One of the most popular advertising methods which a business can use to reach a large number of internet users is through Google Adwords, the pay per click advertising network developed by google. Unlike some other advertising networks which charge a fixed amount monthly for advertising, the google adwords advertiser has to pay google everytime an internet user will click on the ad. So advertising using google adwords can be very expensive if not managed properly and most businesses prefer to hire a specialized firm for google adwords management.
While anyone can signup for a google adwords account, and create an ad promoting their website , for a business, the effectiveness of the advertising depends to a large extent on the number of leads and orders which are generated from the advertisement. A business may spend a lot of money on google adwords advertising, however if no leads and orders are generated, it is a waste of time and money. So it is important for the business to accurately track the leads and orders generated from each advertising campaign, and make the necessary changes in the advertisement, promotion budget to get the best returns on advertising.
Though google adwords appears to be a simple system initially, actually it is a fairly complex system and the number of times the advertisement for a business will be displayed depends on a large number of factors like the competition, click through rate, conversion rate, click amount. Most businesses, especially offline businesses do not have the resources, with the necessary skills and experience for managing google adwords . It is also not cost effective for the business to hire a person only for google adwords management, especially for small offline businesses, it is cheaper to outsource the work to a digital agency.
The effectiveness of a google adwords campaign depends to a large extent on the competition for online advertising. In some sectors and countries, many of the potential buyers are using the internet for finding sellers or suppliers of the product, so there may be more advertisers for the product or service. As a result, the business will have to pay more for advertising online, for generating leads and orders as the google adwords system will show advertisers who are paying more higher in the search engine ranking. In other sectors, where there is less competition, the advertiser will have to pay less. The digital agency managing google adwords will analyze the competition and adjust the bid amount accordingly.
Most businesses have a fixed advertising and marketing budget, so having a specialized agency for google adwords management will ensure that the google adwords budget is used optimally to get the best possible returns. Managing the adwords pay per click advertising, also involves tracking the behavior of the visitors to the business website and finding out how many visitors are getting converted into orders. When internet users click on the adwords ad, google will charge the advertiser, however in most cases, the visitor will not place an order, so managing google adwords also involves tracking the conversion rate, and increasing it to the extent possible.