Google Adwords Pay Per Click Explained: A “How To” for NZ Small Busineses

Introduction to Adwords PPC Management

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Another option is Google Ad words.

Also known as pay per click, these sponsored ads that appear on
Google’s search and content advertising network are similar to those
shown on page 17.

You see them when you are using the Google search engine in the right
hand column of the search results, or they appear frequently on many
websites. If you use Gmail, you will also see these ads, again,  in
the right hand column of your screen.

We will provide you an overview here, as we have a more comprehensive
video available in your Members Area.

Simply put, to run an adwords “pay per click” campaign, you go to the
Google Adwords site (www.adwords.com), set up an account with your
credit card, choose the search keywords that your customers or targets
will most likely be looking for, design your short (95 characters)
advertisement, select which regions, age groups and genders you would
like your ad to show to, and Google places the ad over their network -
in search engine results and the many many sites that are their
content partners.

Now the reason these ads are called “pay per click” is because you
only PAY when a targeted search query result or content site that
shows your ad is CLICKED on and the person clicks through on the ad to
visit your site. This way you know the person is interested and that
you’re getting a chance to sell to them.

When done correctly, its an effective advertising method, no question.

However there are many tricks and catches to this, and our intention
is to save you a considerable amount of money should you use this
tool.

Because just as easy and cheaply as it is to use this method to
qualify high quality targets and potential customers, it’s also just
as easy to lose a lot of money quickly without knowledge of how the
system works. Many a novice Marketer has found themselves paying large
amounts of money, for very little payback, and we don’t want to see
you make the same mistakes!

Creating your Google Adwords PPC Campaign

95 Characters - that is 25 characters for your headline and 35 for
each line - may not seem like much but you’d be suprised. Remember,
you only pay when your ad is clicked so the idea is that you want to
compose your ad so that only the people who are most likely to buy
click your ad.

That’s why “Do you like gardening?” is a poor ad, because lots of
people like gardening, but “Do you want to invest into growing your
family’s future health AND wealth?” is much better becuse you’re
targeting people who will already qualify themselves as wanting to
INVEST ie purchase.

You see, scaring off people looking for free stuff is just one
marketing angle to consider when preparing your 95 character long ads
- while posing questions are a great way to arouse curiousity and a
common ppc marketing technique.

Campaigns Groups and variations:

So when you create your first 95 character ad, it will be set up under
a campaign, and every campaign has multiple groups, and every group
has variations. Put simply, the more groups you have targeting
individual keyword terms and the more variations of ads you have, the
more you increase your chances of getting lower click prices through
increased relevance.

Google’s main goal in providing the best service they can as the
biggest advertising company in the world, is to increase relevance by
matching keywords from your ad and from your site to the search
keywords you are placing for. If the ad placed for the search term
you’re bidding on is perceived by google as relevant - that is the
keywords feature in your ad and the site it links to, you will pay
less as a reward for being considered more relevant.

That is to say if you bid high on the keyword “gardening” but your ad
is for shoes and your website is all about shoes and never mentions
gardening at all, you can expect your ad to be placed rarely and in a
poor position while still having to pay top dollar.

So if you’re targeting “gardening”, when it comes to set up your ad,
devote a whole group to the word “gardening”, by calling the group
“gardening”, and make sure the word “gardening” appears in your
numerous ad variations and numerously on the site it links to.

Similarly, if you’re targeting “organics”, create a group called
“organics” to target that term, make sure each ad uses the word
“organics”, and that you have as many different ad variations as
possible.

Another general rule in ppc marketing is that it is unacceptable to
have only one variation of ad in your ad group. Remember Google wants
to reward you for more relevant ads. If it can’t judge whether one ad
is more relevant than the other and neither can you, you won’t be
rewarded either way with cheaper or more effective ads.

So you can see the secret of successful and highly profitable google
adwords ppc is breaking down your niche into tiny hyper targeted sub
niches and niches within niches.

These are all tricks that the experts use to significantly diminish
their regular adsense advertising bills.

Now that you’ve learnt a few insider tricks about how to set up your
adwords ads smart, let’s look at the “keyword” search terms you’ll be
targeting.

Choosing and Bidding on Keywords: Do NOT pay large amounts of money on a word!

A “keyword” is a word or phrase that you will bid on to have your add
shown when that word or phrase is searched for on google by someone in
your targeted advertising regions.

Your selection of keywords is paramount to your success, so you must
choose those relevant to your product with proven high numbers

searching under your word or phrase. However : Do not pay megabucks on

a keyword!

When targeting ads for an adwords ppc campaign it is all about
balance.  You want to target words that people are searching for, but
the more common the searched for phrase or keyword is, the more
expensive the bids will have to be.

This simply means that as well as your obvious choices eg ‘gardening’
which may be costly to place bids on,  you may consider ‘reduce your

global footprint’ or ‘eat well for less’ and ‘nutrition for kids’.
This will ensure that your keywords remain relevant, but you target

less competitive terms for which you needn’t pay as higher bids to
have placed.

To save money it is important to understand how to make your selection

methodically.

Heres an example: We once ran an Ad words campaign for a work from
home type product and decided to check out other similar websites and
see what keywords they were using, (a widely used technique employed
by many Internet Marketers).

One campaigner had chosen highly competitive keywords such as: ‘work
from home’. Also words a large portion of fellow marketers were

bidding on, so order to be competitive and have her ads placed, when

people clicked on her ads, she would pay up to $15 per click. So if
someone being nosy goes in and has a look, for each person, that will
cost the marketer $15.

We know that the person makes $1,000 per sale, so wheres the harm

right? But Imagine if 30 nosy people took a look – thats $450 a day –
and over a week: $3,150.00 . . . and that’s with no guarantee of sales
either.

But if you consider, with a little bit of thought, you can often get
very effective words at a fraction of that cost eg .25 cents. So you
keep the profits, without having to spend a fortune to get there.

But what’s more, you can use these terms to really qualify who is most
likely to click on your ads based on the terms they are searching and
what issues your product or service directly provides.

Just like I said before “invest in gardening” or “invest in organic
gardning” is going to be a lot less competitive than “gardening”, but
much more appropriate for your expected outcome. You’re trying to find
the ‘low hanging apples’ which are the best, most appropriate words

you can find at the cheapest bid price. Heres how to do it:

After you have logged in, you will go to the “tools” section and
choose the “keyword analyzer” tool. There you will start collecting
keywords but entering a common search term from which google will
provide a list of all the most relevant erms searched and you’ll be
able to see how much placement of your ad for each keyword term is
’selling’ for.

Please be aware these are normalized estimates, but they do give you
an idea of what the competition is paying.

We strongly suggest you only use the words which are indicated to have
either no competition or very minimal. The highlighted ones will have

the highest competition and will be the most expensive.

To illustrate, the Affiliates (sales people) selling the Online
Gardener product have been given a keyword listing for these ‘low
hangers’.

The keywords: ‘garden online’ which (at the time of writing) was
attracting 27,100 people per month (in NZ only), at $2.98 CPC (cost
per click) – although this isn’t a terribly high amount, it will soon
mount up.

Thus, the trick is to combine ‘low hangers’ for little money, so using

the words: “online gardners” 2,400 – or, “free online garden” 2,900

you will target your market, and pay only 9c CPC.

Now you have targeted over 5,000 people searching for a relevant term,
but your paying far less for the traffic. You can of course keep
adding the ‘low hangers’ to bring your numbers up, without having to
worry that you might lose your shirt in the process.

Important points to note as a ppc beginner:

- Don’t sign up for an adwords account without ensuring you receive or
purchase a voucher for extended credit when you make your first credit
purchase. Your opportunity to get free credit only exists for 14 days
after you first sign up.

- the single factor that most determines how much you pay outside of
keyword competition is your CTI or “click through rate” that is, the
less your ad is clicked on the more you will pay when your ad
eventually is clicked. Remember google rewards what they perceive as
relevance and using your ads track record of clicks is the main way
they judge this.

- The second factor that most determines how much you pay is keyword
relevance which I talked about. The terms your bidding on should both
appear in the ad your bidding on it for and your website and this is
the  ”Quality Score” of your ad. If your ad is deemed to be less
relevant it will be given a low “quality score” and will show rarely.

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