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Transcript of Google Adwords
How big is Google Adwords?
Google's self-service pay-per-click advertising system Google's overwhelmingly singular source of revenue (90+%)
How much revenue?
$3 Billion per quarter
$23,124 per second
Somebody's clicking them!
The completion of an action that you value, such as a purchase, registration, or sign-up.
The number of times an ad is displayed in search results or on sites.
Average cost per click. The average price you paid each time your ad was clicked.
The page on a web site where one is taken after clicking on a advertisement.
A campaign contains one or more ad groups sharing the same budget, schedule and geo-targeting criteria.
A word or phrase that relates to the products or services you wish to advertise. When prospective customers are looking for information related to what you sell, and they type your keywords into a search box, your ads may be displayed.
Pay per click (PPC) is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher.
Cost per mille, the advertising cost per thousand impressions
Click-through rate (CTR) is a way of measuring the success of an online advertising campaign for a particular website
Impression share is the number of impressions you've received divided by the estimated number of impressions you were eligible to receive
Advantages of Google Adwords:
Adwords claims that about 80% of internet users.
There is no minimum cost for usage and the client can specify how much their budget is per day between 1 US cent to $100 dollars per click.
Google Adwords places the advertiser in the right place at the right time.
Adwords can get up on the web in as little as 15 minutes.
Adwords has a large array of helps and tutorials available to the starting advertiser.
Disadvantages of using Adwords :
1. Every click to the company website is a charge to the company
2. Failure to make payments for Adwords can immediately remove your presence from Google.
3. No competitor data comparison is shared by Google Adwords.
4. Advertising strategies on Google Adwords still have to be well planned to garner and effective response from the consumer.
5. Adwords must be considered one of a number of tools to be used in promoting the company.
ProActive Software Ltd is a fast growing Web 2.0 company that is quickly becoming a leader in world-class web-based Project Management Software and Time Management solutions.
ProActive Software's typical budget was $1000 per week on Adwords.
They turned off Google Adwords completely for a month to see how it affected sales and traffic.
Google was 80% of there marketing spend so they figured they may lose 80% of new sales.
They were wrong!
They did lose probably 80% of traffic to the website immediately, but here’s the interesting part:
One Month with Google Adwords turned off completely
- Website Traffic dropped about 80%
- New Trial Accounts dropped only 25%
- New Sales dropped only 10%
They then thought they'd then push Google hard. Turned up the Google Adwords spend to $5000 per week ($20,000 per month)!
Surely this would have some impact and we’d all be buying new cars with the flood of sales rolling in! Wasn’t to be.
This is what happened:
One Month with Google Adwords set at $5000 per week! (5x original budget)
- Website Traffic increased 300%
- New Trial Accounts increased 50%
- New Sales increased 10%
So then they did one more experiment and set Google Adwords to $200 per week for a month.
Heres the results:
One Month with Google Adwords set at $200 per week (1/5 of original budget)
- Website Traffic dropped about 10%
- New Trial Accounts dropped only 10%
- New Sales dropped only 5%
Spending 5x the Google Adwords spend didn’t increase sales 500% (only 10% increase). This is pretty dismal. They discovered was that the Google Adwords delivered good traffic, but the traffic that was delivered converted to sale at about 20% of the conversion rate of traffic from natural search engine results.
Consumers pass over ads of businesses unknown to them.
*Winter 2006 Branding Survey
75.4%* of the people say they would choose a business with a small ad that they have heard of over a business unknown to them that had a larger ad.
Only 8.0%* say they would choose the unknown business with the larger ad.
Newspaper, Magazines, Internet, Billboards, Google Adwords
Useful only for consumers who are actively seeking product right now
Useless if consumer already has someone else in mind.
(Radio & Television)
Reaches EVERY potential consumer, those who need it now or may in the future
Establishes Branding Awareness!
While Google is known for its advertising on the web, not many people know that it also allows advertisers to buy TV and Radio ads. Google offers Radio advertising inventory on over 1000 stations nation-wide in the USA, and oﬀers TV advertising inventory on over 100 channels in the USA.
Google AdWords is Google's advertising program. AdWords lets you create simple, effective ads and display them to people who are already searching online for information related to your business.
Google Adwords includes Radio Advertising!
What is Google AdWords?
Google understands the power of Intrusive Media.
"I never click the paid ads..."