How to Get the Most out of Your Advertising Budget? Search Engine Advertising with Google Adwords

So Who Am I - And What Do I Do ? I offer a niched range of services, and I like to keep things simple and easy to understand ! I have a loyal group of clients, who I help in the following ways: Search Engine Advertising Information Architecture Newsletter Management “ Mick you do indeed make ‘online marketing simple’. Thanks to your online ad campaigns, Organic Explorer website is growing as fast as I can handle ! " Leonie Johnsen (Owner) www.OrganicExplorer.com “ That has to be one of the biggest advantages of Mick's expertise with online marketing. It's measurable. It can be experimented with little or no drama. It's modifiable and definable, it's targetable.“ Evan Crawford (Director) www.StrawBuiltHomes.com " I like working with Mick. He is a Guru in his field and brings incredible knowledge and common sense. This has enabled me to market my business to the world at the 'speed of thought', and in so doing has greatly stimulated my websites and the number of booking enquiries I am receiving daily :-) " Barry Kirkland (Owner) www.TaupoDeBretts.com My Name is Mick Gibson I am an Online Strategist and offer specialised advice, assistance and marketing to businesses and individuals wanting to better utilise the amazing marketing opportunities there are online.

I offer a niched range of services, and I like to keep things simple and easy to understand !

I have a loyal group of clients, who I help in the following ways:

Search Engine Advertising

Information Architecture

Newsletter Management

Search Engine Advertising - Let’s Define it. Search Engine Advertising is essentially The process of paying money to search engines or directories to enhance your website's position. I know that we all like things to be Free ! But sometimes there’s benefit in being able to: Jump the Queue and appear precisely on first page of the Search Engine you want, and quickly too ! I’ve specialised in the setup and ongoing maintenance of Search Engine Advertising campaigns over the last 5 years, and have found Google Adwords to be the market leader. But Before we find out why Google Adwords are so effective - let’s look at an interesting fact about Search Engine Advertising.

Search Engine Advertising is essentially The process of paying money to search engines or directories to enhance your website's position.

I know that we all like things to be Free !

But sometimes there’s benefit in being able to: Jump the Queue and appear precisely on first page of the Search Engine you want, and quickly too !

I’ve specialised in the setup and ongoing maintenance of Search Engine Advertising campaigns over the last 5 years, and have found Google Adwords to be the market leader.

But Before we find out why Google Adwords are so effective - let’s look at an interesting fact about Search Engine Advertising.

Search Advertising Now Has the Largest Share of Online Ads Growth of Search: Marketers are voting with their dollars Search Advertising now the most dominant form of online advertising Nearly 3x growth in Search Advertising since start of 2006 35 searches per user per month in U.S. Source: Interactive Advertising Bureau, PricewaterhouseCoopers (September 2007); comScore (October 2007) % Online Advertising Revenue Search Banners Classifieds Sponsorships Rich Media Other

Search Advertising now the most dominant form of online advertising

Nearly 3x growth in Search Advertising since start of 2006

35 searches per user per month in U.S.

So How Does Google Adwords Work? To Explain it REALLY SIMPLY Your ad appears next to relevant Google search results. And when users click on your ad, it links them to your website. With Google AdWords™, you are be able to reach your customers At the precise moment they’re looking for your products or services ! That’s because your advert only gets displayed for the keywords you have chosen and the keywords people are using in their searches.

To Explain it REALLY SIMPLY

Your ad appears next to relevant Google search results. And when users click on your ad, it links them to your website.

With Google AdWords™, you are be able to reach your customers At the precise moment they’re looking for your products or services !

Let Your Customers Find You. So instead of looking for an audience, you’ve got an audience that’s looking for you !

So instead of looking for an audience, you’ve got an audience that’s looking for you !

So What Makes Up a Google Advert ? It all starts with your ad. Tell the audience what you have. Highlight the benefits of getting it – and getting it from you. Display URL (35 character limit) Ad Text (35 character limit) Ad Title (25 character limit)

It all starts with your ad. Tell the audience what you have. Highlight the benefits of getting it – and getting it from you.

Display URL (35 character limit)

Ad Text (35 character limit)

Ad Title (25 character limit)

Google Can Show Your Ad to Lots Of People ! Your ads can appear on Google search results as well as the Google Network of search and content sites . network Other 20% 80% Search partners, including: Google properties, including: The Google Network reaches over 80% of Internet Users worldwide* Content publishers, including:

Your ads can appear on Google search results as well as the Google Network of search and content sites .

Target the Customers You want By Location & Language too! Whether you need to make contact with countless thousands or a select few, Google AdWords can reach them on a neighborhood, city, state, national or global level. AdWords even allows you to create your own customized target area by designating a geographic radius or boundary . And, should you need to advertise internationally, AdWords lets you target your ads in about 40 different languages, throughout more than 190 countries.

Whether you need to make contact with countless thousands or a select few, Google AdWords can reach them on a neighborhood, city, state, national or global level.

AdWords even allows you to create your own customized target area by designating a geographic radius or boundary .

And, should you need to advertise internationally, AdWords lets you target your ads in about 40 different languages, throughout more than 190 countries.

It Get’s Better ! In addition, your ads can also appear on other relevant search and content sites within the Google Network. (Contextual/ Content Based Placement) This is great - because you often get people, who to begin with, were looking for something else, and they end up clicking your content ad, just because its in the right place at the right time. NICE!

In addition, your ads can also appear on other relevant search and content sites within the Google Network. (Contextual/ Content Based Placement)

Only pay Google when people click through to your site . One reason AdWords ads have such incredible ROI (return on investment) is that your “I”(Investment) is so little. You decide what you’re willing to pay for each click on your ad (cost-per-click), and you place a limit on what you’d like to spend each day (there’s no minimum spending requirement). Your cost-per-click could be as low as 5¢. Here’s the best part – you only pay when people click on your ad . That means you’re investing in definite leads, not hit-or-miss ads

One reason AdWords ads have such incredible ROI (return on investment) is that your “I”(Investment) is so little.

You decide what you’re willing to pay for each click on your ad (cost-per-click), and you place a limit on what you’d like to spend each day (there’s no minimum spending requirement).

Your cost-per-click could be as low as 5¢.

Here’s the best part – you only pay when people click on your ad . That means you’re investing in definite leads, not hit-or-miss ads

Measure, track & Optimise. See what’s working. Then do it again Unlike other advertising, you can do more than just put your AdWords ads out there, cross your fingers, and hold your breath. Instead, with online tracking tools, you can keep a close watch on their effectiveness to determine which of your ads are generating the most clicks and which are converting to sales, leads, sign-ups, downloads or page views. And, your AdWords ads can be continually altered and refined to drive even better results.

Unlike other advertising, you can do more than just put your AdWords ads out there, cross your fingers, and hold your breath.

Instead, with online tracking tools, you can keep a close watch on their effectiveness to determine which of your ads are generating the most clicks and which are converting to sales, leads, sign-ups, downloads or page views.

And, your AdWords ads can be continually altered and refined to drive even better results.

Increase revenue by reinvesting profit Example: How AdWords Can Pay for Itself $300 initial investment in AdWords 0.50 CPC ≥ 600 clicks 10% conversion rate = 60 sales Average sale = $50 $0.3K investment returns $3K in sales Reinvest profits, increase budget

Increase revenue by reinvesting profit

Benefits of AdWords

What Google can do for Advertisers Advertising on Google can help an advertiser meet many objectives Determining, measuring, and tracking metrics helps ensure success Generate awareness Build brand Educate prospects Targeted impressions Qualified visits your website Depth of involvement Request for proposals Coupon downloads Newsletter registrations Email address opt-ins Generate leads Identify prospects Customer acquisition Sales Sales conversions = $$$ Lower cost per lead/sale Example Success Metrics Objective

Advertising on Google can help an advertiser meet many objectives

Determining, measuring, and tracking metrics helps ensure success

Generate awareness

Build brand

Educate prospects

Targeted impressions

Qualified visits your website

Depth of involvement

Request for proposals

Coupon downloads

Newsletter registrations

Email address opt-ins

Generate leads

Identify prospects

Customer acquisition

Sales

Sales conversions = $$$

Lower cost per lead/sale

Adwords Helps Advertisers By : Reach Cost Timing Flexibility

Reach

Cost

Timing

Flexibility

Benefits of AdWords: Reach Content Publishers Search Partners Google Properties 80% AOL Amazon Earthlink New York Times About.com * Source: comScore Media Metrix (September, 2004) Ads are distributed across other Google sites as well as on partner sites, newsletters and email, reaching over 80% of Internet users. Reach As mentioned earlier, when you use Google, you’re getting relevant, real-time distribution on a massive scale. Other 20% Network

Benefits of AdWords: Timing Another benefit to advertisers is the timing of AdWords. Ads are continuously matched to Internet users’ interests . In internet advertising, timing is very important. Google AdWords ads connect you with new customers by being in the right place, and, more importantly, by engaging them at precisely the right moment. Ads are continuously matched to internet users’ interests. Ads are placed as buying decisions are made. The fact that people on the Web, actively reading pages and searching terms related to your product, means they're likely to be interested in what you have to offer. The Result: You reach your audience at the right time , with the right message Timing

Another benefit to advertisers is the timing of AdWords.

Ads are continuously matched to Internet users’ interests . In internet advertising, timing is very important. Google AdWords ads connect you with new customers by being in the right place, and, more importantly, by engaging them at precisely the right moment. Ads are continuously matched to internet users’ interests.

Ads are placed as buying decisions are made. The fact that people on the Web, actively reading pages and searching terms related to your product, means they're likely to be interested in what you have to offer. The Result:

You reach your audience at the right time , with the right message

Benefits of AdWords: Flexibility See your ads on Google quickly . Whether creating a new account or editing an existing ad, you achieve it quickly Optimize and change your ads continually to increase ROI. The AdWords system is available 24 hours a day, seven days a week, and the number of changes you can make is unlimited. Target multiple locations and languages. You also have the flexibility of targeting different populations by location and language, which allows you to create targeted ads that will appeal exactly to your audience. Flexibility

See your ads on Google quickly . Whether creating a new account or editing an existing ad, you achieve it quickly

Optimize and change your ads continually to increase ROI. The AdWords system is available 24 hours a day, seven days a week, and the number of changes you can make is unlimited.

Target multiple locations and languages. You also have the flexibility of targeting different populations by location and language, which allows you to create targeted ads that will appeal exactly to your audience.

No minimum spend. You can spend a small amount at first…to test new keywords and ads…and then increase spending when you become comfortable with the success of your advertising. You choose your own maximum daily spending limit (daily budget) Google display your ads so that the number of clicks you receive does not exceed your daily budget. Choose how much you want to spend per click for every keyword Google never charges you more than this maximum amount. In fact, Google’s automated auction system often charges you less than the maximum you are willing to pay. Benefits of AdWords: Cost ** U.S. Bancorp Piper Jaffray, New Methods in Search Marketing: Contextual Advertising and Other Evolutions (Safa Rashtchy), June 2004 Cost

No minimum spend. You can spend a small amount at first…to test new keywords and ads…and then increase spending when you become comfortable with the success of your advertising.

You choose your own maximum daily spending limit (daily budget) Google display your ads so that the number of clicks you receive does not exceed your daily budget.

Choose how much you want to spend per click for every keyword Google never charges you more than this maximum amount. In fact, Google’s automated auction system often charges you less than the maximum you are willing to pay.

Benefits of AdWords: Cost More cost-effective than other online advertising - Yellow Pages, Banner Ads & Direct Mail* etc Google charges for advertising on a cost-per-click basis. Contrast this with the majority of online advertising, where pricing is based ad impressions; this is usually a fee per thousand impressions. There are no guarantees that a consumer will actually click through to the advertiser’s website with that model. ** U.S. Bancorp Piper Jaffray, New Methods in Search Marketing: Contextual Advertising and Other Evolutions (Safa Rashtchy), June 2004 Cost Search Engine Advertising

More cost-effective than other online advertising - Yellow Pages, Banner Ads & Direct Mail* etc Google charges for advertising on a cost-per-click basis. Contrast this with the majority of online advertising, where pricing is based ad impressions; this is usually a fee per thousand impressions. There are no guarantees that a consumer will actually click through to the advertiser’s website with that model.

Conversion tracking = real-time return-on-investment data. With AdWords free conversion tracking and online reporting, advertisers get customizable reports that continuously track their sales conversions and return on investment. These reports can also be emailed automatically on a regular basis. These capabilities give you full control over their campaign spend and clear insight into performance. Benefits of AdWords: Measurement Measurement

Conversion tracking = real-time return-on-investment data. With AdWords free conversion tracking and online reporting, advertisers get customizable reports that continuously track their sales conversions and return on investment. These reports can also be emailed automatically on a regular basis. These capabilities give you full control over their campaign spend and clear insight into performance.

Benefits of AdWords: Summary Reach Access to 80% of Internet users worldwide Cost Low costs for high ROI Pay only when users click on your ads Timing Ads are seen by users looking to purchase Reach your audience at the right time , with the right message Flexibility Start advertising quickly Unlimited changes, whenever you want You can target ads to the specific location & language of your customers Measurement Tracking and reporting allow ongoing optimisation, and better ROI

Reach

Access to 80% of Internet users worldwide

Cost

Low costs for high ROI

Pay only when users click on your ads

Timing

Ads are seen by users looking to purchase

Reach your audience at the right time , with the right message

Flexibility

Start advertising quickly

Unlimited changes, whenever you want

You can target ads to the specific location & language of your customers

Measurement

Tracking and reporting allow ongoing optimisation, and better ROI

Getting a little Technical Now! AdWords Features in a little More Detail

Basic Features of AdWords Cost-per-click pricing Ad impressions & click-through rates Language & location targeting The basic features of AdWords include:

Cost-per-click pricing

Ad impressions & click-through rates

Language & location targeting

Basic Definition: CPC CPC: cost-per-click Click: The action a user takes to select your ad and be taken to your website. Google charges the advertiser when a user clicks on your ad The Destination Website A sample AdWords ad

Click: The action a user takes to select your ad and be taken to your website.

Google charges the advertiser when a user clicks on your ad

Basic Definition: CTR Impression : The appearance of your ad on Google or one of our partner sites CTR: clickthrough rate Another important industry term is Clickthrough Rate , often abbreviated as CTR . Clicks Impressions = CTR (expressed as %)

Impression : The appearance of your ad on Google or one of our partner sites

CTR Examples CTR is how Google measures relevance Clickthrough rate is very important, as it reflects the relevance of your advertising. The more relevant ads are, the more often users will click on them, resulting in a higher CTR. Targeted, relevant advertising will return the best results, and Google encourages AdWords advertisers to create relevant ads and keywords. As such, Google rewards advertisers with a high CTR 2 clicks 1000 impressions = 0.002 = 0.2% Example Advertiser A: 3 clicks 100 impressions = 0.03 = 3% Example Advertiser B:

Benefits of AdWords – Location & Language Targeting Targeting options: you can target ads by location and language Regional/Local, Country, Global & Customized Targeting Roughly 40 different language targeting options to choose from

Targeting options: you can target ads by location and language

Regional/Local, Country, Global & Customized Targeting

Roughly 40 different language targeting options to choose from

Example: you have local flower shops in the Auckland Example: you run a restaurant in Wellington Region/City Targeting Examples When should you use regional targeting?

Example: you have local flower shops in the Auckland

Example: you run a restaurant in Wellington

Country Targeting When should you use country targeting? Use if you have national or global customers Example: you ship to the U.S. only. Target your campaign to the U.S.

When should you use country targeting?

Use if you have national or global customers

Example: you ship to the U.S. only. Target your campaign to the U.S.

If you have a global business, give your campaigns global exposure Example: If you sell DVDs and have worldwide distribution, you should target your campaign to all countries Global Targeting

If you have a global business, give your campaigns global exposure

Example: If you sell DVDs and have worldwide distribution, you should target your campaign to all countries

Use Customized Targeting to target highly specific areas For example, to reach customers located in an area that cannot be targeted accurately using region or city targeting Example: pizza delivery service Customized Targeting

Use Customized Targeting to target highly specific areas

For example, to reach customers located in an area that cannot be targeted accurately using region or city targeting

Example: pizza delivery service

Thanks. Feel Free to Bug Me for more Info Afterwards ! … . and visit www.mickg.co.nz to view a copy of this presentation and learn more about Google Adwords and What I Offer * email [email_address] * web www.mickG.co.nz * tel 027 713 5913