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(Last Updated On: May 4, 2021)

This article is for someone new to PPC advertising. It covers some of the key points to keep in mind when starting to advertise via PPC ads (pay-per-click).

PPC ads, Facebook ads, etc… this stuff is really interesting.

From my experience and research, this is the main key to getting Google AdWords to work for you:

We need to first know how many people need to visit your site in order to make a sale. Let’s say that 100 people visit your site. How many actually bought the products? And what was the average transaction amount? Once we know that, coupled with the margins on your products, we can determine what a reasonable cost per click is on Google.

So, for example:

100 people visit your site and you sell a physical product. You make 2 sales. Say one is for $895 and the other is for $349. That’s an average sale of $622. After you consider the cost for manufacturing, employees and other overhead, let’s say you make an average of $85 per order. That means that you’d make $170 if you got 2 people to buy from you. So if you get 100 visitors to your site, you make $170. But what’s the cost of getting those 100 people to your site? If you’re paying $3 per click, that’s $300 you pay Google to get them there. So you pay $300 to Google in hopes of making $170. That’s a losing proposition.

If, on the other hand, you pay $.33 per click, you’d wind up paying Google $33.00 to get 100 people to your site, and you’d make $137 per 100 visitors to your site ($170 minus Google costs of $33).

Considering that, if you’re selling information products verses physical products, this could be more in your favor, as the cost of production is much less (though you have an investment of time).

The cost of ads are attributed to 2 things:

1. amount you bid on it

2. click through rate (CTR)

The more it’s clicked on, the higher up the page the ad displays. If people aren’t clicking on your ad, Google will move the ad down on the page-even if your bid is higher than your competition, if people are clicking on your competition’s ad. If Google cannot find your keywords on the webpage, they’ll raise your minimum bid amount. They assume that if you want it that badly, you’ll pay more for the keyword. So just by optimizing your page for the keyword can lower the minimum bid amount.

Also, the more focused the keywords-the better. If you choose keywords that are too broad, people click and then don’t get what they wanted… and you have to pay for that click.

For instance, if you’re selling industrial carpet cleanser, and you target “carpet” – half your clicks will be people wanting to buy carpet, not the cleanser. The other half that MIGHT be interested would likely be interested in residential cleanser, not industrial. Wasted money. Plus, you’d be competing with the big name carpet brands. So the more focused, the more you’ll get clicks only from people interested.

Also, you can create ad “groups” in Google AdWords that target a list of keywords (like 20-50 keywords). You can focus this group of ads towards a list of keywords in many variations to aim to get exactly what people would type in the search field. You can create multiple ad groups to target different keywords.

Next comes copywriting – i.e. generic ads vs. something well written.

Poor example:

Pots and Pans

Learn how to clean your pots with Awesome Clean

“http://www.AwesomeClean.com”

– “learn” is overused and people don’t respond to it

– there’s no benefit to the customer

– it’s generic

Better example:

Industrial Pot Cleanser

Discover The Fastest Way To Clean Your Pots And Pans

“http://www.AwesomeClean.com/Cleanser”

Does that makes sense? With PPC advertising, there’s lots to consider… and yet, it’s not rocket science. Part of it comes down to doing good keyword research, then experimenting with copy by testing ads, and finally by having a great product that’s easy to find once people click through to your website.

Most Common PPC Ad Mistakes To Avoid Wasting Your Money