Google Ads for Mental Health Practices

Part 1 – Conversion Tracking

Part 2 – Know Your Marketing Goals

> Part 3 – Budget and Patient Lifetime Value

Part 4 – Ad Rank and Quality Score

Part 5 – Keyword Research

Part 6 – Targeting High Intent Searches

Part 7 – Profitable Bidding Strategies

Part 8 – Creating Effective Ad Copy

Part 9 – Bonus! Campaign Settings

The Essence of Patient Lifetime Value

Patient Lifetime Value represents the total revenue you can expect from a patient over the duration of their relationship with your practice.

This metric is crucial because it informs how much you can afford to spend to acquire a new patient while still making a profit.

Knowing the PLV allows for strategic decision-making, especially when it comes to setting budgets for your Google Ads campaigns.

Why PLV Matters

• Investment Guide: PLV serves as a guide for what you can sensibly spend on acquiring new patients.If you know a patient’s value to your practice, you can tailor your cost-per-click (CPC) bids and overall advertising spend to align with this value, ensuring a positive return on investment (ROI).
• Competitive Advantage: Many competitors might shy away from higher CPCs due to a lack of understanding of their PLV. By doing your homework, you can confidently invest in more competitive keywords, knowing that the returns justify the expenditure.
• Service Line Profitability: Mental health practices often offer a range of services, each with different PLVs. By breaking down the value by service line (e.g., TMS therapy, medication management), you can more accurately allocate your advertising budget to maximize profitability across your practice.

Calculating PLV and Its Implications

Let’s consider a hypothetical scenario to illustrate how PLV impacts your Google Ads strategy:

• Cost Per Click (CPC): $10
• Conversion Rate: 5% (meaning it takes 20 clicks for one conversion, or a cost of $200 per conversion)
• Patient Acquisition Rate: 50% (of those who fill out a form, half become patients)
  In this scenario, the cost to acquire a new patient is $400 (because only 50% of conversions result in a new patient). If the PLV for a service line is significantly higher than this cost (say, $5,000), then the $400 spent is a worthwhile investment.

Implementing PLV in Campaign Strategy

Understanding PLV is just the beginning. Here’s how you can implement this knowledge into your campaign strategy:

1. Keyword Strategy: Focus on keywords that align with high-value service lines. By understanding which services bring the most value, you can prioritize these in your Google Ads campaigns.
2. Budget Allocation: Allocate more budget to campaigns targeting high-PLV services. This doesn’t mean neglecting other services but rather ensuring that your spending reflects potential returns.
3. Performance Monitoring: Use PLV as a benchmark for evaluating campaign performance. It’s not just about the number of conversions but the quality and value of those conversions.
4. Refine and Adjust: Continuously refine your campaigns based on PLV insights. This might mean adjusting your CPC bids, exploring new keywords, or even revising your landing pages to improve conversion rates.

Conclusion: A Strategic Approach to Google Ads

Patient Lifetime Value is a cornerstone of a strategic approach to Google Ads.

By understanding the long-term value of your patients, you can make informed decisions that drive growth and profitability for your mental health practice.

As we move forward, our series will dive into building effective campaigns, starting with keyword selection, ensuring that every step we take is guided by the insights gleaned from understanding our patients’ value.