AdWords – Importance in Marketing

AdWords is Google’s pay-per-click platform, with text advertisements that appear both above and below search results. It generates roughly 20% of all the clicks in an average search and it’s an client acquisition channel used by millions of companies, both big and small, offering various types of services and/or products.

 

Inbound marketing is when a user is looking for a product or service. On the other hand we have outbound marketing, which is when we display the service or product that our company offers even if the user hasn’t requested to see it (e.g. sending postcards, letters, or displaying announcements on social media). In most cases, inbound marketing is more cost effective and offers a higher ROI than outbound marketing. AdWords is considered the best channel for inbound marketing.

The importance of keywords

AdWords has a central element: keywords. These keywords or key terms, are the ones the advertiser is willing to pay for when a user looks them up and clicks the advertisement. The user can type any combination of words in the search engine, from “where to buy shoes” to directions to a restaurant or a video for a popular song. The advertisers create lists of words that show intention to purchase a product or service and when the user writes those terms and clicks, the advertiser pays. You would opt for terms that indicate an intention of purchase, which is why they usually begin with the word “buy”. Defining your keywords properly is crucial to having a successful campaign, if by chance you choose the wrong keywords or terms, you might end up losing all your investment.

How the algorithm works

Google matches the terms present in the search query with the keywords on AdWords’ advertising campaigns. If it locates a keyword that matches the search terms, the Google algorithm will then evaluate two factors: the bet and the quality ranking. Since there’s only space for up to six announcements (four above and two below), the algorithm will choose those six keywords which combination of bet and quality is higher and present ads accordingly. Staying within the first announcements should be your goal, which is often complicated to accomplish independently, and you might need professional guidance to make the algorithm work in your favor.

Improved competition

When the search results are displayed on Google’s end, the user now has about 17 options on the first page alone. Announcements will be displayed at the top, followed by roughly ten organic results and up to three more announcements on the bottom of the page.

 

Due to the high degree of competition to appear on the top of the organic search results, Google Adwords is an ideal source for attracting website traffic for both big and small companies, regardless of the product they offer. However, as mentioned previously, if the keywords used aren’t really effective, your advertisement might end up at the bottom of the search results and most users rarely go lower than the fifth or sixth result, or ignore the bottom advertisements altogether, even if they completely scroll down.

Convert visitors into potential customers

When the user clicks on the announcement, he or she now becomes a potential client that can purchase the product or service offered by the advertiser. If the price paid per click, divided by the income generated through them is higher than the sales margin the advertiser has, Google AdWords shows a positive ROI. Through this data it becomes evident that it’s an extremely valuable channel for any company’s marketing strategy. Optimizing the campaigns is fundamental for these to have the best results possible, and we can do this for you.

 

In conclusion, Google AdWords is, without a doubt, a great channel for client acquisition and due to it’s high profitability for the majority of companies, it’s an indispensable source for traffic. You can certainly manage your own Google AdWords campaign, but many people waste a lot of money making rookie mistakes. We are Google Certified Partners, certified in all 5 key aspects of Google AdWords management. Contact us and we can help you get the most out of your AdWords campaign.

2018-02-22T16:28:43+00:00 Tags: |0 Comments

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