Starting a pay-per-click (PPC) advertising program can be intimidating, especially if the concept is new to you. But with a little foresight, discipline and persistence, you can build a network of sustainable campaigns that will serve as a solid foundation for your PPC strategy.
How PPC Advertising Works
Regardless of whether you use Google AdWords, Yahoo! Search Marketing or Microsoft AdCenter to drive your PPC ad program, the basic principles are essentially the same:
- A potential customer types a search term (aka a keyword or keyword phrase) into a search engine.
- The search engine holds an auction for that term among you and all the other advertisers who have bid on that term to determine ad placement on the search results pages. (Your ad position is based on what you’ve bid for the term plus the quality of your keyword-ad-landing page unit compared with that of other bidders; a new auction is held each time someone searches on the term.)
- If your ad resonates with the searcher, he clicks through to a landing page on your Web site. If your landing page (and other supporting pages) provides what he needs, he might convert to a lead or customer.
Now, how do you get started? Here’s what it takes in Google AdWords.
Start with a Well-Planned Structure
Within an AdWords account, you can create up to 25 campaigns, each of which can contain as many as 100 ad groups, which in turn can contain up to 2000 keywords and 25 ads.
“Whoa!” you might say, “That sounds pretty complicated.”
Fortunately, just because you have that many options to work with doesn’t mean you need to use them all. You can start small with just one or two campaigns and a few ad groups. What’s most important is to plan your initial strategy well enough so that you can manage your program easily and adapt and grow it as you determine what works most effectively for your business.
AdWords offers the following hierarchical structure of “campaigns” and “ad groups” around which you organize your ad strategy:
When you create an account, you provide an email address and password for accessing the account and billing information for your ad-spend. You next set up your individual campaigns, establishing global properties such as the daily maximum spend, geographic targeting, and an end date for each campaign. At the ad group level, you create ads, choose keywords to trigger those ads and set your bid levels.
Let’s look at a simple example of how to use this structure to organize a PPC ad program around a set of services that a company might offer.
Think About Your Business
Suppose you own a marketing company that offers both traditional and Internet marketing services, and you want to promote specific services in each area through PPC advertising. In particular, you want to tackle your traditional marketing services first: advertising, logo design, brochures and similar services. Here’s one way you might plan your AdWords strategy:
I. Campaign1: Traditional Marketing Services
A. AdGroup1: Advertising
i. Keyword variations: advertising agency, advertising agencies, print advertising agency, print advertising agencies, advertising agency in washington dc, advertising agencies in washington dc, …
ii. Ad:
Advertising That Works!
Advertising Agency—DC, VA & MD
View our work—then call for a bid!
www.yourcompany.com/adsamples
B. AdGroup2: Logo design
i. Keyword variations: logo design, logo designs, modern logo design, modern logo designs, corporate logo design, corporate logo designs, logo design washington dc, logo designs washington dc, …
ii. Ad1:
Fabulous New Logo Designs
5 design concepts—fast delivery.
Call for a Free Consultation!
www.yourcompany.com/logodesign
iii. Ad2:
Logo Design Washington DC
5 design concepts—fast delivery.
Call for a Free Consultation!
www.yourcompany.com/logodesign
C. AdGroup3: Brochures
[ ... ]
II. Campaign2: Internet Marketing Services
A. AdGroup1: Web site design
i. Keyword variations relating to Web site design
ii. Ad(s) relating specifically to Web site design
[ ... ]
About Your Plan
Within your ad groups, be sure to group similar keyword terms together, write tightly aligned ads for those terms and keep your lists compact. You’ll find it much more effective to manage, say, 10 lists of 20 highly related terms with very targeted ads than 2 broader lists of 100 terms and more general ads.
Two- or three-word keyword phrases tend to draw in a good quantity of targeted traffic; more specific terms draw in lower numbers but higher-converting traffic. (Searchers tend to use more specific terms when they’re further along in the buying cycle.) Be sure to use a tool such as the AdWords Keyword Tool to research highly relevant keyword phrases and identify those with good traffic volume and low competition to place in your ad groups.
For each keyword term in an ad group, one of the associated ads will be displayed. So in our example, for every keyword in the Advertising group (AdGroup1), AdWords will display the same ad. But how does AdWords decide which ad to display if an ad group has multiple ads? Let’s say you do well enough in an auction for the term logo design washington dc (a keyword in AdGroup2) that AdWords places your ad at the top of the right-hand column on the search results page. Which ad will appear?
Google’s goal is always to have the best ads display when a searcher searches on a particular term, so by default, AdWords is set to “optimize,” which means it will display your best-performing ad based on its historical data. But you can also set up AdWords to rotate through your ads for a particular term. You’ll find this option useful when you want to test different ads to see which is more effective for a particular ad group.
Just the Tip of the Iceberg
Understanding how AdWords and other PPC programs work and planning how you’ll organize your PPC strategy are two big first steps to getting your PPC campaigns off the ground. But that’s only the tip of the iceberg. The more you learn about PPC advertising, the more confident you’ll feel when you take the plunge—and you’ll be better prepared to use the tool to your best advantage. Google provides some great information and tutorials on its Adwords Web site, and be sure to watch for future posts about PPC in this blog.