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Viewing Double your Sales Overnight with Google AdWordsDouble your Sales Overnight with Google AdWords
By Adam Smith
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I recently had a client for whom we were running a large Google AdWords campaign, where the client had an abundance of different categories and words at which we were targeting their ads. The client was spending around $100 per day on adWords. I recently had a client for whom we were running a large Google AdWords campaign, where the client had an abundance of different categories and words at which we were targeting their ads. We had done broad keyword research, setup around 17 categories with ads all worded and targeted at these categories. The client was spending around $100 per day on adWords and we were easily filling this by mid morning, as the breadth of their keyword list and categories was huge. Some of the terms being targeted were also quite broad (this customer was targeting the home improvement market - with a consumer audience). On to the point: The client pressed me to experiment with a drastically lower CPC than we were using. We were targeting positions 2-4 on average and paying around $0.50-$0.60 per click for website visitors, and it was converting nicely at around 28% (their conversion actions were fairly easy for users to take, hence the high conversion ratios). I was convinced, based on various prior experiences, that lowering the CPC would of course lower the ad position, and that with less people seeing the ads, and seeing them buried down a long list of advertisements, the conversion ratios would surely plummet and the overall cost/conversion would go up - making their campaign less effective. Boy was I wrong! There was a drop in conversions, but it didn't go from 28% to 5% or even 28% to 15% .... their conversion ratios only dropped a little to around 25%. Their cost per click however plunged! They went from paying around $0.55 on average per visitor to around $0.25 per visitor, and with conversions holding their ground, their cost/conversion also plunged! The results: The moral of the story: While the client was spending a lot of money on adWords, I should make it clear from the start that this approach really works best when you have a limited daily budget to spend on AdWords, and which is being easily filled each day by clicks. If you have a very small but lucrative market you are trying to reach, and a big budget, you may be in a situation where you are bidding big prices in order to win the clicks of a small group of people, so lowering your Cost per Click (and ad positioning) in this scenario may not make sense. However, if you have a very broad keyword inventory, and you're easily filling your daily click budget - I would strongly encourage you to do the following: If you have your conversion tracking set up properly, you should be able to observe clearly the variation in conversion percentages. From my experience now in trialing this approach for over six clients in the last few months, I predict that you will see a lowering in conversion, but in most cases, not as far as you think and you will likely see a drastic increase in the visitors, and conversions you are achieving within your limited budget. If you suddenly find you are underspending your daily click budget, then perhaps tune up the Max CPC bid a little until you comfortably fill your budget, and observe the change in cost per conversions. If you are in the situation described above, where you have a small budget you are spending Google AdWords, and a broad market you are targeting, this is highly likely to dramatically improve your return on ad spending, and potentially transform Google adWords as a channel to market for your business. Clicks achieved in lower ad positions don't necessarily convert at a lower rate! As with everything in online advertising ... don't hold onto past prejudices about what you think works - just try it out and see what happens! About the Author: For more information please visit: www.salsaInternet.com.au. Article Source: 1st Rate Articles - http://1stRateArticles.com |
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