Why Google Ads services cost differently
A few words to begin with
Working with a large number of business owners and directors, I’ve often heard that Google advertising doesn’t work. After trying one or more times to set up and run advertising campaigns (by themselves or with the help of other companies), business owners eventually use other tools to attract customers or they opt out of online advertising altogether, preferring direct customer search.
This problem lies in three main planes, which sometimes overlap:
- Low quality of specialists who run advertising;
- Lack of tracked results of advertising campaigns;
- Low quality of sales.
Today we will analyze in detail only the first point of this story, although the last two are also significant.
There are many digital marketing companies that offer a launch and Google Ads management. Each of these companies gives different results, the cost and quality of their work will be radically different. The client is faced with the question: what makes one marketing company better than another and how to choose one of many companies that will create effective advertising?
Thanks to correctly configured advertising in Google Ads, you can advertise your products and services to people who are really interested in them or are looking for them. With the help of various tools, you can choose the current target audience, bring new potential customers to the website, increase sales or brand awareness. Advertising in Google Ads allows you to reach potential customers using different devices. So in order not to waste time and money on running ads that may be ineffective, you must first determine the goals of the campaign, analyze the market and assess the cost of advertising in relation to the expected results. We call this digital business analysis.
Digital business analysis or how not “to go down the toilet”
Business analysis is the process of identifying the business needs of a company and finding solutions. It allows you to get the necessary information to develop advertising campaigns, as well as to justify the accompanying marketing decisions that need to be made within the launch of advertising. With the help of business analysis, you can compare the trends observed within the company with existing in its field and describe the main competitors.
After conducting business analysis and researching the niche, we make the technical proposal, which described in detail all the recommendations for improving the website to increase its conversion rate, calculate the expected results of advertising campaigns with recommended budget or within customer budget, cost of services and work plan to achieve the required results. These indicators are compared with leads conversion rate to purchases/transactions of the company and are used to calculate potential profitability. As a result, we have a clear financial picture before launching any advertising campaigns and spending money.
The main elements of business analysis:
- Analysis of website conversion rate. The website should be attractive, easy to use, and consumer-oriented. This will significantly increase website traffic and sales. In business analysis, we provide clear recommendations for improving the website.
- Market research, choosing audiences, collecting the semantic core. To set up effective advertising in Google Ads, you need to clearly understand the company’s niche, analyze its direct competitors, and select keywords or audiences of potential customers. An inexperienced professional will think that all search queries will be equally effective. In most cases, about 70% of search queries will spend money without results.
- Determining the most effective time for sale or website visits, it can be both a certain period of the day and a certain time of year.
- Determining the sales locations and comparing them with company budget capabilities. For the companies with small budgets, it is much more profitable to cover the most conversional locations (for example, the city where the office is located) than to spray the budget for advertising across the country.
- Setting up all conversion elements on the website and appointing a responsible person who will record all calls and requests through the feedback form. It is crucial to monitor the progress of the advertising campaign and analyze its profitability, because most markets are dynamic, have seasonality and other factors of external influence on advertising. Today you are in the first position, you will receive a lot of quality requests, and tomorrow the competitor knocked you out by investing more in advertising campaigns.
Launching advertising campaigns / “one button” doesn’t work
Today, most eCommerce platforms allow you to run advertising campaigns in 2 clicks. Even Google created a specific platform and advertising campaigns for “novices”. All of them are aimed at one thing: to provide the customer with convenience and simplicity without guaranteeing any result.
In WebUgol we always take the responsibility for the result, we create “moneymaking ads”. This is advertising that will not only work but will also bring the profit – leads or sales. To make Google advertising work and make a profit, you can’t just invest money in it, you need to, adjust bids or change strategies, clear out unnecessary queries, set limits on inefficient territories, time frames and audiences, and so on. You are making a financial investment by placing Google Ads, which should be returned!
Typically, each ad campaign is designed to minimize the cost per action (click), so we use at least two-three types of ads within one group, which Google rotates during the auction to provide more relevant information to a potential customer and to reduce the cost of a click. When setting up an advertising campaign, we make the most of all available extensions to increase the quality of our advertising campaigns, their clickability and lower our cost-per-click. We also take into account offline business trends.
After deep market research and a definition of the purposes of the future advertising campaign, it is possible to start writing advertisements which in turn are divided into adaptive and expanded advertisements.
Creating and customizing advertisements has many nuances:
- Keywords must be organically adapted to your ad text. This will make the ad more visible and relevant.
- The content of advertisements should be as clear and convincing as possible.
- The quality of the ad affects the ranking and frequency of its appearance at the top of Google.
Written ads are structured by content into ad groups. Don’t forget about Google Ads extensions, which make your ads more attractive and complete. With extensions, you can add structured descriptions, dynamic links, addresses, phones, prices, or reviews. Fully filled extensions allow you to take up most of the screen of a potential customer that significantly improves results.
Bidding strategies. How to avoid mistakes?
In Google Ads, all bidding strategies are associated with different types of advertising campaigns and goals. That’s why you need to consider all your current campaign settings when choosing a strategy.
Smart Bidding is a set of strategies that work on the basis of Google automated learning-oriented on getting more conversions. Google analyses thousands of indicators of the clients that were converted into leads and searches the same prospects via your Google Ads target audience. Each ad auction automatically sets a certain bid that allows you to get the maximum number of conversions. You can also use a target cost per conversion (target CPA) as part of this strategy. Google takes this value into account in your ads impressions.
In some cases, it’s more profitable to increase traffic to your website without automated strategies by using maximize clicks strategy. For example, if the market is struggling because of the low season manual strategy will give you more control over the budget use and price per one lead.
Advertising campaign management – That’s where the dog lies buried
After launching an advertising campaign, it undergoes “training”: it sets bids per click, determines the effectiveness of written ads, extensions and landing pages.
It is crucial to monitor advertising campaigns every day and makes adjustments regarding the actual audit of the auction! Auction insight is the Google Ads section where you can find real information about its effectiveness – the position relative to competitors, the volume of the covered market and compare it to the average cost per click.
Using auction insight statistics we correct further settings of the advertising campaigns. For effective performance, we adjust your ad showing time frame and showing territory, bids, and daily budget. The previous day of advertising campaigns is audited daily to provide all necessary edits and cleanings in order to maximize the result from the daily budget.
In this article, we’ve shown just the tip of the iceberg called Google Ads. One wrong setting can drastically change the results of advertising campaigns. It is clear that the cost and the result obtained from advertising company will depend on each of mentioned above factors. Invest wisely!
Ph.D. in Economics
Contextual Advertising Specialist, WebUgol