As a business owner, you need to get your message in front of as many people as possible as quickly as possible. You can do this in many ways and we would obviously advise that for long-term growth, you should ideally be looking at as a core strategy.

But this might not be quick enough. Maybe you want to get some sales right now? Is there another way of doing it?

Turns out there is, and it’s called AdWords.

AdWords, PPC, Sponsored Listings?

AdWords is Google’s term for sponsored listings and PPC. PPC stands for “Pay Per Click” and that gives away the secret behind this technique. You essentially pay Google every time someone clicks on your advert. So, for example, if you set a bid of £1.00 per click (don’t worry, we’ll cover this in a bit), you will be charged a pound every time someone clicks on the advert. That might sound a bit scary, because that doesn’t mean they’re going to buy anything, it just means they’ve clicked on an advert.

What do the Ads look like?

You’re probably already familiar with Google search results, so let’s take a look and break it down:

adwords google

Not much room for normal listings!

Everything on the screen surrounded by a yellow box is a sponsored listing, i.e. controlled by AdWords. Each time anyone clicks on one of those links, it will cost them an amount of money, might be a couple of pounds each time, so it could get expensive if it’s a popular keyword.

You’ve probably noticed by now that there are only two results that are not sponsored, these are the ‘organic’ results that we talk about so much on here. These are here because the owners of the site have done a great job with their and content marketing.

Interestingly, even though the adverts quite clearly state “AD” next to them, it’s estimated that 40% of people don’t understand that they are, in fact, sponsored adverts. This makes the case quite clearly then that AdWords may be a very important factor in your marketing.

If it costs so much, how can I make money?

The costs are obviously a factor here, so let’s take a look at how you need to work out whether it’s worthwhile.

Let’s assume you sell a widget for £20 each. You make £10 per widget sold in profit.

It’s a fairly competitive market for widgets, so the cost per click, or “CPC” is 25p. So, each time someone clicks on your advert, it will cost you 25p.

You run your adverts and it gets clicked on 50 times, costing you £12.50. Assuming you manage to sell at least two products, you’ve made a profit.

Bidding

OK, you’ve probably noticed something here. There’s more than one advert, so how does Google work that out?

Well at its basic level, your position in those adverts is based on how much you’re willing to bid for the top spot. So, if there are five people bidding, and you bid the most, you’ll get the highest spot, maybe even right at the top of the page.

You will set your ‘maximum bid’ and Google will play you off against the maximum bids of everyone else competing with your keyword. But there’s a complication.

There’s also something called “Quality Score” which is based on how people interact with the page when they get there. This is important, because it means you can’t just throw up any page you like and then point adverts at it.

For example, if you have an advert for “blue car widgets” and yet the page you point that advert to is for “red caravan widgets” then it’s likely it won’t have a very high score. The score is worked out on a number of factors, but one of the most important is the ‘bounce rate’.

A ‘bounce’ is when someone goes to a page and then immediately leaves it. The logic being that they didn’t find it useful or interesting. So, if you set up your advert wrong and your target page isn’t very good, you’ll get a high bounce rate. Your quality score will drop, and so will your ranking, yes, even in AdWords.

So you could be spending more money than the guy above you in the adverts, simply because his landing page is far better than yours.

That’s it!

So there’s your quick overview of AdWords. If you think it might be something that might help your business succeed, give us a call on 0845 0573420 and we’ll see how we can help you.