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Wondering about costs and effectiveness. Is AdWords for us?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I haven’t started our AdWords campaign yet, but wanted to ask you a question. I’ve gotten some rather odd emails from a supposed Google team member with a google.com email address who apparently works with advertisers.

 

He seems to have the notion that we need to spend millions of dollars in AdWords, and that each click costs about $50!

 

We are a very tiny company, and obviously don’t have a budget for anything like that. In fact, I was hoping to get some benefit out of the $150 matching cost coupon we have.

 

I think that person is confused about what we do and thinks we are trying to go up against Amazon and other huge hosting services. We actually are not a hosting service. We do software as a service and host our own software for customers who use our services at top-tier data centers around the world.

 

Our initial aims are modest. We are hoping to add a few new customers each month to keep ourselves alive and growing.

 

Is it true though that each click costs about $50?! We were thinking of just starting with a budget of a few hundred dollars a month, and the rep seemed very skeptical of that.

 

Is Goggle AdWords something which can be used by small companies like ours or is it just meant for gigantic companies with multimillion dollar advertising budgets?

 

And how much does it actually cost to use?

 

Thanks,

 

doug

3 Expert replyverified_user

Re: Wondering about costs and effectiveness. Is AdWords for us?

Top Contributor
# 2
Top Contributor
Hi Doug,

Welcome to the AdWords Forum Smiley Happy

It is not true that you will charged $50 in each clicks, AdWords click cost based on many factors, like Quality Score, your competitor bids and many more. And it will never more than your Maximum CPC.

If the mail is from Google.com, then It must be from Google but you may have misunderstood the mail.

You can start your AdWords campaign as per your adverting budget. There is no need to spend $50 from the day one. Once you will familiar with campaign and setting, then you can start spending more based on your ROI.

--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: Wondering about costs and effectiveness. Is AdWords for us?

[ Edited ]
Top Contributor
# 3
Top Contributor

Hi Doug,

Very nice clarification by @RAKESH Kumar might have sloved your doubts.

The budget is related to you only, you need to decide how much, on average, you'd like to spend each day for a particular campaign. Even you can start with $5 but everything depends on CPC bid, are these low enough to bring you clicks/customers within $5. As mentioned by Rakesh, CPC depends on many factors including QS, competitors in that particular targeted location. It is not always necessary that you will get the most conversions for top 3 positions but yes for top 3 positions you can have maximum exhibition of your ads including ad extensions which attracts the customers.
But the fact is you need to have high CPC bid for top positions. So, all depends on test and analysis, try lower bid and analyse the results for other positions also.

It is like you can't predict the number of customers going to be there today in a store and how much of them really buy products.

Adwords is the best platform for local advertisers also as you have the option to choose the geographic target on the radius basis too.
You can advertise initially with your top selling products and later adding others.


Regards
Archit, AdWords Top Contributor, Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer.’

Re: Wondering about costs and effectiveness. Is AdWords for us?

Top Contributor
# 4
Top Contributor

Hi Doug,

 

Adding to what already discussed above, I would like you to watch the following video. It will give you idea on AdWords auction, bidding, and costs -

 

 

Thanks
Ratan Jha


About Me: Community Profile | Ratan Jha INC.
If this or any other post solved your question, do not hesitate to accept it as the solution.

Re: Wondering about costs and effectiveness. Is AdWords for us?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Thanks for your reply, Rakesh.

I believe I understood his email. He probably misunderstood what it was we were trying to advertise and assumed we were something like Amazon or Hostgator or some big server company.

Thanks for the clarification.

doug

Re: Wondering about costs and effectiveness. Is AdWords for us?

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Thanks for the further clarification, Archit.

doug

Re: Wondering about costs and effectiveness. Is AdWords for us?

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
Hi Ratan,

That was an interesting and informative video. And I would say it clarified a lot of things except:

- Nowhere when creating my ad do I see a place to specify a bid. I only see a maximum I am willing to pay per day.
- I also don't see any information about "formats" or "expected click rate" when creating my ad.

The ad looks all set up to go with approved site links and a daily budged and is just waiting to be released from "pause" status. But I don't see any of the information mentioned in the video.

So I'm confused again.

doug

Re: Wondering about costs and effectiveness. Is AdWords for us?

[ Edited ]
Follower ✭ ✭ ☆
# 8
Follower ✭ ✭ ☆

Hi Doug, You can bid only at keyword level, not at ad level. You set specific daily budget (how much you want to spend daily), then at keyword level, you specify your bids for each keywords, obviously you want to bid high for your most important keywords.

Make sure your properly bifurcate your ad campaigns in small-small ad groups (based on categories) to make them more relevant to your ad copies.

 

Formats - While you create ads you get an option to choose ad format, and expected CTR can be seen via keyword planner tool from the tools menu on top. In Keyword Planner, you'll be able to set your maximum bid and daily budget, on the bases which you can see the estimated daily cost, impressions and clicks, but it just gives you estimation not the exact figures. Estimations assume you're bidding sufficiently, you've excellent quality score, your ad copies are highly relevant.

 

Pause status - Are you seeing any warning that you're ads have yet not been approved, or they're in paused state, if you see your ads are paused, then you'll have manually activate. We actually have full control over our Ad Campaign, you can pause/play any keyword, Ad Copy, Campaign and Ad Group. Google's status will be shown if you hover the mouse on comment icon right in front of ads and keywords with their status (eligible, approved, disapproved, etc.). See the attached images

 

For Keywords

keyword.png

 

For Ad Copies

 

 

 

 

 

adcopy.png

 

 

 

 

 

 

Hope this helps

Re: Wondering about costs and effectiveness. Is AdWords for us?

[ Edited ]
Top Contributor
# 9
Top Contributor

Hi Doug,

specifying the bid must be corresponding to keywords/adgroup not the ads and it the maximum amount you willing to pay for each click.(it is not per day)
Pay per day is the campaign budget that is how much, on average, you'd like to spend each day to get the maximum number of clicks.

Expected CTR is the metric that is taken into consideration for QS (quality score) .

Edit:  

To see the QS components quality(including the Expected CTR), hover the mouse on the bubble under status metrics of any keyword

 

CTR corrosponding to your ads/keywords is the actual CTR generated after calculation on the basis of clicks and impressions to particular keyword (average of all keywords in case of adgroup/campaign).
If is not available in the statistics then you can add this with the help of columns sub-tab.

If you need CTR corresponding to ads then use columns sub-tab under the ads tab and similarly for keywords you can add under keywords tab.

Ads >> columns >> modify columns >> performance >> add CTR >> apply.

If you need to mention the ad type in the statistics then:

Ads >> columns >> modify columns >> Attributes >> select ad type >> apply

 

Regarding ads status, by default everything is in enable mode whether campaign/adgorup or ads/keywords. For more details please refer to this link:

 

https://support.google.com/adwords/answer/2549108?hl=en


Regards
Archit, AdWords Top Contributor, Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer.’

Re: Wondering about costs and effectiveness. Is AdWords for us?

Top Contributor
# 10
Top Contributor

Hi @Doug L

 

I am sure you got answers to your queries now. That video in post above explains how AdWords Auction works. It will make more sense as you keep working with your campaigns. 

 

You have just started with AdWords, there will be an obvious learning curve. There will be overwhelming number of questions that you may come across. Spending time to familiarize yourself with the interface and terminologies used will help you understand things better along the way. 

 

Now when you are all set to go live, have my best wishes along. If you come across anything that you need help with, this community is going to be a great assistance. Feel free to ask anything AdWords by starting a new thread here. 

 

Additionally, here are a few resources you should care to go through -

 

 

All the best!

 

Thanks
Ratan Jha


About Me: Community Profile | Ratan Jha INC.
If this or any other post solved your question, do not hesitate to accept it as the solution.