Lesson 9b: Selling AdWords
Objective: Learn how to explain the advantages of Google search, distinguish search results from AdWords ads, and outline key points for making a successful AdWords sale.
The Google Search Experience
Search results on Google are generated automatically. No company can buy placement in Google's search results (also known as the 'natural search results'). AdWords ads, which companies can purchase on a cost-per-click (CPC) basis, are clearly marked as 'sponsored links' and appear above and beside the search results. These ads are ranked by performance - that is, their positions are determined by both cost-per-click amounts and clickthrough rates. Therefore, advertisers can't remain in the top position(s) unless their ads are relevant. (For more information on this topic, please see the Pricing and Ranking lesson.)
AdWords Targeting
With traditional advertising and most forms of online advertising, ads are simply broadcasted to a wide range of audiences. Google AdWords ads, however, are targeted to people's specific interests.
When a user enters a search query on Google, they'll see the natural search results for that query, along with AdWords ads that are highly targeted to the search topic. Thus, AdWords ads are as relevant and useful as Google's search results. Your ads will reach users at the precise moment when they're looking for your product or service.
Marketing Reach
Targeted, relevant AdWords ads appear on Google properties, thousands of partner search sites and content sites (such as How Stuff Works and the New York Times) in the Google Network, and newsletters and email. These ads are seen by over 80% of internet users in the United States alone, and our global network provides extensive ad exposure across the world. (Please see the Ad Distribution lesson for more information about where ads can appear.)
Google AdWords Costs
AdWords advertisers can choose cost-per-click (CPC) or cost-per-impression (CPM) pricing, whichever best suits their needs. Under the Google AdWords CPC pricing model, advertisers pay for ad clicks, not impressions. If an advertiser's ads appear 50 times and receive five clicks, the advertiser is charged only for those five clicks. With CPM pricing, advertisers who prefer impression-based pricing can set their own price and receive traditional CPM metrics.
AdWords advertisers enjoy a tremendous level of control over their costs. They can set a maximum daily budget and specific amounts they're wiling to pay per click or per thousand impressions, which the AdWords system will never exceed. AdWords advertisers can also set up Google's free conversion tracking tool and receive account reports by email so they can monitor their sales conversions and return on investment. (Please see the Reports and ROI lessons for more information.)
AdWords Versatility
Because Google AdWords offers such a high degree of flexibility and control, it's an especially effective marketing tool to help advertisers:
- Generate leads
- Generate sales or conversions
- Create brand awareness
The Basic Google Sales Pitch
Learn how to explain how to get started with the AdWords program, how Google advertising can drive profits, and what steps constitute a successful sale.
AdWords ROI
Here's an example of how AdWords ads can pay for themselves and eventually lead to increasing returns:
Your client invests US$1,000 in AdWords ads with a US$1 maximum CPC. Because your client only pays for ad clicks, he or she is assured of receiving at least 1,000 clicks (with the AdWords Discounter, your client may receive substantially more clicks at a lower CPC).
If 10% of these clicks result in sales, your client would have made 100 sales. If the average sale amount is one hundred dollars, your client's initial US$1000 investment will have returned US$10,000 in sales. In these cases, your client should advertise on a larger scale and reinvest the profits into his or her AdWords budget, which can increase potential profits even more.
Making AdWords Profitable for Clients
You can design a profitable AdWords program for your clients in four simple steps:
- Identify your client's advertising goals, then create relevant keywords and ads for each of these goals.
- Run 'pilot' campaigns to test the ads and keywords.
- Set up the AdWords conversion tracking tool and reporting tools to analyze the performance of your client's ads.
- Modify and test your client's campaign until you reach a desired ROI. Retain only the most successful ads.
Sample Project Milestones
Here's a sample timeline of events that should occur as you and your client plan to start using AdWords:
Learn how to describe Google's position in the marketplace, explain the effectiveness of search advertising compared to other types of advertising, and address common questions and sales objections.
Why Choose Google?
Your clients may ask why Google is preferred over other search marketing organizations. According to a recent Standard & Poor's survey of search engine usage, including Google, Yahoo, Ask.com, Lycos, and MSN, Google was the most widely used search engine in the United States. 48% of the survey respondents indicated that they used Google most often-a percentage almost two and half times more than the second place runner up.
Additionally, in a recent survey conducted by Vividence Corporation, people were asked to rate their experience with select search engine sites. 89% of the respondents reported a 'strongly positive' experience with Google, far surpassing the competition.
Search Marketing
Your client may ask why search marketing is appropriate for them. Search marketing offers significant advantages over other media, such as outdoor, radio, TV and print, particularly in the areas of customer education/information and direct response. If your clients are interested in targeting these two media categories, it's clear AdWords is right for them.
Advertiser Satisfaction
We asked our AdWords clients to rate all forms of advertising they've used and/or are currently using. The results showed that satisfaction with Google AdWords is up to 57% higher than all other marketing media.
Source: Google AdWords Customer Satisfaction Survey:12/03-01/04, --U.S./Canadian advertisers
Common Client Concerns
Before beginning your sales process, you can prepare to address common concerns or objections from potential clients. Here are a few examples:
'I don't have the budget' or 'I don't need to advertise.'
You can address this concern by offering to start your client's advertising on a smaller scale. For example, you can start a test campaign with a budget as low as just one dollar per day, then monitor the results to show your client how they can achieve significant ROI without incurring high costs.
You may also inform them about AdWords Smart Pricing, which lowers CPCs to the expected value of a click. Please refer to the Pricing and Ranking lesson to learn more about how AdWords pricing works.
'This sounds too complicated.'
If your client is concerned that search marketing sounds too complicated, offer to design an AdWords marketing program for them. Use conversion tracking and AdWords reporting to show the progress they're making. You can manage a client's account continually, or, once the account is running smoothly, transition the account management to your client.
Summary
With one Google AdWords media buy, your client can single-handedly accomplish what used to take a whole team of media planners. AdWords ads can appear virtually anywhere online worldwide, yet remain targeted and relevant. And because your clients can view, monitor, measure, and edit their AdWords campaigns at any time on their own, they can enjoy unprecedented levels of control over their advertising spending and reach.
