Cloud Advertising: Google Adwords – how much is enough?

Normally this blog is pretty tech focused but we thought we’d depart slightly from our normal mode operandus and provide a high level overview on Google Adwords with regards to spend. We often get asked. How much should we spend ? If we are only spending a small amount should we even bother ? Good questions, so here is our 5 cents:

– To let you figure out effectiveness plan a test budget and test campaign matrix and run it for a month or so to see where you get the best bang for you buck

– Remember It is not about the spend it is about the ROI. If the ROI holds up your spend should increase.

РYour should focus on Earnings Per Click (EPC) not Cost Per Click (CPC). That is what really counts. (EPC =  Customer Value X Conversion Rate)

Focus on how to increase EPC during your trial. In particular:

Set up Google Adwords conversion tracking – without it your campaign is worthless. You need to be able to track conversions.

– Focus on refining the Ad to make it as compelling as possible. Monitor the conversions won (or lost) due to the change.

– You must create relevance between the Ad and the landing page otherwise Google will score you down as your prospects quickly click away and/or the check the page for relevant keywords.

– Focus on the most cost effective keywords. Don’t bother with those that are outside of your value range i.e those that eat into your ROI or end up in a negative ROI.

– Use lots of negative keywords to prevent untargeted traffic.

That’s it ! There are a gazillion great ways of refining or making Adwords work for you (Long Tail keywords, different type of matches etc) but these high level tips should get you on the right road from the beginning.