How AdWords Works
Sunday, October 4, 2009
In order to best understand how AdWords, Google's PPC advertising service, works, let's imagine you own a resort. (Might as well imagine big!) Your "Luxury Paradise," resort caters to discount beach vacations for families. Here is how to create a Google AdWords PPC campaign for your business: Do your keyword homework. You can do this in your Google AdWords account under AdWords-Tools-Keyword Tool. Enter relevant keywords such as discount beach vacations and vacation resorts.
Find out how many people search these terms and what the average cost per click is for each word or term. You might also see many other keywords and terms here you want to bid on. Determine your budget and choose a maximum cost per click (CPC) you are willing to pay.
You can choose to place sponsored ads in searches or have your ads strategically placed on other websites. Create your ad and within minutes your advertising can be in place sending you visitors. After a few weeks of running an ad you will have some valuable tracking information. The number of sales versus you make compared to the number of visitors an ad has sent you will determine the conversion rate of the ad.
Ad conversion rates depend on many variables such as how good your ad and sales page are, how competitive your offer is, where your ad ran, and the times of day, days of the week, holidays, and even seasons, especially in the resort business. After some time and testing you should be able to increase your ad conversion rates.
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Find out how many people search these terms and what the average cost per click is for each word or term. You might also see many other keywords and terms here you want to bid on. Determine your budget and choose a maximum cost per click (CPC) you are willing to pay.
You can choose to place sponsored ads in searches or have your ads strategically placed on other websites. Create your ad and within minutes your advertising can be in place sending you visitors. After a few weeks of running an ad you will have some valuable tracking information. The number of sales versus you make compared to the number of visitors an ad has sent you will determine the conversion rate of the ad.
Ad conversion rates depend on many variables such as how good your ad and sales page are, how competitive your offer is, where your ad ran, and the times of day, days of the week, holidays, and even seasons, especially in the resort business. After some time and testing you should be able to increase your ad conversion rates.
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