What Is Google AdWords And How Does It Work?

0
196
Google Adwords
Google Adwords

Let me start this article by asking a simple question, “What is Google AdWords?” Yeah…You’re right! Google AdWords is a simple Google platform that allows you to creatively use text and images to reach a huge base of targeted audience. Using Google AdWords is the simple yet effective way to get your company listed in the top of Search Engines and also to get noticed by millions of customers.

Interesting Facts on Google AdWords

  • More than 8 billion searches per day on Google representing infinite possibilities for advertisers to reach their customers.
  • Google AdWords accounts for 97% of Google’s revenue
  • Google earns 77.8% of US search ad revenue
  • 50% of Google users can’t tell the difference between ads and organic search results
  • Google has tracked 4 billion store visits from its ads
  • 6% of Google add clicks come from desktops, 48.9% of Google ad clicks come from smartphones and 11.5% of Google ad clicks come from tablets
  • There’s a 19.3% click-through rate for a desktop search ad in the first position and an 11.4% click-through rate for a desktop search ad in the second position
  • Amazon is the largest AdWords advertiser
  • For every $1.60 businesses spend on AdWords, they make an average of $3 in revenue

From the above-mentioned statistics and facts, hope you came to know about the importance of running Google AdWords Campaign.

Design an Effective AdWords Campaign

Google Adwords
Google Adwords

Now you came to know the importance of having Google AdWords in your digital marketing strategy. Unfortunately, you could waste a lot of time and money if you don’t know what you’re doing. But you don’t have to risk it! In this article, we are going to explain the process of running Google AdWords Campaign. Read our step by step guide on Google AdWords.

How to Run a Google AdWords Campaign

To start your campaign, go to https://adwords.google.com  find the “Get started now” button, and sign up for an AdWords account. Once you’re logged in, click the “Create your first campaign” button.

Step 1: Select your campaign type and name. First, choose the campaign type—for now, we highly recommend the “Search Network only” option, and then give your campaign a name.

Step 2: Choose the geographic location where you’d like ads to show. Next, decide how large or small a geographic area you want to target. You can choose whole countries, regions of countries, states or provinces, cities—even U.S. Congressional districts

Step 3: Choose your “bid strategy,” and set your daily budget. Change the default “Bid strategy” to “I’ll manually set my bids for clicks.” Ignore the “Ad Extensions” section for now. This is an important part of any campaign, but leaves this for now and adds these later after you’ve finished all nine steps. Click “Save and continue.”

Step 4: Create your first ad group, and write your first ad. Use your keywords in your headline when you can. You’re limited to 25 characters here, so for some search terms, you’ll need to use abbreviations or shorter synonyms.

The second and third lines allow for 35 characters of text each. In most markets, you’ll be more successful if you describe a benefit on the second line, followed by a feature or offer on the third line. Later on, you can test which order converts better.

The last line is your actual destination URL or your specific chosen landing page. You can also use a tracking link here.

The template is as follows:

Headline: up to 25 characters of text

2nd line: up to 35 characters

3rd line: up to 35 characters

4th line: your Display URL

Step 5: Insert your keywords into the keyword field in your account. Paste in your keywords. Start with just one set, and add plus signs (+), brackets ([ ]), and quotes (“ “) to see precisely how many searches of each type you’ll get.

Step 6: Re-Check everything. Double-check your ad and keywords to be sure they’re the best possible match. Check your cost-per-click to be sure you get the positions on the page you want. Double check your daily budget to be sure you don’t unwittingly drain your bank account right out of the gate.

Step 7: Enter your billing information. Your ads will start showing as soon as you confirm your payment information. Now you’re set.

How to Create a Successful Profitable Google AdWords Campaign

If you’re just starting your journey, then fear may be dominating your thoughts, so in this article, my goal is to put you at ease. The steps I’m about to go through will ensure you’re depositing more money into your own bank account, rather than just funding Google’s empire.

Phase #1: Customer Demand

The first ingredient is customer demand. If your customers are not searching for your product or service in Google, then obviously, AdWords search advertising is not going to work for you. So, before you get too excited about creating your first campaign, you need to verify there is, in fact, search volume for what you’re going to offer.

The tool to use is the Google AdWords Keyword Suggestion Tool (https://adwords.google.com/select/KeywordToolExternal). The keyword tool acts much like a thesaurus. You enter in phrases you think your prospects are searching, and Google tells you other similar, relevant phrases. Google also will tell you how often people search these phrases, how competitive the keywords are in AdWords, and how much it’ll cost to advertise for each keyword. All of this information will help you determine which keywords you want to use in your first campaign.

Google Adwords
Google Adwords

Before you start using the tool, make sure the Advanced Options are set. If you’re in the United States, then set the Location to the United States and set the Language to English. The Device should default to desktops and laptops, which is what you want unless you’re targeting only mobile devices.

Google Adwords
Google Adwords

Next, click on the Columns drop-down menu and make sure to check Competition, Local Monthly Searches, and Approximate CPC (cost per click). Local Monthly Searches will show the searches in the United States (if you picked the U.S. in the Advanced Options). Plus, you’ll see the AdWords competition and the cost per click for each keyword. This will help you analyze the keyword opportunities.

Google Adwords
Google Adwords

Also, when you’re conducting keyword research for AdWords, I recommend you use the keyword Match Type setting called “Phrase” match. This will give you an accurate sense of how many relevant phrases there are per month.

Finally, to use the Keyword Tool, simply type the phrases you think your ideal prospects are typing into Google to the right of “Word or phrase” and click the Search button.

Google Adwords
Google Adwords

When the Keyword Tool refreshes, you’ll see a list of keyword ideas along the left column, which are based on the phrases you typed into the search box. Plus, you’ll see the AdWords Competition, the Local Monthly Searches, and all the way to the right is the Approximate CPC for each keyword. That’s how much it will cost each time someone clicks on your ad.

There are three questions you’re going to ask to determine whether or not to advertise on a particular keyword:

Is the keyword searched on Google? If there is no search volume, then that tells you no one is typing that phrase into Google. There is no point in advertising on keywords no one is searching.

Is the person searching this keyword likely to buy my product or service? Or is the person more likely just doing research with no intention of making a purchase? In other words, what is the intent of the keyword? When starting out, you’ll want to advertise on what I call “buying intent” keywords where the person is clearly looking to buy.

Can I afford to advertise on the keyword? This question is important, but it requires a bit of math to calculate. So let’s take a look at that now.

Phase #2 – Do Basic Math

To answer the question “Can I afford to advertise on this keyword?” you need to calculate your maximum cost per click (Max CPC). You’ll compare your business’s Max CPC to the estimated keyword CPC in the Keyword Tool to see if you can afford to advertise. For example, if your Max CPC is $5 and the estimated CPC is $4, then you know there’s a good chance you can profitably advertise on that particular keyword.

Your Max CPC is determined by your website conversion rate, your profit per customer, and your target advertising profit margin. If you don’t know these numbers, then you’ll need to guesstimate or set up tracking to more accurately calculate them.

Use the formula below to calculate your Max CPC and then compare to the estimated CPC you found above:

Max CPC = (profit per customer) x (1 – profit margin) x (website conversion rate)

Phase #3: Competitor Intelligence

At this point, you now have a list of “buying intent” keywords that you’re confident you can afford. The next step is to reduce your risk by leveraging competitor intelligence. In most industries, you’ll find competitors who already have tested and optimized their AdWords campaigns. That means they have figured out which keywords, ads, and landing pages work and do not work in your market.

Wouldn’t it be great if you could just hack into your competitor’s AdWords accounts and steal that information?

Phase #4 – Plan a Perfect USP

When it comes to AdWords, there are 3 important reasons to create a powerful USP:

First, a strong USP will generate more traffic from qualified prospects (encourage clicks on your ads) and repel unwanted leads (prevent clicks on your ads).

Second, a strong USP will skyrocket your sales conversion rates. So, not only will you generate more traffic because you’ll get more clicks on your ads, you’ll also convert more of your traffic into paying customers.

And third, a strong USP can eliminate price comparison shopping. This can be a game changer for your business because you’re no longer seen as a commodity. If you give your prospects a compelling reason to do business with you versus your competition, then price becomes a secondary issue, and you’ll be able to demand higher prices than your competition without hurting your sales.

To get you started, here’s a powerful USP I’m sure you’ll recognize: “Fresh hot pizza delivered in 30 minutes or less, guaranteed.”

Where have you heard that line before? That’s Domino’s Pizza’s USP, and they used it to build a billion dollar empire. They don’t claim to be all things to everybody. In fact, they don’t even mention quality ingredients, price, or taste. They focused their entire business on the one thing their customers care about most – fast, on-time delivery. Here comes the perfect USP.

Phase #5 – Provide Offers and Freebies

How can you stand out from all the other ads your prospect is going to see in the search results?

The answer is your irresistible offer, which consists of the following 4 components:

Valuable

Your product or service must be more valuable than the price. That’s basic marketing 101. This doesn’t mean your offer has to be cheap. You just need to clearly define all of the value your product or service provides to your customer and make sure it outweighs your price tag.

Believable

When you make an offer that appears to be too good to be true, then your prospect may be a little skeptical. So you must provide a believable reason for your offer.

Reduce or Reverse Risk

Everyone is scared of getting ripped off online. One of the best tactics to minimize the risk to your customer is with a money back guarantee. A money back guarantee puts all the risk on your business to deliver excellent service, or else you’ll have to give all the money back to the customer.

Call to Action

If you want your prospect to pick up the phone and call you, then make it crystal clear and simple to call you. Don’t expect your prospect to connect the dots or search around your website to figure out the next step. Use a strong call to action and keep it simple.

At this point, you’re probably wondering if you’ll ever actually create your AdWords campaign. We’re already halfway through the ingredients, and you don’t have any ads to show for it! Trust me, the first 5 ingredients are absolutely critical, and you’ll thank me later once you’re ads are live and you’re generating profit, instead of loss. But since you asked for it, let’s dive in and talk about creating your ads.

Conclusion,

All right, that’s it! If you follow these steps and include all those steps mentioned above in your campaign, then you will be well on your way to a profitable Google AdWords campaign. Good luck!

Stay tuned with Kranthi for more information!

Comments

comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here