Some Adwords Basics for Beginners

| Posted: 07-04-2006 | Comments: 0 | Views: 227 | Rating: (52)

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Google's Adwords is still the yardstick by which other search advertising platforms measure themselves. This isn't merely an industry observation, but a respectful sentiment that I share now, having learned the ins and outs of Adwords first hand. At ICMediaDirect.com I use this experience to give clients advice that saves them money.
No two advertising campaigns are alike, so naturally each one requires its own strategy. But there are general suggestions that a first time Adwords user should heed. What I have are a few tips aimed at saving the new advertiser money. Just because I learned a few of them the hard way doesn't mean you should have to: caution and patience are key virtues for an Adwords novice. Incidentally, since Google announced new localized features for Adwords, I have a feeling there are going to be a lot of new users in upcoming months. Do not assume that the popularity of Adwords stems from a gentle or forgiving platform. You've got to watch your ads with the same eye you'd use to watch your chips in a game of Texas Hold'Em. Carelessness in Adwords will cost you as quickly and dearly as it would in poker. It's crucial to economize your campaign. Competition from other advertisers within the Adwords space has made it more expensive to use. Bigger advertisers, like an eBay for instance, can be particularly daunting in the way they throw money around. You can't compete with them, so as you craft a detailed plan, you should manage your budget closely, as every penny counts.
Remember to: 1) Deploy a negative keyword strategy - I cannot stress this enough. As an advertiser you have almost no control over where your ad goes, but you have the option to keep it from going where it won't work! The negative keyword function essentially blocks your ads from being shown with search results you feel are not likely to generate business. In other words, it keeps your ads from being exposed to people looking for something else. Clicks from unwanted showings means wasted expense.

2) Stick to a daily budget - Online advertising offers us unprecedented measurability. We know how many people have seen our ads. But, like in any new endeavor, we should still proceed carefully until we are sure of ourselves. We must apportion daily budgets.
You could lose your shirt on Adwords if you don't set some limits. Sometimes advertisers are too gung-ho and let expenditures grow with the faith that clicks equals sales growth. There are no guarantees that the advertising will work or that you're doing it correctly from the get-go. Remember, if clicks are ineffective - you do not get your money back, nor should you. Start slow, learn the ropes, and then prosper. 3) Target for success - Adwords now lets you target your advertising by nation, state and/or municipality. You may also opt for a stated radius. These features, which are the first steps towards the onset of local search, significantly boost click-through rates. If geography has any relevancy in your business plan, then localized tools are a must.
4) Mind CPC rates - As part of your budget, your CPC rate is important. Keep it down. I know, I know, these rates being measured in cents don't look like much, but they quickly add up to real cost, believe me. Adwords has introduced a policy of minimum keyword bids that many feel has made Adwords a more expensive place to advertise. Not so. It's only made Adwords a slightly more difficult place to advertise because some advertisers subsequently bid too high. Be patient and find your place. It would be better to start too low, and not get enough clicks, than to start too high and burn advertising capital.

5) USD, that's United States Dollars - Where is your trade, is it the United States? Set your account up in dollars. If you're doing business in Europe, set it up in Euros. More than a few people have had rude awakenings by not squaring their denominations with their geographic trade base. The transaction charges are steep.
6) Scrutinize click quality - There is fear about click fraud in Adwords, legitimate fear. There are, for instance, unethical adversaries who will click your ad to cost you money. (Yet another reason to be nice to everyone you meet!) It is tough to prevent ethical lapses in other people, but if you feel your clicks are suspicious, contact Google immediately and stop running the ads.
The web developer clickbot farms are another issue of concern. These are the kind that are the most threatening, but can be defeated. They are simply websites designed to click your ads in order to steal your advertising money - nothing more and nothing less. If Google values their advertisers, they'll continue to combat click fraud and, it stands to reason, eliminate it as the current scourge it is. They've accomplished bigger feats already and if they don't, the competition will. Bank on it. Be cautious and be thrifty when beginning Adwords. It's a wonderful advertising tool that will not only help your business, but also give you a working, hands-on education, in a field that continues to grow with each passing day, search advertising.

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Joseph Pratt
Media Analyst
ICMediaDirect.com
http://www.icmediadirect.com
e: joseph@icmediadirect.com

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Some Adwords Basics for Beginners

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