There’s a lot of attention being driven towards Digital marketing nowadays, and while most Nigerian companies have a fair understanding of Google advertising and Adwords, it’s very easy to spend a lot of cash without gaining any significant results.
This article is meant to showcase the number one newbie mistake that most advertisers make when using Google Adwords and also how you can avoid making such a mistake.
The honest truth is, when beginning a campaign, there are a lot of unknowns for google adwords, it’s very possible for one to waste a lot of money.
Google Adwords Advertising: Here are a couple of things to look out for:
- You need to know what the search volumes are (even if you’ve got estimates from the Google Keyword Planner).
- You need to know your bid price
- You need to know what your ad position will be for your given bid price.
- You need to know what your click-through-rate (CTR) will be for your given ad position.
- You need to know if your CTR will be better than your competitors in the same ad position.
- You need to know if Google will reward you with a discounted cost-per-click (CPC), or punish you with a higher CPC.
- You need to know if Google will reward you with a higher Impression Share, or punish you with a lower Impression Share.
- You need to know what your click volumes will be, since it’s determined by the search volumes, your Impression Share, and your CTR.
- You need to know what your conversion rates will be, and your earning-per-click (EPC).
- You need to know what your return-on-investment (ROI) will be.
You can’t know the answers to these questions at first, but as your ad progresses, you need to be watching their performances to be able to track whether the metrics are going in your favour or not.
And that’s the mistake most newbies make when advertising on Google advertising, They launch, but they don’t learn.
“When Advertising on Google Adwords, you need to optimize your ads to ensure that only the one’s performing are kept running with increasing budgets, while the non performing adverts are kicked to the curve”
When Launching a Google Adwords Campaign, ask yourself this question
What would you do if you found a machine that for every $1 you put into it, it coughs out $2 back to you? How much would you put into that machine?
As much as you can I’m sure, because that’s the whole essence of advertising, to build you a money making cash cow machine that keeps increasing your ROI at the end of the day.
Optimizing your ads is the only way to do that. In that case, once you notice that your ROI is positively growing then, increase your cap spend a little beyond the daily max spend, you really don’t want to be limiting incoming traffic, especially when it’s contributing to positive ROI (You’re making more on getting traffic than you’re making from a lead in sales).
If you’re getting negative ROI’s (You’re spending more on getting traffic than you’re making from the lead in sales) then your only option is to decrease your bids till you’re costs are low, this way you still get clicks, you’re profitable and you don’t lose money. Never be limited by budgets and keep optimising your ads.
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