Everyone wants to see a payoff with an AdWords campaign, especially if you’re spending $300 or more per day.
In order for your AdWords campaign to be profitable, you must first put in the hours of work to cultivate your campaign, or rather in this case, it’s hours of keyword work.
Each ad group serves different ad texts based on the type of keyword a user may type into Google’s search engine. Common ad campaign groupings include geography, device segmentation, and product type.
There more to creating a campaign than sitting back and waiting for visitors to click on your ads. You need to make sure that the ads you’ve created are being displayed to the right people, and that you’re not paying too much for keywords that won’t offer you beneficial returns.
For every industry, there are literally thousands of keywords. So in order to increase your chance of getting clicks at a less expensive rate, it would make better business sense to advertise a thousand or more keywords. However, that depends on each business’ marketing and advertising budget.
Here’s an example of a campaign with different outcomes based on the number and popularity of keywords used:
Campaign X: Your AdWords campaign has only 4 keywords. These keywords are the most popular keywords for your industry. The average CPC is $1. These keywords get 6,000 searches a day. Your campaign is getting a 2% CTR which means you’re getting $120 clicks at a total cost of $120.
Campaign Y: You research and bid on 2000 keywords. The average CPC is .10. These 2000 keywords also receive 6,000 search queries a day. Again using a 2% CTR, your campaign is delivering 120 visitors. But instead of paying $120 as in Campaign X, you are only paying $12.
Not only is Campaign Y the better performing campaign, but it’s saving $108 a day, $3,600 a month and $43,200 per year. The difference in ROI is astounding.
The difference is keywords in Campaign Y are less popular, translating to a less expensive CPC for you.