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How do ad words work?

Sun, May 28, 2017 @ 01:48 PM / by Chuck Lohre

Lohre Marketing and Advertising Design Author Graphic

How do ad words work? They work by displaying your ad in response to visitors searching on specific keywords.

We break up a product offering into ad groups which focus on general product category keyword groups.

A typical average bid would be $2. If it’s higher, we review whether the click results in the visitor going to your “Contact Us” page, spends more time than average on your site (2 minutes) or looked at more than the average number of pages (3 pages). For keywords that result in higher site interaction, we are willing to pay more, up to around $3 per click.
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A typical global industrial process equipment company may have 260 English, 1600 German, 100 French, 90 Spanish and 40 Russian keyword phrases in their list. We have recently reduced the keywords to focus only specific product categories we want to focus on for one client. There are 88 negative keywords, if these words are used in the search, our ad won’t be shown.  

Bidding is set to get in the top three spots.
 
You only get charged when someone clicks on your ad.
 
Quarterly we review a long list of suggested key words that Google provides and select relevant ones to add to our ad groups. Search engines create the suggested keywords from the keyword phrases related to the phrase searched on. Here's the list for the page above:
 
Google is used 80% of the time in the English-speaking world. Bing and others in the rest of the English-speaking world. Google isn’t used in Russia and China. We use Yandex in Russia. 
 
For example for “centrifugal separator” last April, Tema’s ad comes up number four (in this search). For some general numbers, it may have been shown 264 times and clicked on 31 times. Over half (17) may have interacted with the site (considered a “conversion” by us) the visitor looked at more than average site pages, spent more time than average on the site or went to the client's “Contact Us" page. It may about cost $2 per conversion which we consider to be a good ROI. We’ve limited our bid to $3 to be in the top three on the page. Google estimates the top position bid to be $5 and that is what Industrial Centrifuges may be paying. Oilfield may be paying about $3 per click. Here are the other suggested searches which we will consider advertising for.

Typically we send the client their keyword list four times a year to review. They review them and suggest any other keyword phrases we can do further research on. If they are a good fit for our ROI standards we’ll add them to the program.
 
In summary, it is very hard to rank naturally (free) in search engines. You need to have pages that are optimized for each keyword phrase, links to your site from sites with high authority (like Wikipedia and the trade journals), and a share several blogs posts a week on those keyword phrases across LinkedIn, Google+, Facebook and Twitter. Paying for Ad Words is the most cost effective way to be sure your content gets found for relevant searches at the top of the page if you don't have someone who enjoys internet marketing, writing, research and forming and engaging with groups of visitors around the world. Here are the results we have had with one client that doesn't use ad words but invests in content each month.
 
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If you only use ad words and don't continually add relevant content to your site by blogging and social media, your traffic won't grow. It will just stay the same and you will continue to pay for ad words. The only way to grow your traffic is by blogging and social media. It's difficult but fun marketing. You need a passionate communicator that can do the work without supervision.
 
One thing we don't like about ad words is that they only convert 30% of the visitors organic traffic produces. You would think it would be the other way around. It's part of the mystery of the "Black Hole" of ad words. Be careful out there, take every precaution you can not to waste your marketing dollars. Where as on the other hand, great content is the gift that keeps on giving, for free. That's the way great marketing should be. We're afraid that many companies' marketing departments only do ad words just so the C-Suite sees their ad and thinks the company's marketing is working well when actually it may have a poorer ROI.
 
If you liked this post you might like this one, "Great website design is an ongoing process."
 
Guide to Web Site Redesign by Cincinnati Website Design Company, Lohre & Associates

Topics: Website Design, Internet Design and Development, Cincinnati Web Design Agency, Internet Development, Cincinnati Website Design, web development, Web Design, Ad words

Lohre Advertising, Graphic Design, and Website Design Author Photo

Written by Chuck Lohre

Owner of Lohre & Associates Marketing Communications. The company celebrated their 80th Anniversary in 2015, his 38th.