Google Adword Profits Success
Google Adwords are the online advertisers best friend and worst enemy. Best friend because it is a seemingly low cost way to enter any market to produce leads and sales. Worst enemy because is very easy to lose massive amounts of money in a very short time. I have been testing several ad optimization theories around google adwords for the last 60 days and the results are in.
I speculate that most lose money with PPC Advertising because they are approaching the media from an offline advertising orientation. For example, a standard classified ad has a fixed cost and the more people that respond to your ad the better. Whereas, with PPC, the more people who respond to your ad - the more you will pay. This is a simple fact that is misunderstood by most who venture into Pay per click Adwords media space.
The common thinking is that you want high CTR (Click Through Rates). But it you have high click through rates, you are spending more money.
The question is that of profitability. Are you making money with your ad?
Here's a summary of the experiment to date...
Google Adword Profit Reports
Product: Consumable Nutritional Supplements
Media: Google Adwords
Monthly Budget for Test: $600
Number hours daily: 20 mins
Results:
January $75 loss (Cost $610 / Gross Revenue $517)
February $525 Gain (Cost $310 / Gross Revenue $835)
ROI: Increase 145%
Time: 60 days
Avg Profit Per Order: $25
But here is the most exciting part:
Jan. - 10 new customers
Feb. - 24 new customers
Mar. - 33 new customers (As of Mar. 23, 2005)
Do you see the trend? New customers are going up. Costs are going down.
The number of new customers is increasing as a very steady rate, but I am able to keep the driving ad costs down below $400 per month.
Again, I have learned some very interesting things about Adword Advertising over the last few months.
For this campaign Adword advertising space is surprisingly small of about 125 keywords.
This is has all been achieved without the optimization of the landing page. This just testing the keyword space and the ad text.
These are just that raw numbers and I am just now starting to really understand the power of Adwords.
As I get more data, I will post it here.
To achieve a significant ROI in a competitive market with a product with a small profit margin with google Adwords is thought to be almost impossible these days.
I am looking to prove This Adwords ROI concept with other products and services.
That's all for now...
David Bullock
results-squared.com
I speculate that most lose money with PPC Advertising because they are approaching the media from an offline advertising orientation. For example, a standard classified ad has a fixed cost and the more people that respond to your ad the better. Whereas, with PPC, the more people who respond to your ad - the more you will pay. This is a simple fact that is misunderstood by most who venture into Pay per click Adwords media space.
The common thinking is that you want high CTR (Click Through Rates). But it you have high click through rates, you are spending more money.
The question is that of profitability. Are you making money with your ad?
Here's a summary of the experiment to date...
Google Adword Profit Reports
Product: Consumable Nutritional Supplements
Media: Google Adwords
Monthly Budget for Test: $600
Number hours daily: 20 mins
Results:
January $75 loss (Cost $610 / Gross Revenue $517)
February $525 Gain (Cost $310 / Gross Revenue $835)
ROI: Increase 145%
Time: 60 days
Avg Profit Per Order: $25
But here is the most exciting part:
Jan. - 10 new customers
Feb. - 24 new customers
Mar. - 33 new customers (As of Mar. 23, 2005)
Do you see the trend? New customers are going up. Costs are going down.
The number of new customers is increasing as a very steady rate, but I am able to keep the driving ad costs down below $400 per month.
Again, I have learned some very interesting things about Adword Advertising over the last few months.
For this campaign Adword advertising space is surprisingly small of about 125 keywords.
This is has all been achieved without the optimization of the landing page. This just testing the keyword space and the ad text.
These are just that raw numbers and I am just now starting to really understand the power of Adwords.
As I get more data, I will post it here.
To achieve a significant ROI in a competitive market with a product with a small profit margin with google Adwords is thought to be almost impossible these days.
I am looking to prove This Adwords ROI concept with other products and services.
That's all for now...
David Bullock
results-squared.com
0 Comments:
Post a Comment
<< Home