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Pay per click advertising on Google * choosing keywords * how to reduce your advertising costs whilst increasing your website sales * effective pay per click advertising

This is a great principle because it means that small budget advertisers have the potential to compete with the big national and multi-national companies on a more level playing field. By putting in the time and effort to create carefully worded, highly relevant ads, a small retailer can potentially beat the likes of Wal-Mart to the top spot, even though his advertising budget is a fraction of what theirs is. Having deep pockets and trying to outbid everyone else won't necessarily get you to the top if your advert is poorly written and has a low CTR.


This leads us into the third mistake made by our imaginary estate agent. He only had one advert and one set of keywords. This is not the way to ensure that you always have a relevant advert with a high click-through rate.

Google refers to a group of keywords as an Ad Group. For each Ad Group you have to have at least one advert, but you can have more than that if you want. The important thing is to make sure (as we talked about just now) that each advert is relevant to the keywords.

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In turn, that means that each different "theme" you identify for your keywords needs to have its own Ad Group so as it can have its own specific advert(s). This is how to make pay per click advertising on Google more effective.

I'm bored with our estate agent friend now, so let's change the example and pretend I am a mortgage broker in Pimlico (an area of London not far from Victoria station).

The first thing I need to do is draw up a list of the areas that I want to attract new clients from. The list might look like this: Pimlico, Victoria, Chelsea, Fulham, Battersea, and Knightsbridge. This gives us the basis for our first six Ad Groups.


So, we might call our first Ad Group "Pimlico". This could mean choosing keywords such as:

Mortgage broker Pimlico
Mortgage adviser Pimlico
Mortgage advisor Pimlico
Mortgage to buy flat in Pimlico

We would then need to write an advert that was specific to that group of keywords - something like:

Mortgage Broker Pimlico
Pimlico mortgage advisor.
Get a quote today.

It would be a good idea to create a second advert (similar but subtly different) so as we can see over time which advert performs best. More on that later.

Then we would create an Ad Group for the next location - e.g. "Knightsbridge". This would have keywords such as:

Mortgage broker Knightsbridge
Mortgage adviser Knightsbridge
Mortgage advisor Knightsbridge
Mortgage advisor near Harrods

Again, we would next need to create the adverts and make them specific to those keywords - for example:

Mortgages Knightsbridge
Knightsbridge mortgage broker
Get a quote today.

And so on and so on...

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Of course, locations are not the only variations that can be used to create Ad Groups. You can use your products as the basis for defining Ad Groups too in order to reduce your advertising costs.

For example, rather than just focusing on the term "meat", a butcher might have an Ad Group for search terms containing beef, another for steaks, another for sausages, one for burgers, one for pork, etc.

Whatever way you decide to do it, the key thing is to keep the Ad Groups as tightly focused as possible and to make sure the ad text matches the theme of your keywords used in that Ad Group.

Getting this set up can be time consuming but, as with so many things, it's the people who put in the effort who reap the rewards. As someone said to me only the other day: the only place where success comes before work is in the dictionary.


There is, however, one little-known trick that can help in increasing your website sales.

When you are creating an ad, you can set it to automatically put the user's search terms into the title of your advert. This is called dynamic keyword insertion. It is described in detail at: http://adwords.google.com/support/bin/answer.py?hl=en&answer=74996.


Setting Your Bid Prices

Finding the right bid price for your keywords is going to come down a bit to trial and error and is going to depend on what product/service you are selling and what your margins are like. You may need to experiment before settling on the most effective pay per click advertising. The three things I do want to stress about bid prices are:
  1. It's better to start with a low bid price and slowly increase it if required than it is to start high and lose a load of money.

  2. Do not get hung up on trying to be in the top spot. Often you will find you get better click through rates and/or a better quality of visitor if your advert appears in positions 4-7 than in positions 1-3.

  3. If you have set a reasonable bid price and yet are struggling to get on page one of the search results, then you need to look at changing your ad text and/or your keywords (or the way you have combined the two) before you go frantically ramping up your bid price. Unless you are operating in a highly competitive industry you shouldn't need to be paying several pounds per click....

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Pay per click advertising on Google * choosing keywords * how to reduce your advertising costs whilst increasing your website sales * effective pay per click advertising

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