Launched in 1998, the Google Adwords Program is now the leader in the pay-per-click search engine industry. Contrary to its competitors, Google doesn’t list ads by only considering your bid or Cost-Per-Click (CPC). Google also checks if your clickthrough rate (CTR) is high:
CTR = Number of clicks your ad received / Number of times your ad is shown (impressions)
High CTR =1 / 20 = 5.50 %
Low CTR =1 / 2000 = 0.05 %
It means that with traditional pay-per-click search engines, you have to bid more than your competitors if you want to get ranked first. With Google, you also have to get a higher CTR as your position is determined by multiplying your CTR by your CPC: Position = CTR × CPC.
In few words, it doesn’t matter how often your ad appears and how much you pay. The key thing is that people have to click on your ad. Therefore your key phrase or keywords have to be relevant to the search. If your keywords achieve at least 1.5 % CTR, it means that they are relevant.
5. 1. 2. Create Your Adwords Account and Your Campaign
Now it is time to set up your account. Go to
http://www.adwords.google.com/ and follow these steps:
1.
Click the “Start Now” button and sign up the form for the “Standard Edition”. Choose your target language and location.
2.
Now create your first ad. Its role is to generate traffic on your website; therefore it must attract people’s attention. You have to motivate people to click on it. You must be concise, accurate and clear for you have restricted space. Be careful, characters include spaces as well. Here is the structure of ads in Google Adwords:
Headline (max.25 characters)
Description line 1 (max. 35 characters)
Description line 2 (max. 35 characters)
Display URL (max. 35 characters)
Destination URL (max. 1024 characters)

This way of creating ads is recommended by most Google Adwords experts:
*Always include your exact keywords in the title of your ad. If searchers see the keywords they entered in the title of the ad, they will likely click on it.
*The first description line should contain your most important benefits to grab people’s attention and to force them to take action.
*The second line should list features – what exactly people get after clicking on the ad.
Moreover, I suggest to put a call to action to this line.
*The display URL can be used as well – after your domain address you can put anything.
*Your home page may not necessarily be the best one for all your ads so your URL destination address should mirror the content and purpose of your ad.
Before starting to write your ad and your description, just have a look on these useful tips:
*Get inside the customer’s head. What are your customers looking for? What do they expect?
*As you have limited text space, avoid terms like “a”, “the”, “of”, “at”…
*Use words like “new”, “free”, “limited offer”, “discount” to attract clickers.
*Avoid superlatives like “the best product...”, “the most wonderful …” or “the top of…” It is too basic and not pertinent.
3. Now enter the keywords list that you have created with Chapter #3 of this ebook. Notice that with Google Adwords, you have the possibility to format your keywords with the four types of keyword matching options:
*Broad matching: for example => marketing consultant. Your ad appears each time users search on these keywords, whatever the order or the other search terms.
*Phrase matching: for example => “marketing consultant”. Your ad appears if the keywords are all present in the right order, regardless of other search terms.
*Exact matching: for example => [marketing consultant]. Your ad only appears if the keywords are all present in the right order and no other terms are searched for.
*Negative matching: for example => -manufacturing (use the “minus” character). Your ad for “marketing consultant” only appears if the word “manufacturing“ does not appear in the search query together with “marketing consultant”.
By using these matching options, you should be able to produce well-targeted results. Google also gives you the possibility to block your ads showing for searches conducted by people from certain countries or people who speak a certain language.
4. Next step is to decide on your daily budget. Choose the budget which fits to your resources.
5. Place your bid as well. Your bid price is your maximum bid price, which means you will not necessarily pay that all the time. You will only pay 1 cent more that the competitor under you.
Google will suggest you a bid amount, however it is not compulsory to follow up their suggestion. Just place the bid that you can afford. To find the most relevant bid, use the traffic estimator by clicking “Estimate Search Traffic”: it will give you some idea on the amount of clicks you can expect per day, the position of your ads among the others and how much you will be spending.
I would recommend you to place higher bids at the beginning. That will help you to generate traffic on your website rapidly and therefore to figure out which ads work and which ones don’t.
6. Enter your email address and your password. Afterwards you will be sent a validation email. Log into your new Google account. You just have to enter your credit card details and your campaign will be running!
7. If you wish to add a new campaign, log into your Google account and click “Create New Campaign”. Then you will just have to follow the steps that we have just detailed below.
The good strategy is to run two ads against one another in a campaign. After few weeks, delete the one with the lower CTR and write a new one to replace it. Google will automatically alternate your ads according to their CTR.
To create a new ad, just click the link “Create ad Variation”. Enter your new ad, and then click “Save new ad”. Google will alternate your different ads throughout the day.
Repeat the keyword in both the ad title and ad description to improve your chances for a click.
5. 1. 3. Google Account StructureIt is important to understand the structure of your Google Adwords account when creating particular Google Adwords campaigns. Namely there are three levels in your account, as you can see in the table:
The first one, Your Account – there you have set your email address, password and billing information. Within each Campaign, there are particular settings common for all its Ad Groups, such as the daily budget, geographic and language targeting, distribution preferences and end dates. On the third level you create ad variations and keyword groups which are stated just for that Ad Group.
Other Google Adwords fundamentals you need to know to run your campaign successfully:
*Only the top 8 ads are shown on the first page.
*You must achieve at least a 0.5% CTR to maintain your campaign active.
5. 1. 4. How to Track Your Google Adwords Campaign
TRACK YOUR KEYWORDS
Providing that your keywords fall below the 0.5% CTR for the first 1000 impressions, they will get disabled. That is the first reason you need to track your keywords performance and modify them regularly. Remember, change your words around, use new keyword matching options, try out different capitalization and spelling variations, use singular or plural versions as well as different punctuation and grammar tenses…
You can decide if you want to receive daily, weekly or monthly Google Adwords reports.
Google can also create your personalized report in only five minutes. Click on the tab
“Report“ => “Create a report now”. You can create a report to track the performance of your keywords, text ad, image ad, URL, ad group, campaign and account.
In order to save money, you can delete the keywords that do not convert into sales from your list. It is also recommended that you “peel” those keywords that get low CTR and “stick” them to a new campaign or ad group with an ad specifically targeting them.
To finish, don’t be obsessed by getting the first position. The first position enables you to get more clicks, but not necessarily to get a high conversion sale. Why? Because clickers who aim at purchasing something will take time to look down the page. In contrast, users who just want to take a quick tour will click on the first ad.
TRACK YOUR AD
Making tiny changes to your ad can have a strong impact on your CTR. Keep changing your ads around regularly. After few weeks, you will be able to detect your best performing keywords.
Use them to rework on your ads. Your ad should include your best keywords. On the same way, if you detect bad keywords, delete them from your ad.
Google gives you a separate CTR and CPC for each ad so you can track their results separately:
What Buyers Really Want
Is often different to what You Sell
So what's the secret to Success?
http://www.3r.ie/10 Clicks 3.40% CTR €0.21 CPC
Served - 9.1%
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http://www.3r.ie/49 Clicks 6,4% CTR €0.24 CPC
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TRACK YOUR SALES CONVERSION
Google has a built-in "conversion tracking" tool that's linked to AdWords. You put their code in the "success" page on your site and along with your CTR statistics, Google will give the percentage of visitors who opt in or buy in your weekly, monthly or daily report.
5. 1. 5. Test Your Website Using Google Website Optimizer
Google now enables Google Adwords users to do split testing of particular pages of their website, or even of some parts of these pages. This can be done through Website Optimizer.
Using this tool you create several variations of landing pages you put to your Google Adwords advertisements. Then the particular combinations will be tested and you will get an overview on which versions are performing the best, i. e. which versions bring in most conversions. This tool is a great help especially in the next stage of using your Google Adwords, just after you manage to gain clicks to your website and you want to convert them into sales.