Best Practices

Top 5 Tips to Getting Started with Google AdWords

Written by Colin Duncan on Tuesday 01, August 2017
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Setting up a Google AdWords account for your business is simple. These tips will help get you started!


1. Account Set up Basics 

Go to Adwords and click “Start Now”

Needs: Credit card, website, and Google email account


Decide your budget
Your maximum cost-per-click (CPC) depends on the conversion rate of your website, profit per customer, and your profit margin. It’s ok if you don’t know these exactly, but you need an estimate to get started. The good news is, after setup, you’ll be tracking your campaigns, so you’ll have more accurate figures soon to make better calculations.

Max CPC = [(profit per customer) x (1 – profit margin) x (website conversion rate)]/100
EX. Suppose your profit per customer is $100, with a profit margin of 50 percent and a conversion rate of 10 percent. By using the above formula, you can easily calculate the Max CPC…
Max CPC = [$100 x (1 – 0.5) x 10]/100 = $5

As a general rule, your CPC should be close to the estimated CPC found in the “Keyword Tool”

2. Create/selecting keywords
If you were a potential customer, what would you type in the search bar to get directed to the products you sell?

Using Google Keyword Planner
Type exactly that in, enter your website landing page and enter your industry of operation. Google will provide you with recommended keywords from this search.
Select the best value keywords (relative to your products and affordable via your CPC budget) from this list.
Best value keywords have high average monthly searches and low suggested bid

Do some research into types of keywords and give some thought on how you might utilize the different variations.


3. Campaign Basics
Determine what the going rate is for the keywords you want to utilize. To do this we need to analyze what competition is be doing.
There are external tools like SEMrush and spyfu which can help gauge the popularity and usage of certain keywords, and what the average CPC & CTR is for these keywords.

Once you have selected some keywords to utilize, you can do an internal search to determine what you actually required to bid for the top placements on Google.

– Change the column view to include “Est. First Page Bid”, “Est. Top Bid”, etc. and analyze what the top bid ranges are for these keywords.
– Determine what you can afford and where you might want to appear in these results. (Obviously the higher up the search rank, the more impressions you get)
– Some keywords you will want to ensure you are the number one placement, there may be others that are important drivers of your business, but the bid is too high for you to compete with, in these cases, try to appear as high as possible, but leave the top bids out of range if it’s unaffordable.



4. Ad Creation and Linking landing pages
Now that you’ve selected a budget and keywords to target, the next step is to create ads that utilize these keywords and ensure you draw the clicks through to the most relevant page for these searches (and that the copy in the landing pages is in line with the keywords)

Google assigns ads based on their “Ad Rank”. The main components that determine Ad Rank are your bids, the quality of your ads, and website (they also include expected impact from ad extensions but that’s for another post). So even if your competition has higher bids than yours, you can still win a higher position at a lower price by using highly relevant keywords and ads, and ensuring the SEO of your landing pages is great.
Your Ad Rank is recalculated each time your ad is eligible to appear and competes in an auction, so your ad position can fluctuate each time depending on your competition at that moment.

5. Optimizing your Campaigns
Track Conversions
– If you sell online (eCommerce) you can include some javascript provided by Google in your checkout that tracks your conversion rate.

– If you don’t sell online but you’re driving people to your site in hopes that they read a blog post, fill out a contact form, or download a whitepaper, Google makes it easy to track any of these as a conversion and you can assign your own internal value to any type of conversion.

Constant monitoring of your campaigns and keyword bids can help you gauge which are performing, and when peak search times may be. Ensure you adjust your campaign settings to increase your bid amounts for times of high keyword search volumes and decrease your bid for off-peak hours.

– This ensures you’re not blowing through your budget on inappropriate viewers and get the most of every dollar spent!