With many of the changes that Facebook has made in September impacting the visibility of Facebook Business Pages, we've introduced a new Facebook advertising management service. With pay per click ads on Facebook you can funnel readers to your Facebook Business Page or your website. I invite you to find out more and check our pricing.
In this issue I discuss several scenarios that I see frequently and provide solutions for those of you that manage your own Google AdWords accounts. Enjoy!
The AdWords clients that come to me typically are small to medium sized business owners who have tried to do AdWords themselves and not been successful. Because they feel AdWords could work for them, based on what they have read, they want a professional AdWords account manager to optimize their account. In many cases when I take over an account I see that the client was not bidding enough to be in the auction. Here are a few examples:
Client A Last Month Activity
30 day click budget $1,800
Clicks received 3
Impressions received 250
Current max. CPC setting $1.01
Average ad position 1.2
Client B Last Month Activity
30 day click budget $2,600
Clicks received 12
Impressions received 800
Current max. CPC setting $4.00
Average ad position 9
In the above examples there are two scenarios. In the first case it appears that there is simply no demand for the Client A's products as his ads are showing in position 1.2 but yet he has very few clicks. In the second scenario, for Client B, it appears that he may be below the first page bid or have a quality score problem.
In both cases I would say that the client is simply out of the auction. When you are bidding too low, based on your marketplace, Google may deliver your program but at very low rates. In fact, you may see a high ad position but very few impressions. In other cases you may see a very low average ad position figure. But both are pretty good indications that your maximum cost per click setting is simply too low.
Not only is your maximum cost per click a factor in deciding if you are in the Google AdWords auction, but your daily budget may be a factor keeping you out! It is important to understand a few things first. AdWords account managers will talk about your 30 day budget spend, and it needs to be high enough to support your accounts daily budget based on your maximum cost per click. Not your average cost per click, but your maximum cost per click.
Here is a fine example of a client who by having a low 30 day click spend has effectively kept Google AdWords from being able to serve his account for best performance.
30 day click spend $150
Daily budget $5
Typical max. CPC for other clients in the same industry $6.50
His maximum CPC based on his daily budget $5
As his maximum CPC is constrained by his daily budget, can never be set at a level to truly be in the auction, he gets spotty click results and sometimes Google cannot even spend his $150 monthly budget.
In scenarios like this what we see happen is that an account manager gets desperate and starts adding broad match keywords to an account in an effort to get low cost traffic. Here are some of the results we then see when that happens:
30 day number of impressions 11,930
Clicks in 30 days 86
CTR in 30 days .01%
Average position 10.9
It kind of looks like the account is performing, but look at the impressions. They are high and the CTR is low. This account is getting clicks, but they are typically poor quality and untargeted clicks because the client has set the daily budget too low and so can never raise the maximum cost per click to get in the keyword auction.
So you want to try AdWords, but want to make sure you will get performance. You understand you need a high enough maximum cost per click to be in the auction and your daily budget needs to be high enough to support your maximum cost per click to get AdWords to serve your program, but how do you estimate for planning, your cost per click to see if you can even afford AdWords?
Google AdWords has a tool that will allow you to see estimate cost per click figures. You can visit the tool here. If you have an AdWords account when you click the link, AdWords will send you to the tool page within your own account so you can benefit from your own account history. What I recommend with all new potential AdWords advertisers is to run a few keywords that they consider important to their business to get an idea of where the bid auction is to that an effective and practical monthly click budget can be set.
Make sure that when you use the tool that you select in the drop down menu for columns the "Approximate CPC'. Remember this is an approximate. In my experience is has even been on the low side. The figures you will typically see will be for the United States by default if you are in the US, but make sure that you are not seeing global results. You can reorder the data with your selections. The local search column is not to be confused with a"local" like in your region. Local in this case means your entire country based on your initial tool settings.
Do not budget your AdWords program based on the numbers you see in the tool. Remember every chance you have for a click once your program is running will be based on an auction. The figures the tool gives you should be considered a range and the real costs will typically be higher.
Once you have an estimated cost per click, then factor in how many realistically priced clicks you want per day to try to achieve your marketing results. You may find out that your budget of $2,000 per 30 days you thought you wanted to spend will simply not be enough when your click cost may be $10 per click. Additionally you may have felt you wanted to run 6 ad groups but can realistically afford only two to run or you will parse your budget between too many programs.
Although AdWords says you can set your 30 day click budget and maximum cost per click to anything you want, they also have the option to not serve your program if your settings are simply not competitive in your marketplace.