Thomas Creek Concepts – AdWords Specialists

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What is AdWords, how does it work?

September 21st, 2011 · 2 Comments




What is Google AdWords?

AdWords is Google’s Pay Per Click advertising program. It allows you to display ads on the Google search engine results pages, and the Google Display Network. Ads may appear above, or on the side of the organic search results. Or as image, video, or text ads on various placements in the Google Display Network. AdWords also allows you to place ads on Google partner sites such as Youtube. Pay per click advertising means: You only pay when someone actually clicks on your advertisement. Unlike traditional media, you do not pay to have your ad seen or heard, you only pay when a potential customer responds to that ad. The AdWords interface makes it very easy to track every penny spent on advertising, and verify what value those costs are worth.

Can I use AdWords, will it work for my business?

Anyone can begin an AdWords account for their website and business. Will it work…well, like all things AdWords the answer is – it depends. AdWords is a tool, and like all tools is most effective in the hands of a skilled user. AdWords is not a minimum investment, maximum return proposition. It takes time to learn and is constantly changing. AdWords education is an ongoing process. Even when you think you’ve got it all figured out, seeing things from another perspective inevitably leads you to question your own assumptions.

Before you decide to begin an AdWords campaign, the best thing you can do is take time to read through the help documentation. If you decide that AdWords may be too time consuming for you to manage alone, knowing the basics before you hire someone else to manage your account is in your best interest. How else will you know if you are getting a good value for the fee charged? Whether you decide to hire someone to manage your account or not, the first step to beginning an account is to establish your advertising goals. What do you want a user to do when they see your ad? Click through to the website and make a purchase, sign up for a service, newsletter, or fill out a contact form? Know what you want to accomplish ahead of time, and the approach to accomplishing your goals will be much clearer.

Why should I use AdWords?

Google is the #1 search results provider in the world. Even if you prefer to use another search engine yourself, the odds are that more of your potential customers are using Google than any other search engine. Some may feel that advertising in general is a waste of money for a small business, or that they just don’t have the money to advertise. If every dollar you spent resulted in two dollars profit – not net revenue, but gross profit – would that change your opinion or position in regards to the advertising budget? With AdWords such results are not guaranteed, and to achieve any sustainable profitability takes time and effort.

There may be no substitute when it comes to customer loyalty for word of mouth, but Google knows a lot more people. With the roll out of Google+, establishing a presence on Google can reach more customers who have people in their circles who recommend your business. The exposure of the #1 search provider in the world, and the loyalty that comes from a trusted recommendation.

But, I’ve got someone who does that Google stuff for me already. They posted links and added some keywords on my homepage. Why do I need to pay for people to click on an ad?

Search engine optimization for unpaid organic listings, is different from search engine marketing for paid results using AdWords. Yes, with as much time and effort AdWords requires to be profitable, SEO effort could be just as profitable, with no actual PPC charges. However, with Google’s search results – paid listings will show above and beside organic unpaid listings. With all the options and formats available for AdWords ads, those top position ads can crowd the organic listings down further on the page. This could be a real potential issue for brand terms search results. You may rank first organically for your website name, but your competitors can bid on your domain as an advertised keyword.

How would you feel if a loyal returning customer Googled your website name – to find your phone number, double check your hours, etc. – saw an ad for your competitor above your organic results, is engaged by the message, and ends up being a loyal returning customer for your competition? Angry at Google for allowing competitors to advertise on your brand terms? Remember, that is Google’s business model -  “If you build it they will come”. Google built the content by providing search results more relevant and engaging than their competitors – the product. AdWords, is the mechanism to monetize that product. Your competitors can advertise on your brand keywords, and you can do the same right back. If it costs you literally one or two cents per click, is it worth it to guarantee your customers will remain your customers, after they do a search for your website?

I have an AdWords account, but I don’t understand what my AdWords are!

The lexicon associated with AdWords takes time to learn, and if the definitions of the terms in the help documentation are still unclear, really understanding how it all works will be even more difficult. AdWords, is just the name of the program. Each advertiser will have their own account. Within the account, there can be multiple campaigns. Within each campaign there can be multiple adgroups. Keywords, placements, topics, and audiences, are all different ways to target your ads to users, within the adgroup. Your ads are the only piece of your AdWords account, any user will ever see. It has always helped me to think of an AdWords account as a pyramid, with account at the top, and ads at the bottom.

Account: When you sign into your account, the default page is the home tab. This is a very broad overview of your account, and really lacks the detail necessary to provide any insight. The green tabs at the top of the page – Home, Opportunities, Reporting and Tools, Billing, and My Account – Are the various sections of the account. The campaigns tab is where you will actually manage the content of the account.

Campaigns: This tab is where you will find the sub-section grey tabs for all the adgroups, keywords, ads, and every aspect of your account. Each campaign can have different settings regarding networks, devices, language and location targeting, and daily budget. When you begin your account, if you follow the help documentation to a “T”, you will have only one campaign, with one adgroup, one keyword in that adgroup, and one ad for that keyword in that adgroup. You will also be opted into the search and display networks by default. In this case, it’s hard to be able to view the interface in such a way as to distinguish between the different levels of your account. If you keep the visual of a pyramid in mind while viewing the different tabs, the structure will become clearer.

Adgroups: Each adgroup contains keywords, and ads. The adgroup level is where you set your bid for what you are willing to pay for a click on an ad, when the user query matches the keyword. All of this happens within the adgroup. Again, if you are just beginning, the account wide data will only be for one ad, one keyword, one adgroup, etc. If you have two keywords for example, and want to show a different ad for each keyword, then you could create two adgroups. One for each keyword, with the “right” ad for each keyword. Your ads will only be shown when the settings of the campaign are met, up to the campaign daily budget. If you set your campaign to Portland only, with a budget of $50/day, then your adgroups will only show ads for keywords which match the search query, for users in the Portland area, as long as you have daily budget available.

Keywords: This may seem strange, but do not think of keywords as actual words. Try thinking of them more like computer code. For example, widget is not the same as widgets. The user intent when searching for the singular version of a word vs. the plural may be completely different. Widget may indicate a user is in need of one hard to find, or very specific specialty product. Widgets could mean the user is interested in buying bulk product for resale. User intent is the most fundamental challenge of choosing which keywords to use to target your ads. As the business owner and industry expert, you may know widget is the technically correct term to use for gears, or cogs. But, do not assume your customers will have that same knowledge. That’s why they want to find you, right? It is rare that the initial keywords you choose will prove to be the most profitable keywords. It takes time and investigation to determine what words your target market market searches on to find businesses which offer your products or services. What do you call that long piece of furniture in your living room – a couch, sofa, or davenport maybe?

Ads: Ads are the most important aspect of your account. Regardless of which keywords triggers your ad, the ad is the only part of your account a user will ever see and interact with. As the foundation of the pyramid, the better your ads perform, the better your account performs. Every other level of data in the account relies on the data associated with the ads. Finding out what ad text resonates with your audience is a never ending process. Change your message too often, and you may never be able to establish what or who you are to your audience. Don’t change the text often enough, and users may find your message stale and outdated. Being at the bottom of the pyramid, it’s easy to overlook the ad statistics. Writing ad copy can be the most difficult aspect of managing an account. I never feel self conscious when I create a new campaign, but always feel apprehensive when writing a new ad. Thousands, even millions of people may see that ad. Including the client and the competition. But, you have to start somewhere. What is the theme of your site or business, have you already found a message or slogan that resonates with your customers? What is the message of your competition, and what is different about your business? Just as with keywords, it’s rare that your first ad will prove to be your best ad over time.

By, Tom Hale, Jr.

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Tags: AdWords Basics

2 responses so far ↓

  • 1 David // Sep 21, 2011 at 9:39 pm

    Hey Tom –

    Today, 09-21-2011, I was doing a SEO kickoff meeting with a new client. Toward the end of the meeting, the client casually mentioned “oh, and by the way, I set up an AdWords account last week and was contacted by Google and they’re helping me with my account now.

    I know, right? – his budget is nowhere near the level that would warrant a Google account rep… but when I expressed some trepidation about that, he said “well, no one but Google knows I set up my AdWords account, so it *has to be* legit, right?”

    I said something about Google certifying individuals and companies and that maybe it was a certified company contacting them and that was, maybe, what he actually heard….

    But then that got me wondering: DOES Google make “leads” or a database available to qualified companies who are AdWords certified?? I mean, aside from obvious privacy issues, it kind of makes sense if they did as it’s in Google’s best interest for those business owners to not get frustrated with the AdWords interface and give up, correct?

    Google would indeed benefit, and so would their qualified companies, by making sure this (or other) business owners stick with AdWords, see some successes, and who better than AdWords qualified companies (and/or individuals?) to lead that charge…?

    Finally, it should be obvious that my trepidation was because in my travels as an agency-level SEO, I’ve heard of companies / people pretending to be with Google to either gain credibility, or to outright scam unsuspecting business owners…

    …so what do you think, Tom? Have you heard of “Google contacting people” after opening a business account? Is it just a coincidence he was contacted by *someone* using Google’s name and/or talking up their (perhaps real) certification?

    I’m out of theories… now back to you, Tom!

  • 2 Tom Hale // Sep 23, 2011 at 12:08 pm

    Hi David,

    Let me add some fuzzy edges to the uncertainty.

    - Google has been reaching out more, especially, but not limited to, Boost/Express. It is possible he has been in direct contact with someone from Google, legitimately representing Google.

    - At the same time I am seeing a resurgence in sales tactics claiming special relationships with Google that do not exist, or flat out claiming they are from Google when they are not.

    - I doubt Google is selling leads in the manner you allude.

    So get more info.

    If it is someone misrepresenting themselves, raise hell.

    My experience with the “new” Google outreach has been pretty positive. I get a sense of cooperation rather than competition or predation. But they have enough initiatives going it is hard to know exactly what kind of conversation took place at any one time.

    Bottom line, whatever is being offered, is no substitute for an authentic professional ;-)

    -T

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