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  • #967998
    2Roos
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    Hy there,
    Maybe some of you guys can shed some light on a question that has been banging away in my head for some time now.
    Google Adwords………. we basically operate an online venture selling most of the latest toy craze items in Europe and import them here to Oz. We started an Adwords campaign and we do feature up there when one of our product range is typed into google, “Gogo Crazy Bones” is one pocket money toy we sell and this one product gets us up there within the Adwords ranking when a search is done for it.
    Ok so far so good but here is the bit thats niggleing away at me, 3 days later we received an email from google adwords stating our funds were running low and it needed topping up to continue with the campaign ?
    We checked the statistics in our adwords and sure enough there had been some traffic but not one sale resulted from the adwords route.
    Had some one just clicked away and drained our pot ( it was only a $20 one to start with ) or were we just plain unlucky.
    What experience have you guys had and should we persevere ?

    #1030211
    YoungNomad
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    Unlucky!

    ADwords, in my experience, is hit and miss. I don’t use it for actual sales – I use it for brand awareness.

    If anyone types in “real estate canberra” ” property management canberra” – our name is up the top of the list. We’re not the biggest agency, but the perception is we are.

    This next comment is terrible … but I don’t monitor the spend, or the conversion rate (if any), because I don’t pay for it for lead generation … just brand awareness.

    #1030212
    Aidan
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    Hi there,

    a few points to think about:

    $20 in 3 days is really not much budget! How many visits did you get for it? Is the margin in your product enough to pay for some traffic?

    Now think about the one keyword you mentioned – do you think the folks searching for it on Google were adults with a credit card in hand wanting to order or were those visitors kids checking out a new toy?

    Even if the visitors were all adults, is your landing page one that actually converts? Good price? Call to Action? Or did you just bring them to your home page and leave them to figure the rest out for themselves?

    The chance of a competitor draining your budget by repeatedly clicking on your ads is remote, Google have safeguards built into the system to guard agains that kind of thing.

    Adwords is an extremely effective advertising channel but it does not suit everyone, particularly low margin products and unfortunately in the toys niche you will get kids clicking your ads too.

    #1030213
    2Roos
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    Hy Aiden
    Thanks for spending the time to reply, as i say we only did the minimum $20 to test the water so to speak. Your probably right in saying the traffic was generated by kids searching lol and although they don’t have direct access to credit they do have the ability to wear down a parents defense and make them cave in to buying, this from personal experience ( 2 small boys ).
    Yes i think the landing page needs tweaking, thanks for your input.

    Aidan, post: 36239 wrote:
    Hi there,

    a few points to think about:

    $20 in 3 days is really not much budget! How many visits did you get for it? Is the margin in your product enough to pay for some traffic?

    Now think about the one keyword you mentioned – do you think the folks searching for it on Google were adults with a credit card in hand wanting to order or were those visitors kids checking out a new toy?

    Even if the visitors were all adults, is your landing page one that actually converts? Good price? Call to Action? Or did you just bring them to your home page and leave them to figure the rest out for themselves?

    The chance of a competitor draining your budget by repeatedly clicking on your ads is remote, Google have safeguards built into the system to guard agains that kind of thing.

    Adwords is an extremely effective advertising channel but it does not suit everyone, particularly low margin products and unfortunately in the toys niche you will get kids clicking your ads too.

    #1030214
    Jay-T
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    Advertising has nothing to do with luck.

    Advertising is more science than art so it shouldn’t be “hit and miss”.

    Clayton Makepeace a genius copywriter said: “The medium doesn’t make the sale, the message does.”

    Newspapers don’t work
    Yellow Pages doesn’t work
    Radio doesn’t work
    Direct mail doesn’t work

    …if you don’t know what you’re doing.

    the 2 questions I’d ask myself is

    “Are the keywords I’m using the words buyers would use?”
    “What are people doing once they come to my site?”

    I’d imagine you’d be getting a lot of “lookers” with this one, doesn’t mean they’re aren’t buyers but there’s going to be some waste in there.

    #1030215
    Gordon Akman
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    $20 is obviously too small a sample size to draw any meaningful conclusions.

    First you need to make sure your ‘landing page’ is set up to achieve the goal of your ad i.e. make a sale, capture contact information etc.

    Let’s assume you are now at this stage.

    What you really need to do is determine how much you are prepared to pay to make a sale.

    This is a useful video produced by Google’s Chief Economist explaining how you should analyse the relationship between your bidding, spending, revenue and profit.

    http://www.youtube.com/watch?v=jRx7AMb6rZ0

    You may find Google Adwords works or does not work for you. However, I would suggest it will take a slightly large sample size than $20 in clicks to reach any meaningful conclusions.

    #1030216
    Steve_Minshall
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    Hi 2 Roos, i won’t comment much about what you asked as others have given eloquent answers. Just to say that I have spent $20 on Adwords before I finished my first coffee of the day, just to give you some perspective.

    But I have to say Aidan just gave me a real light bulb moment:

    Aidan, post: 36239 wrote:
    Or did you just bring them to your home page and leave them to figure the rest out for themselves?

    I don’t send people to my home page, I send them to a page appropriate to the search they have done,
    But do I leave them to figure it out for themselves? Damn it I do. I give lots of information and links for finding even more information but do I take their hand and walk them thro?

    If a customer came into my shop I wouldn’t just go “here’s a brochure tell me what you like” but that is exactly what I am doing on my web site.

    I am not sure how to fix this right now, but well done Aidan you have just turned my web authoring on its head. My policy was info, info, info but I see now: how can I use my web site to guide a customer thro the information gathering process? There is much more to it than just having a call to action.

    Thanks

    #1030217
    Samith
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    Hi Roos,

    The key to diagnosing an Adwords account is to see the actual phrases that uses typed to find your ad and click on. To do that

    1. go to your account
    2. go to Keywords Tab
    3. click on “See Search Terms” and select “All” in the drop down

    Now you will see the actual clicks against search terms.

    To fix it,

    1. Remove any phrases that have the match type of “Broad” or “Phrase”
    2. Check if your conversion tracking code is properly pasted to the conversion page.

    I don’t want to talk about how good or bad the Adwords experience is:) it’s debatable depending on so many factors, but it has done wonders to many online vendors, hopefully you will find your way to Adwords success. Best of luck!

    Best Regards,
    Samith W.

    #1030218
    2Roos
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    Just like to thank everyones input to my question, yep i know $20 is not much but as i said it was a toe dip ( well probably not even as far as the toe ) but surprisingly this weekend has brought some positive results and my actual webite sales have been unusually higher than normal so maybe some aspect of the campaign is working.
    I will tweak it and like Aiden mentioned adjust my site to guide a visitor through rather than just having them land and leave.
    Cheers again.

    #1030219
    Rhys
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    Guys,

    Can’t offer any expertise here, but thought I might throw in a related question.

    If 2Roos is at one end of the spectrum (lots of click throughs / no sales, although based on the post above that may now be changing) what about a scenario of lots of impressions but very few click throughs – click through rate of less than 1%. Is this normal (is there a “normal” in this context)?

    At least low CTR = low cost, but I would prefer more cost and more sales! But like 2Roos the ad has only been up a few days, and I also only have a half a toe in the water. Will watch (and tweak) with interest.

    Cheers, Rhys

    #1030220
    JohnW
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    Rhys, post: 36482 wrote:
    At least low CTR = low cost, but I would prefer more cost and more sales!
    Hi Rhys,
    I don’t manage sponsored links campaigns but a lot of clients ask me to review their campaign traffic reports.

    From what I have seen over the years it is unusual for any sponsored links campaign to average more than 0.05% click throughs against sponsored link exposures. No doubt this figure will vary with the industry, the nature of the market and a bunch of other issues.

    That said, the survey figures for the numbers of people who click sponsored links versus natural search results is usually around the 20% figure. Put the two together and it makes sense that sponsored links click throughs are normally very, very small.

    Another factor that you are ignoring is budget value. A sponsored link advertiser will define how much they will commit to spend per month. When their budget is spent, their ad will not display. If you want to make a maximum bid for a search term (keyword) like “home loans”, you could be bidding up to $40 per click. A $20 budget is unlikely to get you a single click in a market that is this expensive.

    Regs,

    John W

    #1030221
    Rhys
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    John,

    Many thanks for this, you have answered my question. Budget I had set was a lot higher than $20, but to date I have only spent $1.20, so more work to be done,

    Cheers, Rhys

    #1030222
    Aidan
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    Hi Rhys,

    I’m going to disagree with John on this one, personally I’d be really disappointed if my overall CTR was not over the 1% mark, in pretty much any industry though it should be noted I am talking about using the Search and maybe the Search Partner network only here. (i.e. the Content network has been de-selected from the campaign settings).

    If you are using the content network, its a different ball game in several ways.

    Depending on how aggressive my bids are, I’d look to have CTR’s as high as double digits on some keywords but at the lower 1% mark on ‘head’ terms. The ones I want very high CTR’s on are of course the longer tail searches, where those folks are pretty close to parting with their cash.

    Generally speaking the longer the search term (keyword) the nearer the searcher is to buying something. Somebody searching for ‘widgets’ is not as likely to buy right now as somebody searching for ‘acme blue widgets price’.

    Now that said, there are some advertisers with big budgets who also want big click through rates even on the head terms. They do this for branding reasons, the idea being to get their brand in your face when you go looking for widgets, even if you are not actually ready to buy your widget yet, just looking around to see what kind of widgets are out there.

    Remember also that the CTR is a function not just of your ranking on the page but also a function of your ad copy. The wording of your ad can mean the difference between a CTR of 1% and one of 3%!

    Hope that gives another perspective to think about…

    (and thanks Steve M for the kind words!)

    #1030223
    JohnW
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    Aidan, post: 36527 wrote:
    I’m going to disagree with John on this one…
    Hi Aidan,

    Good to have the results and experience of a pro thrown in.

    I’ve long felt that I’ve been checking out Adword reports for campaigns managed by enthousiastic amateurs or by the many companies primarily interested in pocketing their Adword commission for as little effort as possible.

    Interesting to see the difference.

    Regs,

    John W

    #1030224
    Aidan
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    Hi John,

    I’d be willing to bet in many cases the enthusiastic amateurs have not opted out of the Content Network, hence the low CTR’s you observed.

    That Content Network is switched on by default but many don’t realise the huge difference between search and content networks.

    I’m not dissing the content network, it can be used effectively but to my mind needs a separate approach so I only ever use it in a campaign of its own.

    Interesting you raise the point about commission. To the best of my knowledge and from one of the horses mouths (a Google rep some time ago), Google does not pay commission.

    Some managers ask their customers to set a budget and “don’t worry about us, we’ll get our commission out of that…”

    How on earth is the poor customer to know how much the manager is pocketing for himself?!

    Personally, I would hate to find myself as a customer in such an arrangement, I’d rather pay a manager a known fee anyday :)

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