David Leonhardt’s SEO and Social Media Marketing

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How to NOT Lose Money with AdWords

Google AdWords is the perfect way for you to reach more members of your target audience online. When you create an account, you’re immediately given $100 worth of free credits. With this amount, you can instantly post ads that millions of people around the world can view. While this is a great thing, it also means that you can easily spend tons of money on your online marketing campaign without yielding a return on your investment.

Below are a few concepts that you should know so that AdWords advertising will become more effective for your business.

Keyword Research

This is to help you figure out what search terms users are entering to find you and other similar businesses, you may use one of the many free or proprietary keyword tools out there. Utilize those tools to create a good list of short and long-tail targeted keywords that will broaden your reach.

A final tip on keyword research is to remember that AdWords is a prime space for ads. This means that you’ll have to compete with others in terms of relevancy to searches. The way to win is to set a fixed budget and look for keywords that won’t cost you so much per click. Remember, that there are other keywords that your competitors haven’t exploited yet. If you only choose popular keywords, you’ll find yourself strapped on cash.

Keyword Matching

When you input your key phrases into AdWords, you’ll be given three matching options. Let’s say that your keyword is “wooden doors.”

  • Broad Match. This tells Google to match the searches that it thinks are relevant to your ads. Don’t get surprised if Google decides to match “glass doors” to your ads.
  • Phrase Match. If you choose this, Google will match your ads to searches using your key phrase in its exact form and sequence. Using the example above, Google will match your ads with “etched wooden doors” but not with “wooden front doors.”
  • Exact Match. With this option, Google will display your ad in searches that strictly matches your phrase. For instance, your ad will only be shown if someone searches for “wooden doors” and no other words.

 Negative Keywords

 Apart from the three keyword matching options above, there’s negative match, which tells Google NOT to display your ad for searches containing keywords you specify.

Quality Score

Your Quality Score is Google’s estimate of the relevance and usefulness of your keywords, advertisements, and landing pages to viewers. If you score high, your ads will rank better, additionally, your clicks will be cheaper meaning more savings for you.

Focused Ad Groups

Grouping together highly-specific targeted words with the same theme is one of the crucial steps to AdWords success. By doing so, you can track your bids and conversions better. When you know how a certain cluster of keywords are performing, you can put them on hold in order to bring your PPC spending down.

Ads Written for Click-Through Rate

Click-through rate (CTR) refers to the number of actual clicks on your ad per one hundred impressions (i.e. number of users who see your ad regardless if they click-through or not).

General keywords definitely create a lot of impressions, but result in lower click-throughs and conversions because they won’t filter your audience. Targeted keywords, on the other hand, will have a better CTR with less impressions.

If you want to improve your ads’ CTR, you should avoid very general search terms. It’s better to focus on specific keywords that more closely describe your products/services.

Position Preferences

Before, you can specify whether you want your ad to appear at the top of the page or “other” (i.e. side or bottom). But in April 2011, Google retired this option so ad owners have to optimize their AdWords accounts manually to target a specific position. An excellent way of doing this is by focusing on ads’ quality scores in order to not only drive down your PPC costs, but also improve your ranking. But should you determine that the top spot isn’t for you, since your ads are already earning is enough, then you should stick with your conservative keywords.

Targeting Search Network vs. Content Network

When you register for an AdWords account, you’ll eventually have to specify whether you want to advertise on the Search Network, Content Network, or both. Choosing content network means that your ads will be placed inside websites relevant to your keywords. Selecting search network means that your ads will be found on Google SERPs.

It would be better if you avoided Content Network because it will only bring in traffic that’s not qualified. For instance, if your website is about coffee beans, your ad can get placed in a site that’s about a song containing the phrase “coffee beans.” Because your ad isn’t relevant to the content of that site, you won’t get any traffic from it and hence your conversion rates will suffer.

Creating the perfect Adwords campaign requires constant monitoring to make the best use of your marketing dollar. With a keen attention to what works and what doesn’t, you can drive down costs and raise your CTR to improve the bottom line for your online sales.

This is a guest post by Michael Hendsbee of Convurgency SEO Toronto.

 

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3 Responses to “How to NOT Lose Money with AdWords”

  1. Gary Bembridge (1 comments) Says:

    Thanks for these tips and advice. I experimented a while ago while Adwords and found was easy to burn through a lot of money without a lot of results – and so one key learning was really also thinking about what page and offer you drive the traffic to so that you get the best conversion possible and so return

  2. Angel (8 comments) Says:

    Great post Michael! Keyword Matching and Quality score are one of the most important things, people should pay attention to.
    If you’d like, check out my article on how to lower your AdWords cpc at http://www.moneytized.com/lower-adwords-cost-per-click/ , I’m sure you’ll like it!
    Angel

  3. David (13 comments) Says:

    I experimented a while ago while Adwords and found was easy to burn through a lot of money without a lot of results – and so one key learning was really also thinking about what page.

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