The Google Keyword Tool is essential to form part of your research to build your Google AdWords campaigns. But how do you know if your Google AdWords campaign is going to be viable and profitable in the short or long run?
I’ve built the Google AdWords ROI Estimation Calculator, to help shed some light on how much budget and cash flow your Google AdWords campaigns will require before you start to see a return on investment (ROI).
This is something I research and complete with all of my clients before we start any campaign so they can understand the numbers and there are no surprises with how much budget is required and when they can start to see a return on investment. The calculator also helps build trust with my clients so they have something tangible to review and a reference for discussions and digital marketing strategic plans for the future.
Download your free Google AdWords ROI estimator and Calculator here:
FREE Google AdWords Budget and Return on Investment calculator
There are many myths surrounding the performance and viability of Google AdWords including:
➢ People don’t click on Google Adwords
Google Ads click through rate (CTR) has more than doubled for those businesses willing to budget and optimise for a top four Google Ad position. For some firms including legal firms, expanded ads can increase CTR by as much as 25% over traditional text ads and has increased the quality of traffic and leads since advertisers have more room to get their specific message across to their preferred target audience. For these businesses, while CTR increased and their overall costs for clicks, their ROI has also increased because the higher quality lead generation meant a higher conversion rate and more sales per invested dollar.
The fact is, with mobiles and smart phone usage representing more than 50% of searches and clicks and with the new Google Ads changes, the CTR for Google Ads has in fact increased.
Here are the recent Google Ad changes this year which now accounts for a higher CTR particularly on mobile devices:
- Removing the Google Ads from the right hand column with Google search results
- Introducing new local search ads that sit above the Google Maps results
- Showcasing four Google Ads at the top of Google search instead of three
- Expanded text Ads allows for more descriptive information about products and service offerings
➢ Google Adwords rarely convert to leads or sales
Google AdWords cannot be measured solely on its own platform reporting because conversions are mainly based and defaulted to a last click conversion (unless you change this). Both first and last click conversions need to be assessed.
For example, someone clicked on your Google Ad and this was the first time they visited your website. The second time this same person visited your website was through conducting a Google Search and they converted on this second visit. In this scenario, Google Adwords would not show for this conversion in your Google AdWords account or reporting (unless you manually made this change).
To objectively assess if Google AdWords is working for you or to understand the total impact of conversions as a result of your Google Ads, it is best to integrate your Google AdWords with your Google Analytics account. In particular, you can review the impact Google AdWords has on other online marketing channels by clicking on “Conversions” in the left column, then ‘Multi-Channel Funnels’, then “Assisted Conversions”. You will see the further impact of your Paid Search conversions or Display conversions.
In the diagram below, you can see that Paid Search reported 7 ‘last click’ conversions. However, if we attribute the conversion to the ‘first click’ there are an additional 5 conversions that would otherwise not be accounted for.
➢ You can’t make money with Google AdWords unless you have a massive budget.
This all depends on the cost per click in relation to the revenue and profit potential of your products or services. Your or your staff’s lead to sale conversion rate and cash flow also requires to be taken into consideration as new sales come on board since some sales are paid over a number of months.
Please download the FREE Google AdWords ROI and Cash Flow Calculator to assist you in determining how much you should budget for Google AdWords, revenue and profit estimates and how soon you can expect to see a Return on Investment.
If you have more questions about Google AdWords or using the FREE Google AdWords Calculator, feel free to get in touch with me by emailing me here or visiting www.digitalmarketingspecialists.com.au. You may also call (02) 9239 3113.