AdWords is Google's advertising service that allows businesses to display ads on Google search results pages. When launched in 2000, it only had 350 advertisers, but now has over 1 million advertisers generating tens of billions in annual revenue for Google. To use AdWords, businesses create an account, add their website and keywords, set a budget and bid for keywords. Google determines ad position through an auction system that ranks ads based on bid amount times quality score. While flexible and able to target specific audiences, AdWords risks include high costs, competition raising prices, poor quality scores lowering ad visibility, and targeting the wrong keywords to miss the intended audience.

1. AdWords
Emily Chin, Dabin Ha, Mikaela James, Peter Marin, Samreen Mohammed, Victoria Studer

2. AdWords: What is it?
● Advertising Service
○ A business pays for their
website to be displayed
on the Search Engine
Results Page (SERP)
when certain keywords
are entered.

3. AdWords: When did it begin?
● Launched October 23, 2000
○ Only 350 advertisers
● Today
○ More than 1 million advertisers
■ Generates tens of billions in
revenue

4. AdWords: How do you use it?
● Create an Account
● Add your Website
● Set your Budget
● Choose your Target Audience
● Add Keywords
● Set your Bid
● Write your Ad

5. AdWords: How do you use it?

6. AdWords: Ad Auction
● Ad Auction
○ How google decides which ads to show and
how they are positioned
● Ad position
○ Order in which ads show up on the page
● Ad Rank
○ Value used to determine your ad position
○ = CPC Bid * Quality Score
● Improve your Position By:
○ Increase bid and quality of ads/experience

7. AdWords: User profile
● Companies of all sizes
use adwords to draw
attention to their sites
and collect data
● Flexible spending
● No fee until conversion

8. AdWords: Industries Using AdWords Most
● Finance and Insurance
industry spends the
most (4 billion dollars
annually)
(In billion)

9. AdWords: How does it work?
● Multiple users bid on same
keyword → “Bidding War”
● Ad Rank
○ Bid amount for keyword X Quality of Ad
● How much you pay:
○ Ad rank of person below you /
your Quality score + $0.01

10. AdWords: How does Google make money?
● The bulk of Google’s $89.6 billion
revenue in 2016 came from AdWords
● Advertisers pay Google each time a
visitor clicks on an advertisement
○ A click can be worth anywhere from a
few cents to over $50
● Google’s algorithm attempts to provide
the most relevant results for your queries
○ Related suggested pages can be
from AdWords advertisers

11. AdWords: Benefits
● Shows data of conversion rate and
results of ads whenever users want
● Ads are shown on Google or Youtube
which most of search traffic is
generated
● Can tweak the ads and restart a
campaign
● No conversion, no fee

12. AdWords: How Useful Is the Tool for
Marketing?
● Ads are shown by customers’ needs
● Target range is customizable
● Reach customers through any devices
○ Desktop, laptop, tablet and mobile
● Can analyze the effectiveness of ads
through given data

13. AdWords: Conversion Rate by Industry
Finance
& Insurance
Homemade
Goods

14. AdWords: Common Mistakes Companies Make
1. Targeting keywords that are too broad
a. It’s pointless for a company to attempt to bid their way to the top spot for such broad keywords as it
is extremely costly and unlikely that the generated revenues will justify the costs.
2. Putting too many keywords in an adgroup
a. Having too many keywords in the same adgroup forces a lot of unrelated words and phrases to use
the same ads and landing pages. Instead, companies should stick to just 5-10 keywords to start.
3. Sending traffic directly to your homepage
a. Every visitor that a company secures via PPC should be directed to a landing page that is designed
to be as appealing and engaging as possible based on their interests. If visitors are simply sent
straight to the homepage, they have to put in extra work navigating their desired information, which
leads to higher bounce rates and missed conversion opportunities.

15. AdWords: Common Mistakes Companies Make
4. Not including negative keywords
a. Failing to include negative keywords can result in your ad popping up for searches irrelevant
to your product. Since every click costs money, adding a negative keyword to your adgroup
can prevent your campaign from being seen by the wrong audience.
5. Not measuring ROI
a. Running an adwords campaign without any way to measure which paid clicks are converting
into customers is a waste of money. Companies should track conversions that enter the
sales funnel from an adwords click and become purchases. This will show you where to
focus future ad spend and which campaigns/ad groups should be increased or dialed down.

16. AdWords: Risks
● Costly
○ Cost per click, Bid, Budget
● Competition
○ Raises Prices, Beating out smaller companies
● Bad Quality Score
○ Ads can get bumped down/removed
● Not using proper keywords
○ Does not reach the correct audience

17. AdWords: Adwords Failure

18. QUESTIONS?