Google AdWords is a pay-per-click service and continues to be the centerpiece of Google’s online marketing product line. The service is free to use, which is why it draws in so many users. Plus, it’s easy to set up and gives advertisers the opportunity to generate targeted traffic from anywhere in the world.
The main goal for advertisers is to convey as much information as possible while keeping advertising costs low. Thankfully, Google AdWords allows this and is the most popular form of pay per click advertising for small business owners. You can even manage your expenses daily by setting maximum limits on your ads.
Benefits of Google AdWords
- Traffic and Leads – AdWords generates immediate traffic that increases the number of leads for your business. Within a few short hours of launching a campaign, a company can potentially earn legitimate business leads thanks to AdWords.
- Instant Visibility – Having instant visibility is one of the most effective ways to identify feedback from new products, special sales and announcements. This is especially crucial since these items don’t always show up in organic searches.
- Benchmarking – AdWords can be used to create performance benchmarks on a website. With AdWords, you can monitor the performance of keywords and use the collected data for long-term SEO strategies that will generate better organic search results.
The Relationship between Pay Per Click and AdWords
So how exactly does PPC and AdWords work together to make advertising most effective?
With PPC, you only pay when someone clicks on your advertisement. Your ad could be posted anywhere: on another publisher’s website or a search results page for example. How much you pay for this click depends largely on how much you’re willing to bid for your keywords. Basically, the higher the bid and the higher your Quality Score, the better chances you have of getting your ads to the front and center.
This is perhaps one of the greatest difficulties of using Google AdWords: determining the best bid price. Even with all the knowledge in your back pocket, there is always some trial and error to this. While it may seem logical to go for the highest bidding price, this isn’t your best option. Instead, you must find a balance between a fair bid price and a good ad position.
The first position is always most expensive, which means you’ll get the fewest clicks for your budget. That’s why we recommend going for the number two, three or four spots so that your ad is visible, you get a high number of clicks and you manage your budget. Even though getting lots of clicks is the goal, it’s a two-way street. Too many clicks can eat away at your budget, especially if you’re paying a high bid price.
Having a good pay per click campaign requires smart use of Google AdWords to avoid a campaign with no ROI. However, if done correctly, the bottom line is that PPC is an important part of your online marketing strategy and can lead to an increase in web traffic and sales for your business.