Headline: 25 characters
Description Line 1: 35 Characters
Description Line 2: 35 Characters
Display URL: 35 Characters
As an Adwords advertiser, the above are the parameters we have to work with when creating our Ad Copy. (more…)
Happy Friday! Latest blog post by @sbaker81: Converting Mobile Searchers- Back to Basics http://t.co/PhQ4KrDk

Headline: 25 characters
Description Line 1: 35 Characters
Description Line 2: 35 Characters
Display URL: 35 Characters
As an Adwords advertiser, the above are the parameters we have to work with when creating our Ad Copy. (more…)
When using Google Instant to search for some ‘ladies shoes’ and looking at each of the PPC ads, it appears that some of them have suspicious looking character limits. Trying other searches, I noticed a lot of other ads on Google doing the same. All of the ads found were within the 70 characters limit but the 35-35 split was no longer in place. (more…)
I read an article in Business Week the other day. This bloke called Gene Marks, who (scarily) heads up “The Marks Group” and has written numerous books about business, explained why Adwords was a bad idea if you’re a small company. Here’s his explanation in full:
“John’s a pretty smart guy. He runs a company that sells specialty pet foods. He manages his own investments. He keeps an eye on his taxes. But I’ve found a way to turn John into a blithering idiot. I’ve asked him to figure out how to use Google’s (GOOG) AdSense profitably. Are you interested in a mind-numbing exercise? Give AdSense a shot. Or Yahoo SM or MSN AdCenter. Don’t you know how much to budget for “clicks” on your ad? Are you just a little suspicious as to who exactly is counting these “clicks” that conveniently turn into revenue for these companies? Like John, you’ve just entered the alternate universe of Internet advertising! Here’s a word of wisdom: Leave the mass-market advertising to Coke (KO) and Pepsi (PEP). Small business owners should stick to less mystifying forms of promotion.”
Tech ‘Solutions’ Your Small Biz Can’t Use Now, I’m not going to go into detail about his argument – he doesn’t even know the difference between Adwords and Adsense, and I can’t actually FIND an explanation of what he thinks is wrong with PPC – but it does highlight a problem that the industry seems to have at the moment. There are a lot of ‘have-a-go’ advertisers who decide to give Adwords a go, and don’t make it work. That’s fine and dandy, but for a few people, when their egos clash with a dismal failure, they simply write the whole thing off as somebody else’s fault. I’d hazard a guess here, that Mr Marks decided to give Adwords a go, perhaps for his own site, or on behalf of one of his clients, and got bad results. Unable to accept responsibility, he decided that nobody could have done better. Cue some more bad publicity for the PPC industry. So what did he do wrong? What are the mistakes that business-savvy people make when setting up Adwords accounts?
Well, there’s a big difference between PPC and just about every other form of advertising. Imagine that you’ve got a shop, but you have to pay every time somebody walks in through the door. You’d soon stick a bouncer on the door, making sure that only people who look like they might buy something get in. Compare this to any form of traditional advertising – whether it’s posters, e-mails or even SEO, you just want to get as much traffic as possible – if 90% of them aren’t really very interested, who cares? You may a (more or less) fixed price regardless of how many people visit your site. So PPC may be the only form of advertising where you want to deter the wrong people from visiting you.
How dare they keep charging me more and more to advertise with them? This keeps cropping up time and time again – people seem to think that Google is some kind of business directory, and that you should pay a fixed amount for a certain amount of space on their SERPs. Let’s be clear on this – Google is a Search Engine, and the only thing that keeps them running is the number of people that use them to find things. If people stop using Google Search, their whole business will go south in record time. So they make sure that people keep using them, by making the search results as relevant as possible. This is, after all, why people use Google in the first place. And they do it by rewarding the adverts that people are clicking on it, and relate to the search, and penalising the ones that don’t. So if people aren’t clicking on your advert, Google doesn’t want it to appear (or, if you believe they’re evil, they want to be compensated for bad adverts messing up their nice, relevant search results). Why is this so hard to understand? Is it really that unreasonable? The point is, you can get profitable traffic from Google – all you have to do is to focus on keywords that are relevant to what you do, and write compelling adverts. Perhaps the people that accuse Google simply can’t conceive that their adverts suck (if you’ll forgive the American colloquialism). Where else do advert-writers have to go head-to-head with ten other advert writers, competing for the same traffic? No fancy graphics to play with, no superlatives, and only a few words to play with? For old-school advert writers, I can only guess that Adwords must be advertising hell!
We used to represent a restaurant in Leeds, who were getting bookings through Google for about £2 each. They were raking it in, and there’s no reason that other businesses can’t do the same. We’ve had plenty of campaigns over the years with small budgets that have worked well. Perhaps the problem is that they believe that it’s too difficult to manage a campaign themselves, and too expensive to hire an Agency. The truth is that Adwords really isn’t all that difficult – as long as you’ve got a reasonable level of numeracy, and the time to build and manage your campaign, then as long as you read up and understand exactly how Adwords works, you can do it yourselves. If your campaign is big enough or valuable enough that you want to get the very best from it, then talk to an Agency – they’ll generally be able to tell you upfront whether they can make you sufficient extra profit to cover their fees. You can make money from Adwords, if you just follow these basic steps:
That’s really all there is to Adwords. I’m not saying that every business is suited to Adwords, but it’s certainly worth the time and effort of trying it…
Just before Christmas, Stuart Small from Google revealed the shocking fact that 80% of the clicks on Google’s SERPs are on natural search results, and only 20% are on PPC adverts. Should us Adwords folk be concerned? Are we really all competing for 20% of the traffic? Well, no, actually. There’s a fundamental flaw in the logic here… (more…)
Advert Text, Bidding, Content Network, Dynamic Keyword Insertion, Google Adwords, PPC Campaigns
What does Christmas mean to you? Carol singing? Eating too much? Morecambe and Wise repeats? GIving people nice presents, and getting socks in return? If your online business sells the sort of things people buy at Christmas, and you have a PPC campaign, it means high bids and high traffic volumes. There are a lot of people out there desperate to buy things, and a lot of retailers trying to cash in. So what should you be looking to do? Leave your bids alone, and slip down the rankings, but keep your profit per sale the same? Or increase your bids, and grab as many sales as you can, albeit with a smaller profit from each one? In short, what happens to your sweet spot if your competitors all increase their bids? And what happens if only one competitor does? I’ve put together three different situations, with different bids, conversion rates and profits per conversion. Then I looked at the correct strategy if
The first thing to bear in mind is that the number of impressions has no bearing at all of the sweet-spot. If each position gets the same percentage of the clicks, then it makes no difference. In effect, if you double the number of impressions, you’ll double the number of clicks, the number of conversions, the cost and hence the profit, in every position. I’ve assumed that everyone has the same Quality Score here – it’s unlikely to make a major difference to the So, for the sake of simplicity, I’ve left the traffic volumes where they are. They’ll impact the total profit that you make, but not the most profitable strategy. Here’s the first scenario. Each conversion makes a profit of £100, the conversion rates are fairly healthy, and the cost per clicks are quite high.
| Bid | Position | Impressions | CTR | Clicks | CPC | Cost | Conv. Rate | Conversions | Cost Per Conv. | Profit |
|---|---|---|---|---|---|---|---|---|---|---|
| £5.00 | 1 | 100000 | 8.0% | 8000 | £4.01 | £32,080 | 4.0% | 320 | £100 | -£80 |
| £4.00 | 2 | 100000 | 7.0% | 7000 | £3.31 | £23,170 | 4.3% | 298 | £78 | £6,580 |
| £3.30 | 3 | 100000 | 6.0% | 6000 | £2.81 | £16,860 | 4.5% | 270 | £62 | £10,140 |
| £2.80 | 4 | 100000 | 5.5% | 5500 | £2.41 | £13,255 | 4.8% | 261 | £51 | £12,870 |
| £2.10 | 6 | 100000 | 4.5% | 4500 | £1.86 | £8,370 | 5.0% | 225 | £37 | £14,130 |
| £1.85 | 7 | 95000 | 4.0% | 3800 | £1.66 | £6,308 | 5.0% | 190 | £33 | £12,692 |
| £1.65 | 8 | 90000 | 3.5% | 3150 | £1.51 | £4,757 | 5.0% | 158 | £30 | £10,994 |
| £1.50 | 9 | 75000 | 3.0% | 2250 | £1.41 | £3,173 | 5.0% | 113 | £28 | £8,078 |
| £1.40 | 10 | 60000 | 2.5% | 1500 | £1.26 | £1,890 | 5.0% | 75 | £25 | £5,610 |
This is the data for a typical month. The most profitable position is 5th, with a cost per click of £2.11, though 6th position is only marginally less profitable. What happens if everybody increases their bids by 50% for Christmas?
| Bid | Position | Impressions | CTR | Clicks | CPC | Cost | Conv. Rate | Conversions | Cost Per Conv. | Profit |
|---|---|---|---|---|---|---|---|---|---|---|
| £7.50 | 1 | 100000 | 8.0% | 8000 | £6.01 | £48,080 | 4.0% | 320 | £150 | -£16,080 |
| £6.00 | 2 | 100000 | 7.0% | 7000 | £4.96 | £34,720 | 4.3% | 298 | £117 | -£4,970 |
| £4.95 | 3 | 100000 | 6.0% | 6000 | £4.21 | £25,260 | 4.5% | 270 | £94 | £1,740 |
| £4.20 | 4 | 100000 | 5.5% | 5500 | £3.61 | £19,855 | 4.8% | 261 | £76 | £6,270 |
| £3.60 | 5 | 100000 | 5.0% | 5000 | £3.16 | £15,800 | 5.0% | 250 | £63 | £9,200 |
| £2.78 | 7 | 95000 | 4.0% | 3800 | £2.49 | £9,443 | 5.0% | 190 | £50 | £9,557 |
| £2.48 | 8 | 90000 | 3.5% | 3150 | £2.26 | £7,119 | 5.0% | 158 | £45 | £8,631 |
| £2.25 | 9 | 75000 | 3.0% | 2250 | £2.11 | £4,748 | 5.0% | 113 | £42 | £6,503 |
| £2.10 | 10 | 60000 | 2.5% | 1500 | £1.89 | £2,835 | 5.0% | 75 | £38 | £4,665 |
Should you drop down the results page, or increase your bids? In this case, a bit of both. Your CPC has increased from £2.11 to £2.79, and you’ve dropped a position in the search results. Here, the higher cost of staying in 5th has more than outweighed the additional conversions that you’d get there, compared to 6th. On the other hand, leaving the CPC at £2.11 would have cut your conversions by more than half (compared to staying in 5th), which would cost you more in lost profits than it would save you in terms of cheaper clicks. Note that the profit appears to have fallen here, but that’s because I didn’t increase the traffic volumes. If the traffic doubled over Christmas, your profit in 6th position would be just under £20,000. One final note here – in this instance, if the bids increased by more than 15%, the correct position to appear in changes to 6th. To make it drop to seventh, the bids need to increase by a massive 70%. Interesting, but hardly conclusive. This is just one scenario, so let’s try another one. Here, the profit per conversion is lower – £60 – and the cost per clicks and conversion rates are also much lower:
| Bid | Position | Impressions | CTR | Clicks | CPC | Cost | Conv. Rate | Conversions | Cost Per Conv. | Profit |
|---|---|---|---|---|---|---|---|---|---|---|
| £0.50 | 1 | 100000 | 8.0% | 8000 | £0.41 | £3,280 | 1.2% | 96 | £34 | £2,480 |
| £0.40 | 2 | 100000 | 7.0% | 7000 | £0.36 | £2,520 | 1.3% | 91 | £28 | £2,940 |
| £0.35 | 3 | 100000 | 6.0% | 6000 | £0.31 | £1,860 | 1.4% | 84 | £22 | £3,180 |
| £0.26 | 5 | 100000 | 5.0% | 5000 | £0.23 | £1,150 | 1.5% | 75 | £15 | £3,350 |
| £0.22 | 6 | 100000 | 4.5% | 4500 | £0.20 | £900 | 1.5% | 68 | £13 | £3,150 |
| £0.19 | 7 | 95000 | 4.0% | 3800 | £0.17 | £646 | 1.5% | 57 | £11 | £2,774 |
| £0.16 | 8 | 90000 | 3.5% | 3150 | £0.15 | £473 | 1.5% | 47 | £10 | £2,363 |
| £0.14 | 9 | 75000 | 3.0% | 2250 | £0.13 | £293 | 1.5% | 34 | £9 | £1,733 |
| £0.12 | 10 | 60000 | 2.5% | 1500 | £0.11 | £162 | 1.5% | 23 | £7 | £1,188 |
Here’s the scenario for a typical month. The optimum position is 4th, though 2nd – 6th is very flat. So it seems plausible that the impact of a big increase in bids would be greater. Again, increasing the bids by 50% for Christmas…
| Bid | Position | Impressions | CTR | Clicks | CPC | Cost | Conv. Rate | Conversions | Cost Per Conv. | Profit |
|---|---|---|---|---|---|---|---|---|---|---|
| £0.75 | 1 | 100000 | 8.0% | 8000 | £0.61 | £4,880 | 1.2% | 96 | £51 | £880 |
| £0.60 | 2 | 100000 | 7.0% | 7000 | £0.54 | £3,745 | 1.3% | 91 | £41 | £1,715 |
| £0.53 | 3 | 100000 | 6.0% | 6000 | £0.46 | £2,760 | 1.4% | 84 | £33 | £2,280 |
| £0.45 | 4 | 100000 | 5.5% | 5500 | £0.40 | £2,200 | 1.5% | 83 | £27 | £2,750 |
| £0.33 | 6 | 100000 | 4.5% | 4500 | £0.30 | £1,328 | 1.5% | 68 | £20 | £2,723 |
| £0.29 | 7 | 95000 | 4.0% | 3800 | £0.25 | £950 | 1.5% | 57 | £17 | £2,470 |
| £0.24 | 8 | 90000 | 3.5% | 3150 | £0.22 | £693 | 1.5% | 47 | £15 | £2,142 |
| £0.21 | 9 | 75000 | 3.0% | 2250 | £0.19 | £428 | 1.5% | 34 | £13 | £1,598 |
| £0.18 | 10 | 60000 | 2.5% | 1500 | £0.16 | £243 | 1.5% | 23 | £11 | £1,107 |
The results are similar to the ones in the first scenario – you increase the bid, but not enough to retain 4th position in the results. To make 5th the optimum position here, the bids need to increase by a factor of 35% – 82%. Here’s one more scenario – in this case, the profit per conversion is low – £15, the conversion rates are very high and the bids are moderate.
| Bid | Position | Impressions | CTR | Clicks | CPC | Cost | Conv. Rate | Conversions | Cost Per Conv. | Profit |
|---|---|---|---|---|---|---|---|---|---|---|
| £1.00 | 1 | 100000 | 8.0% | 8000 | £0.81 | £6,480 | 10.0% | 800 | £8 | £5,520 |
| £0.80 | 2 | 100000 | 7.0% | 7000 | £0.61 | £4,270 | 11.0% | 770 | £6 | £7,280 |
| £0.60 | 3 | 100000 | 6.0% | 6000 | £0.51 | £3,060 | 12.0% | 720 | £4 | £7,740 |
| £0.40 | 5 | 100000 | 5.0% | 5000 | £0.31 | £1,550 | 13.0% | 650 | £2 | £8,200 |
| £0.30 | 6 | 100000 | 4.5% | 4500 | £0.26 | £1,170 | 13.0% | 585 | £2 | £7,605 |
| £0.25 | 7 | 95000 | 4.0% | 3800 | £0.21 | £798 | 13.0% | 494 | £2 | £6,612 |
| £0.20 | 8 | 90000 | 3.5% | 3150 | £0.16 | £504 | 13.0% | 410 | £1 | £5,639 |
| £0.15 | 9 | 75000 | 3.0% | 2250 | £0.13 | £293 | 13.0% | 293 | £1 | £4,095 |
| £0.12 | 10 | 60000 | 2.5% | 1500 | £0.11 | £162 | 13.0% | 195 | £1 | £2,763 |
Again, in this example, 4th is the optimum position (I’m not suggesting that this is always the case – it’s just convenient when comparing the results from different scenarios). Once more, here’s what you get when you increase the bids by 50%.
| Bid | Position | Impressions | CTR | Clicks | CPC | Cost | Conv. Rate | Conversions | Cost Per Conv. | Profit |
|---|---|---|---|---|---|---|---|---|---|---|
| £1.50 | 1 | 100000 | 8.0% | 8000 | £1.21 | £9,680 | 10.0% | 800 | £12 | £2,320 |
| £1.20 | 2 | 100000 | 7.0% | 7000 | £0.91 | £6,370 | 11.0% | 770 | £8 | £5,180 |
| £0.90 | 3 | 100000 | 6.0% | 6000 | £0.76 | £4,560 | 12.0% | 720 | £6 | £6,240 |
| £0.75 | 4 | 100000 | 5.5% | 5500 | £0.61 | £3,355 | 13.0% | 715 | £5 | £7,370 |
| £0.45 | 6 | 100000 | 4.5% | 4500 | £0.39 | £1,733 | 13.0% | 585 | £3 | £7,043 |
| £0.38 | 7 | 95000 | 4.0% | 3800 | £0.31 | £1,178 | 13.0% | 494 | £2 | £6,232 |
| £0.30 | 8 | 90000 | 3.5% | 3150 | £0.24 | £740 | 13.0% | 410 | £2 | £5,402 |
| £0.23 | 9 | 75000 | 3.0% | 2250 | £0.19 | £428 | 13.0% | 293 | £1 | £3,960 |
| £0.18 | 10 | 60000 | 2.5% | 1500 | £0.16 | £243 | 13.0% | 195 | £1 | £2,682 |
Once more, the conclusion is a kind of half-way house. You increase your bids, but not by enough to maintain 4th position. In this case, the range of bid increases for which the 5th spot is the optimum is 38% – 159%. So what are the conclusions here? In all of these cases, an increase in bids of 50% led to the sweet spot dropping by one position. But this isn’t the whole story – an increase in bids of 30% would have resulted in the sweet spots in the last two scenarios remaining in the same place. And an increase of 100% would have led to the first two sweet spots dropping by two places. So, to a certain extent at least, the impact on your optimum bid depends on your particular circumstances. However, there are two conclusions that are true in every scenario I could think of:
So your new bid is bounded by two values, the amount required to retain your old position, and your old bid. At what point between these two values you should set your bid depends on individual circumstances. One further point here – if you see the conversion rate increasing in the run up to Christmas, then there is clearly scope to increase your bids, and possibly your position within the search rankings, as the value of a click increases. Similarly, if your average order value increases, then your clicks become more valuable, in which case you may find your sweet-spot moving up. At the start of this blog, I asked two questions. All of the work so far has been based around a scenario where everyone increases their bids. But what happens if only one competitor does. If their increase doesn’t affect your position (they were above you before they increased their bid, or below you even after increasing their bid) then it makes no difference at all. Your sweet spot will not change at all, barring very unusual circumstances. If they move above you, then there are two possibilities – you can either increase your bids to retain your old position, or you can leave your bids alone, and drop one place in the search results. No other option makes any sense, if you think about it. Regrettably, there is no absolute answer to this one. However, in the vast majority of cases (including the three from earlier) the correct decision is to leave your bids where they are, and drop down one position in the search results. The company that has made this decision has made their campaign less profitable, as well as a number of other people’s campaigns. All of which leads to the conclusion hinted at in the title of this blog. Whenever competition on keywords rises, and people start a bidding war, Google makes more money from PPC. But then, Christmas is all about giving, and not receiving…
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