Is Google AdWords Suitable For Your Business?
Posted on 19th December 2018 at 17:56
Now known as Google Ads, Google AdWords is a bidding-based advertising platform made available to business owners by - of course, the largest search engine in the world - Google.
In a nutshell, advertisers bid on certain keywords in the system in order for their advertisements to pop up in the engine's search results. These results can be either on the Search Network, or on Display, meaning, you can have ad placements on Google Search, YouTube, and partner websites.
But how exactly does it all work?
The Ads Process
The platform's bidding system is pay-per-click (PPC) - which means you get charged each time an individual clicks through on your ad.
Initially, you must set up your own advertisement campaign first. This will start with the basic terminologies, which include "keywords".
Keywords are essentially "search queries", & these are actual words being searched by potential customers in the search engine. When your website's keywords match with the queries of website visitors, you should get discovered and be clicked through to your website by potential clients.
As mentioned, AdWords is essentially a big online auction – as bidder you’ll have minimum and maximum bids for each of your keywords each time a web visitor clicks on your ad.
The Merits of Google AdWords
Faster than SEO
One of the best things about deploying campaigns in Google AdWords is that it’s instantaneous. You will always have the option to pause the advertisements altogether - making AdWords more controllable than SEO, which takes long, & months to set and build.
Customer Lifetime Value (CLV)
A concept stemming from direct marketing, digital marketers are now applying the metric of Customer Lifetime Value, or CLV, in assessing the total money value of a customer over his lifetime transactions with business owners online. The CLV of a specific client may be determined and grouped depending on the keyword group that the conversion was made.
The data and metrics that come from the specific groups will prove to be valuable in terms of providing insights in the formulation of the whole bidding strategy. Which keywords provide continuous click-throughs, which have sustainable and higher CLVs?
Which businesses benefit the most?
Before fully executing your ad campaign, you might encounter doubts and questions along the way – particularly is AdWords right for your business?
Varying on the industry of your business, some keywords can be cheap or very expensive to bid. A normal range of cost per keyword or phrase include £1 to £50, depending on the competition. And because higher risks, lead to higher rewards, you’ll do well to assess and properly allot your budget.
For large scale businesses having high transaction amounts per purchase or conversion, the ever-changing bidding climate might be easier to manoeuvre.
However, for smaller enterprises with low transactions, it is best to think it through and come up with a solid marketing plan first. The marketing costs for running ad campaigns might balance out your profits and create negatives – blackholes you should definitely avoid.
Is Google Adwords suitable for your business?
The answer: It varies. But surely, coming up with a solid keyword plan and an efficient bid strategy is the key to understand whether the digital tool is a gift or not for your specific business. When used incorrectly, it may break your bank account! However with the right action plan, it can give conversions, repeat customers, and growth.
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