An Industry Guide To Google Adwords

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AN INDUSTRY GUIDE TOGOOGLE ADWORDSEducation and Skills For The Professional AdvertiserMODULE 2American Advertising FederationThe Unifying Voice of Advertising

OVERVIEWCONTENTSMODULE 2: GOOGLE ADWORDSLearning Objectives/Set up. 1Google AdWords is the most accountable advertising platformin existence. AdWords is Google’s online advertising programthat reaches customers who are searching for products andservices, and people browsing websites related to what anadvertiser sells. The entire medium is based on cost-perclick (CPC) bidding where an advertiser is only charged whensomeone clicks their ad.Paid Search. 2AdWords lets you target your ads specifically to peoplewho are looking for your products or services. Each month,approximately 80% of Internet users in the United States(and hundreds of millions more worldwide) view AdWordsads. AdWords delivers instant access to this vast audience ofpotential customers.Bidding. 8Objectives. 3Account Set Up. 4Keywords. 5Creating a Text Ad. 6Audience. 7Quality Score. 8–9Campaign Development. 10–11Case Study: Happy Hound. 12–13Student Exercise. 14

ADWORDSLEARNING OBJECTIVES Firmly establish the notion of AdWords pay per clicksearch advertising.Expose students to “bidding for placement” as a valueproposition for advertisers.Teach students “key words” and their importance toachieving client success.Introduce the notion of an AdWords “Campaign.”Goals Phone callsLeadsIn store customersOnline salesCustomers Who they areWhat they are looking forWhere are theyWhen they shopWhy You Need to Know This Advertiser bids on a keyword related to their businessUser searches with that keyword on GoogleAdvertiser’s ad appears above a list of search resultsUser clicks on the ad and goes to the advertiser’s websiteAdvertiser pays Google for click based on -tutorials.html#tab0GOOGLE ADWORDS1

PAID SEARCHBegin With The Basic Paid SearchMost students do not comprehend the notion of paid search.Begin with a simple visual. Do a Google Search for any itemsuch as the one here. The top three searches are PAID. Theyscored the highest on a ranking algorithm to be discussedlater.In addition, the search listings on the right hand column arePAID. All of the listings pay ONLY IF a searcher clicks on thelisting link. Hence the notion of “pay per click” or “cost perclick.”Stress This Point!If you are doing AdWords right, you are “putting businessin front of customers at the right place, at the right time.”GOOGLE ADWORDS2

WHERE TO STARTIt’s more like, where in the world to start?Start With the Basics. What Are Your Objectives?Phone calls? Leads? In store customers? Online sales? Whatare you trying to accomplish? AdWords can be everything frominitial branding to final return on investment (ROI) tracking forindividual retail properties.Example:A fast food restaurant chain can run an AdWords campaignfor all 2 zillion franchisees. Yet the response may be to oneindividual store in the middle of Memphis at 3pm on June14 directed from a mobile app touch-identified by a visitorfrom Wausau, Wisconsin. That’s what digital technology hasdelivered.Here is a List of Paid Search Objectives: Website traffic Phone calls In-store visits App downloads Purchase Endorsement RecommendationGOOGLE ADWORDS3

GETTING STARTEDLet’s Teach AdWordsThere are a dozen formats to train, teach and encourageAdWords learning. Let us be so bold to follow a simpleformula.Step 1Step 2Step 3Step 4Step 5Account Set upKeywordsCreating a Text AdAudienceBidWe will end ultimately with a “campaign.”Step 1 - Account Set upEveryone can open a Google AdWords account. If you, as aninstructor have not done so; get with it, before you preach.You (and direct your students) to go to:AdWordsGet d awo&subid usen-ha-aw-bkhpr0 59067480605&hl en US& ga 1.112556679.223097844.1434502915&sf og&clickid sn-3r-og-us-08122015&pli 1#abSet up your account. Sure. You’ll enter a credit card. Nocharges will be incurred, unless you practice what you preachand advertise. (Optional).GOOGLE ADWORDSCONTINUE4

KEYWORDSKeyword PlannerKeywords are words or phrases used to match your ads withthe terms people are searching for.Generate a list of keywords. Then, direct students to AdWordsKeyword Planner. The keyword planner will generate a listof potential search terms along with recommended bid. (seebelow). The real bonus will be projected “click” traffic based onyour market or demographic qualifiers.Keyword PlannerStep 2 - KeywordsWhat is a click worth? Teach with an et’s say your client is a pet groomer. Your objective is togenerate phone calls to the business for doggy haircuts duringthe month of April. Now, isolate the Keywords:NEEDKEYWORDThe service. pet groomerThe offer. haircuts for dogsPeriod. month of AprilKPI - Key Performance IndicatorIntroduce this acronym to the student vernacularKPI: 10 new clients in AprilNow, what word or combination of words can we put into aGoogle search that will generate leads based on the Keywordcriteria above?Dog Haircuts, Doggy Haircuts, April Dog Haircut Specials, orPet Groomer for Dogs April specials.GOOGLE ADWORDS5

Step 3 - Creating a Text AdPlace the challenge right up front. AdWords text ads consist of fourelements: Headline, web address, description line1 and descriptionline 2.AD COPYWRITINGCHARACTERSHeadline . 25 maximumWeb Address . display URLDescription line 1 . 35Description line 2 . 35The challenge of an AdWords text ad is identical to what we teachfor traditional print advertisements.1. Highlight what makes the product/service unique– the uniqueselling proposition (USP).2. Use a call to action (be sure the landing page is relevant to thecall to action).3. Use “sales terminology.” Example: 40% if you buy today.Just like traditional print, the AdWords text ad should: Be specific (Canon EOS Digital Camera vs. digital camera)Consider terminology the customer uses (“point and shoot”)Group keywords by themes (memories, large megapixel image)Encourage students to think like a customer. Imagine what they’rethinking. What do they need to know. Think specific words.GOOGLE ADWORDS6

Step 4 - AudienceHere again, the parallel to traditional print advertising is identical.As instructors we teach “target audience.” The exact is true withAdWords. Get students in a deliberate formula of examination. Who are they? Demographics, career, technology traitsWhat are they motivated by?Where do they spend most of their time?Why are they interested in the product/service promoted?What will convince them to buy?The beauty of AdWords is that users may target to specific: Location (specific to city/town subdivisions and mile radiuses)Time of DayNetworkDevices (desktop, tablet, mobile)Everything is within control of the AdWords advertiser.The example alongside illustrates the filtering opportunities; in thiscase to control for user platform by computer, mobile devices andtablets.GOOGLE ADWORDS7

Step 5 - BiddingWhere an AdWords ad is placed in the ranking order dependslargely on what the advertiser is willing to pay for each click.The term “cost per click” (CPC) is the essence of AdWords.Example:You sell dog collars by mail. Your dog collars sell for 20.The cost of manufacturing is 10. Your labor to market, packand ship is 2. The difference between “your out of pocketexpenses” of 12 ( 10 for manufacturing/ 2 labor) is your“gross margin.” If your goal to make 5 on every collar sold, youmay bid up to 3 for every click if you believe each results in asale. Or, you may bid less. Your bid of .85 per click may getyou second rank on the right hand listing. Perhaps a bid of 92 will put you on top. Google will tell you that as you bid. Keep inmind that ONLY if someone clicks on your AdWords ad will theadvertiser be charged that 85 -92 .The bidding process is very methodical. There are great videosprovided by Google to further groom students. Direct them tothe link alongside.The objective of this instruction section is purely toestablish the notion of “bidding” for ad placement.Pure “bid” however does not alone determine rank orderplacement on a Google search. An advertiser may have abid of 5 per click, yet a bidder at 3 may still be in the topslot if their ad is more relevant to the search. Google’s wayof accommodating this is called “Quality Score.” See providevideo link (right).GOOGLE ADWORDSDetermine A Bid Strategy Based On Your 2725?hl enQuality ScoreFor every AdWords ad, Google assigns a quality scorewith one (1) being the lowest and ten (10) being thehighest. This quality score is Google’s way to ensurethat the search user has the highest quality experienceand gets just what they’re looking for. Quality Score isGoogle’s way to be sure that advertisers “get it right”with ads that are relevant to every search. Expected Click Thru Rate (CTR)The “Landing Page Experience”Relevance of advertisementUse of Google extensions(More on Quality Score page 9)8

Quality ScoreThe 1-10 Quality Score reported for each keyword is an estimateof the quality of ads and landing pages triggered by thatkeyword. A high Quality Score means that Google thinks the adand landing page are relevant and useful to someone looking atthe ad. Quality Score will be determined for any keywords.Quality ScoreExplain each of the following Quality Score factors to students.Expected Click Thru Rate (CTR)For any keyword, Google’s algorithm calculates an expectedclick thru rate. Higher click thru’s create higher quality scores.The “Landing Page Experience”An essential part of the quality score is the landing page. Inother words, when a searcher clicks on an AdWords listing,where do they go? A website? A microsite? An entry form?The more relevant the landing page experience, the higherthe quality score. An advertisement is only useful if the visitorcan find what they expect once they click on the link. This, insimple terms, is a function of relevancy, the ease of navigation,transparency to the advertiser’s business and transparency tohow the advertiser collects and uses customer data (privarypolicy and terms.)Relevance of AdvertisementGoogle analyzes the language of each ad as it relates to thequery. If the ad is about iPhones and the query or keywordsearched includes iPhones, the ad is relevant.GOOGLE 454010?hl en&vid 1-635749950069969030-7268216843125152909Use of Google ExtensionsGoogle provides a number of extensions for AdWords users forsetting up advertisements. These are basic items that allowthe advertiser to leverage additional information to increase therelevancy of each ad.An advertisement may include a phone number, a domain as aheadline or recent reviews from customers. These are simpleGoogle extensions that may increase overall quality score.The advertiser’s objective is to bid properly (high, but not toohigh) along with a proper ad structure that delivers a high qualityscore.9

CAMPAIGNSAccount StructureCAMPAIGN 1CAMPAIGN 2Begin this final section with a clear understanding of theessential AdWords terms:Campaign: A set of ad groups (ads, keywords, and bids)that share a budget, location targeting, and other settings.Campaigns are often used to organize categories of productsor services that you offer.Ad Group: An ad group contains one or more ads which targeta shared set of keywords.Keywords: Words or phrases describing a product or servicechosen to help determine when and where the ad can appear.AD GROUP 1AD 1AD 2KEYWORDSAD GROUP 2AD 1AD 2KEYWORDSAD GROUP 1AD 1AD 2KEYWORDSAD GROUP 2AD 1AD 2KEYWORDSBudget: An amount set for each ad campaign to specify howmuch, on average, to spend each day.Bidding: The amount set to be paid by auction. AdWords runsan auction every single time it has an ad space available– on asearch result, or on a blog, news site, or some other page. Eachauction decides which AdWords ads will show at that momentin that space.How To Choose Your Campaign SettingsEach AdWords effort is called a campaign. Every campaignwill have an ad group (even if it’s just one ad.) All ads will havekeywords to attract visitors on search queries which will begoverned in part by bidding and budgets.Use the attached Google link (right) to finish campaign overview.Once material is covered, proceed with campaign set up tocomplete the class learning module.GOOGLE 704395?hl en10

CAMPAIGNSLearn by doing! It is so effective. Do it!Direct students to the AdWords HomepageAdWordshttp://www.google.com/adwords/Have students click “Get started now” to create accounts.During this process Google walks students through the creationsteps of an AdWords campaign.GOOGLE ADWORDS11

CASE STUDYHAPPY HOUNDAdwords Made Happy Hound A Pet Boarding Oasis“Google AdWords generates 90 percent of our business.”Dogs allowed.“I’ve always been crazy about animals,” Suzanne Golter explainsamid a chorus of enthusiastic barking – the soundtrack to atypical day at Happy Hound. “I grew up with two horses, acow, a goat, five dogs, and a bunch of cats. And it was my jobto take care of them.” After 20 years in sales and marketing,Suzanne finally got the chance to return to her roots. Shepoints to the dozing Dalmatian curled up at her feet. “Rennieabsolutely loved her drop-in doggy daycare back in LosAngeles,” Suzanne recalls, “but when we moved up to the BayArea eight years ago, I couldn’t find that same type of positiveenvironment. So I thought, ‘Hey, maybe there’s a businessopportunity here.’”In March 2004, Suzanne rented out a warehouse in Oaklandand opened Happy Hound, a boutique-style daycare andboarding facility for canines of all shapes and sizes. “Mymission is to ensure the happiness, comfort, and health of eachand every client – both dogs and humans,” she says. “I decidedto use a state-of-the-art ventilation system, environmentallyfriendly cleaning products, and a webcam so people can keeptabs on their pals throughout the day.”Fetching appyhound.htmlGOOGLE ADWORDS“Those first few days, it was just me and my two dogs in ahuge warehouse,” Suzanne remembers. “They needed newplaymates and I needed some business.” So she turned to the12

Internet to reach her market: working professionals who wantnothing but the best for their loyal companions. “I knew that mytarget clients don’t open the Yellow Pages – they go on the Web.Because that’s what I would do.”Suzanne signed up with Google AdWords shortly afterkickoff. “Right here at my desk, I set up my primary means ofadvertising in one sitting,” she says. “As the founder of a newlocal business, I had to wear a lot of hats. AdWords let me domy marketing all by myself.” Rennie the Dalmatian gives her awounded look. “Of course, how could I forget – my dogs cameup with most of the ads and keywords.”“At first, I set my geographic targeting options so my adsshowed as far as Sacramento,” Suzanne continues. “I got somany calls I didn’t know what to do! So I scaled back andfocused my resources on the Oakland-San Jose area. I like thatflexibility. When I expand, I’ll just broaden the region I targetwith AdWords.”“Given the nature of my business, it’s very easy to trackexactly where my leads are coming from,” Suzanne continues.“Prospective clients are required to fill out an application witha question about how they found us. On average, we get 40new clients a month through AdWords, along with almost asmany applicants we can’t accept right away. Overall, AdWordsgenerates 90 percent of our business.”Groomed For SuccessToday, Happy Hound rarely has vacancy. Its 33 employeesprovide care, supervision, exercise, and fun to roughly 120 dogsper day and 30 per night. Suzanne plans to open new locationsbased on the same conviction: dogs and people alike deserveconvenient and customized services that accommodate theirlifestyles. “That philosophy – along with Google AdWords – hasput us ahead of the pack.”Best In ShowSince launching Happy Hound, Suzanne has tried out otheradvertising methods, but Google AdWords has stood the testof time. “I’ve tried running print ads in dog-related magazineswith national circulation,” she says. “They were expensive andinefficient, especially for a local business like Happy Hound.AdWords has been my most effective means of advertisingsince the beginning – which is why it gets 90 percent of myadvertising budget. And it even works nicely with our other mainsource of business: word-of-mouth. People tell their friendsabout Happy Hound, they go and type it into Google, and ourad comes up.”GOOGLE ADWORDS13

Module 2 Student ExerciseGOOGLE ADWORDSComplete these two exercises in the learning moduleEXERCISE 1You are creating an AdWords campaign for all the clumsyincoming college freshmen that drop their iPhones and shatterthe glass facing or damage the inner workings of their mobiledevice. Start first by creating a keyword outline below:NEEDA Digital Camera DealerA Ready-to-Drink (RTD) ice tea brand (sold in stores)A Public Service organization to rescue stray petsKEYWORDThe service.The offer.Period.Next:1. Type your top keyword into a Google search. What appearson the screen? Was your word on the first page? Or betteryet, near the top? What were the key words noted?2. Go to the keyword finder. Type in your keyword. Whatinformation is provided? Print out the page. Highlightwhenever your word appears.GOOGLE ADWORDSEXERCISE 2Pick one of the following:1.2.3.4.Determine your AdWords campaign objective(s).Identify your Target Audience (broad vs. specific)Develop a set of keywords.Create a text ad for your campaign along the Googlerequirements below:AD COPYWRITINGCHARACTERSHeadline . 25 maximumWeb Address. display URLDescription line 1 . 35Description line 2 . 3514

Please send comments to www.aaf.org/learningmodulesAmerican Advertising Federation555 11th ST NW, Suite 600, Washington, DC 20004www.aaf.orgCompiled by Daniel J. PetekAmerican Advertising Federation, National Education Executive Committee

Google AdWords is the most accountable advertising platform in existence. AdWords is Google's online advertising program that reaches customers who are searching for products and services, and people browsing websites related to what an advertiser sells. The entire medium is based on cost-per-

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