AdWords & How It Can Change Your Business

AdWords & How It Can Change Your Business

What Is AdWords?


I can’t remember the last time that I was a commercial, because with DVR, I don’t have to. If I am listening to the radio and the music stops, then I change the station. The only time I ever pay attention to ads is when it pops up on my computer, or I am forced to watch one before my YouTube video starts. This is the first time in history that paying for a commercial on TV or paying for a radio spot are just not worth the money. You are going to shell out a huge portion of your advertising budget to pray that someone in your target market hears your spot. That’s why AdWords has become so effective and is the future of advertising.

According to Wikipedia, “Google AdWords is an online advertising services that places advertising copy at the top bottom or beside the list of search results Google displays for a particular search query.” That may have been true a few years ago, but now Google AdWords has taken over the internet. When you sign up for Google AdWords your Ad can appear in one of four places:

Google Search Sites: Other search sites that are a part of the Google network (AOL for instance)

Mobile Search: On your cell phones, IPads or other mobile devices

On Websites Your Customers Visit

Google Display Network: I.e. Gmail, Blogger, YouTube etc.

Right now, 90% of people that are searching for a specific product or service, are doing so on Google. With AdWords you can segment your Ad to ensure that you are only advertising to people that would be interested in your products. For instance, if you own an upscale men’s clothing store in Delray Beach, Florida, you can decide you want to build an ad campaign to men only between the ages of sixteen and seventy- five. You want your ad to appear in every city between Fort Lauderdale and West Palm Beach and only between the hours of 8am and 8pm.

Why Should I Use AdWords:

  • Your Competitors Are Doing It: This is the future of advertising. You can decide you don’t want to do it, but if you aren’t being seen, you aren’t being called. Your competition is utilizing this feature and they are getting results. Furthermore, your competition can actually advertise on your website (see our blog post on remarketing)

  • You Only Pay For Results: You only pay when someone actually clicks on your ads. Your business can be seen 1,000 times in one day, but if only 100 people click on your ad, then you are only paying for those 100 people.

  • Targeting: You can set up your ad based on demographic, location, language, time of day, goods sold, etc.

  • Return on Investment: It is the most cost effective way to advertise your business or product, because you aren’t wasting your money on advertising to someone that won’t be interested in your products. You are only advertising to people specifically looking at what you have to offer. Not to mention, with analytics you can see exactly who clicked on your ad, what happened when they did, where they were and how long they spent on each page of your website.

  • Ease of Entrance & Exit: When you set up Google AdWords, your Ad will show up immediately. What’s nice is that you can have multiple Ads going offering different products and specials. If you are slow on a Tuesday at 4:00, you can change your Ad to say “Come in within the next hour and receive 25% off” and then change it again an hour later.

How Much Does It Cost?

With AdWords, you do what’s known as pay-per-click. Sticking with the upscale men’s clothing example, let’s pretend your main keyword is “men’s suits.” This for easy numbers is $2.00 a click. That means that every time someone clicks on that ad, you are charged $2.00. Now, with that being said, you decide you want to invest $500/month (please note that, when your $500 is depleted, you will not be charged more until the following month)

So, you are paying $2.00/click, with a maximum budget of $500. You are selling these men’s suits for $150/ suit. Your cost for each suit is $75. Now, with your budget set, you have the potential for 250 clicks on your website. For easy numbers, let’s pretend that 100 of those people buy a suit from you.

                100 Suits Sold * $150 Suit = $15,000

                Now, $75 (The Cost for Each Suit) * 100 Suits Sold = $7,500

                15,000 (Total Profit) – 7,500 (Total Cost) = $7,500- $500 Total Investment = $7,000 Total Profit

So, for an initial $500 you are getting a costly return on your investment. Furthermore, that was on the low end of spectrum. That was assuming less than half your target audience actually found interest in your suits. So, that $7,000 could be even higher. Right now, AdWords is the future of advertising. There is no one in the world that doesn’t know what Google is. You can advertise on Google, you can force your target market to watch your ad on YouTube, you can advertise on your competition’s website, and you can get your name out there in ways that weren’t even possible even a few years ago. If you haven’t looked into AdWords, I recommend that you start immediately.


About how2media

How 2 Media is a 21st Century television production company dedicated to bringing our viewers informative, educational,and entertaining television through national cable networks. Our team of award winning producers has been making your favorite television shows for years.
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