Friday, 15 March 2013

34 How AdWords Platform Works - Part II

bidding graph
Google AdWords advertising platform is really easy to use but if you want to set up successful campaign with high conversion rate you have to know what you are doing.  Because of that I decided to write a bit more about Google AdWords. In the first part i focused on how Google AdWords platform works and how to create an account. In the second part you will get to know more about campaign setting and biding.

Campaign Setting

When you create an ad campaign for the first time, AdWords guides you through several steps. You have to choose your ad campaign's settings, write your first ad, and select keywords that you think your customers would use when they're searching for your products or services. Each campaign also requires a unique name but that does not affect performance in the AdWords auction.

Google Adwords campaign for online electronic store

Starting with your campaign setup, you'll be asked to pick a campaign type. This determines which settings and options you see as you customize your campaign. You have to choose networks you want to target your ads to - the Search Network only, Display Network only, or both Search & Display.  With language and location settings you are able to specify where in the world ads are eligible to appear. But don't forget that the ads always display in the language you wrote them in.

How to choose your location and language settings

  1. Click the Campaigns tab.
  2. In the left hand panel, click All online campaigns.
  3. Click the + New campaign button
  4. You'll be taken to a page where you'll be able to update your campaign settings. Look for the section titled "Locations and Languages."
  5. To target locations, you have the option to:
    • Select a location from the listed options...
    • Or enter a location in the search box.
  6. To edit your target language, click Edit in the "Languages" section.
  7. Check the boxes next to the languages that you'd like to target.
  8. After you choose the rest of your campaign settings, click Save and continue.

Bidding

To run your ads on Google, you have to decide on the right campaign budget and ad group bids.
There are two basic bidding options :
  • Manual bidding: This is the default option to let you manage your maximum CPC bids yourself. You can set bids at the ad group level, or for individual keywords.
  • Automatic bidding: If you're new to AdWords (or if you're busy), we recommend this option. All you have to do is set a daily budget, and the AdWords system manages your bids for you, to bring you the most clicks possible within your budget.
If you are are not familiar with Google AdWords the best option is to select “Focus on clicks—use maximum CPC bids” and start with the “Manual bidding for clicks” option. The budget is a whole dollar amount with a $1 daily minimum. Keep in mind that your budget amount is for a single campaign only. If you have multiple campaigns the total daily ad spending is the sum of the spent budget across all campaigns.

Beneath the budget section is a subsection labeled Delivery method (advanced). Ad delivery determines how often your ads show throughout the day. After you set your campaign's budget, you have the option to choose one of two ad delivery methods:
  • Standard delivery (the default option) - AdWords will display ads as evenly as possible over a 24-hour period, working within the allocated budget. This 24-hour period is based on a midnight-to-midnight schedule, using the time zone selected when the account was created. This option is recommended if you want to reach your audience evenly throughout the day, rather than just in the morning.
  • Accelerated delivery – Adwords will show your ads until until you run out of budget. If your campaign is limited by budget, your ad might stop running earlier in the day.

Keyword bidding

First you have to select the right keywords (more about that in part III) and after that you have to choose how much you're willing to pay for each keyword whenever a customer searches on that keyword and clicks on your ad. This is called maximum cost-per-click, or max CPC, bid amount.
You can use different AdWords tools that will make your job a bit easier.
  • The Opportunities tab can help you identify which of your keywords seem to be good candidates for bid changes. Suggestions are for increased bids (to help capture more clicks) and decreased bids (to help lower your costs).
  • The Bid Simulator runs "what-if" scenarios such as: "How many more impressions would I have received if I had raised my bid by US$0.10?" so you can adjust your bids to the right level for your budget.
  • Enhanced CPC is a bidding feature that looks for ad auctions that are more likely to lead to sales for you, and then raises your max CPC bid up to 30 percent to compete harder for those clicks. When it sees auctions that don't look promising, it lowers your bid.
  • Conversion tracking is an advanced feature that shows you which keywords most often lead customers to take the actions you want them to take. Tracking your conversions can help you decide whether to increase your max CPC for keywords that are performing well, and decrease it for those that are underperforming.
It is a lot of different but still important things you have to know while creating and managing successful AdWords campaign. I am currently studying for AdWords Certification and I am finding the material overwhelming. Because of that i decided to spread this topic into three blog posts. In the last AdWords post I will write about choosing the right keywords for your campaign.

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