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| Posted on 9/22/07 at 11:53 AM | |
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I agree that google ads CAN BE a waste of money, but that is entirely up to the advertiser. It is true that most people DO NOT take a SCIENTIFIC approach to their pay per click campaign and therefore are just throwing money away. If you seriously want to consider it though, just test it. I absolutely guarantee you google adwords makes LOTSSSSSS of people rich. Just like lance says, its all a numbers game. The trick is to pay attention to those numbers. For example. if your ad costs 10 cents per click (sounds like a lot) and you get 35 clicks per day for a daily cost is $3.50 or $105 a month. Now say your click through rate is 10% and of those clicks your sell rate is 1%. So in one month, of 1050 impressions, 105 people actually click and only 1 person actually buys your product. These may sound like terrible numbers and a waste of money, but what if you sell plasma tvs? As long as your expenses are under your profits, then you're all good and you'll be pumping in as much money as you have in perfecting your adword campaign. The cost here is $105 per sale, sure thats not worth it for custom apparel, but an equipment salesman wouldn't mind. Clearly this is an oversimplified example. You'll have different (hopefully better) return rates, higher/lower word bids, and even individual ads performing differently. So the conclusion is to treat it very scientifically (which is why google is at the top of the game, because it gives you every piece of data imaginable) and really pay attention to the numbers. There are stories of guys whose adword accounts pay HUNDREDS OF THOUSANDS of dollars to google a month. Is this a terrible waste of money? You better believe that they've got their numbers down to where they no if they put x amount of dollars into their campaigns, they are getting x+ more back, and its not wishful thinking, or gut feelings. They've tested and retested, tested again, fine tuned, analyzed, and they can show you all that data in real time. Math!! [Edited on 9/22/07 by superjadex12] ____________________ Failure is Great | |
 
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