This involves choosing a number of key words that relate to your business. Using this system you are paying for your website to have a prominent position on the relevant search results page of a specific search engine. Eg Google. The way you are charged is for each visitor that clicks on your link, you are charged accordingly. This process is called “Pay per Click”
The Google Search Experience
This process has proven to be successful because on the instantaneous results on the home pages of the search engines like google. Pay per click advertising is the process of appearing within the "sponsored links" section of Google. You can setup a text-based ad to appear anytime a user types in a specific keyword phrase. The best part is that you only pay when somebody actually clicks on your ad, which effectively means that you only pay for results.
Search results on Google are generated automatically. No company can buy placement in Google's search results (also known as the 'natural search results'). AdWords ads, which companies can purchase on a cost-per-click (CPC) basis, are clearly marked as 'sponsored links' and appear above and beside the search results. These ads are ranked by performance - that is, their positions are determined by both cost-per-click amounts and clickthrough rates. Therefore, advertisers can't remain in the top position(s) unless their ads are relevant.
With traditional advertising and most forms of online advertising, ads are simply broadcasted to a wide range of audiences. Google AdWords ads, however, are targeted to people's specific interests.
When a user enters a search query on Google, they'll see the natural search results for that query, along with AdWords ads that are highly targeted to the search topic. Thus, AdWords ads are as relevant and useful as Google's search results. Your ads will reach users at the precise moment when they're looking for your product or service.
Targeted, relevant AdWords ads appear on Google properties, thousands of partner search sites and content sites (such as How Stuff Works and the New York Times) in the Google Network, and newsletters and email. These ads are seen by over 80% of internet users in the United States alone, and the Google global network provides extensive ad exposure across the world.
Google AdWords Costs
AdWords advertisers can choose cost-per-click (CPC) or cost-per-impression (CPM) pricing, whichever best suits their needs.
Under the Google AdWords CPC pricing model, advertisers pay for ad clicks, not impressions. If an advertiser's ads appear 50 times and receive five clicks, the advertiser is charged only for those five clicks. With CPM pricing, advertisers who prefer impression-based pricing can set their own price and receive traditional CPM metrics.
AdWords advertisers enjoy a tremendous level of control over their costs. They can set a maximum daily budget and specific amounts they're wiling to pay per click or per thousand impressions, which the AdWords system will never exceed.
AdWords advertisers can also set up Google's free conversion tracking tool and receive account reports by email so they can monitor their sales conversions and return on investment.
Because Google AdWords offers such a high degree of flexibility and control, it's an especially effective marketing tool to help advertisers:
- Generate leads
- Generate sales or conversions
- Create brand awareness
Here's an example of how AdWords ads can pay for themselves and eventually lead to increasing returns:
Your business invests $1,000 in AdWords ads with a $1 maximum CPC. Because you only pay for ad clicks, you are assured of receiving at least 1,000 clicks.
If 10% of these clicks result in sales, your client would have made 100 sales. If the average sale amount is one hundred dollars, your $1000 investment will have returned $10,000 in sales. In these cases, you should advertise on a larger scale and reinvest the profits into your AdWords budget, which can increase potential profits even more.
Making AdWords Profitable for Clients
A profitable AdWords program can be designed in four simple steps:
- Identify advertising goals, then create relevant keywords and ads for each of these goals.
- Run 'pilot' campaigns to test the ads and keywords.
- Set up the AdWords conversion tracking tool and reporting tools to analyze the performance of your ads.
- Modify and test your campaign until you reach a desired ROI. Retain only the most successful ads.
Why is search marketing appropriate? Search marketing offers significant advantages over other media, such as outdoor, radio, TV and print, particularly in the areas of customer education/information and direct response.
Google AdWords clients were asked to rate all forms of advertising they've used and/or are currently using. The results showed that satisfaction with Google AdWords is up to 57% higher than all other marketing media.