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AdWords – A Warning
An associate of mine asked me to look at one of his client’s Google AdWords accounts. I was shocked. The client spent $10,000 per month in a major accident loss for almost a year, assuming that “these things take time”. it took him a year and he finally gave up.
This story is extreme, but illustrates a growing trend of companies that are attracted by the prospect of instant traffic, start using pay per click and leave the market in less than 3 months, having lost substantial money in the process. It also shows the number of pay per click contractors who think that the work stops at generating traffic.
Newcomers need to realize – Only the best make money!
It means reason. Google AdWords is essentially an auction, and in a perfect market, click prices will rise until they drive newcomers away from the market as quickly as newcomers arrive to replace them. People who quit do it because they can’t make money. So only the best can win. The ones that squeeze every last ounce of sales out of every dollar or pound spent.
Looking at what paid per click consultants did in this case, it became obvious that indeed the problem was not known to Google AdWords itself, but they misunderstood a fundamental problem.
Pay per click is NOT about traffic, it is all about a direct marketing process.
It doesn’t start with keywords and end with traffic. It starts with identifying who your customers are, what they are thinking, and where they go on the Internet. Only then can you design a marketing process that takes them step by step from where they are until they become your long-term repeat customers. It starts before keywords, and ends after, sometimes long after the sale or registration.
To design the process, you need to answer a number of questions.
1/ Who are your best customers?
What is their age and gender? Where are they? What to read about and on the Internet? What websites do they visit? Where do they gather? What members do they have?
2/ Line of least resistance.
Marketing is about finding a line of least resistance to your customers. By asking the right questions, you find the right traffic sources such as corporate and membership lists, or advertising on the right web pages. If there is a tight age and gender demographic for example Facebook advertising might be the right way to go. Sometimes, not always, this process leads to Google AdWords, either as part of search or targeted placement.
Sometimes AdWords is the best way to test a market before other forms of marketing. It is also a fact that SEO rankings can help keep click costs down. So a good AdWords consultant will keep one eye on the difficulty of SEO for keyword expression.
3/ Customer attitude.
Customer mindset is very important. What do your customers think before they buy from you? So what is the normal process they go through that leads up to a purchase? How can you catch them before they need your product? – A new mother who is interested in baby clothes, long before reading about pregnancy. An investor can read the financial times, or the Wall Street Journal
Ask yourself – do they research a topic or do they just go out and buy? What questions do they ask when they do research? Do participate in groups on the Internet, and take recommendations from each other. What questions do they ask?
4/ Keywords and Questions.
Only then we come to the topic of keywords and sites. These are the questions your customers are asking on the internet. Vital is the mindset of these questions. Do they buy questions or search questions that need information? Since questions do not all have the same answer, nor should you pay by clicking the landing page to give the same blanket answer.
The questions and answers change with time. It can become very competitive in your market if you leave it until the customer has already chosen a brand and a model, and it becomes a price war – it can be far better to build a long-term relationship of trust with them when it helps. They choose a make and model, and have them on your list to promote other products as well.
5/ Life time value.
It’s also about the offer you make to customers who come. Before designing an offer, you need to know how much each customer is worth to you. In some industries the first acquisition is made at a loss, and so it can be with GOOGLE AdWords in your market.. Observe the business models of competitors. Sign up or buy from them. This way you discover whether or not later promotions to first-time customers are where they really make money.
6/ Marketing process.
So adapt the marketing process to the mindset of the customer, and make the landing page only relevant to that mindset – that means different landing pages to get registrations from people who want information, and sales from people asking to buy questions , if true in your market. people want to buy on the page. More can buy if you make them register, and only gradually build up to a sale.
7/Copy is king
The words you use, the emotional descriptions and the writing that draws the reader in make a massive difference. In most markets it is not enough to say “here it is, this is how much it costs, please buy it”, the competition that takes the problem to make a big promise, and then explain why this is the solution right to settle there. customer problem and then declare all the benefits the customer gets from this purchase.
8/Have your customers tell you what works.
After the click the real work begins, which is the conversion test of the site. Which title gives more sales or opt ins? Does a video increase or decrease conversions? Does a female or male photo work better? Would an arrow or a color change help? Only by split test you can find. Conversions can easily turn profitability into profitability, particularly when up selling and cross selling are included.
Only the best can make money!
So in summary: Google AdWords is an auction in which in a perfect click market the prices will rise until they drive newcomers out of the market because they can’t make money. So only the best can win. Those who have successfully developed against competitors have a marketing process, which exactly matches the mentality of the customer, and every last ounce of profit is squeezed out.
Think about the wood, before think tree.
Don’t think traffic, think marketing process!
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