Search advertising includes the advertising within search engines such as Google and Bing. It is a part of the search results page, which consists of organic search results and paid search results (Search Advertising). Organic search results are not paid for and are independent.
Google is by far the largest search engine in the world. As a result, within the field of search advertising Google has the greatest reach. The search advertising platform of Google is better known as Google Adwords. For many advertisers, Google Adwords is an important part of their entire online marketing strategy. Due to increasing competition within Google Adwords, choosing the right search advertising strategy has become very important. It allows us to cut costs and increase the performance and efficiency of the advertising campaigns.
Knowing the basis of Google Adwords is very important: Google Adwords is not a simple auction system where the highest bidder gets the best position. Relevancy is crucial for Google Adwords. Relevance is indicated by the Google Adwords Quality Score. The Google Adwords Quality Score consists of several characteristics, from which the CTR (click through rate) is the most important. CTR is the number of clicks made on an advertisement, divided by the number of impressions (times the advertisement was displayed in the search results). A short example shows why the CTR is important:
Example Google Adwords
A large webshop called 3DTV Ltd sells 3D televisions and uses Google Adwords as it’s online marketing advertising channel. The webshop wants to appear at the top and sets a maximum click price (maximum CPC, cost per click) of 1 euro per click. A competitor, TV2000 is selling the same 3D TVs and sets a maximum click price of 50 cents. The Google Adwords campaigns of TV2000 are fully optimized, while 3DTV has not implemented any optimizations and has not thought about or developed a strategy.
It soon becomes apparent that the CTR of 3DTV is only 1% and the CTR of TV2000 is 5%. This means that by 100 ad impressions, Google can charge one click for 3DTV and five clicks for TV2000. Imagine that Google would charge the maximum CPC (that is usually not the case), then Google would earn 1 euro from 3DTV and 2.50 euros from TV2000, even though TV2000 set a lower maximum click price. TV2000 not only provides more money for Google, but also presents ads that are much more relevant for customers. This has a positive effect on the Quality Score and as a result TV2000 will pay less for better positions.
This example shows that a good strategy- where the structure within the Google Adwords account has been carefully thought over in advance, then carried out and managed according to the strategy- will eventually result in a more efficient campaign.
Measuring the performace of Google Adwords is very important for AdResults. We use effective revenue share (ERS) to measure the effectiveness of an advertising campaign. The ERS indicates the percentage of the revenue from Google Adwords that can be used as a marketing expense. We discuss the ERS percentage with you in advance and set this as a target. Suppose that the ERS rate for a campaign is set at 10 percent. This means that the objective of AdResults is to achieve a turnover of €10.000 for every €1000 spent within Google Adwords. It is therefore of great importance that after consulting with you, we determine the ERS percentage. The percentage is dependent on the industry, return rates, eventual seasonality, etc. When setting a too low percentage, we miss sales opportunities. Setting a too high percentage however, will decrease efficiency. Determining an appropriate percentage is therefore very important.
Google Adwords has multiple networks where you can advertise: the Search Network (searching on Google and its search partners), Google Shopping, YouTube and the Display Network. Experience shows that pull marketing is more suitable for increasing conversion, while push marketing is more effective at branding. Suppose you have a webshop where you wish to fully focus on increasing the turnover and the number of orders. It is then important to implement a strategy where first pull marketing is fully utilized and only afterwards is push marketing being used. This means that at first we fully focus on the Search Network of Google Adwords and Google Shopping (pull marketing) and afterwards use the Google Display Network (push marketing).
Google Adwords is constantly developing. AdResults finds it very important and therefore focuses a great deal on testing and implementing as many developments as possible for their clients. New developments offer new opportunities and advantages over the competition. Take for example Google Adwords dynamic remarketing, dynamic search ads, Google Shopping, Adwords ad extensions, etc. You can be sure that we are always well-informed about the latest developments and that we will keep you up-to-date with the information that is relevant for your business.
Have you considered how you can make a difference with Google Shopping compared to your competitors? The range of products and competitors in Google Shopping is increasing. You want to be more visible for specific terms (where customers already know what product they want to buy) than for generic terms, that generally have a lower conversion rate and lots of volume. AdResults can help you with a unique Google Shopping setup, which gives you much more control and ultimately can help you achieve more volume. In terms of profitability, we àim for the highest possible visibility percentage in order for you to get as much volume as possible out of your Google Shopping campaigns.
Read also the AdResults references about the experiences of our clients.
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