Google is being increasingly proactive about suggesting to people that they MUST do an Adwords campaign. Free set-up, $100 vouchers and aggressive advertising and emailing… Plus numerous cold calls from overseas Adwords companies.
Remember that Google makes their money from advertising. The more people they get using Adwords, the more money they make. And the higher the cost per click will be for everyone. Even more for them! That is how they survive.
We are not saying don’t do it but just be aware of what you are doing and the costs.
Things to watch for
Are you doing Adwords or Adwords Express – there is a big difference. For example Adwords Express ads are only seen within a very limited local area (20-65 kms from your business). And very automated setup. OK for some businesses but not for many.
What is your cost per click?
What is your cost per conversion or booking?
If your average cost per click is $1.50 (what you pay Google plus your management fee divided by the number of clicks you get), and you are getting one conversion or booking for every 10 clicks (and you are lucky if you are), then each booking is costing you $1.50 x 10 = $15.00. Compare this with commissions you may give away to agents and booking sites. If you have a low ticket item you may vbe giving away a large percentage.
Why are you doing it – is it just because Google says you should or do you think it will work for you?
Is it working for you or do you have a cap on your spending?
If you have got a cap on your spending – why? If Adwords is working for you, you should be taking every booking you can until you have sold your entire inventory. Putting a cap on your campaign(s) suggests that you don’t think it is working and just want to limit how much money you are wasting.
Do you have transparent reporting from whoever is managing your Adwords campaign? You should be able to see the exact cost per click you are paying to Google and also the management fee you are paying to whoever is running the campaign. If not, go somewhere else.
How do you measure conversions as coming from Adwords clicks?
Who is watching what is happening on your Adwords account –cost per click can escalate rapidly if not monitored closely
The bottom line is that AdWords must to give you a good return on investment to be worthwhile.
Don’t do it just because Google or someone phoning you from overseas on a marketing call says that you should!
If you do do it, be careful who you do it with and what you are getting from it. Some companies have difficult contracts to get out of and obscure reporting. Don’t be bullied in to it. Think carefully about the return!
We can help you to decide if you should be doing an Adwords campaign and can recommend a company to run your campaign for you with great reporting and transparent cost structure. Adwords is difficult and time consuming to do yourself.
We hope this helps clarify Adwords. Please tell us your experiences (in confidence) with campaigns and the companies who have run them for you. We will also mention you on our Google plus page if you do (and you would like a mention).