Posts Tagged user journey
Last month, eBay released a study suggesting that showing paid ads for your brand terms on Google is a complete waste of money.
As an experiment, eBay paused their paid ads for the keyword ‘ebay’, and found that the reduction in clicks from their Google paid ads was made up for by an increase in clicks from their Google organic listings. eBay therefore concluded that bidding on your brand name is a complete waste of money.
Wrong. If, like eBay, you simply provide an ad message for your brand name as a mere navigational link (i.e. so that your simply appear in the paid listings), you will probably notice that any increase in paid clicks from your brand keywords is met with an equal decrease in organic (natural) clicks from your brand keywords, with no added value being created.
However, paid ads for brand terms can create significant value for your business if the execution of your brand ad strategy is more involved than simply providing a mere navigational link, for example:
WordStream last week carried out some fascinating research on Google AdWords CPC prices of different sectors. One key finding was that the finance industry carried high CPCs of up to $54.91, while other service-related sectors such as education, law and health also exhibited expensive CPC prices of over $30.00.
It’s All Relative
Since CPC prices are often closely linked to the potential profitability of a sale from that keyword, the CPC price is often a mute point. A ‘bad credit history remortgage’ could be worth $15,000 profit to a remortgage broker, so having CPCs in excess of $50.00 can deliver a strong return on investment.
On the other hand, the keyword ‘New York weather’ has little commercial intention, so keywords such as this tend to benefit from low CPCs.
While this relativity of CPC prices makes CPC comparisons across sectors rather meaningless, most PPC advertisers would jump at the chance to pay lower CPCs. So below are 4 strategies I’ve found useful for achieving lower CPCs, while still maintaining a strong conversion rate.
Google is all about relevancy. Their whole business model depends on it. They want to provide searchers with the most relevant and useful results, and provide the easiest and most efficient means for searchers to find the information they are seeking.
So it comes as a surprise to see widespread discussion criticising the quality of Google search results among search marketing professionals, talk of people getting up in arms because they can’t find the information they are looking for, mention of people having to resort to old-fashioned bookmarking to avoid losing track of that golden nugget of an article they found back in 2003.
Are search results really becoming less relevant? Or are our expectations of high quality search results increasing faster that improvements in search quality can keep up? While Google no doubt needs to continue to improve the relevancy and usefulness of it search results, it’s not just Google who need to improve. We can also learn how to better construct our search queries to find the right information more quickly and easily.