Brad Geddes / PPC Geek
Official AdWords Seminar Leader.
Author of Advanced Google AdWords.
Co-Founder, Adalysis.
(312) 884-9017

Blog.

Creating Limited Time ‘Sale Campaigns’ in Google AdWords

Many companies run limited time sales. Creating ads with creatives such as:

Limited Widget Sale
Low prices from $150!
Sale ends 7/5/2004
www.example.com/Special

can have a very positive response, as the end date will compel people to check out your offer while it still lasts.
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Don’t Search For Your Own Keywords Over & Over

Your pay per click effectiveness in Google AdWords is measured by click through rate. If you search for a niche keyword (which should not gather a lot of impressions) a lot of times, you will deflate it’s click through rate unless you click on it.
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Branding with Google AdWords Content Syndication

Question: Is it worthwhile to pay more for Google AdWords content targeting to get the free branding?

Answer: Before you can determine how much you wish to pay for Google AdWords content syndication, you have to define your websites goals. Let’s look at the broad types of websites and their advertising goals.
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Understanding Google AdWords Ad Rank

  • Ad rank is the position of your ad in search results.
  • CPC is cost per click (sometimes referred to as MCPC when dealing with AdWords, meaning Maximum Cost Per Click).
  • CTR is your click through rate.
  • Bid rank is determined by max cpc x ctr.

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Remember your content bids

It amazes me how many people have never changed their content based bids since the system went live.
I thought OV did a decent job of informing people of the system differences. Maybe if you don’t read your OV mail or belong to a board like this – you’d never know it happened.

The autobidders aren’t picking up on the search vs content difference, I’m guessing. I haven’t tested all of the software packages since the change went through.

We’ve have a multitude of content bids where we are in 3rd place with this type bidding structure:
1. $5.00
2. $4.99
3. $4.98
4. $0.11
5. $0.10

A rough estimate says 75% of content bids have not changed once since the changes went through – yet their regular bids have changed.

Its very obvious who’s using do it yourself ppc auto bidding software, and who has a competent individual monitoring their accounts.

Just a reminder, don’t forget content bids.

Forget ROI – Just Give me Profits

I just finished putting together a report from some experimentation done with one of my accounts. I found the results interesting, and thought some here might find them interesting as well.

This is a site that I’ve been working on since pretty much the beginning of AdWords, so I’m very familiar with the KWs and ads for it.

I often find that people look at ROI over the bottom line, when its the bottom line that means more to me.

Average Sale Price: Roughly $200 (Numbers have been rounded off )

Average
Position
CTR Clicks CPC Spend Profits ROI Conversion
Rate
Sales
1.1 16.5% 993 $3.25 $3227 $744 23% 2.0% 20
3.5 8.1% 512 $2.68 $1272 $1187 87% 2.5% 13
7.6 2.2% 122 $1.12 $136 $644 471% 3.2% 4

If we went by straight ROI, the 7.6 position is the way togo, however, position 3.5 makes $543 more over the trial period, and I’d rather have that bottom line. Even position 1.1 ends up with a higher profits than 7.6 with a much lower ROI.

As expected, there is a significant conversion difference between the various positions. The CTR of the ad in the premium position, admittedly, did surprise me. And therefore the CTR difference between position 1.1 and 3.5 was quite significant. The CTR of position 7.6 was around my projections.

But we really aren’t done yet. This site’s visitors usually buy more than once during a year, without going through the math of actual returning customers, I’ll simplify it saying that it averages 1.3x per customer per year. So
1.3 x $200 x #Sales – AdWords spend
is what we should consider. This leaves us with this profit:

1.1 position: $1972
3.5 Position: $2108
7.6 Position: $903

Clearly 3.5 is the best position for this particular product. However, (and this is where egos come into play), the difference between being first and on the side is minimal, and those would be sales that your competitor didn’t get. If the projections were made into year 2, then position 1.1 is definitely the way togo as those returning in the 2nd year will definitely make the profit margins worthwhile.

However, position 1.1 must maintain that conversion rate. Any drop with that CPC and the site will quickly get into trouble. Position 3.5 can drop the conversion rate a little and still be quite profitable due to it lower spend than the premium position. In fact, if its conversion rate drops to 2%, its still as profitable as position 7.6 in the short run, and better in the long run.

If this site offered a newsletter to keep in contact with former buyers and help to increase the average buys/year/customer, then I would definitely suggest the top position for the sheer volume of sales and therefore, a higher projected number of signups than the other positions.

In any case, enough ranting for now, don’t measure everything by ROI. It is definitely a measuring tool to be used, but don’t forget about the bottom line.

Handling Disabled AdWords Keywords

When Deleting Keywords – Do it Everywhere
If you decide you want to delete a keyword, either due to poor performance, the keyword being disabled, or moving it elsewhere, there is a very important rule to remember: Delete every instance of the keyword in your account.
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Always Make Multiple AdWords Ads

Google AdWords gives you the ability to make many ads for each keyword group. Take advantage of this opportunity to try different ads. You will be amazed at the difference a few words can make in targeting your users.
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