Paid Search Successes

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When Spending is a Good Thing

Paid search engine novices sometimes bring us their accounts on Overture or Google when they feel as though they are spending too much money to obtain customers. Usually, the customer is correct. Many people are overspending by as much as 75% for the same amount of traffic that we produce after two weeks of testing.

In one client’s case, we determined that he wasn’t spending enough!

This particular client sold their product for $30.00 and was lucky enough to be in an industry where the cost per click was around $0.50. The client typically converted one out of every ten people that visited his website, so his total cost to obtain a client was right around $5.00 leaving him a $25.00 profit after each sale. With Adwords, you can set your daily spending limit. Many people figure their daily limit by dividing their monthly advertising allotment by 30, and then never give it another thought.

When our client originally setup the account, the daily spending limit was set to $15.00 (or $450.00 per month.) This meant that Google would optimizing their advertisements for around 30 clicks a day. After that, the advertising stops altogether! This lack of spending caused the client to lose business to his competitors by not having his advertisement shown as much as possible.

Once we saw that this business was profiting well, we increased the daily spending limit to $10,000 per day. Keep in mind, our client never accrued enough clicks to come close to that limit, but it meant that his advertisement would show every time one of their keyword’s were searched. Instead of receiving 30 clicks a day, our client now receives around 125 clicks per day. This increase in traffic has increased his sales by nearly four times!

For more information on competition monitoring and DRCI's complete line of search engine advertising services, contact 1-877-343-8911.

-Steve

 

Steve Blom
Certified Google Adwords Professional

Adwords Training Video Author:

Blog:
http://marketingnewsblog.adwordstraining.org

Free Adwords video:
http://www.adwordstraining.org/video/free_adwords_tutorial_video.htm

Contact: steve@adwordstraining.org