Struggling To Make A Profit In Adwords?

Are you Struggling To Make A Profit In Adwords? Do you know why? Maybe we can help, have a look at our Google Adwords services page, because we can help! The following article was written by Tony Roocroft.

Why Do Most Adwords Users Struggle to Make a Profit?

I have viewed many Adwords accounts over the years and have yet to see a single one that was even close to having been set up properly. See below for a few of the reasons why… always bear in mind however that there are certain types of campaigns that will never be profitable such as trying to sell low cost (ie low margin) products or buying clicks to make money from Adsense (this used to work but no more). Another reason is trying to compete in competitive markets without having the same advantages as the competitors. A good example of this is trying to compete with merchants directly who enjoy a much higher margin than the reseller. This is the problem (though not insurmountable) with most affiliate schemes.

However it is not these situations I am addressing in this article. I want to discuss the actual Adwords campaign on the assumption that margins are high enough to stand a chance to run profitably.

Poorly Applied Campaign settings

It’s important to remember what I’ve often said… Google is NOT your friend. The default campaign settings are not at all in your interest. They are set up to favour Google and if you blithely accept the default settings you are on a hiding to nothing even before you start.

You need to give serious thought to geographical regions to be targeted, on which networks you want you ads to be displayed, which part of the content network (if any) you want to advertise on, how often your ads should run and how you should control bid pricing for different timing scenarios. In addition consider how you want to compare actual ad performances. Once you’ve settled these requirements in your mind and only then should you start to set up a campaign.

Targeting the wrong keywords

I covered this in yesterday’s article about the problem with low click through rates. It is far better to focus on the top 5% of performing keywords and really make them work for you than to spread a budget across a whole plethora of keywords.

Poor Quality Score

For a poorly optimised Adwords campaign it will be unusual to get a Quality Score in excess of 5 for most keywords and quite possibly 3 or less. There might be a sprinkling of QS=7 but there is a high probability that these will be few and far between. This is vitally important because if your QS is 5 and your competitor’s is 7 you will pay 40% more per click than your competitor. If your competitor has a QS of 10 you will pay double per click than your competitor.

The major ingredients of QS are CTR, keyword/ad relevancy and landing page considerations. If you start with a QS of 3 or less then you almost certainly have landing page issues.

Landing Page Inconsistencies

If you landing page does not meet the promise of your ad then the searcher will rarely if ever go to the next step so almost every click will be a wasted expense. Landing pages have to meet the searcher needs as closely as possible. If you’re selling the full range of Canon Cameras for example then each camera must have its own landing page… grouping all the cameras on a single page is quite the wrong thing to do.

Within the above 4 heading there are many other components making for a successful Adwords campaign.

If you think about what I’ve said then it all boils down to common sense… just think of your own behaviour when you are searching or surfing the web.

I’m not sure who said this first but… “The devil is in the detail”

That’s where my experience has a major role to play in showing individuals and organisations how to profit form advertising online at a fraction of the cost of other ad media.

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