One thing is certain with Google Adwords: you lose the money that you invest. When you start to advertise with Adwords, Google does everything to make you budget out of your pocket. Expensive keywords and 'we will set everything up for you'. Despite the free Google Adwords voucher and coupon, because they only apply when you actually use your own budget. The big question is of course: what does it cost to advertise at Google with Adwords and what will it deliver? In this blog we provide you with tools to use Google Adwords economically and cleverly.
There are different ways to set up marketing campaigns for your organization. First determine whether this campaign is intended for the short or long term. For example, a longer-term campaign consists of a Search Engine Optimization-strategy. To be able to attract more visitors to your website in the short term, you can Search Engine Advertising (SEA) interesting, placing an advertisement. Google offers SEA under the name Google Adwords. (Want to know more about the choice between SEO and SEA? Read the balance between SEO and SEA to choose with five tips)
Google Adwords kosten determine
The costs for Google Adwords vary greatly per marketing campaign, market and product. In addition, these costs depend on various aspects. For example, think of the so-called Click Through Rate (CTR). The CTR indicates how relevant the website is to a specific search term. The more people click through, the more relevant this website will be according to Google. That relevance is also reflected in the quality score that Google gives to advertisements. A higher CTR means a higher quality score, which in turn leads to lower advertising costs.
Adwords works with estimated costs and actual costs. A different amount can be stated afterwards on the monthly invoice, typically lower. Read here Google's explanation.
Google advertising costs depend on bidding and quality score
There are no fixed costs charged by Google. You pay for every visitor who comes to your website via Google Ads. The costs are variable and are determined on the basis of an automatic auction. The question What does an advertisement on Google cost? is therefore not so quick to answer. The organization that offers the most to advertise on a particular keyword will be allocated the advertising space earlier. Certainly in the financial and travel industry, the costs for Google Adwords can rise sharply with popular keywords. For example, "car insurance" can cost you € 26 per click.
In addition, Google also looks at the quality score, because above all Google wants to offer relevance to visitors. With two equal bids but unequal quality score, it will be placed with a higher quality score. And that also happens with a lower bid but much better quality score. The higher your quality, the less you pay.
Create a higher quality score immediately? Read the article now Adwords optimizing tips.
Example of AdWords costs and revenues
You sell sunglasses on your website. Out of 100 visitors, two make an average purchase of € 25. Two out of 100 means that your conversion rate is 2%. Your margin on sunglasses is 40%, so you earn € 10 per purchase. What you naturally want as an entrepreneur is more traffic, more conversion and more profit per item.
How Adwords helps with your goals
- Traffic: Adwords delivers visitors. If you get 100 visitors for less than € 10, you make a profit.
- Conversion: that 2% conversion is average and varies enormously. You don't just want traffic, you want quality traffic. Visitors who are really looking for sunglasses and who want to buy. You increase your conversion by choosing the right keywords, for example in combination with 'buy', so 'buy sunglasses'. Provide the right advertisement and underlying information landing page.
- Profit: Do you want to sell sunglasses, or precisely those Oakley sunglasses that give you extra margins? With Adwords you can advertise in a very targeted way. Often those longer keywords have less traffic, so you need a lot of them. This is called the 'long tail', and you get there by constantly optimizing your ads.
Strategy for your SEA campaign
Before you start using Google Adwords, it is important to set up a clear SEA strategy for your organization. Which keywords do you want to be found on? What is the maximum budget you want to spend on your ads every month? You can specify a maximum budget for the advertisements in advance. By optimizing your ads, you can attract more visitors to your website for the same budget. In the long term you will achieve a higher return with Google Adwords campaigns.
It goes without saying that keywords with high competition will entail higher costs. Certainly for smaller websites and organizations it can therefore be wise to look at alternative keywords. A distinction is made between short-tail keywords and long-tail keywords. A short-tail keyword often consists of one or two words while long-tail keywords be taller. The competition with these longer keywords will be smaller.
New customers cost money
The calculation example above is not complete. As a company you know how to attract customers to you through a newsletter, social media or blog. Example: in a month you spend € 75 on 5 new customers who will earn you € 50. That sounds like a loss. But what if you then create another € 50 in profit through marketing automation or great offers from those 5 customers?
The total SEA costs therefore depend on your market: if you only have new customers and no repeat sales, then you really have to look per transaction. Is customer loyalty However, an objective for your company, it helps to look at the amount that a customer spends on average. This is called the 'customer lifetime value': the total revenue over the entire customer relationship.
Start with Google Adwords
Do you want to use Google Adwords to set up marketing campaigns? In that case you can choose to do this yourself or have it done. Do you have little experience with Google Adwords? In that case it is advisable to call in a specialist for this. A specialist can help you optimize the campaign, so the result will be better. The costs per click are also reduced in this way. A few tips to get started with Adwords:
- Knowledge transfer: Do you choose a specialist? Discuss the transfer of knowledge if you want to maintain the Adwords yourself in the long run. Once Adwords is running, you can do the optimization yourself.
- Have it set up for you: Starting with Adwords means setting up your Adwords account, your campaigns, your ad groups and advertisements. That is a lot of work to do yourself if you do not have enough knowledge. You can also make painful mistakes without realizing it.
- Everything is online. Do you have time? Read the Adwords instructions from Google and see which videos and blogs you can find online. Make sure you choose current blogs.
Learn to use Google Adwords better?
Your Google Adwords campaigns are running. You see website traffic increase and you sell more. But then: how do you optimize your revenue from Google Adwords? Read these Google Adwords tips.
Google Adwords Handbook
€ 27,99 via Bol.com
Ideal starting point for everyone who wants to learn step by step how to use Google Adwords. From creating keyword research and campaigns to optimizing quality scores and measuring performance. With special attention to remarketing, advertising with videos and reports. View on Bol.com.