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Inbound Marketing Blog


How do I determine the real value of Google AdWords

Posted by Andre' Savoie on Nov 7, 2011 11:04:11 AM

The Google AdWords program is the centerpiece of Google’s internet marketing product line. Free to use and easy to setup, it affords advertisers anywhere in the world to generate targeted traffic to any web property they designate.

One of the main features that people like about AdWords is that it’s free. But that’s also one of the pitfalls. Since anyone can setup an account, and you don’t have to know what you are doing, it is very easy to throw away money with pay per click at an astonishingly fast pace. So this begs the real question, what is the real value of Google AdWords?

Benefit #1 – Instant Visibility

AdWords offers website owners the chance to establish true validity, along with online awareness and marketability. Let’s say you just launched a new website and wanted to have it show up in front of potential customers immediately, AdWords is the single best tool for accomplishing this. Advertisers also use pay per click to gain visibility for things like new products, announcements, special sales or offers, and similar items that they may not rank well for in organic listings.


Benefit #2 – Traffic & Leads

The sexiest benefit of Google AdWords is that is can generate immediate traffic, which can potentially increase the number of leads your business is getting. It’s not unusual for advertisers to earn good, valid business leads within a few hours of launching a campaign.


Benefit #3 – Benchmarking

Savvy marketers use AdWords to create performance benchmarks for their website. Because you control your bids, you can monitor the performance of keywords and use that data to create long term SEO strategies that can turn your paid keywords into natural rankings. As a form of pay-per-click advertising, Google AdWords is a vital component of any search engine-marketing endeavor.


Drawback #1 – Buyer Beware

As stated earlier, Google AdWords can be scary because while it looks simple, being good at it takes time and practice. After all, why do you think they created a Google AdWords Certified Professional program in the first place?

For instance, the simple act of bidding and placement is more complex that it appears. If you bid higher than the competition, logic tells you there is a good chance you will earn higher placement for ads and keywords. But this is not always the case, as Google has a “Quality Score” which is generated based on how well your keywords, ad and landing page perform.


Drawback #2 – Long Term Sustainability

The other issue with buying visibility is that once your budget runs out, your ads stop appearing. So over the long term, it is very important to figure out the key metrics from AdWords to determine your actual ROI so you don’t keep paying for advertising that isn’t producing the results you need.

The secret to determining “real value” – Google Analytics

In order to determine the real cost of Google AdWords, you have to base your decision on the actual results and performance. And the best way to do this is via Google Analytics.

With any successful online marketing campaign, web analytics plays a pivotal role. These statistics allow you to monitor daily, weekly, monthly, and even yearly web traffic rates. At the same time, it displays the number of hits that were generated via precise keyword and key-phrase searches and links.

If a particular set of keywords is not attracting web visitors that are converting into customers, subscribers or whatever goals you set, it is time to make changes to the campaign settings. You also have to concentrate on the keywords that are working well, while generating several variations and synonyms as well.

You can learn more about Google Analytics in one of our previous posts.


You Determine the Real Value

According to Avinash Kaushik, who wrote the popular book, “Web Analytics”, Google AdWords is a cost-effective solution to online marketing. Along with strategic SEO and advertising techniques, companies can effectively showcase their brands and products to mass audiences.

The real cost of Google AdWords, however, depends on your situation. If being on the first page of Google for targeted phrases is of value, than you should have no problem coming to your own conclusion!

Topics: AdWords, benchmarking, PPC, ROI, online marketing, Analytics

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