‘Will €1,000 get me on top of the Google advertising results?’ We get these kinds of questions regularly. Activity-based budgeting is part of being a good entrepreneur: this is what I want to spend to achieve these results .
To answer your question: yes, it is possible to do AdWords with a budget of €1,000. But money alone can’t buy you happiness. A more important question than how much money you spend, is how you spend that money. How to invest the minimum amount of money for maximum return? In order to achieve this, you need to know how AdWords works and how you can influence the result.
Three factors define a successful Google AdWords ad
To decide in which position your online ad will be placed, Google looks at three things:
Based on these three aspects, your ad will get a score: the Ad Rank. This score determines your ad position, the place in the search results where your ad will appear. This clearly has a major influence on the number of visitors that you’ll attract with your ad. What’s more, a higher Ad Rank means you pay less when someone clicks on your ad.
The challenge now is to get the highest score possible. The better your Ad Rank score, the higher your ad appears on the search results page and the less you pay for a click on your ad. Let’s have a closer look at each of the defining factors.
The amount you want to pay for each click on your ad is entirely up to you, because Google let’s you place a bid. However, this does not mean a click will actually cost you that amount. You’ll only pay one euro-cent more than the highest bid of your competitor. Therefore a click on your ad will often cost less than your highest bid.
The amount you’re willing to pay for an ad definitely has an impact, but it’s not the only factor that Google takes into account when ranking your ad.
Google considers the quality of your ad to decide on your ad’s position in the search results. You can influence this decision in many different ways.
The expected click-through rate
To determine the quality of your ad, Google takes three criteria into consideration. First of all, the expected CTR or Click-Through Rate, the number of clicks that your ad receives divided by the number of times your ad is shown.
Google also takes into consideration the historic performance of your ads and the ads of your competitors. So did you get a lot of clicks on a certain ad? That probably means that it was relevant and Google will reward you with a higher Ad Rank. From your very first campaign Google keeps an eye on how your ads are performing and will consider this when ranking your ads.
Landing page experience
The second criteria which will influence the quality of your ad is the experience you offer on your landing page. Does this page give people exactly what they were expecting when clicking on your ad?
Think about the information you’d like to see when clicking on your ad. Does your landing page give you that information, quickly and effortlessly?
It can definitely be a good idea to make a special landing page for your ad. The more relevant the page, the better your user experience and the higher your Ad Rank.
Link between all AdWords components
The third quality criteria is the relevance of your ad itself. Google looks at the relation between:
- the keywords you entered
- the text in your ad
- the text on your landing page
Keywords are those words and phrases that people search for and for which you’d like your ad to show in the results. So make sure these words actually appear in your ad. The same counts for your landing page. A simple example: Bike shop X wants an ad to position on top of the Google search results page for the keyword ‘electric bike’.
3. The format of your online ad
Your AdWords ad can contain more than just words. A call button for example, or a directions icon for locations. The more practical information you add, the more valuable Google will consider your ad. With a higher score as a result.
If you want to do it yourself, here’s a great guide from Paid Traffic that’ll get you started right away.
Would you like to know more about the AdWords Auction? In this video, Google economist Hal Varian explains in more detail how the Auction works and which important elements you need to consider when launching a campaign.
An ad on Google can have surprisingly good results, but remember that money alone is no guarantee for success. Whether your ad gets a great ranking in the search results, or whether it disappears on a page that no one ever looks at, is for a large part up to you.
So the question of this blog post ‘How much does Google AdWords cost’, is not that relevant after all. A successful ad depends on budget, quality and format. You take these three factors into consideration and Google will grant you a higher Ad Rank score, which will lead to a better ranking in the search results.
Still could use some help with launching your ad campaign? At Optimize we take care of your AdWords campaigns from beginning to end. We are Google Certified and therefore know very well how to get your ad on top of the search results. Click the button below to find out how we can get more traffic to your site from day one.