Google AdWords

Taybridge Consulting is a Google Engage Partner

As a Google partner, Taybridge manages and operates a number of AdWords projects or campaigns on behalf of clients.

So what is AdWords and how does it all work?

Google AdWords is a Pay-per-click on-line advertising tool that allows advertisers to target internet users with adverts triggered by key words specific to that user.

It is also the single largest component on Google’s multi-billion dollar revenue and profit.

What is Google AdWords:

Google AdWords is the system that places adverts or as Google calls them ‘Sponsored Links’ whenever an internet user performs a search on a Google property or visits a web page with adverts powered by Google AdWords. The system operates on a “pay-per-click”  principle, governed by a complex real-time auction process that matches supply and demand. For the advertiser, this means they bid for a price they will pay Google when and only when a visitors clicks on an advert. For the website user this means that they see adverts that closely match search terms that they are using.

The advert takes the form of either a short text advert or a more comprehensive moving or graphic advert. Either way the advert shows one or more keywords and the URL or destination that a user is taken to once they click.

On Google search pages these adverts appear at the top and on the right side of the screen. The returned results from any search term will vary according to the phrase searched for, the user’s location and the Google AdWords running at that time. Google also provides more custom searching if a user has a Google profile and account, so your results may well be different from other users.

Example

This example is a search for ‘Wood Pellets’ and shows Google displaying three adverts along the top and a series down the right hand side.  We can learn from this example that ‘Wood Pellets’ is a desirable ‘key words’ and that plenty of advertisers are targeting that phrase with a range of adverts. The top adverts are displayed on a slightly yellow background to differentiate them from the organic, or non advertised search results. The right side shows the top three listening with images of products.

The order of the adverts is predominantly based on how much each advertiser is willing to pay for a click. The top advert has bid the most while each lower advert has bid less. It is also interesting in this example to see that White Horse Energy displays three adverts and is in effect competing against itself. Google also takes into effect a quality ranking and compares the advert with the destination or linked website. A site with good high quality content that directly relates to the advert will have a cost advantage compared to a site with a lower quality score. Basically the more you are prepared to pay the higher you advert will appear.

We all know that most users do not visit the second page of results. Some research shows that 90% of users look at the sponsored links above the organic results.

AdWords example search 2

A 2011 Study by Slingshot SEO Reveals Click-through Rates for Top Rankings:

  • A #1 position in Google’s search results receives 18.2% of all click-through traffic.
  • The second position receives 10.1%, the third 7.2%, the fourth 4.8%, and all others are under 2%.
  • A #1 position in Bing’s search results averages a 9.66% click-through rate.
  • The total average CTR for first ten results was 52.32% for Google and 26.32% for Bing.

For the advertiser

As well as the setting the maximum pay-per-click budget the advertiser can also specify where and when an advert is displayed.  This allows you to target specific geographical area, say London or 10 miles around Guildford as well as say Males aged 20-40. From an advertising perspective this is extremely powerful as you can start to focus you ad budget with some precision.

Google also makes it easy to experiment as you can create a number of similar adverts that will be rotated randomly and displayed across multiple sites. Over time you can see the relevant click-through rates for each advert and focus on the best performing ones.

You can also spend your budget in a controlled way with daily maximums spends. This allows you to allocate a monthly budget of say £600 and limit the daily spend to £20, ensuring that adverts will run continually throughout the month.

Results are available in near real-time allowing you an unprecedented view of activities.  This data coupled with Google Alanytics can pin point visitors to your website and their sources and acquisition costs.

Why use Google AdWords

This is question we get asked all the time and the answer is that it is uniquely compelling in a number of ways due to its flexibility, scalability, measurability and easy of starting and experimenting. The top ten reasons are listed below. First a word of warning, it is not for everyone: Some keywords are so sought after those only advertisers with deep pockets can play, or the area is too vague and not focused enough or you product or services are complex and require more than an e-commerce website to convince uses to purchase.

These five reasons and tips will help explain why and how best to use AdWords.

1. Google AdWords is totally measurable:

Compared to most forms or marketing and advertising you know exactly how much you have spent and the precise results that budget has generated. Google has made AdWords totally transparent and provides huge amounts of information and feedback on a campaign’s performance.

AdWords Click result table

AdWords click results graph

2. Google AdWords is Flexible:

With the management controls you can target precisely the audience you want. As mentioned above you can specify geography, demographics as well as time of day, type of device, iPhone users for example. You also have control as to where the advert is displayed, just Google search, YouTube,   sites focused on a specialised topic or subject or Blogs. You have complete control.

Google AdWords set up Keywords

Google AdWords set up examples

3. Google AdWords is scalable:

If you find that AdWords is generating positive cash flow you can increase the ad budget and reap the rewards. Unlike most marketing it is highly scalable.

4. Time to market:

If you want results rapidly Adwords has the capability to drive visitors to a website site almost instantly. While Search Engine Optimisation will help your Google ranking and help drive traffic over time it is not instant. A good marketing strategy requires both SEO and AdWords to reinforce each other.

5. Google AdWords is easy to experiment with and simple to start:

You can design and activate a starter account in a very short time with a small budget. Plus we often have Google coupons to further reduce the starting risk. Our Engage status often provides us with ‘Convert £25 into £100 AdWords credit’ coupons.