What is it?
Google AdWords is Google’s online advertising platform and is based on the “Pay Per Click” (PPC) model or “cost per thousand impressions.” AdWords ensures traffic if it is used effectively. On average, PPC produces five times the return on investment than other online marketing methods. PPC allows you to target your desired audience more than using search engine optimization or social media marketing. The cost per click (CPC) is determined by the number of competitors and their bidding. PPC allows you to decide exactly how much you want to budget every day and adjust as you go along.
How it works
Every time someone enters a search into Google the auction process occurs. AdWords finds all the ads whose keywords match and of those ads the ones with sufficient quality scores and bids are shown ordered by ad rank. AdWords uses the maximum bid and quality score to determine the position of the ads.
Keywords
Create a list of keywords that you want your business to appear for. It is suggested that you create your keywords before creating your ad copy (what your ad says). Google AdWords keyword search tool will give you a list of related keywords and traffic data when you enter a word, which is a great tool to develop your keyword list.
Ad
You should specifically design ads for your keywords. Ads like, “Looking for computer support?” or “20% off website design” are both specific and relevant enough to their according keywords (computer support and website design) for people to click on them. Including prices, promotions and exclusives are great for ads. Using call to action words, (like purchase, buy, order, get a quote, etc.) empowers customers. Include one of your keywords to show relevance. Consider creating several ads for each keyword and seeing which performs best.
Landing page
Your landing page is where users are directed when they click on your ad. If users click on the ad and the landing page isn’t what they are looking for they will go back and click on another. Matching your landing page to the ad and keyword is vital to your quality score.
Budgeting
Pay per click means your ad can be displayed thousands of times but if it is only clicked on once, you only pay for one click. In order to determine how much you will pay per click you place a bid, which is your maximum Cost-per-Click. You also set a daily budget for your campaign. The higher the ad the more often it is clicked on. You have to outbid your competitors for your ad to be displayed above them.
Quality score
Quality score is an algorithm that gives each of your ads a relevancy score, numbered 1-10. They are an estimate of the relevance of an ad, keyword and landing page to the person searching. This means that your keywords, what your ad says, and your landing page should be highly relevant to one another to get a high quality score. Ad rank is maximum CPC bid x quality score. A good quality score can make a big difference. If you double your quality score you can reduce your bid to half the amount without affecting your volume. This makes your quality score very important!!
CPC Metrics
Average CPC is found by dividing the total amount spent by the number of clicks. Actual CPC is calculated by ad rank of the advertiser below you divided by your quality score plus one cent. Click Through Rate (CTR) is the percentage of impressions that turns into clicks and measures the efficiency of your campaign. If your ad shows up on 1000 searches and it is clicked on 50 times your CTR is 50/1000 = 5%. Conversion rate is the percentage of clicks that turn into conversions (sales, quotes, calls, etc.). If you have 50 clicks and 5 conversions your conversion rate is 5/50 = 10%. Cost Per Acquisition (CPA) is the amount of money you are spending on each conversion. If you spent $1,000 and had 100 conversions your CPA is 1000/50 = 20. So you are spending $20 per conversion. The lower your CPA the better.
Google AdWords is the most effective online marketing tool, if you use it the right way. Getting a trustworthy company to set up and manage your AdWords campaigns ensures success. Call MOTIONBORG today at (954) 441-1049 for a free quote.
Rebecca Hunter
MOTIONBORG, Inc.
Technology Consultant at MOTIONBORG
With a natural passion for technology, he is always on the search for next great invention to test out and play with. Enjoys sharing his thoughts and knowledge with others through blogging. Helping business owners on how to better utilize technology to their advantage has become the true meaning of success and life.
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