AdWords and Your Business
Destroying AdWords – AdWords or Pay-per-Click (PPC) advertising is, essentially, the 21st century equivalent of direct marketing, allowing advertisers to test ideas in hours rather than months; and it can be done very effectively for a few hundred dollars and certainly considerably less than thousands.
The big advantage of this approach is that you can save yourself a lot of money in the long run and take away the majority of the risk involved with starting a new business.
You see, as a new entrepreneur, before the internet became so widespread, you would start up a business based on an idea you hoped would be appealing to customers. Unless you had a lot of financial backing there was no way you could research whether or not your new business idea was profitable or not.
It would require employing a market research firm and spending tens of thousands of dollars on investigating the market. Most entrepreneurs don’t have access to that kind of money and even if they did, they might feel it would be spent better elsewhere such as on product or service development, marketing or other areas; and certainly not on simply researching the idea.
However, with PPC mechanisms, including AdWords, small business owners can now simply offer online visitors an idea and immediately test their response to it to determine whether or not it will profitable.
The advantage is that this can be done with very little expenditure, and it can be done in a short time span rather than having to wait for months or weeks. Essentially, you are asking the market what they want, and they are answering you in real time.
Unfortunately, few people realize the power of the internet when it comes to market research and so they view it simply as a way to more easily put their product in front of their market, still just hoping it will sell.
They take a “build it and they will come” approach when they could save themselves a lot of time, money and agony in the long run by properly researching their market first.
Now, the power of PPC advertising lies in the fact that you can advertise directly to your target market, in other words the people who want to buy what you are selling right now.
Additionally, you only pay when they click through to your site and the price you pay for each click is based on the true market value of the prospect.
Likewise, PPC allows you to test, tweak and improve your sales funnel virtually on a daily basis which can allow you to reach extraordinary conversion rates.
As long as you understand the simple principle that you should focus on conversion rates as much as CTR (click through rate), then you can indeed take your business to the next level using these tactics.
If you are solely focused on how many visitors you get to your site, then no matter how little you are paying per click, you can still end up in the red. So, a central principle if that your main focus should be on click value or, in other words, how many clicks it takes you to make a sale.
For example, if you are selling an eBook for around $30 – this could be on any topic – and you are paying $0.5 per click on your keyword, every 500 visitors to your site will cost you $250.
Now, if your sales funnel is not properly set up or your ads aren’t targeting the right people you could end up either not selling anything or making no more than one or two sales.
Basically, you could end up spending $250 to make $60 (2
sales) – it goes without saying that this is not a great Return on
Investment (ROI) when you are selling your eBook for $30.
When people are new to the concept of AdWords, however, this can be a quite common experience. Many people fail with PPC, because they overlook the apparently obvious, which is that the amount of traffic is not as important as how well that traffic converts.
And conversion rates are affected by a wide range of variables, from choosing the right keywords – as each keyword will attract and different type of prospects – to writing effective ads and having a well-optimized website landing page.
The Profitability of Your Market
As we previously mentioned, the internet is an absolutely invaluable tool in researching your target market and you shouldn’t even consider spending money on AdWords, building websites, creating products or anything else until you know your market.
The difference between a professional marketer and someone who is dabbling is that the professional will first find a market and then look for a product to sell to it whilst an amateur will try to find a market to sell their product to.
Did you get that? Find your market first, find out what it wants and then become the source, the provider, of that information. This principle alone has the power to elevate your internet marketing to a new level if you make proper use of it!
The first law of marketing, then, is to understand your target market first and then offer them something that meets their needs. Today, the internet is giving you the ability to learn about your market at the click of a button with very little expense, which is why this is the first step you should take, no matter how many wonderful ideas you think you may have.
The Step-by-Step Process
Determining whether or not a market is profitable is simply a matter of finding out whether or not people are spending money in that market.
First of all, you need to determine the amount of searches that keywords receive in the market you are targeting. So, for example, if you are considering getting into the tomato-growing market, run a search for “growing tomatoes” in the Google Keyword Tool and see the number of searches that people conduct on a monthly basis.
If the average number of searches is above 1,000 then you might be looking at a lucrative market. However, you have to determine whether or not people are spending money in this niche because they might be simply searching for free information.
One excellent way to determine whether or not the market is profitable is to see whether there are a lot of advertisers in that niche. If people are advertising, then it’s safe to say that people are spending money in that niche.
To do this, all you have to do is search for your keyword in the normal Google search; and if the results show more than about six advertisers you can safely assume there is money in this particular market.
You can also verify the results by checking Amazon.com because if there are books and magazines dedicated to the subject then the likelihood of it being a profitable market are even higher simply because there wouldn’t be any magazines on a topic if people weren’t willing to spend money on them.
READ MUCH MORE INSIDE…
The Mechanics of a Campaign
Building a Campaign: The Step By Step Process
The Lifeblood of Your Campaign
Finding Your Keywords
Exact, Phrase or Broad Match?
Writing Effective Ads
What You Want Your Ads to Achieve
Crafting a Click-Generating Ad
Cost Per Click v Click Value
The Google Quality Score
Getting More For Less – Split Testing
Split Testing Tips
What Can You Test?
Make no mistake about it; AdWords is a highly effective system that you can use to drive targeted and qualified traffic to your offers.
You need to remember that converting that traffic is your ultimate goal, which means that you should focus on optimizing your entire sales process just as much as you concentrate on building a successful AdWords campaign. After all, no matter how much traffic you have, if you don’t make any sales, you will sink faster than the Titanic.
However, if you follow the advice in this guide carefully, you too can begin to dominate your chosen niche, gain access to the astonishing power of PPC and begin completely Destroying AdWords.
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