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Take Control of Your Search Engine Placement with Google AdWords

Many businesses have all but given up on achieving top placement in the search engines. Google — the most important search engine by far — in particular gives individual sites very little control over their own placement because one of the most important factors Google considers is link popularity: the more sites that link to you, and the more popular they are, the better you'll rank. Most businesses, however, don't have much control over getting links on big, popular sites, which limits the potential for their search engine success.

What are AdWords?

The best way to overcome that limitation is by paying for sponsored placement. Google calls their pay-per-click program Google AdWords. It works something like this: For a one-time $5 setup fee, you can create an unlimited number of so-called Ad Groups. An ad group is a cluster of keywords and ads (or just one ad). Whenever someone searches Google for one of the keywords in your ad group, your ad appears on the right side of the search results (that's called an impression). You don't pay for the impression — you only pay if someone clicks on your ad. You tell Google the maximum amount you're willing to pay per click and the maximum you'll spend per day. The more competitive the keyword, the more you'll need to bid to appear in the top results.

Clickthrough Rates

As easy as Google makes it to get started, there are two requirements for making your AdWords campaign a success. First, you want to get a high clickthrough rate. That's the number of times people click on your ads compared to the number of times your ad appears (impressions). The most important factor for getting high clickthrough rates is how relevant the ad is to what the user is searching for. For example, if someone searches for "power drill," they might see two ads: one that talks about a large selection of power drills, and one that talks about hardware. The power drill ad will seem more relevant and will get a better clickthrough rate. The more terms people might be searching for that relate to your offering, the more highly specific ad groups (again, ad groups are clusters of keywords and their corresponding ads) you'll need to create so your ads will be more relevant for those terms. The more general the ad, the less well it will work.

Conversion Rates

The second requirement for a successful AdWords campaign is a high conversion rate. That's the rate at which people who click on your ad buy your products, submit an inquiry, register, or whatever it is you want people to do when they're on your site that you would consider a conversion. Again, relevance is the key. It's easy to find keywords and write ads that people will click on, but if what they find on your site isn't relevant to what they thought they were going to get, you won't get many conversions. Your AdWords campaign will have a low return on investment because you're paying for clicks that aren't resulting in business.

An Example

Let's look at an example so you can see how increasing both clickthrough rates and conversion rates can increase your ad's effectiveness exponentially.

If your AdWords campaign results in 1000 impressions and 5 clicks (0.5% clickthrough rate), and 1% of your visitors result in a conversion, it will take 20,000 impressions to get one conversion.

Now let's say that you optimize your AdWords campaign so you get a 2% clickthrough rate. Out of the same 20,000 impressions, you'd get 400 clickthroughs and 4 conversions — a 400% increase in conversions, just by optimizing your ad groups.

Now let's say you also improve your site to increase your conversion rate from 1% to 2%. Out of the same 20,000 impressions, you'd get 8 conversions — an 800% increase. At 20,000 impressions per day, that's the difference between 30 and 240 conversions per month. Depending on the nature of your business and the lifetime value of a customer, the reward could be enormous.

Properly setting up and optimizing your AdWords campaigns is a time-consuming process that requires an ongoing commitment to researching keywords, adjusting ad copy, optimizing ad groups, and studying your competition. If you'd like to speak with us regarding setting up and optimizing an AdWords campaign to promote your business, please contact us for a free estimate.