Getting started with Google AdWords is an exciting process. Anxiety, hope, and especially fear are some of the emotions that dominate your state of mind as you’re about to click the Enable button.
Will this work? Is Google advertising going to help me increase my customer base and generate more revenue or will it break the bank with no real results to show for in the end? These are all valid questions every small business owner asks himself as he’s embarking on this new and exhilarating process.
The answer is that it depends. Google AdWords can be a great investment for your business. Not only that Google owns more than 70% of the search market share, but reports have shown that online consumers who are exposed to display ads are 155% more likely to search for brand or segment specific keywords. But, at the same time, you can lose tens of thousands of dollars due to poorly optimized campaigns.
One of the most important things you need to understand is that to create an effective campaign you need a checklist. Here are the key elements you need to incorporate in your Google advertising to reap the benefits.
Identify the Right Keywords
Before you get too excited about launching your first Google AdWords campaign, you need to make sure that there is, in fact, interest in your products or services. Use the Google AdWords Keyword Suggestion Tool to identify the keywords your audience is looking for, how often, how competitive the phrases are, and how much you will need to invest in advertising them.
Here are some of the questions you need to ask yourself to determine if a particular keyword is worth it:
- Do People Search for This Keyword on Google? If the search volume is low, then there’s no point in investing in that particular keyword.
- Are the People Searching for This Keyword Likely to Convert? Maybe the keyword has a decent search volume, but you need to look carefully at the user’s intent. Are they interested in purchasing the product/service or are just looking for information?
Calculate Your Cost per Click
An essential step you need to take before finalizing your keyword list is making sure that you are targeting only the key phrases that increase your chances of being profitable. In other words, you need to calculate your maximum cost per click (CPC) and compare it to your estimated CPC.
Here’s how to do it.
The formula you will need to calculate this cost includes the profit per customer, profit margins, and website conversion rates. Here’s how it looks:
Max CPC = (Profit per Customer) X (1 – Profit Margins) X (Website Conversion Rate)
Let’s say that your average profit per customer is $200 and out of every 1,000 visitors, 10 of them convert into customers. That means that your conversion rate is 1%. Let’s imagine that you have a 20% profit margin then your Max CPC would calculate something like this:
200 X (1 – 0.20) X 1 = $1.6
Look at What Your Competition Is Doing
You have a list of keywords, and you know how much you can afford to invest to be profitable. So, it’s high time to set your Google AdWords campaign, launch it, and watch the money roll in, right?
Not so fast!
Here’s the thing: most probably, your competitors already tested these keywords and have gained valuable insights about what works and what doesn’t. Wouldn’t it be great if you could hack that intelligence and get access to all the data?
As it turns out, you can. With KeywordSpy.com, for example, you can add your competitor’s domain in the search bar and get a comprehensive list of the keywords they’re using, the search volume, CPC, and profitability.
Determine Your Unique Value Proposition
Most probably there are a few products similar to yours. So, the question you need to ask yourself and highlight in your Google advertising is: why would my prospects choose me instead of my competitors?
That’s where determining your unique value proposition (USP) comes in handy.
The first thing you need to create an effective USP is to know your strengths. What makes you better than your competitors – is it your low prices, high-quality products, stellar customer support?
Then, try to determine what your audience dislikes about the industry and would like to change. For example, if you’re a home delivery business, most customers hate having to wait for an hour to get their food.
Last but not least, look at your competitors and see how they’re promoting themselves. Keep in mind that you need to differentiate yourself from them and come up with a selling proposition that is, in fact, unique.
Make Them an Offer They Can’t Refuse
It may sound like a cliché, but this old wise quote stands true in advertising. If you want to grab the attention of your audience, you need to make them an offer they just can’t say no to – it’s as simple as that.
Here’s how to do it:
- Make Sure You Provide Value: The products or service you advertise must offer more perceived value than the price.
- Make Your Offer Believable: If your offer seems too good to be true, then your prospects may become a little wary about clicking on it. Promise them something valuable, but believable enough to pick their interest.
- Money Back Guarantee: One of the biggest fears people have when shopping online is getting scammed. An excellent way to reduce the risk aversion is to offer a money back guarantee whenever you have the chance.
Create a Winning Ad
One of the things that make Google AdWords so great is that you only pay when someone clicks on your ads. At the same time, if your ads are vague or poorly optimized, they can generate unqualified clicks that will drain your budget fast.
Your Google ads need to include four key components:
- A magnetic headline that lets your audience know right from the start the value they can get if they continue reading.
- Two description lines that state your USP and benefits, describe your offer and provide social proof.
- The display URL needs to be different than your domain name. You need to create a separate landing page for your campaign.
Instead of a conclusion, here’s an additional tip that can make the difference between a successful campaign and one that falls flat. Make sure to track your performance. If you skip this essential step, you will never know which keywords generate sales or if you need to tweak your headline.
If you are looking to improve your online marketing results get in touch with us.