Inspired Marketing Insights – Google Advertising Success Secrets
We’re big fans of Google at Inspire Business Concepts. Not because we think they are the greatest company in the world or because they’re the smartest guys in the world. No, we love Google because they have provided a treasure trove of marketing tools for the savvy business owner. Today’s marketing insights will go over our favorite Google tool, Adwords, and offer some insight into how to get better results from it.
Google may not the only kid in town when it comes to online advertising, Bing has been making significant pushes to increase market share and a month ago we shared an Insights discussing Amazon’s upcoming advertising platform, but they are one of the best.
When it comes to any advertising, the most important metrics for any campaign are click through rate (a measure of engagement with your potential audience and your ads), landing page conversion rate (% of visits to the landing page from your ads that result in a conversion event – typically a phone call or email), and the cost to acquire new leads (advertising dollars spent divided by the number of leads).
If managed properly, Google Adwords can provide a steady stream of high quality leads to your business.
Google Adwords Tip #1
One way to improve click through rates for your ads is to take advantage of ad extensions. These are kind of like extra credit points on your ads that you don’t have to pay to use. Anything that increases click through rate (and thus engagement) for free is worth pursuing.
Our favorite ad extension is the Reviews extension. This is an excellent way to highlight what your company has done well. You have limited space, of course, but still…
And if you want numbers, you should know that Google reports that adding review extensions can improve click through rates by up to 10%.
Google Adwords Tip #2
Another outstanding ad extension is the Call extension. Like the review extension, the call extension is a free add-on. You pay normal click costs if someone dials the number or clicks to call from their mobile phone.
There are two benefits to the call extension for your business. The first is increasing convenience for your customer. With a call extension set-up, mobile searchers can touch to call without having to leave the search page. The second is that when combined with a mobile forwarding number, you can track which ads are driving calls to your business. Call tracking is extremely important; it makes sure you capture all conversions that will feed into your overall return on investment.
Google Adwords Tip #3
Landing page, landing page, landing page! We can’t say this enough. If you’re paying for any form of advertising, the traffic should be driven to a landing page that is optimized for the offer presented in your ads.
Our favorite landing page provider, Unbounce, has put together a fantastic infographic that highlights the benefits of using a landing page over directing traffic to your main website.
Here are the highlights of the benefits to using a landing page:
– Higher Google ad quality score – When you put an ad on Google, they give it a score of 1 to 10 (with 10 being the best). This score is based on your ad copy and how well it ties to your keywords and your landing page. This score impacts your ad position but it also impacts your cost per click. Higher ad quality = lower cost per click.
– Landing pages get higher conversion rates – Consistently we have seen that landing pages provide higher conversion rates than full websites. And when we say higher, we mean dramatically higher. Increases of 2,000% in conversion rate are not uncommon.
– Simplified customer experience – The biggest benefit of a landing page is to your customer. Nothing is worse than seeing an ad for exactly what you need, only to find out that once they land on your page, it’s impossible to find the desired information quickly.
The key thing to remember here is that this is a focus on tactical execution of an Adwords campaign. Prior to stepping into the tactics, there are a number of strategic components you must consider. We’ll be exploring these in greater depth in a future paper but here are some thoughts to get you started.
Consideration #1 – What is the customer lifetime value? When evaluating this number, we recommend you lean towards being conservative in your estimations. If the average customer purchases between $300 and $500 worth of services over the life of their relationship with you, then use the lower dollar amount.
Consideration #2 – What is your required return on investment (ROI)? Fundamentally, your required ROI is your goal for your marketing investment. It shouldn’t just be a stab in the dark either. It should be balanced against what is reasonable compared to other methods of marketing. For example, if your business traditionally sees a 3 to 1 return on other marketing investments, this should be the starting point for determining your required ROI.
Consideration #3 – What is the maximum you can pay for new business and still meet your required ROI? This is an important concept and must be explored when evaluating any marketing investment – not just Google Adwords. If your average customer purchases $300 and your required ROI is 3 to 1, the most you’d be willing to pay is $100 for a new client. Armed with this information and some research on the competitiveness of the advertising market for your target keywords, you can calculate whether a campaign can be successful before investing anything.
What does this mean for Inspire clients?
If you’re currently receiving Adwords services from us, all of these things are already being done on your behalf.
If you’re not currently an Adwords client of ours, don’t worry. Google provides extensive support on how to set-up effective Adwords campaigns. We won’t lie – it’s not simple but with some advance planning and research, it’s completely manageable.
In the coming weeks, Inspire will be launching a new position paper on online advertising (with an emphasis on Google Analytics) to provide a much deeper understanding of the topics we’ve highlighted here today. We’ll provide the link in an upcoming Marketing Insights once it’s complete.