This lets you test comfortable bid levels and adjust based on results. 

Monitor these campaigns closely: 

  • Start with a bid.
  • Increase it if volume is low.
  • Track ad position, CTR, CPC, and conversions. 

For example, if impressions are too low, your bid is likely too low. 

If you see high conversions, clicks, and a strong Impr. (Abs. Top) %, test lowering your bid to reduce CPC and CPA. 

It’s a constant balance to find the optimal bid for your budget.

You can add negative keywords based on the search terms you see coming through and better control your spend, as there won’t be any surprises with average CPCs. 

However, automated bidding strategies like Maximize Conversions in a new campaign or ad account may result in extremely high CPCs for your target keywords. 

For instance, a small business may find a $100 CPC unacceptable, and spending can escalate quickly.

Once you’ve gathered enough performance data from impressions, clicks, and conversions, you can test switching to automated bidding strategies like Maximize Conversions. 

Alternatively, if you have a higher budget and are prepared to spend more upfront to collect data, you can launch a new campaign using Maximize Conversions immediately.

Dig deeper: There is no ‘best’ Google Ads bidding strategy, study finds

Pairing keyword match types and bidding strategies for success

Keyword match types and bidding strategies will vary depending on your budget and the average CPC in your industry.

Broad match keywords perform significantly better with automated bidding (i.e., Maximize Conversions) because it can automatically test many variations of your broad match keywords to find the best search terms with high conversion rates. 

This is much more difficult to achieve with manual bidding for broad match keywords.

For more specific terms, often used in B2B lead generation, phrase and exact match are preferred to keep search terms focused and avoid wasting money on irrelevant searches. 

Both automated and manual bidding can be effective with these match types, as you may not want to target a wide range of variations or related terms. 

Many industries rely on extremely specific keywords where slight variations or related terms no longer make sense to target.

Industries like home services, local businesses, attorneys, medical, education, insurance, and ecommerce often benefit from using broad match with automated bidding since many relevant search terms are available.

Testing broad match keywords with automated bidding is worthwhile if you have the budget.

Broad match has evolved significantly, now factoring in elements such as:

  • The user’s recent search activities.
  • The content of the landing page.
  • Other keywords in an ad group to better understand keyword intent.

In my experience, this approach has been far more effective than the old broad match, which attempted to expand to terms it deemed related. 

However, negative keywords remain critical and should always be a priority on any PPC management checklist.

Maximize Conversions: Benefits, challenges, and best practices

The Maximize Conversions bidding strategy is often used to gather data for a specific ad campaign. 

It can initially result in high CPCs and CPAs because it tests various combinations to determine what generates the most conversions over time. 

Unlike a human monitoring CPC and CPA during a new campaign launch, Google focuses on maximizing conversions within your budget but lacks the data to perform optimally at the start.

In other words, Maximize Conversions doesn’t immediately deliver the results its name suggests.

If enough conversions aren’t gathered during the learning phase, it may spend significant amounts with no conversions. 

This occurs because platforms like Google Ads, Microsoft Ads, or Meta Ads are trying to identify the right audience or keywords that could convert. 

If the initial keywords or audience don’t work, the system will test others. 

This is not an instant process, and in some cases, hundreds of clicks and substantial costs may yield no conversions. 

While results typically improve if the right audience or keywords are targeted, success is not guaranteed. 

Many advertisers pause campaigns after excessive ad spend with no conversions, where testing manual bidding first might have been a better option.

Maximize Conversions can be particularly effective with audience targeting in Display Ads or Video campaigns for lead generation or ecommerce. 

These campaign types often launch well with Maximize Conversions because their CPCs tend to be low, and automation can efficiently test various audiences or placements much faster than manual CPC bidding. 

For these types of campaigns, a tCPA or tROAS may not even be necessary if the strategy is delivering ample conversions.

Refining Maximize Conversions with tCPA or tROAS

A Target CPA (tCPA) or Target ROAS (tROAS) can be applied after you have determined your average CPA or ROAS, or you can choose to set up Maximize Conversions with a tCPA or tROAS from the start – both approaches are acceptable. 

However, this setting can be restrictive if it is based on assumptions without supporting data. 

To avoid overly limiting the campaign early on, you may consider launching with a higher tCPA or tROAS than your ideal target.

Ecommerce tends to be simpler with automated bidding because a sale is a sale. 

Lead generation, however, involves additional challenges such as lead quality issues or fake leads. 

For this reason, CRM and call-tracking software integration are essential to monitor lead quality by source and ad campaign.

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Boosting returns with Maximize Conversion Value

For ecommerce, Maximize Conversion Value is an excellent option for prioritizing higher-priced products over lower-priced ones to boost your overall ROAS for the campaign. 

However, it’s often best to start with Maximize Conversions and switch to this setting after gathering sufficient sales data.

This option can also be applied to lead generation if different values are assigned to different leads. 

For instance, filling out a form for an appointment can be assigned a higher conversion value than simply providing an email for a free download.

Portfolio bidding: Strategies for complex campaigns

Portfolio bidding refers to shared bidding strategies that can be applied to one or multiple campaigns, offering additional settings not available at the campaign level. 

These strategies are particularly useful when CPCs are increasing rapidly, as portfolio bidding allows you to address this issue immediately. 

Unlike campaign-level settings, portfolio bidding enables you to set both a Target CPA and a Max CPC simultaneously. 

This is especially beneficial in industries where target keywords typically have low CPCs. 

It can also be useful in competitive industries or for expensive keywords to avoid $200 CPCs that could harm account performance.

For instance, you can set a target CPA of $50 with a max CPC of $8. 

This approach is far more effective than using the Maximize Conversions bid strategy, which may test CPCs as high as $150 – three times your target CPA. 

Even with a 100% conversion rate, this would exceed your goal by a wide margin. 

This is a clear example where automation benefits from human guidance to ensure it aligns with your advertising goals when its default testing logic doesn’t make sense.

Portfolio bidding can also be valuable for ecommerce. 

For example, setting a target ROAS of 300% with a max CPC of $10 directs automation to adjust bids to achieve a 300% ROAS while capping clicks at $10 each. 

This keeps the automation in check and focused on achieving your desired outcomes.

Performance Max: Aligning automation with campaign data

Performance Max campaigns do not always deliver “maximum performance,” as the name suggests. 

For campaigns heavily reliant on automation, it is generally best to use Performance Max after establishing proof of concept with Search, Shopping, Video, or Display campaigns. 

Starting with a new account that lacks performance data and expecting Performance Max to optimize everything independently is risky. 

While it can sometimes succeed, it performs significantly better when supported by proven performance data, such as a customer list to help match your target audience or at least a remarketing audience of website visitors.

Exploring less common bidding strategies

Some less commonly used strategies include Target Impression Share, which adjusts bids to maximize impression share.

This prioritizes showing your ad as frequently as possible without monitoring other metrics. It is primarily used by large brands with nearly unlimited budgets.

Even for branded keywords in branded campaigns, it is unwise to pay excessive CPCs ($100 or more) just to maintain a top position.

The Maximize Clicks strategy adjusts bids to generate the highest possible number of clicks. However, this is not cost-effective for most advertisers unless they are large brands with substantial budgets. 

Switching from Maximize Clicks to Maximize Conversions, a common practice, is not recommended. 

Keywords that attract the most clicks do not necessarily generate the most conversions. Instead, start with manual CPC and then transition to Maximize Conversions (with or without a target CPA). 

This ensures a cohesive strategy, as both approaches aim to optimize for conversions. 

In contrast, gathering data through Maximize Clicks does not align with the goals of Maximize Conversions.

Additionally, Google is phasing out Enhanced CPC bidding. If you currently use this strategy, we recommend transitioning to manual CPC or an automated option in the first quarter of 2025.

Dig deeper: 10 advanced strategy ideas for Google Ads

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2025 predictions for top B2B paid media channels

2025 predictions for top B2B paid media channels

You can say much about 2024, but you can’t call it boring. 

From AI Overviews rolling out (now with ads!) to a feed-choking election to cookies (somehow) sticking around in Chrome to the rise of LLM search, PPC advertisers have had to deal with turbulence in the past year.

What can B2B advertisers expect in 2025? 

I’ll share my predictions for key platforms like Google, LinkedIn, and Reddit, as well as trends in measurement and martech.

While these are just my best guesses, many are based on trends we already see in our client accounts.

2025 Google predictions

Google will lose some of the search market

We’re already seeing searches soar on LLMs like ChatGPT and Perplexity. 

Even if Gemini improves its UX and results, it won’t keep Google from losing volume and changing user behavior. 

Google won’t have to divest itself of Chrome (yet)

This is kind of a layup. No matter what the DOJ pushes for in its antitrust victory from November, it will not happen in 2025. 

Even if the judge agrees that Google needs to sell Chrome, appeals and plenty of red tape will likely keep this from becoming a reality within the next 12 months.

Google will launch at least one promising beta for B2B ads

It has been a long dry run for B2B marketers looking for fun betas and features from Google. 

Today, all updates seem to point to one thing: feeding the algorithm. 

B2B marketers have had fewer opportunities to experiment in search since I entered the field over a decade ago.

That said, I foresee Google throwing us a bit of a bone this year – maybe to counteract the negative momentum it’s carrying into 2025. 

They could shock us by reinstituting some match-type controls, but I doubt it. 

They’ll likely give us some tools that make responsive search ads (RSAs) easier to work with and more transparent about which combinations actually work for advertisers.

Advertisers will more broadly adopt enhanced conversions.

This is cheating a bit since it’s a prediction for Google advertisers and not Google itself, but I think enhanced conversion usage will be much broader in 12 months than it is today. 

In B2B advertising, the key will be finding the right balance between: 

  • Setting AI guardrails through segmentation.
  • Ensuring segments are large enough to maintain data density, as the system struggles when data is limited.

Enhanced conversions are a good tool for helping advertisers port more data into the back end.

This will be essential for training Google to find the right users and keep budget focused on impact.

2025 LinkedIn predictions

Ad types will keep diversifying

Videos, thought leader ads (TLAs), conversation ads, and new ways to promote individual POVs.

We’re seeing promising results from testing all of those in 2024, and I expect LinkedIn to provide more variety in 2025. 

The UX and advertising algorithms will improve

LinkedIn’s UX and bidding and targeting algorithms have both lagged, even as clients shift more budget toward the platform. 

Those areas will receive more attention in 2025, and the algorithm may even improve at detecting and suppressing AI-generated content, including tedious automated comments.

You may also see LinkedIn make it easier for advertisers to collect lead information on the platform.

For instance, adding lead forms to TLAs would be a nice marriage of conversion friendliness and a popular new ad type.

The best ads won’t look like ads

One of the things we’re working on with our clients is getting creative with messaging and tying it to pain points or industry or job lingo. 

In short, we’re doubling down on empathetic messaging and authenticity, which is not unique to LinkedIn. 

With the feed getting junkier and more AI-formulaic by the day, the more organic you can make an ad look, the more people will pay attention.

Get the newsletter search marketers rely on.



2025 Reddit predictions

Improved testing will roll out as competition grows

For its market share, Reddit made arguably the most significant moves in B2B advertising in 2024. 

With new ad types, audience features, advanced reporting, and enhanced targeting capabilities, Reddit enters 2025 with a growing user base and a spot on the shortlist of must-test platforms for B2B and SaaS advertisers. 

They’ll meet the moment with more testing features, specifically A/B testing functionality that starts mimicking rival platforms.

Tracking and attribution will struggle

Because Reddit is populated by a younger, tech-savvy audience, part of its brand is tied to user privacy (hence usernames, not real names). 

This is great for users with edgy and authentic POVs to share, but it will make life harder for advertisers trying to track the real business impact of their Reddit campaigns. 

(Related prediction: their fairly rudimentary CAPI function will improve quite a bit in 2025.)

Dig deeper: Diversifying your B2B paid media portfolio: When does it make sense?

2025 martech and measurement predictions

Chrome’s third-party cookies will survive 2025 – kind of

Yes, Chrome’s cookies will be severely weakened by the (still-impending) opt-out feature that Google plans to implement. 

But my prediction is that the cookies will be (somehow) clinging to life at the end of 2025 because I don’t see Google and the IAB agreeing on an alternate solution.

CDPs will gain serious momentum

More marketers will move to adopt server-side tracking in 2025 (disclaimer: we’re pushing our clients hard in that direction) as a holistic, privacy-safe transition away from third-party cookies. 

We’re seeing most of our clients getting an artificial increase in “direct” traffic as data is stripped away. 

This will hit a critical point, leading brands to get proactive about server-side solutions.

First-party data enrichment tools will gain prominence

Less third-party data to work with means more emphasis on first-party data and the tools that empower it. 

Look for names like Stape and Pendar, which are beefing up first-party data collected on the server side, to start appearing more frequently in brand conversations.

Dig deeper: 5 PPC measurement initiatives to set yourself up for 2025 success

Anticipating transformations in B2B paid media and martech

There’s room for 2025 to be a more transformative year than 2024 for B2B campaigns – if only because there will be more room for challengers to Google’s market dominance. 

I expect marketers to become more proactive about tracking and measurement solutions because their hands are being forced. 

This should also lead to new scrutiny about which campaigns are actually driving business impact. (Or maybe that’s just something on my wishlist every year.)

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How to find the best link building service for you by Stellar SEO

How to find the right link building service for you
How to find the right link building service for you

There’s no shortage of companies competing for your link building budget, especially since a 2024 Google leak reaffirmed the critical importance of links.

But there are also an overwhelming number of generic articles listing the “best” link building agencies or offering endless lists of questions to ask a potential agency. 

With so many options and questionable players in the SEO industry, it’s no surprise that many people have had one – or even several – bad experiences.

Ready to find out how to avoid your next SEO mishap and find the best link building agency – based on your needs?

We will. But first, a little about me.

I’m Travis Bliffen, the CEO of Stellar SEO, a 2024 Inc. 5000 fastest-growing link building agency. We’ve been around since 2012 and have built tens of thousands of links across many challenging industries. 

Based on my first-hand experience – and numerous conversations with customers who sought us out after choosing the wrong link building partner – here’s what I’ve learned.

What makes a link building service good?

What makes a link building service “good”?

If you decide to outsource link building, you need to check with a potential partner agency about whether:

  • The links they build effectively boost rankings without creating more risk than you are comfortable with.
  • Their approach, beliefs, and strategies align with your internal expectations.

While the link building process can become complex, link building is elementary. 

Focus on strategies to encourage high-quality websites to link to you more frequently than to your competitors. Your link building agency’s creativity directly impacts the quantity and quality of links you can secure.

The importance of aligning expectations with reality

If you’re ready to entrust link building to an outside agency, ensure your expectations are rooted in reality.

It’s easy to get swept up by promises of quick fixes or dramatic ranking boosts. However, SEO is rarely that simple. 

A solid link building agency will have to:

  • Analyze your website and your business goals.
  • Perform competitor analysis.
  • Create a link building plan.
  • Work with writers who will create your content.
  • Work with an outreach team to find guest posting or link placement opportunities.
  • Ensure quality control and review.

Given the amount of work put into every link, a quality link building company can be costly. This is why you should focus on the desired business outcome, not just vanity metrics. 

  • What is the desired outcome from the link placements? Is your primary goal to generate referral traffic through link building? If so, that requires a different approach than links to boost organic traffic to key pages.
  • What internal criteria does your team have? Some companies have a list of must-haves in any potential link placement. If your team has preferences, sharing these upfront will help the agency match you with the appropriate campaign type.
  • How do you weigh risk vs. cost? A successful link building campaign should deliver a return on investment (ROI), though the timeline can vary. For instance, paid link campaigns often have a lower cost per link and deliver ROI more quickly compared to content marketing-based link earning. Both approaches can be effective, but it’s important to choose the one that fits your budget and comfort level.

Decide your goals and discuss them openly with your potential link building partner early. Otherwise, you will waste your time and money.

What to look for in a link building agency.

What to look for in a link building agency: More than just a pitch

Every agency will tell you it’s the best in the business. Your job is to determine which can back up their claims with substance.

To do that, you’ll need to know what questions to ask — and how to interpret the answers.

1. What’s your approach to link building?

A good link building company will be highly specific about its services and process. Its representatives must articulate their strategies clearly and explain how they plan to implement them to help your website.

This can include content-driven digital PR, outreach campaigns, and link magnets.

Vague or overly technical answers are a red flag. 

2. How do you measure success?

Look for companies that mention concrete indicators of ROI, such as:

  • Organic traffic improvement.
  • Keyword rankings growth.
  • Conversions.

We get regular inquiries from companies looking to boost their DA (Domain Authority) or DR (Domain Rating). We first tell them that that’s a terrible reason to hire a link building agency. 

Due to acquiring excellent links, DA, DR, and other metrics will improve over time. However, having a clear strategy to generate traffic and leads during the process will increase your campaign ROI exponentially.

3. How do you control link quality?

A trustworthy link building company will have set standards for the links it provides. Not all links must come from high-DR websites, but the company must provide relevant links in your niche.

With backlinks, quality trumps quantity. 

Talk to the link building service about their screening process and any guaranteed checks or minimum metrics their links will meet. More importantly, ask them how to determine those standards and how your niche could impact the thresholds.

4. What will the reporting process look like?

If you’re outsourcing link building services, you must know what reports you can expect. Ask about the frequency of the reports, the kind of data you’ll see, and the company’s policy if the links don’t meet the agreed-upon metrics.

There is no right or wrong answer to this; you just need to determine if they will report what is important to you. If it isn’t part of their default reporting, ask if they can add it to your reports.

Spotting Link Building Red Flags

Spotting the red flags

Unfortunately, you’ll find that many shady actors call themselves a link building company, only to offer you personal blogging networks, link farms, and other harmful SEO practices. Here are some common warning signs:

  • Too-good-to-be-true promises: It’s impossible to guarantee search engine rankings – there are too many factors affecting your position on Google. Any agency that promises guaranteed rankings or instant success is a sham.
  • Low prices with big promises: High-quality link building requires the work of an entire team, plus often fees that many quality websites demand. If the link building company fee is suspiciously low, you’re probably paying for harmful, risky/spammy practices.
  • Evasive answers: An agency that can’t clearly explain its link building techniques or dodges your questions is probably best kept far from your business.

Building a partnership that works

Digital marketing is more than just a one-and-done process. 

You will likely need to cooperate with the link building company for years – links die, and your website will stop giving you the necessary “juice.” In fact, 74.5% of links were lost in the previous nine years, according to Ahrefs.

That’s why you need to find someone who has been in the link building business for a long time and can maintain long-term partnerships. Focus on:

  • Communication: Responsiveness is one sign of how much the company will prioritize your account. If it’s slow to respond or unwilling to provide clear updates, it might be a sign to look elsewhere.
  • Tangible results: Ensure you see measurable outcomes, such as improved rankings, traffic, and conversions. Here is an example.
Building a link building partnership that works

A real estate investor contacted Stellar SEO after getting hit by a Google helpful content update. We recovered his site traffic and 5Xed monthly visitors, significantly boosting motivated seller leads.

  • Transparency: Demand transparency in reporting, quality control, fee structure, and any other aspect of work.

Trust, but verify to find the best link building service

Look for a link building agency that:

  • Understands your niche.
  • Has the right strategy.
  • Measures its success using relevant metrics. 

Finding the right link building services isn’t about the cheapest option or the instant success. It’s about finding a team that has carried its clients through years of Google updates – and one you can see yourself working with for the next few years. 

Stellar SEO has an average client retention time of more than five years for direct clients. We also partner with several great digital marketing agencies that love our flexible white-label link building services.

While high-quality backlinks are only part of the equation for SEO success, they carry significant weight, making them a sound investment in 2025.

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