How much should I spend on Google AdWords? is a question that we get asked very often. Earlier this blog provided a strategy answer. Here are some tips for new advertisers and those advertisers who are reviewing their spend on Google AdWords:
- The daily budget is all upto you: The daily budget can be set in Google AdWords very easily so there is no risk of over spending. You can decide to start at say $10/day that works out to $ 300 a month.
- What do I get for $10/day ? : Let us say you had a budget of $10 per day, you pay for keywords that people use to search for your business. The price of keywords is decided in an auction and depends a lot on the competition. If you are selling holiday gift items online, you can expect that the word "holiday" will become more expensive as Thanksgiving gets nearer. However, the more specific your holiday gift item, the easier it is to bid on keywords as there is less competition.
- A good idea is to cap the keyword at $2.00, to start with: Depending on your target market,competition and your website content- $2 max per keyword is a good start. More thoughtful your campaign set-up, choice of keywords you can be assured that you would get about five new visitors to your website a day with a daily budget of $10.00.
- Are there exceptions to five new visitors a day with $10/day budget ? Yes, and that occurs for highly competitive words. There have been times that lawyer firms pay $100 + for the word "mesothelioma" and car insurance folks pay $60 + for the words "car insurance." And you can be sure that "roses" are cheaper for flower merchants on most days when roses sell for $6.99 but on Valentines day rose sellers can sell roses for $49.00 so $10 for the word "roses" does still make a profit.
- You can measure which words lead to conversions: It is fairly easy to measure which words lead to conversions, be it orders or sign ups or time on page. This is a big plus compared to traditional advertising. Once you know, you can change what you are doing.
The reason we like Google AdWords is because getting a visitor to your website builds your brand awareness at the very least. You do not pay for "views" of your ad and pay only for clicks on the ad based on the keyword that triggered the ad.
Think of a brick store and how much you would like someone really interested in your category, to walk in and check out your products. Since your website is your online store- it is a great idea to keep a campaign ongoing just as you do for a yellow page listing, a mail campaign or with flyers.
If you need help with setting up AdWords Contact StratoServe (email: Serve@StratoServe.com ) and ask about our holiday special coupon- offer valid for US based businesses only.