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14 Oct 2015

Why Google AdWords “Does Not Work” for Your Business

Why Google AdWords "Does Not Work" for Your Business

Why Google AdWords “Does Not Work” for Your Business

Warning: If you don’t want to hear the truth (and the truth hurts), please don’t continue reading. But if you do want your marketing skills to improve, then read on!

For the last decade, Google Adwords has been touting to the millions of business owners (mom and pop) that using Pay Per Click advertising is the way to go.

I mean search engine advertising makes perfect sense! Instant placement in search engines, conversion tracking, scheduling, ad variations, and mountains of analytics to prove you are making money.

Plus no waiting around for pesky SEO results to start kicking in.

Before we begin. Google AdWords can also be called, pay-per-click advertising, PPC, search engine advertising or search engine marketing.

While I specifically titled this blog post Google AdWords, the same principles apply to all search engine advertising portals like Bing and Yahoo.

5 Things You Are Doing Wrong

To truly enjoy the power of quality Google AdWords leads, you must not make these five mistakes. But I’ve got a few tricks to help you get the most of your marketing budget.

I mean what’s the point in losing money on purpose?

1.Poorly Written Ads: Google uses an algorithm called ‘Ad Rank’ to determine the position of your ad on its results pages. Poor ads can really damage your click-through rate (CTR) and thus your ‘Ad Rank’ and ‘Quality Score’.

2. Unrealistic Budget: Not correctly pricing your daily budget and per click budget can drastically limit your AdWords accounts effectiveness at attracting quality leads.

3. Lack of Ad Extensions: Google strongly promotes the use of these extensions. For example, Google claims that sitelinks can improve CTR by up to 30%.

4. No Call to Action: Don’t underestimate the power of your call to action. Using an appropriate phrase could mean the difference between irrelevant traffic and your new best customer.

5. Not Having Ad Variations: Do not limit yourself to one ad only. Use this opportunity to run multiple ads to see what resonates with search engines and potential customers.

4 Reasons Why Google AdWords Works

Whether you’re looking to bring in new website visitors, grow online sales, get the phones ringing or keep customers coming back for more, PPC Ads can help.

Your business gets found by people precisely when they’re searching for the things that you offer.

Your ads are your ‘shop window’ and creating compelling PPC ads can mean the difference between your company thriving online, and quietly wasting money.

1. Measurable and flexible: Google AdWords shows how many people notice your ads and what percentage click to visit your website, or call you.

With the tracking tools, you can even see the actual sales your website is generating as a direct result of your ads.

2. Insights: You can see how your ads are doing at any time by logging in to your Google AdWords account.

3. Account Control: You can tweak your ads, try new search terms, pause your campaign and re-start whenever you like.

4. Reach the Right People: Your business gets found by people on Google precisely when they’re searching for the things that you offer.

How Google AdWords Work

It all starts with a query.
When someone searches for something on Google, Google looks at the AdWords advertisers accounts and determines if there will be an auction.

google-search-page

If one or more advertisers are bidding on keywords that google deems relevant to the search query, an auction is triggered.

What gets entered into these auctions?
Advertisers identify keywords they want to bid on, how much they are willing to spend and pair those keywords with relevant advertising messages.

Google then enters the keywords from your account it feels is most relevant into the auction with the maximum amount you’ve stated you are willing to pay for that specific ad.

How do you win?
Once you are entered into the auction Google looks at two critical critical factors to determine where your ad ranks.

1. CPC Bid: The maximum you are willing to spend.
2. Quality Score: This is a figure determined by the relevancy of your ad paired with the search query, landing page relevance and overall ad performance.

The higher the quality score the better.

But don’t assume the automatic winner is the advertiser willing to spend the most. Google’s main product is search results.

On that basis, Google could serve up the ad with the highest relevancy, even if its not necessarily willing to spend the most for the click.

AdWords Creation Best Practices

If you just throw money at a problem, it should be no surprise when it turns out to be expensive.

Optimizing your adwords account is about evaluating what isn’t working – and why. Below are a few common ways that most businesses handling their own adwords account might be able to improve its performance.

If you need help analyzing your account reach out to me.

1. Determine Your Budget
Figure out what your customers are worth and the total search volume for your products and services.

If your average ticket is $1,000 and the potential cost for advertising to every search query is only $500, then it would make sense that within a given quarter you could earn a bigger return by exposing your business to every Googler, good and bad.

Only spending $100 might expose you to awesome potential customers or the casual shoppers not ready to pull the trigger.

2. Find Profitable Keywords
Research your keywords! Are bidding on keywords that are profitable to your business?

If you are on a limited budget focus on reaching customers that make you the most money.

3. Improve Your Quality Score
Making simple changes to your landing page and ad copy can have a significant effect on your quality score.

In turn this will increase your ad placement and lower your per click cost.

4. Track Conversions
Put better processes in place to track where your business is coming from. If you can better determine where your money is best performing you are more confident in spending more.

There’s no point in wasting money on purpose!

Conclusion

When properly configured your Adwords account can consistently send you quality leads that easily offset the advertising cost. If your per ticket item is over $5000 it makes sense to invest in reaching potential customers.

As my coach would say “if the game were so easy, everyone would be winning at it.” Like any game, you learn from your mistakes. If you need help send me a message, or leave a comment below.

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