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Google Adwords, how does it all work?

Google Adwords, how does it all work?

Today's major search engines play a tremendous role in promoting your business much faster and cheaper than any traditional marketing medium known to man.
Your products or services can be viewed instantly by millions of consumers with a click of the mouse around the clock. Your products and services are no longer limited to a specific geographic area, They are  now visible to any consumer with access to a computer and an internet connection no matter where they are on this planet.

Yellow pages and directories especially this website (merchantcircle.com), insiderpages.com and dexknows.com  are good examples of places where you can place your ads to boost your chances and push your wesbite to the top of the search engines without you knowing how to do any of this. All it takes is to place an ad and watch it perform magically for you.
Another tool you may use is link exchange and particulary with companies in your industry with a fair amount of visitor traffic.

Creating a successful online campaign on Google, Yahoo and msn will definitely make a big difference in your bottom line. It will also give your business high visibility it needs and help your business grow tremendously and quickly.
Unlike traditional shops that cater to a very local market, today's e-commerce can sell products not only to consumers from other states but also to other consumersin other countries.
The internet has aslo leveled the playground and allowed small and medium companies to compete against the giants of the industry in all the markets in the world.
 
Even though most businesses believe in this new marketing medium,they still do not put too much effort to use it to their advantage.
Some of the reasons why they do not pursue this are:

They do not know how to do it  themselves and think hiring someone to do it for them will cost them too much money
The belief that you have to be a big company with deep pockets to do it.
The idea that it is guess work and requires a lot of trial and error before you refine your campaign and have some return on your investment.
The belief that it takes a lot of time to manage the marketing campaign.

How Pay Per Click Advertising can help your business grow:

Google, Yahoo and MSN are the giants of the search engine world even though there are other players in this market.
These giants make money by selling online ad space to all sorts of companies in all walks of life.
They do it by letting businesses bet on Keywords and keyword phrases.
Keywords and keyword phrases are what online consumers type to search for a product or a service.

If you are trying to buy a computer online, you can type the word computer or you can be more specific and type Dell computers.
You can even be more specific and type Dell computer deals to see what kind of deals there are out there.

You can even decide to be a little more specific than that and say: Dell computer deals in chicago.

As a Dell reseller, I can bid for some or all of these keywords and phrases.
The more specific I am the lesss costly the keyword phrases are.
If I am a computer repair shop, my keywords would be something like: computer repair, computer repair chicago, computer service, computer repair services ect..


How does it all work?
A business owner creates an account with Google and sets up a campaign and an ad group under the campaign and then ads under each ad group.
These ads would look like the following:
Chicago computer repair
Onsite same day service $25 off
100% guaranteed call 877-222-8598

When a visitor goes to Google to search for a computer repair shop in chicago, they would type something like: computer repair shop in chicago
The ad would come up and the user would click on it and get to my website.
As soon as the ad is clicked, Google would charge my account a certain amount money regardless of whether the visitor called me or not.
Google does not guarantee you business but it guarantees you exposure and a chance that a visitor looking for your services may actually call you for service.

Everytime your ad appears on Google, it is called an impression.
if your ad appears 100 times and it was only clicked 10 times then, your click through rate would be 10%.
Now if your ad was seen 100 times and was clicked 10 times but only 1 person actually called you then your conversion rate is 10%.
Conversion rate is the number of clicks divided by the number of calls you received from the customers.
If your computer repair shop is in Chicago, you do not have any reason to advertise to the whole United States, Therefore you need to target your Chicago area customers and both Google and Yahoo allow you to specify the geographical region where you intend to advertise.
 
Search engines also give you the opportunity to decide what your daily budget would be.
You can spend as litte as you want and as much as you want depending on the size of your business and how aggressive you want to be.
You can bid lower or higher and you can even choose what time of the day you want to advertise and what times you dont want to.
if your daily maximum is $50, you can spread that $50 dollars throughout the day or you can use it right away and after that your ad will not show up until the next day.

Search engines also allow you to choose what external websites you want to show your ads on. You even get to pick a different dollar amount for advertising on those placement websites.
You also have the option of running to ads to see which one performs better so you can keep the one that performs well and delete the one that does not.

You are asked to point your ad to your website as part of setting up the Google ad under the Adwords campaign. It is recommended that you point your ad directly to the page with the product or service you are trying to promote and not to the landing page.
It is very important that the page the ad is pointing to is designed correctly and that it meets the minimum graphical user interface criteria.

For a successful online campaign, you may want to consider using a combination of adwords, organic (also called natural) optimization, online yellow pages ads, directories as well as link exchanges. With all these put in place your will have a much more successful campaign than if you just used one of them.
You may even want to combine these with other traditional campaigns if you still have some money in your maketing budget..



3 comments | Edit Bookmark: del.icio.us | StumbleUpon | Digg

Posted 10:20 PM November 17, 2008


Comments:

This is a very informative post. This will surely help for my business online. Using Google adwords will surely contribute significantly for my advertising campaign.

Comment by Roy Van Rivero on 08:44 AM November 19, 2008

Dear Roy, I am glad you can find this article helpful to your business.
If you need any further assistance you can contact me. I will be more than happy to assit you. You also need to know about web analytics and that s how you track people who visit your website and those who click on your ads. Web Analytics will help you see which visits turned into business so you can measure your ROI (Return on Investment) In other words you will look at how much money you spent on google or yahoo ads and how much business you got out of it. With web analytics you will be able to figure out your conversion rate easily. It is basically the number of clicks divided by the number or buyers if you sell products.
Al Yabi
877-222-8598

Comment by Al Yabi on 10:18 AM November 22, 2008

Earning money has online never been this easy and transparent. You would find great tips on how to make that dream amount every month. So go ahead and <a href="http://www.tipsforearnmoney.com">click here </a> for more details and open floodgates to your online income. All the best.

Comment by joana on 01:11 AM July 23, 2010
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