Google AdWords

Google ads are everywhere. They appear on searches and websites, usually identified as "Sponsored Links" (since that sounds so much classier than "Ads"). Google's ad programs are more useful than some other ad services, since they are driven by context - instead of getting a random "You are the 1,000,000th visitor to this site! Click here to claim your prize!" you will see something related to what you're reading. This, in theory at least, provides a better return on investment for the advertising company.

There are two sides to the Google advertising platform: AdWords and AdSense. AdWords is for companies or individuals wishing to purchase ads based on certain keywords, while AdSense is for companies or individuals willing to place ads on their website. I'm going to discuss AdWords and how it works from the customer's perspective. Here's a flowchart giving a basic overview of making the decision to use AdWords. It's much easier to read if you click to enlarge it.

Our company - we'll call it Fabulous Widgets - has limited marketing funds, so Marketing requests the budget from Accounting to verify how much they can spend. Once they know that, they can start researching keywords. The keywords for which they purchase ad placement will dictate the searches on which their ad will appear. Google's Keyword Tool provides information about, and suggestions for, keywords. In this case, the Marketing Department wants to purchase ads for searches that are as relevant as possible to their core product - widgets.

After typing "widget", "widgets", and "fabulous widgets" in the keyword box, the Marketing employee is presented with a list of possible search terms, along with popularity, search trends over time, and (optionally) the average cost per click, or CPC, for each term. The top matches include "widget", "dashboard widget", and "web widget". Well, Fabulous Widgets is a purveyor of only the finest dashboard widgets, so "web widget" is not really an applicable search term. Marketing decides, based on their budget, to purchase ads for "widget" and "dashboard widget".

Periodically, Marketing will need to review the performance of the ads they've purchased. How much more business is Fabulous Widgets getting from the new ads? Maybe AdWords is providing them with more profit than a different marketing campaign, and therefore needs more money allotted to it. Maybe the keyword choices should be tweaked. The Internet is a fluid place, and so, by necessity, must Fabulous Widgets' marketing efforts.

Quote of the Day:
I need subtitles walkin' in here.
--Booth, Bones, "The Man in the SUV"