8 May 2009

How much should I spend on my Google AdWords campaign?

Posted by kilbot | Filed under: Frequently Asked Questions, Web Development FAQ

Arriving a figure for your AdWords campaign can be a daunting task. How much to spend each day? How much on each keyword? And which keywords! … Here are a few things to consider which may help guide you to an appropriate AdWords budget within the larger context of online marketing.

Your AdWords campaign should fit into your overall advertising budget and marketing plan. A suitable advertising budget will vary from industry to industry and from business to business, but a good starting point is around 5% of sales. This advertising budget may be spread over various forms of media; such as print, radio, television and the internet, but even if your marketing is solely directed online you should be wary of putting all your eggs in one basket. Advertising through Google may not give you the best bang for your buck. Instead, as asserted on this blog post, you could try to bolster your customer focus and concentrate more on this aspect and spend your money on this rather than spend it on inutile Google marketing strategies.

Once you’ve arrived at your budget for online marketing consider these three alternatives;
1. An AdWords campaign
2. Direct marketing via an email campaign
3. Search Engine Optimisation (improving page rank, link building etc)

AdWords Campaign
If you’re reading this article, I’m hoping you know at least a little about this Google service. Put simply; with AdWords you are buying traffic to your site. The cost of each visitor varies but is usually between $0.20 to $1 per click. This can be handy when your site is not ranking in Google’s organic search results, or perhaps you want to target a particular site. Let’s say you make designer jeans, your site may not rank highly in a search for ‘jeans’ but you can bid for a spot on the search results through AdWords. Or perhaps you notice your favourite fashion blog is running AdSense, through AdWords you can bid for advertising on this site.

Email Campaign
Email campaigns can be very successful particularly if you have a targeted email list of potential clients. Email lists can built by using a “subscribe to newsletter” form on your website info collector, from your database of past clients or by researching a list of potential clients (cold-calling). Email cold-calling is a delicate subject, no one likes to receive mountains of unwanted email, but if you don’t send the emails out in bulk, make it personal, offer something of value and give a clear opt-out option… then I believe you can tread the fine line between marketing and spam.

Search Engine Optimisation (SEO)
By far the best method for driving traffic to your site and improving sales is hitting that number 1 position on search engines for your relevant keywords, all the while keeping in mind of Penguine . Improving page rank should be part of your long term strategy for online marketing, this is an area where things generally don’t happen over night. Page Rank can be improved by optimising your website code and keyword density, but ultimately it comes down to investing equity in your site by producing content and being active in your online community.

This is a very basic introduction to Adwords and online marketing, if you’d like to learn more please view the resources listed below, or contact us!

Other resources:
AdWords Learning Center
Email Marketing Reports