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Most people know that Adwords is a valuable marketing tool, but some are still concerned about using it, based solely on misconceptions of how it works, or what it actually does. Here are some of the more common misconceptions concerning Google Adwords.

Believe it or not, many people think that Adwords is an auction, and that top bids get top spots. This would mean that only the top businesses in each niche would have a change to make an impression, let alone a sale. This line of thinking would be sure to scare away small businesses, but lucky for them, Google Adwords cares more about providing relevant search results than awarding higher bids. Sure, most cases will require you to bid a bit higher on more competitive keywords, but there is more factored in to the price you pay per click. The relevance of the keyword to your ad and the destination page, to name a few. The key here is to focus on you keyword list, and worry about adjusting bids later. There is no need to create a massive list of keywords just to direct a large amount of traffic to your site – this will actually lower your quality score and force you to pay more per click on these keywords, most of which will not render any sales.

We’ve had a lot of clients that ask us to bid whatever is necessary to keep them in the #1 spot, and some times, this is the best strategy. However, you may be surprised at how often #2 or #3 spots will render more conversions than #1. This will be true more often for eCommerce sites, or sites in niches within which people will tend to shop around. If your target audience is the type to visit a few websites before settling on a purchase, being the 3rd or 4th result may be to your advantage, and chances are, you are paying much less for clicks, and therefore paying a lower cost per conversion.

Smaller businesses tend to shy away from Google Adwords, in particular, because the research they have done has shown that they cannot afford the cost per click of Adwords, versus competing PPC services. Usually, this is not the case, but there is a possibility that your niche would not benefit as well from PPC as it would from SEO or traditional marketing. The main things to consider are the average conversion rate within your niche, your maximum cost per conversion and your monthly budget. Sometimes, certain niches will prove to be a pointless investment, but consider this: Even if your research shows that you will break even, your campaign will generally improve, and it may be possible to achieve your desired ROI. The problem with most Adwords PPC campaigns that do not improve are those that are managed by the inexperienced.

This leads me to the final misconception, that most people think Adwords is easy to use. In all honesty, the interface and the concept are a piece of cake, but when it comes down to micro-management, bid adjustments, split-ad-testing, and so on, the best result will normally come from hiring an Internet Marketing Firm like Reciprocal Consulting to manage the campaign for you. Unfortunately, many find out too late that Adwords is not a cakewalk.

For more information on an Internet Marketing Firm that can provide your Google Adwords Pay-Per-Click services, please visit ReciprocalConsulting.com.

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