Monday, October 8, 2007

Google Adwords – Is Your Online Marketing Profitable?

You’ve probably heard talk of not spending more than the click is worth. But that is only part of the profitability equation.

By all means keep on tracking the profitability of your Google Ad campaign. But when that’s under control, you should start to compare it with all the other ways you get website visitors or online customers.

Don’t lose sight of the fact that what you are after is paying customers, not just website browsers!

I recently lost a new customer after only one month. I took over a campaign that they had been running themselves, and the first thing I did was to implement conversion tracking. I gave them a detailed report of what it was costing to acquire each customer at the end of my first month.

This showed them that that it was costing more than twice as much to get a customer via Google Ads, than via natural search listings. So they stopped the Ad campaign – not great for me, but it was the right thing for them to do.

Make sure you are not wasting your money, by measuring and comparing everything:

- How profitable is each keyword or family of related keyword phrases?
- How profitable is each of your text Ads?
- How profitable is each page on your website where your visitors land?

Some keywords may be more profitable in a Google Ad campaign than in natural searches and vice versa. The lifetime value of customers who receive your newsletter may be higher than that of customers who respond to a Google Ad – or vice versa.

You can do a lot with Google’s conversion tracking tools on your AdWords campaign.

But if you really want to find out the detail of what browsers do when they get to your website – how long do they stay on a particular page or the site; what page do they leave from; does one version of a sales page work better than another; etc – you will need to use a good web analytics package.

There are several available, including Google Analytics which has the advantage of being free and fully integrated with Google AdWords.

So measure everything and compare the performance of each of your online channels. Remember that you can’t look at one aspect of marketing your business in isolation and expect to get meaningful information

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