Google Ad Words
THE THINK TANK
A Think Tank member shares tips for getting
the most cost-effective results from paid
Bodegahwy: We recently started using Google Ad Words. Our sales went up about 30% within a
month. (I wish I knew exactly why sales went up, but
that’s the nature of advertising.) I initially set the budget
at $20 per day; we were paying about $1.30 per click
and getting enough clicks to spend the $20 several days
a week. Overall, our click rate was a little over 4%.
After another month, with sales remaining solid, I
added some conversion tracking and variable bidding,
limited the ads to run during business hours and changed
the settings to run through my daily budget as soon as
possible rather than evenly throughout the day. I also
bumped up the daily budget for big days (i.e., holiday
weekends), adjusted the bids on various search terms and
increased bidding for placement. Our click-through rate
more than doubled, to nearly 9%. Our cost-per-click
went down to about 90 cents. And our average position
is 1.3, which means we are mostly appearing at No. 1
and occasionally No. 2.
Here are five things I’ve learned so far:
1. Limit the geographical reach of your ad, or you’ll
generate useless clicks from customers who are too
far away. Choose the setting for customers in your
defined area, not those interested in your area.
2. You can tell which search terms get used the most, but
you still must choose the ones that work best for you.
The click-through rate tells you how many people
using that search term looked at your ad.
3. If you and your competitors are using the same search
terms, you will end up bidding against each other.
Consider bidding on less commonly used terms if
they land you at No. 1 in those searches and produce
4. You must have a useful destination for customers
who click on your ad. Otherwise, you’re just drawing
clicks into a dead-end alley. Also, your website should
be optimized for mobile users.
5. Activate the phone link on your ad so people can simply touch the number and call you from their phones.
I’m presently spending $150 to $200 per week on this
campaign. I suspect it’s a great tool for reaching tourists
in our resort town. I plan to reduce or eliminate this
campaign during the off-season.
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