Google Adwords Help for Small Websites
Google Adwords is an advertising service offered to large to small businesses who wishes to bring visitors to their site. Advertisers bid on their maximum CPC (Cost Per Click) price to ensure top placement. For many small businesses who try to maximize their advertising dollars, there are a few tricks learned throughout the years that can be a benefit.
Any advertiser on google Adwords must know the following before committing money into Adwords
Google Sales Reps are being paid by Google to ensure Google maximize their dollar potential through their advertisers. Meaning, whatever information that they sell as far as CPC (Cost Per Click) is based on the overall average information about their advertisers. Therefore, any good sales person is going to advocate for the advertiser to bid the highest amount they can afford to ensure top placement.
Never spend more than 7 cents per click, the monthly advertising budget can fit whatever budget, but a 7 cent click is no better than a 25 cent to $1.00 a click. In fact, a 7 cent click is the right price to get premium visitors to any website.
The reason, quality of visitors. Yeah, it is great to have tons of visitors that are checking the site's content and potentially buy a product or service, but quantity doesn't always equal quality.
Ever heard of a Bounce Rate? A Bounce Rate is when a visitor just goes to the front page of a website, skims through the page for less than 10-30 seconds and leaves without clicking any links or worst buying a product and/or service. A high bounce rate can devalue the website and most importantly, waste of advertising dollars.
When a visitor searches google for content or a product/service, typically they don't go beyond the first page search results. These visitors are typically browsing for general information. Visitors who normally go beyond the first page and visit the second page and beyond are visitors who are truly looking for quality content or a good price for a product/service. These are the visitors that normally see the 7 cents CPC ad on Adwords. These are the visitors that will increase sales conversion rates for eCommerce websites and bring valuable visitors for content sites.
For eCommerce businesses, this paragraph is for you. For example, if the budget was $200 a month budget and the CPC was 7 cents, then one can expect 2,857-5,000 visitors to any website. On average, a sales conversion rate (number of people who saw the eCommerce site and made a purchase) is 1-3%. Therefore, 2,857-5,000 visitors will bring an estimated 29-150 sales to an eCommerce website. Therefore, $1.33-$6.89 was spent for customer order received. If for example, the CPC was 25 cents to $1.00 per click, then one can estimate 200-800 monthly visitors with a sales conversion rate of 2-24 sales. Depending on the type of item being sold, it may not be a profitable venture to spend the premium dollars for clicks.
For non-eCommerce businesses, sales conversion rate does not mean anything to you. Consider this, Investors seek quality visitors vs high quantity visitors. It is the high quality visitors who will click on ads to generate income for the website. It is the highest quality visitor who will read the website's content and become an active user. Inactive users do not bring money to any content website company, they are considered dead weight value to investors. In the beginning, it is best to seek for quality visitors rather than rush to become the biggest content website of existence.
What is a tolerated bounce rate?
For E-Commerce, try not to exceed 60%.
For non-eCommerce, try not to exceed 20-30%
How to prevent a high bounce rate?
Make sure the site is clean, straightforward, and gets the message across. Make sure the color is neutral, color schemes that are not neutral can reduce quality of visitors. In addition, do a little trial and error with advertising spending. Don't expect to spend $100 and get great results. Tinker your CPC to find your equilibrium that will maximize advertising dollars and receive the best sales conversion possible. Advertising spending should not exceed 10-15% of overall monthly and/or year sales. For any eCommerce business,sometimes during slow seasons in eCommerce, 20-30% of monthly sales must be spent just to keep sales going, but that normally balances out during the best sales months.