Many small business have tried utilizing Google Adwords and said they are losing money. Some say that their business don’t have big budget to place Google ads and compete with the large retailers. But these small business owners need to understand how Google Adwords work and what key features can help them manage their Google Adwords accounts. To help small business owners and startup CEOs who have no clue in Google Adwords, I’ve outlined four important mistakes to avoid.
Four Common Mistakes of the Small Business or Beginner Google Adwords Users
1. Infrequent Login & Adjustments
Most common myth of the small business owner using Google Adwords is leaving the Google Adwords system alone after placing the ad. Not only is this most dangerous, you are most likely going to lose the level of web traffic needed for your website to thrive.
The recommended login frequency is at least three times in a day. One would be the morning hours (9am-10am), when you would see the early morning traffic. Second login would be around 12pm since many people check their e-mails or search shopping sites during their lunch break time. The last login could be on the afternoon (around 4 pm.) You can set 20 minutes session and adjust your maximum bid manually. By controlling your bid, you will increase your website impression and lower the bids. Do not put your bid into automatic because this will use up your ads cost wildly. Despite Google Adwords recommend putting in “automatic bidding”, this mean your ads CPC (Cost per click – the cost you pay anytime someone click on your ads) will increase if your competitors’ ad increase their CPC. Running automatic bidding can be a quick way to high CPC and reduced ROI. But always remember how much you can pay for your CPC and think of your budget first. Automatic bidding will quickly burn your $100 budget like Flesh Gordon because Automatic bidding can dangerous eat away your marketing budget.
If your ad isn’t delivering desired result, then you should pause the ad and focus on understanding “why it doesn’t work” and “what could improve the advertising response rate with more conversions”. Always focus on the core idea of “result-driven” ad placement and check for conversion/sales rate.
2. Not Using Negative Keywords
Google Adwords has put the “Negative Keyword” button all the way in the bottom in the right corner with little button. You won’t be able to find this button easily unless your scroll down and click it. Most people can’t see this button because it is explicitly shown and Google Adwords probably did this because they wanted to utilize or cover more ads costs for your budget.
Always put “Negative Keywords” in every Keyword campaign. MOST IMPORTANT OF ALL FEATURE
If you believe your advertising campaign has no “negative keywords”, then you are definitely wrong and are going to lose money. For example, if you are advertising for your shoe business, there are specific features, size, and type of shoes you want to target for certain group of individuals. For instance, if you are looking for business men shoe customers, you can put such negative keywords for “casual”, “hiking”, “women”, and “loafer”. This way, you will not target teenagers or summer slipper shoe buyers.
3. Not Monitoring through Google Analytics
One of the best online free marketing analytic tools is Google Analytics. Although many companies have argued that Google Analytics system has several flaws and misinterpretation, as a free product, it is incredibly valuable and intuitive.
You can learn about Google Analytics and get tested within 2 weeks, if you can quickly learn through their tutorials (about 10 hours).
From the basics of digital analytics to data model filtering, Google Analytics tutorials have abundance of information for you to build strong foundation in marketing analytics. Take some time to read and watch Youtube tutorial. In the long-term, you will be glad to know how to use Google Analytics – You will save money, increase sales, and covert more web visitors as potential buyers.
4. Leaving up to the Google Adwords Professionals
Truth be told, many advertising professionals also started using Google Analytics as the first users and earned the Google Adwords certificates through studying. Therefore, you, a store owner or doctor or non-marketing professional, can learn about Google Adwords through YouTube video tutorial.
You should never believe 100% of your advertising professional team to build your advertising success. They may suggest high budget for marketing, but that happens only if they want to place your ads on the 1st page for every keywords.
Not many Google Adwords professional deliver the desired result and when they fail, they always suggest “lack of budget” or “competitiveness failure”. But really good Google Adwords professionals understand there is always niche and timing to target their audience.
You should first self-learn about Google Adwords through these simple videos first or any other reputable YouTube video tutorials on Google Adwords. Then ask your Google Adwords marketers about very specific details – including negative keywords, geo-targeting, group suggestions, and time limitation, and several other specific content-knowledge. If your Google Adwords person can readily answer with the proper content, then you might have the right person.
Give your Google Adwords professional small budget to test and deliver specific result. If he/she has delivered at least 20~30% of the desired goals, then you should provide the bigger budget to him/her. (Remember: Always test his/her skills before giving him/her the big check. Once you give him/her the whole marketing budget, then you lose the control of the Google Adwords. And if you want, you should open your Google Adwords Account. Then add your Google Adwords professional as only an editor, so you can pause any mismanagement and pause marketing budget losses.)
I am sure Google Adwords professionals will hate this post since it gives them negative perception. But with the growing number of competitions and limited advertising budget for consumer companies, it is crucial to be always analytical in every decision. (So don’t blame me for this post, but be aware that, with free flow of information, you have to be always be on top of your game. Other competitions can break you if you stop being analytical and smart.)