Google Adwords 3: Making money with google

I have spent a lot of money developing products, services and ideas that nobody wanted to buy.

A huge waste of resources, specially if we consider in how many other “bad” ideas the people continue and will continue developing and spending their money.

If you understand how to use google AdWords, never ever you will need to invest a huge amount of money, just a few dollars… in the worst cases just a couple of hundreds if you still insist in an idea that does not work.

If you have a product idea and the product developing costs around U$2.500 and you are sure that these product is a good idea and it solve a complex problem.

So now write a little electronic manual (it does not have to be extended) about whom to solve that problem. Create an opt-in web page (this is optative register) where people can get your manual free, just they have to share their contact information. Then just buy a few key words, write some ads, send people to that information webpage and look how many people register to get that report.

Now, if nobody registers in that page… sincerely it is a great sign to abandon the project or reformulate it completely, before to spent more money. But when people register, you can communicate with them and ask for what they are looking for. This can give you a great feedback!

This process will help you to validate if the problem that you are trying to solve is relevant to the consumers, or in the worst case it will allow you to see which problems are most important to them.

Another application for AdWords. Market Investigation.

Just buy a few key words, write two ads (one for every key word). After one week or a month you will have 5.000 clicks that they would have cost you no more than U$750.

Now you will have information about your consumers: what they really made in relation of your proposals.

Just better and cheaper than a market investigation made by a company “specialized” in that area.

More With Google AdWords

The business mission of Google Inc. was to construct a mechanism or search algorithm which present information to who is seeking for it, but exactly what you are looking for as fast as possible.

They develop an algorithm capable to calculate who visit web sites and why, with that information they refine their own search engine.

So… when google start to sell ads over the pay per click mode, they where so interested that the ads where relevant for the advertisers and they run over the same idea that the search engine.

It works this way: Google award you if you are relevant y allow people looking for information vote in you. If your ad is “clicked”, so you are relevant. If not, you aren´t. That simple it is.

When higher is you Click Through Rate (CTR), these mean when more people look at your ad and they click it you will pay less for the clicks. But if your ads are with low relevance, google will make you pay a lot for that click. This creates a “Darwinian” effect, award to the professionals and let amateurs out of business.

So, what is good for google clients is good for google and also for you.

A Trivial change can diminish your cost by key Word in 90%.
Why the auction price is not the real price that you pay and the huge difference that this makes for you?

What to do when your key words appear as inactive?
The price that you establish for the key word auction (bid price) almost never is the price that you really pay. Always you pay less than it.

You really are paying one cent more compared to the immediately position (down of yours), not the maximum price that you are allow to pay.

But there are another “secret” more important that is a key to get lower and lower prices, doesn´t matter how many “players” are in the game.

Your Click Through Rate is much more important than the price that you allow to pay for every click.

If 100 people search, your ad will be shown 100 times and if only 1 person click in your ad, your CTR is 1%. Simple.

Suppose you have 1% CTR and you will pay just U$1,00 for the second position. Now suppose that your CTR is 2% now. If you make the right things, you must only pay U$0,51 for every click in the second position, living you a free 3rd position.

In other words, you is twice more relevant and for that, you will pay only the half. Contrary, if I would like to have your position I will have to pay one cent more than your double, that is U$1,01 for every click!

The rules of the game are simple, and their impact is enormous.
When you get high CTR rates, your costs will go down, down, your ad will stabilize in the same position in the page and the amount of visits in your site will grow.

The difference could be amazing.

The AdWords Golden Rule: 3-30-3

The AdWords golden rule (3-30-3) we can call it these way: 3 seconds- 30 seconds- 3 minutes.

3 seconds:

If you could get your ad sponsored by Google AdWords, you must get the attention of all the users of the Google Seeker for almost 3 seconds. If you get it, you are infront of the 90% of your competition!

Get the attention is a superior ability in the electronic marketing World. And 3 seconds is the time that your consumer needs (maybe less) to answer their whishes, needs, problems. Also in this time they will decide to make the second step: Clik on your ad and enter to your “landing page”.

30 Seconds:

Now our challenge is to keep interested our user, at least for 30 seconds, in the landing page. It looks like a huge amount of time, but it could be an excessive time if they are not interested.

3 Minutes:

And now, does the user make what you want him to make for the next 3 minutes? This is filling a form, buy some product or service that satisfy their needs or solve their problems, or anything that you marketing objective have.

The basic idea to implement a successful marketing campaign in the first 3 of the golden rule is… to join the 3 moments.

1.- What the costumer has in his head when he imagine his problem, needs or whishes.

2.- What the costumer write in the seeker (search intention), directly or a consequence of the first act.

3.- What he look at the ads zone.

Believe me, what the consumer has in their heads and what they will write in the search engine is not a result of magic, you can and must know it, revealing systematically seriously your market before you configure your campaign.

Determine which ad it is presented when you write your search intention in the search engine, it depends in the intelligent configuration of your campaign.

The golden prize of the golden rule is for those professionals with the first “3” and it is called Relevancy and it has two indicators (behind): Cliks rate (CTR) and quality index (IQ). There are a lot of auxiliary tools that can help you to catch the users attention, according to your market, rise your CTR and IQ, and of course maximize your financing efficiency of your AdWords strategy.