Tuesday, August 11, 2009

Google Adwords : How to Survive It

Google Adwords and You

Google adwords is the advertising you see when you search in google for an item that you are interested in. The theory is that if your ad is shown during a search and the customer finds your add interesting enough to click through to it, you pay a fee for that traffic.

The fee can range from 5 cents to tens of dollars depending on how much you bid and the competition for that spot. The more you bid the higher the spot on the list you can achieve. The higher on the list the more people will see your ad and click through to it.

That is the very brief fundamentals of the process of Google adwords. The catch is that google has made many restrictions and rules that you need to follow to make it work. In a perfect world you would spend $1.00 on advertising and have people click through to your site and spend $2.00. This would give you a Return On Investment (ROI) of 100%. This means you would constantly make money when people click through to your site.

It is much more common when you are starting to pay $10.00 for advertising and get $1.00 back in revenue. You can see here that you can go bankrupt very quickly if you follow this ROI.

I have been dabbling with Pay Per Click (ppc) for a few years with google adwords. In all honesty I have spent more than I have made this way, but I do see the potential. It is actually a very powerful traffic generation techique.

I recently purchased an ebook by Perry Marshall found at www.perrymarshall.com The Definetive Guide to Adwords. Perry is an expert adwords marketer and shows in this book how to tweak and test each campaign until you have it profitable. His goal is to take you from losing money to breaking even, to making money then to seriously profitable with adwords.

So how is this going for me? Well the book is clearly laid out and he emphasises testing so you really know what is going on in your campaigns. I am a firm believer in testing and I use www.statcounter.com which is free and works like a charm.

So not having put a lot of time into this yet I have reduced my expenses and increased my ROI. I have saved the cost of the ebook in my campaigns and am starting to see some small profits com in.

I do need to do more testing and alter some of my campaigns but I think I am beginning to get the hang of it.

Google Adwords was once called a machine of many moving parts. This is so true, and some of them move beyond your control so it is hard to get a handle on it. If you are planning to try adwords or have tried and spent a fortune go to Perry's site www.perrymarshall.com and read about The Definetive Guide. Make your own choice if it would help you.

Take Care
David Robertson

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