Adwords Budget


What Results to Expect from $1000 Google Adwords

google adwords logoA client asked me the other day “which is better – a direct adword spend of $1000 per month with Google, or share in a collaborative campaign for a similar monthly fee, where total spend is 100 times that”. I had to ask for time to carefully consider this request and my response.

Both Options have Merit

My instinct tells me that for many businesses a direct campaign with a budget of that amount will normally be better. But a total budget of $100k /month sounds very inviting. My first response must be; investigate how the collaborative campaign funds are used relative to your business.

If the advertiser (the client) has a good idea of the key terms he wants to use for the Adword campaign, and only needs results from a small possible selection – let’s say 10 terms – 10 ads, then the money may be better used in a private campaign.

However, if he wants to cover as many options as possible, then the group scheme may be better.

Are the fees used for key terms relevant to the business

My client needs to consider his own business operation. He is a sole-trader in a very competitive market sector, servicing a small area on the south-eastern coast of the USA. Clicks from outside this region will have no value; e.g. the client wants to sell laptops to buyers in Miami. Search terms not specific to the geographic region will only cost him money, not bring potential customers. So if the terms the collaborative buys are national, this is money wasted from his viewpoint.

Can he choose the terms his fees are used for? This is a question to ask management of the collaborative. If not he is possibly better off spending the budget directly with Google and buying only very specific key terms.

Where will the Adwords Appear

Another consideration must be where the links using the adword budget will appear. Google offers several places to choose from

  • On Google search result pages
  • On websites that have signed up to display adwords
  • Mobile phones, tablets, and similar devices
  • People in specific locations
  • Specific languages
  • Specific audiences

your adwords here graphic exampleThe advertiser needs to decide how his budget for adwords will be used. Does he want links in SERP, on other participating sites, for mobile device users, only for his locale or nationally, or to audiences defined by critria such as previous visits… Will the collaborative use the fee the way he wants, or will it be spread over all possible placements, or only for one of the options? Can the client choose the way the fee is used.

Unless the collaborative uses the money taken in fees the way required, a private campaign will probably be a better option. Before deciding, the advertiser will need to decide where the best results are likely to come from.

For my client, I would suggest that if choosing a private campaign, the adwords should be used to place links in SERP, and for mobile device users. And the results should be limited to searchers from his geographical feeder area to optimise the advertising spend. Where your ads can appear (Google.com)

Ad Components

All online ads are essentially clickable messages that connect customers with a website.
Text ads, the simplest version of a clickable message, contain three components: a headline, display URL, and a description. Let’s look at the components of the sample ad below (The components of a text ad – Google.com)

The ad needs to attract clicks by visitors looking for the specific product, or a least a very similar product. An advertiser considering using a multi-user ad campaign should find out how well the ads are tailored to his business. Will they be sufficiently product specific to weed out click-throughs by searchers not looking for the specific content on the linked page (wasting money) or will the ads be generic – in which case they may lead to a lot of traffic, but few results (sales).

Landing Page Quality:

For the ad to place highest in SERP – unless the advertiser is willing to outbid all other contenders for placement, the Google Ad, keyword term and landing page (the page linked by the ad) all need a high degree of relevance. Simply put, the page the ad links to must have a good chance of getting into high organic results eventually.

In the same context – can the advertiser choose the landing pages for specific ads – or will they all just lead to the same page of the website. If leading to the same page the opportunity to grab visitors attention and convert to customers is diminished. Consider a typical website front page – it is often generic to the site content – in fact it should be. But a generic page is not what the visitor may have expected from the Google Ad – more likely content very relevant to the ad text is anticipated. A visitor finding anything other than the exact content expected is likely to click-away. The same as visitors attracted by SERP snippets do when finding irrelevant content after an enticing snippet.

Will you get a fair share of click throughs:

If you have your own campaign using Pay per Click, then you are paying for visits to your site – only. If using a group ad campaign, can the advertiser be sure the fee will generate as many clicks? That is a question I cannot answer – only the collaborative advertising management team will know.

Looking at Google Pay per Click Adword analyses for terms relevant to my client, average spend per click is around $1.15 per click, up to $1.60 for several very competitive terms. If we estimate total clicks at let’s say 700 per month (for $1000.00 spend) from a private campaign, will the same fee spent on the group scheme always lead to a similar number of clicks on the linked page.

Adwords Will not Improve Organic SERP:

This is a question often asked: The answer is no. Organic SERP is based on content quality, relevance to search terms, page rank and site rank and the hundreds of other things Google’s algorithm considers when returning organic search results.

I hope this article will help my client decide his advertising campaign choices…

me on google plus+Mike Otgaar

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About Mike

Web Developer and Techno-geek Saltwater fishing nut Blogger

Posted on March 22, 2012, in Google and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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