The Google AdWords arrive from Google in 2002 as a self
service advertising program for small businesses. It
avoided monthly payments to Google for the Google managed
adwords program, which was not affordable for many
businesses. Google would otherwise set and manage the
campaigns. Google still has a program where it manages
campaigns for its clients but the Adwords program is far
more popular today. Google has made the program so easy to
set up and use, that it is the major revenue generating
sector of the company.
Setting up a Google Adwords account is simple and fast.
You just login to Google Adwords pay about $5.00 and that's
about it for opening up an account. Then the next thing
you do is set up your campaign. This involves selecting
your keywords in a way that each keyword relates to your
target audience. Based on your keywords, you then write
your three line ad and tell searchers where to find your
website.
If this sounds complicated it really isn't. In fact,
Google helps you do just about everything,including
selecting the keywords. Google also has a routine that
will estimate the traffic to expect, the bid cost and the
position on the page when your keyword is searched. And
there is more. Google will optimize your campaign for you
at no additional cost.
While the setup and start of a campaign is fast and easy,
the question now is how good is it? Here are some metrics
you can look at and evaluate.
· First, you want to know how often your ad is
viewed by someone. Google calls this an Impression. You
will want to know what you a paying for each impression.
This is given in CPMs or cost per impression.
· Then there is the measure called Click Through
Rate or CTR, which is the number of clicks divided by the
number of impressions. Then
· There is the conversion rate that is the number of
sales divided by the number of clicks.
Google even helps you tie all of this together with what
they call a Quality Score. This is Google' measure of how
well your ad relates to your web-page and to your website.
However, some of the components of the quality score (QS)
are kept secret however. If you have a high QS, then
Google gives you a better page position at a lower bid
price. This way, with a higher quality ad you can obtain a
better search engine position for less money.
Well is all of this really worth it? Consider this:
· Google gets about 47% of all search engine traffic
and that's about 234 million searches each and every day.
· You can easily design your campaign to target
specific audiences or traffic that you know has an interest
in your product or service or they would not click on your
site.
· You can set a daily budget limit for your
advertising cost.
· Google will help design your ad campaign.
· You are charged only for the clicks that you get
so you are only paying for results.
· The reach can be expanded via use of their content
network.
· Local and regional targeting are also available.
You can set your ads to appear only to people searching in
a particular state, city, or region. Now it's easy to
target online customers within, say, 25 miles of your front
door.
Google Adwords is a very powerful advertising program but
will it guarantee you will make a profit?
Of course not, but profitability is a challenge with almost
any business whether brick and mortar or online.
So in later installments, I'll discuss the problems and
strategies for winning with the profitability challenges of
Google Adwords.
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John R. Lane, MBA
http://www.MyCashFlow-Website.com/
Profit Strategies For Internet Marketing Using Google
Adwords and Other Search Engines.