beginner's guide to google adwords ppc advertising

Beginner’s 5 Minute Guide to Google

Adwords Pay-per-Click Advertising

Sila Sahverdi| Kapris Marketing | www.kapris.co

What is Pay-per-Click (PPC) Advertising??

Kapris Marketing| www.kapris.co

PPC Advertising also known as Paid Search allows you to pay to have your ad displayed on Search Engine

Results Pages (SERPs) when searchers type in a specific search query (keyword/ keyphrase)

Your ad will be displayed to users and they will be directed to your site when they click. The fee

advertisers pay is based on the number of clicks – hence Pay-Per-Click Advertising

Organic search

Results and paid

listings are

displayed in

different locations

on the Search Engine

Organic

Search results

are listed because of

their relevance to

the search term., as

opposed to there

being paid listings.

There are many Search Engines that support

paid search campaigns such as Bing, Yahoo, Aol and Ask. We are going to focus on Google and its paid search program, Google AdWords.

What is the Value Proposition of PPC-Marketing?

PPC-Campaigns allow you to: Start with a small budget per day

Target precisely on a massive scale based on alignment with keyword

Potentially achieve very high ROI – even with just $1 investment

Measure and adjust to increase profits continuously

So what does an Google Adwords Pay-Per-Click ad campaign actually look like?

Google Adwords

Account

Ad Campaign 1

Ad Group 1

Ad Copy(s)/Keywords

Ad Group 2

Ad Copy(s)/Keywords

Ad Campaign 2

Ad Group 3

Ad Copy(s)/Keywords

Ad Group 4

Ad Copy(s)/Keywords

For your PPC campaign to be successful it is very important that you structure your account

well from the get-go.

Don’t be sloppy! Kapris Marketing| www.kapris.co

It is essential that your keywords (KW) and your ad

copy as well as the landing page are tightly woven together. It does not only increase the likelihood that

searchers are going to click through it also affects your Quality Score. Meaning keywords, ad copy and landing page (LP) should be highly relevant to one

another and build upon the latter.

You can use different campaigns and ad groups to group together close matching KWs and ad copies.

The tighter your groups are, the better!

In Simpler Terms: For the user queries/KWs “Buy Washing Machine”

“Washing Machine”, your ad copy should say something like “Looking to buy a Washing Machine?” and on the LP

you should actually sell Washing Machines.

Your PPC campaign

step by-step……

Your PPC campaign consists of 3 main elements

Keywords Ads Landing Page

A successful PPC campaign is all about managing, matching, and optimizing Keywords, Ad Copy and Landing Page

Keywords

How to find your Keywords?

“Write down the main categories of your business and the terms or phrases that might fall under each of those

categories. Include terms or phrases your customers would use to describe your products or services.”

(Google Adwords Help Center)

This is what Google says:

Step 1: Keywords!

• Against popular believe we recommend not to start your ad campaign with your ad copy but with your keywords

• Carefully curate a list of keywords that you want you ad to show up for

• Google will display your ad on the results page when people search for your keywords

Use Google’s AdWords Keyword Tool!

It’s a great way to establish a baseline list of keywords for your website. You enter a word, phrase or URL and the keyword tool gives you a list of related keywords and additional traffic

Find the keywords on which your competitors are bidding use the Adwords Keyword Tool or tools such as spyfu.com (free version)

Geotargeting, if you have a physical store -> “Pet Supplies San Francisco”

Problem & solution oriented -> KW “Headache” for Painrelievers

Keyword Match Types

Keyword Match Settings are settings for each keyword that help

control how closely the keyword needs to match a person's search term in order to trigger your ad.

A good way to get your keyword strategy started is with broad match and phrase match to drive traffic to your site, then use the search terms report to find the keywords with the most conversions and fit your business best and set them to exact match.

Keyword Match Types Broad Match -> include misspellings, synonyms, related searches, and other relevant

variations Example: cell phone Ad shown for cell, cell phone, cell phone tower, cel phon, phone etc. Phrase Match -> phrase and close variations of that phrase Example: “cell phone”

Ad shown if nothing in between “cell” and “phone”, but can have words before “cell” or after “phone”

Exact Match -> exact term and close variations of that exact term Example : [cell phone]

Ad shown on exactly [cell phone] Few impressions, precise targeting

Negative Match -> search terms will be excluded Example : -free Ad never shown if negative word is part of search query

If -free is negative keyword, user searches on “free cell phones”, ad will not appear

Your ad should be specifically designed for the keywords in your ad group.

Both your keywords and your ad copy should be highly relevant to the search query.

Ad copy relevant should be relevant enough to get the searchers to click on them.

Be Specific, e.g. “20% Discounts”, Address your target audience: “Looking for Pet Supplies?”

Landing Page

When viewers click on your ad, they are directed to your landing page.

Determine in which way you want the visitor to convert on your landing page – by buying your product, downloading an offer, filling out a form etc.

Incorporate your conversion goal into your ad strategy

Bidding & Budgeting

Pay-per-click means that you don’t pay for your ad to be displayed (impression) on the search engine.You only

pay when somebody actually clicks on your ad. So while your ad might be displayed 500,000 times and

only 1 person clicks on it, you will only have to pay for 1 Click

To determine how much you are willing to pay per click, you place a bid - your maximum Cost-per-Click

(Max. CPC). You also set a daily budget on the campaign level. So for each campaign, you tell

Google how much to spend per day.

A higher ad position is more desirable, as they generally get more clicks . For your ad to be

displayed above your competitors, you have to outbid them. But you don’t pay more than the

minimum amount that will keep you in position.

How does determine the price you pay per click?

To set prices per click Google uses an auction-style bidding system.

For a certain keyword there’s always a top-bidder. So let’s say the top-bidder set their max.CPC at $2 for searchers to click on their ad. In second place is the next highest bidder who values a click at $1.75, the next bidder at $1.50 and so on.

BUT max. CPCs are not the prices that bidders actually pay per click. Instead, the lowest of all bids is used as the price for the least valuable and hence least visible rank on the results page, and then each bid going up in value get a more visible placements and is priced at an incremental dollar value higher.

Example Auction-Style-Bidding System

Max. CPC Actual CPC

Top-Bidder $2.00 $1.26

2nd highest Bidder

$1.75 $1.27

3rd highest Bidder

$1.50 $1.28

4th highest Bidder

$1.25 $1.29

We are using $0.01 incremental bid in this example

What is a Quality Score?

Surprise!

YES, your bid plays a large role in determining whether and where your ad is shown on the search engine, BUT Google also uses something called „Quality Score‟ in

determining if your ad will be served and in which position it will be.

If you double your Quality Score you can reduce your bid to half the amount, without affecting

your volume.

Quality score is an algorithm that gives each of yours ads a relevancy score. Your score will be

determined by how closely your keyword relates to your ad and how closely your ad

relates to the content on your landing page. Google wants to make sure searchers have an optimal search experience and that you you’re not just buying keywords and directing them

to malicious or totally irrelevant pages.

How does your Quality score affect your Ad Rank?

If your competitor bids on a keyword at $2 and has a quality score of 4, and you bid on that same keyword at only $1 but you have a quality score of 8, Google may give you the top position for the price you bid because your ad is more relevant.

In Google’s opinion it makes more sense to serve your ad because its more relevant and the likelihood of viewers clicking on it is much higher.

So how important is the Quality Score?

VERY IMPORTANT!!

Ad Rank = Bid Amount * Quality Score

Quality score is on a scale of 1 to 10. 1 is the lowest rating, 10 the highest. According to the quality and contextual coherency of your ad and landing page and the quality of the user experience Google will assign you a quality

score for each keyword.

Paid Search Metrics

Cost Per Click (CPC) is the amount of money you’re spending on each click. You can find the Average

CPC by dividing the total amount spend by the total number of clicks. This is a cost metric, the lower this

number is the better.

AVERAGE CPC: $$ SPENT/ TOTAL CLICKS

Average CPC Example:

Total $$$ spent: $200

Total number of clicks: 500

Average CPC: 200/500 = $0.40

Click Through Rate (CTR) is the percentage of impressions that turn into clicks. The more this percentage goes up, the more efficient

your campaign is.

CTR = CLICKS/ IMPRESSIONS

CTR Example:

1000 Impressions

80 Clicks

CTR: 80/1000 = 8%

Conversion Rate is the percentage of clicks that turn into conversions (sales, downloads etc.). The higher your conversion rate is the better.

CONVERSION RATE = CONVERSIONS/ CLICKS

Conversion Rate Example:

80 Clicks

10 Conversions

Conversion Rate: 10/80 = 12.5%

Cost Per Acquisition (CPA) is the amount of money you’re spending on each conversion. The CPA is a cost metric, so you want to keep

lowering this number.

CPA = $$ SPENT/ CONVERSIONS

Example:

$800 spent

50 Conversions

CPA: 800/ 50 = 16

Sila Sahverdi | Kapris Marketing | www.kapris.co

beginner's guide to google adwords ppc advertising

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