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AdWords

Pay per click marketing requires a return on investment like any other promotional channel. But what is the right ROI?

A report from The Nielsen Company indicates that online advertising has the highest ROI of any medium. To cut to the chase, it says that the short term ROI on all channels is 109 percent and for online it is 218 percent.

Although some may argue that the online number is questionable, there is no question that online marketing is more cost efficient. It doesn’t require a broadcast TV station, a newspaper circulation department, cable TV fiberoptics or a printing plant to produce a magazine.

In other words, it comes with an immediate cost efficiency that gives the marketer room to experience, fail, try again and succeed at an online campaign without bankrupting the budget.

Let’s define our terms and explore “return on investment” and “return on advertising spend”. (more…)

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Google-adwordsGoogle AdWords campaign management is a practice that requires regular time and attention to generate the highest click-through and conversion rates.

Even better, the discipline of tracking results and improving a campaign’s effectiveness and efficiency will often lower the cost per click. Higher conversion rates with lower costs result in a much better return on investment for the advertiser.

Consider it Google’s reward for using less of its inventory for your campaign and leaving more for someone else to spend money with Google.

Best practices start with dedicating time to campaigns at least weekly. Several times a week if not daily are even better. Why? Campaign results vary based on:

  • The time of year.
  • The competition from other advertisers for the same keywords.
  • The resulting cost of those keywords.
  • The resulting average position of the ads.
  • Thise leads to the resulting click-through and conversion rates.

(more…)

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AdWords keyword mappingKeyword mapping is one of the simplest ways of managing a Google AdWords campaign and is an essential part for any beginner in online advertising..

Mapping starts with creating a spreadsheet that links the three most important elements of the campaign.

Those three elements are the keywords being sponsored, the ads that target those keywords and the landing pages that are linked within the ads.

The reason why this is so important is because you can tell at a glance if the keyword being sponsored is represented by the ad and the landing page.

If it does show up in the ad and landing page, it is much more likely to result in a click on the ad and less likely to result in a bounce when the visitor reaches the landing page.

(The bounce rate is defined as a visitor who comes to one page on the site and leave again, probably because the landing page isn’t relevant or doesn’t have prominent links that invite the next click.) (more…)

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A Google AdWords strategy begins with defining a few simple goals. Knowing these goals will help with the expectations and results of a campaign.

Possible goals include:

  1. Using the monthly promotional budget efficiently.
  2. Growing the product — whether the campaign targets the entire site or part of it.
  3. Using the best keywords that represent that target.
  4. Limiting the cost of those keywords, determined by the AdWords Keyword Tool.
  5. Delivering a nearly exact total for the resulting traffic, which is the monthly budget divided by the average cost per click.
  6. A meaningful return on investment, i.e., profit, increases in audience, etc.

(more…)

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Google-adwordsA Google AdWords marketing campaign can be an inexpensive, efficient and highly educational way of driving targeted pay-per-click traffic to a Web site.

It can be inexpensive because there is no minimum monthly charge.

It is efficient because the advertiser pays only for the click and not the impressions.

It is educational because it will teach the active user a great deal about how people use the Internet to search. It focuses their efforts on relevancy. (more…)

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Google AdWords is a worthwhile cost if it provides a good return on investment. Otherwise, why waste the money?

The most important measures of an ROI for AdWords are revenue and profit. The revenue measure is misleading. The profit measure matters much more.

The revenue may be in the form of advertising impressions if the ads are sold on a cost per thousand basis, cost per click if a network such as AdSense is used, conversions with an affiliate marketing program, e-commerce transaction, etc. (more…)

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