This post continues from Adword Myth3 – Google is out to get me or conspiring against me
AdWord Myth#4: Google AdWords Is Too Expensive For My Business
This is no more or less true for Google AdWords than for any other form of advertising.
You must choose the best place and the right budget for advertising your particular product or service – and that choice should be based on return on investment (ROI) facts, not guesswork!
Placing an Ad in a major national magazine probably doesn’t make sense if you have a low-margin local-only business. In that case, buying a listing in a well respected local online directory might be the best form of advertising.
Suppose you run an online Tee-Shirt store:
You make £4 profit per sale; your Google Ad campaign costs you £1 per click; you convert 5% of website visitors into customers. Each sale costs you £20 so you lose £16 per sale.
But what if each click only costs you £0.10p? Now you make £2 profit on each sale.
AdWords ROI is just a matter of doing the sums. If you don’t know the sums before you start, you could do some research by running a Google Ad test with a limited budget.
Whether you are selling competitive, low margin, high volume items online, or you are generating leads for very high value, long sales cycle, complex software/services – AdWords can be very profitable or very unprofitable. It depends!
So do your research, then test and measure everything.
Call us today to find out how to get a £50 Google Ad voucher to help you run your test.
If you would like any advice about this, call Jayne at the Adword Adviser on 01235 424716.