Google Adwords can be very costly, but if done correctly, it can become very profitable for your business.
Last December I had spent over $30,000 alone in that 1 month due to the Christmas rush in 2008.
I used the power of high CTR to lower my click cost and gain a higher conversion rate, resulting in a higher profit rate during December 2008.
I would like to show you an example of what can happened if you use adwords the correct way. Those of you who have started using adwords and have quit only because you were paying more on ads than what you were making in profit , are going to see how its done the correct way.
Below is a snapshot of my google adwords December 2008 reports so that you can see how much I paid during that month:
Although I had spent $33K during December 2008, I had made close to $150,000 in profit. It was not all that easy, as a good adwords campaign must be monitored daily, sometimes more than once a day in order to maintain a nice flow of clicks while cutting cost on clicks.
Below are 10 ways you can cut cost , get higher CTR and increase your conversion rates. Please note, although these methods worked for me, selling electronics, it may be different for other product categories:
Start off with $0.05 cents per keyword, then in 2 more days increase it to $0.10 cents if you are not seeing any clicks and impressions on your keywords
Use at least 3 different Ads for each campaign, and have them rotate to see which ad gives you the most clicks and a high CTR, then after 2 days start deleting the less profitable ones and create another Ad with a different Keyword position in the header, or the 2nd or 3rd header.
Use {KeyWord} in your Ad header. This is effective because when something types in a keyword that you have in your keyword list, the {KeyWord:} in your header will display in bold the users typed keyword which will increase your CTR.
Disable and Enable adword partner sites. I left mine enabled for 1 week, then another week disabled. I found 2 interesting things during the 2 weeks I have experimented with the two. I found that using only Google Search, without search partners will definitely increase my CTR, resulting in less ppc cost on my keywords and raised me to one of the 3 top positions on page 1.When I had the google partner option selected, I noticed my CTR went down , but I had more clicks and more conversions, due to the fact my ads were not only showing on Google.com, but on AOL, Ask.com, and other search comparison websites.
Use Google’s keyword tool to see which keyword had the most searches by the user during the previous month, and go for those. There were some keywords I would have never thought of alone, and most of them are the ones that converted very well.
Use Brackets [] and Phrase quotes ” “ for your keywords and determine which ones give you a higher ctr and conversion. I made 2 separate campaigns with both using the same keywords, only 1 had [] and the other had quotes ” “. The Brackets [] were getting higher ctr because its much more targeted when users search for a specific keyword. The [] means that which ever keyword you use it on, your ad will only show up if the user types exactly that specific keyword. Example, my keyword is [ipod nano] , someone who types in ipod nano 8gb , my ad will not even show up unless the user types in ipod nano by itself. The “” quotes on keywords will be the same as [], only this time, your ads will show up if the user types in any phrase you are using whether its in the right order. Example, my keyword is “ipod nano” , my ad will show up regardless if the user types in ipod nano, or nano ipod.
Use Negative keywords in your campaign, always. Negative keywords is basically a filter of keywords you do not want your ad to appear when its typed in. Example, if my campaign is targeting people who are search for a phone to buy, its best to include a negative keyword such as, -free , -ringtones , -plan , -case etc…. This allows your ad to show up for your keywords and not appear when a user includes any of those negative keywords in their search query. This definitely increase CTR and eliminated a waste of clicks.
Monitor your conversion rate everyday. You must always monitor your conversion rate no matter what, as this is the most important part of using google adwords. If you notice your conversions show $20 per sale , and your initial profit on that item is usually around $10, then you have not only lost that the profit on that item, but you have also lost yourself $10 on top of that. If your conversion rate is low, or conversion amount per sale is higher than your profit, then you are obviously doing something wrong. You need to go back into that campaign and adjust the click cost, change the Ads title and description, to get the best one that works and always try your best to lower the ppc cost on your keywords. Remember, the more campaigns you have with different products, the less the cost per sale will come out to. I had 10 campaigns running, for 10 products, and 5 of them I had 1 conversion each. This made each conversion around $15 per sale, not bad, giving that my initial profit was supposed to be $30 , so I already had to deduct $15 from the $30 profit on all 5 of the items I sold. Now, later that day the other 5 campaigns started showing conversions as well, so now that $15 per sale from before, automatically turned into $5 per sale due to the other campaigns that helped my average conversion go up. you see , the cost per sale is usually calculated by the total cost of your clicks for the whole entire campaigns that are active.
Keep this in handy so that you wont go broke by google adwords, as I know people who have lost their business because of the high clicks they were paying google. If you use google adwords the correct way, you will make alot of money doing this.
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