How to Avoid Costly Google Adwords Mistakes,Slash Your Average Cost Per Click, and Boost Your Conversion Rates and ROI to New Heights

A product or service that people want.The ability to reach your market (i.e., generatetargeted traffic to your website).A sales process (website) which cost-effectivelyconverts prospects into leads and customers.This fits Dan Kennedys definition of message tomarket match.If you have the first key, I can help you with thelatter two keys... 2

Ive been doing business online, and helpingothers do so, since early 1996.Ive developed multiple products and services,including the book Internet Marketing Goldmine.Buyers include famous marketers such as YanikSilver, Corey Rudl, Ken Evoy, Willie Crawford, andothers.Yanik Silver invited me to give a presentation onmultivariate testing at one of his UndergroundOnline Seminars. 3

Bill Glazer and Yanik Silver interviewed me for theirNo BS Online Training Program. Yanik alsointerviewed me in an article which was published inDan Kennedys No BS Marketing Letter.Yanik Silver told me that one of the websiteconversion tips I gave him increased his onlinesales by an estimated 10-15%.Top online copywriter Michel Fortin said: "If youwant to learn tips, tweaks and tricks that canliterally add up to $10,000 or more each month intoyour bank account, then listen to Marty Foley." 4

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Avoid common frustrating and costly Adwordsmistakes.Maximize your results from Google Adwords -while slashing your costs.Improve website conversion rates, which can makeyou more money from all your traffic, not just payper click. 6

For those who dont already know, pay per clickadvertising is a form of online advertising wherethe advertiser only pays when a prospect clicks ontheir ad, which links to the advertisers website.Ad formats include text ads, image ads, video ads,mobile device ads, even offline TV ads.Google once offered print ads but discontinued it inJanuary 2009. 7

There are generally two types of pay per clickadvertising:Search-targeted.Contextually-targeted. 8

Search-targeted pay per click is where paid adsare displayed on search engine results pages,triggered by related keyword searches.If youve ever done searches on Google, youvelikely seen up to 8 text ads labeled "Sponsoredlinks" in the right hand column of the searchresults, and often 1 to 3 sponsored ads with adifferent colored background, above the organicsearch results. 9

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Contextually-targeted pay per click is where adsare displayed on other websites, which aretriggered by the context, or topic, of the web pagetheyre displayed on.Contextually-targeted Google ads are part of theGoogle Adsense program. Google shares adrevenue with publishers who run Adsense ads ontheir websites. 11

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Pay per click can be extremely targeted.It offers the ability to reach laser-targetedprospects - at the precise moment theyre activelysearching for your product or service.Theres much less sales resistance when someoneis seeking what you offer, than when you approachthem in unsolicited, cold call fashion.Much better to be a welcome guest, rather than anannoying pest. 13

Pay per click is measurable and accountable.An old phrase says: I know that half of myadvertising dollars are wasted I just dont knowwhich half." This is true with many forms ofadvertising because theyre not easily trackable.Knowing how to get the best return on investmentfrom them is difficult at best.With pay per click advertising you can knowexactly whats working (so you can expand on it),and what isnt (so you can improve, reduce, oreliminate it). 14

Pay per click is scientific advertising.This makes it ideal for maximizing performancethrough A/B split and multivariate testing.You can use pay per click to inexpensively andquickly test product ideas, concepts, productnames and titles, domain names, etc.Pay per click is a "pay for performance" model.You only have to pay to reach prospects whoindicate a measure of interest, by clicking your ad. 15

Pay per click (and analytics) can reveal exactlywhich keywords actually convert to leads and salesfor you, which is crucial to know if you want to getthe most from any search engine optimization(SEO) efforts.Pay per click allows geographic targeting.You can geographically target prospects bycountry, state, region, city, within a number of milesfrom a street address or a zip code, or acombination of these. 16

Pay per click can help improve other areas of yourmarketing.Google offers free tools such as Google Analyticsand Google Website Optimizer, which can not onlyhelp maximize Adwords performance, but alsoimprove website conversion rates.Even if you stop using Adwords you can continueto profit from better website response rates. 17

Pay per click is fast.Equipped with one or more targeted keywords anda simple text ad, your ads can start running withinminutes of starting an Adwords account.This is faster than waiting for your website toappear in organic search results, and blazingly fastcompared to running ads in print publications. 18

Although Google Adwords is auction based, higherbids do not automatically mean higher adpositions. Instead, Adwords rewards certain ads byshowing them in higher positions, and at a lowercost per click.A powerful advantage of this is that you cant beblocked from higher ad positions based solely onbid price.Another advantage is that by using Adwords wiselyyou can get more targeted traffic at lower cost thancompeting advertisers. 19

The main key to enjoying more Adwords traffic atlower cost is relevance. What is relevance?When users do a keyword search, they want toquickly find relevant information. In other words,information directly related to what theyre lookingfor.Google knows that providing users a satisfyingsearch experience is crucial to user loyalty and tolong term success, so their Adwords systemrewards relevant keywords, ads, and landingpages. 20

To encourage a more positive user experience,Google uses a measurement called Quality Score.Its a measurement of how relevant keywords, ads,and landing pages are to a users search.There are different types of Quality Scores, suchas:Keyword Quality ScoresAd Quality ScoresLanding Page Quality Scores 21

Quality Score has a crucial impact on cost perclick, ad position, and on whether an ad is eveneligible to show during a keyword auction. Thehigher the Quality Score, the higher the ad positionand the lower cost per click.A Quality Score from 1 - 10 is assigned to eachkeyword in your Adwords account, and iscalculated based on multiple factors, such as:Keyword clickthrough rate (CTR).Historical CTR of keywords and ads in an account.Relevance of keywords to ads in an ad group.Landing page quality, and other relevance factors. 22

Although the criteria for determining ad rank differsslightly by ad type and traffic source (Googlesearch, Search Partners, and Display Network),the basic ad rank formula is essentially the same: Ad Rank = Bid Quality ScoreIn general, the lower the Quality Score, the higherthe bid required to rank in a given position. Itsobviously better to achieve higher ad positionsthrough better Quality Score, than by biddinghigher. 23

I highly recommend that you do not start anAdwords account before considering this section,and the next one: How to Avoid Frustrating andCostly Adwords Mistakes.To simplify understanding of the frustrating andcostly Adwords mistakes revealed in the nextsection, following is an overview of the mainAdwords account elements, and the account setupprocess. 24

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Broad Match: keyword termCan be more easily matched to irrelevant termsthan other match types.Phrase Match: "keyword term"Allows greater relevancy than broad match.Exact Match: [keyword term]Ensures that your ad shows only when peoplesearch on that keyword, and nothing else. 26

Broad match modifier is a feature which lets youcreate keywords with greater reach than phraseand exact match, with more control over relevancythan regular broad match.Three examples of keyword terms using broadmatch modifier:+keyword +termkeyword +term+keyword term 27

With modified broad match, each word precededby a plus sign must appear in a query, exactly oras close variations, to trigger your ads.Variations include misspellings, singular/pluralversions, abbreviations, acronyms, and stemmings(like roof and roofing). Synonyms are notconsidered close variations. 28

Unlike primary keyword match types, negativekeyword match types are used to control whenyour ads are not shown, to weed out untargeted(irrelevant) ad impressions and clicks.1) Negative Broad Match: -keyword2) Negative Phrase Match: -"keyword"3) Negative Phrase Match: -[keyword] 29

Suppose you sell blue widgets and researchreveals the following related keyword terms:free blue widgetsblue widget songsdiscount blue widgetscheap blue widgetsbuy blue widgetsblue widgets for sale 30

The first two terms are clearly unrelated to yourmarket, so you should use "free" and "songs" asnegative keywords:free blue widgetsblue widget songsIf you only sell premium blue widgets and dontwant your ads to show to people shopping aroundfor the lowest priced widgets, you may choose touse "discount" and "cheap" as negative keywords.discount blue widgetscheap blue widgets 31

Other keyword tools can be useful for keywordresearch, but the Google Adwords Keyword Tool isbased on a lot of actual Google search data. Itsfound under the Opportunites tab in your Adwordsaccount, or search Google for Google AdwordsKeyword Tool.Enter your landing page URL in the tool, so it cananalyze your site and suggest targeted keywords.You can also add relevant keywords at the sametime. To find other targeted keywords, also enterthe landing page URLs of competing advertisersinto the tool. 32

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Part of Adwords relevance means a good matchbetween keywords and ads in the same ad group.So place only tightly themed keywords in an adgroup, and include those keywords in the ads ofthe ad group.Keywords will especially stand out in the headline,but also using the keyword in other parts of the adcan work even better.Benefits tend to work better than features; solvingcurrent pain better than future gain. 35

Capitalizing the first letter of every main word,including the display URL, tends to improve CTR.Tell users what you want them to do, with clearcalls to action.Consider using negative qualifiers to weed outclicks from less targeted searchers. Examples:Price, age group, gender, location, words like"buy", etc. 36

Part of Googles success hinges on user-friendliness. Adwords account setup is easy andstraightforward.You can go through the process before payinganything, and can submit payment afterward whenyoure ready to activate it.Get started at: google.com/adwords and take thefollowing steps: 37

Create new Google account, or use existing one.Choose currency.Choose language(s)Choose geographic location(s)Create ad(s)Enter keywordsSet your budget and bids.Confirm your settings.Enter billing info or save that step until later. 38

Unfortunately, most Adwords advertisers spendconsiderably more for traffic and results thannecessary, by making frustrating and costlymistakes.Newbies make them more often, but many long-time advertisers also pay the penalty for makingthem month after month, in higher costs anddiminished returns. Its best if I reveal how to avoidthem before you ever start an Adwords account. 39

For best Adwords results, you need to be clear onyour strategy or strategies (the goals you want toachieve through it). For example, do you want togenerate leads? Leads for which product orservice? Do you want to make direct sales? Salesof which product or service?Begin with the end in mind. Once you know yourgoals, you can develop tactics to reach them. Eachkeyword, ad, and landing page should be focusedon achieving specific goals. 40

Some advertisers start an Adwords campaign andlet it run for weeks or months without monitoring it.But regular account optimization and monitoringare needed to insure good account performanceand to stay alert to changes and trends, for good orbad.With hundreds or thousands of keywords, accountmanagement can be time and labor intensive but itdoesnt have to be. 41

The 80/20 Rule ("Paretos Principle") says that aminority of elements produce the majority ofresults, and vice versa. With Adwords the ratio ismore like 90/10, 95/5, or even higher.For maximum leverage and efficiency, structureyour Adwords account to give priority to the smallerpercentage of keywords which produce the mostleads, sales, etc. 42

You can apply the 80/20 Rule to Adwords by usinga multi-tier account structure.An approach I like is to place best keywords inseparate Tier 1 campaigns, better keywords inseparate Tier 2 campaigns, and the majority in Tier3 campaigns.Focus more priority on higher tier campaigns. Asany lower tier keywords rise in performance, movethem up to higher tier campaigns and apply the80/20 Rule to them. 43

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Adwords Editor is free downloadable software forWindows or Mac, for managing Adwordscampaigns on your computer. With it you candownload your account, make changes, andupload them to Adwords.Although you must still login to the online Adwordsinterface to perform a few tasks, for most tasks itsa great time-saver compared to doing themthrough a web browser. 45

To download Adwords Editor, do a Google searchon "adwords editor download".For video tutorials on Adwords Editor, do aYouTube.com search on "adwords editor videotutorial". 46

3 main sources of Adwords traffic are: GoogleSearch, Search Partners, and Display Network(formerly Content Network).All traffic sources are on by default duringcampaign setup. Problem is, different trafficsources vary in cost and performance. Thistypically means advertisers overbid on DisplayNetwork traffic, and to an extent on Search Partnertraffic, which generally costs less than GoogleSearch traffic. 47

By at least separating Display Network traffic fromsearch traffic by campaign, and also perhapsGoogle Search from Search Partner traffic, yougain more control over bidding, ad budget, etc.You can also better target ads to the different,specific audiences, which can mean betterrelevance, higher Quality Scores, higher ad rank,and lower CPC. 48

You can edit traffic sources by campaign, under:Campaign tab Settings tab Networks anddevices 49

Most advertisers start out by dumping all theirkeywords into one ad group. Since the keywordsare so diverse, ads which are highly relevant toevery search can not be written. Clickthrough rate(CTR), Quality Score, and CPC are negativelyimpacted.The solution is simple: Create multiple ad groupsand use only closely related keywords in each one. 50

Some suggest the other extreme: Just 1 keywordper ad group, perhaps separated even further bykeyword match type.But with hundreds or more keywords in anaccount, multiplied by 3-4 match types, multipliedagain by 2-3 traffic sources, can mean manycampaigns, and many ad groups with one keywordin them.The ideal is to have highly relevant keywordsmatched to highly relevant ads, but goingoverboard can dilute effectiveness and make theaccount unnecessarily complex and time-consuming to manage. 51

Heres another instance where a multi-tier accountstructure is useful. It helps you prioritize and focusyour time where it counts most: On your bestkeywords.The higher the campaign tier, the more it can beworth the time to place keywords into their ownseparate ad groups. 52

Some advertisers believe that the more keywordsthey use, the more successful theyll be with payper click. Its more likely that the more targetedkeywords they use, the more successful theyll be.Especially if just starting out with PPC, its a matterof testing and tracking to discover what your bestkeywords really are. Remember: if your mosttargeted keywords dont convert for you, itsunlikely that less targeted keywords will. 53

Although exact and phrase match terms tend toconvert better, a common mistake is to only usebroad match keywords. On the other hand, usingonly exact and phrase match can severely reduceyour traffic.For maximum traffic, consider using all primarymatch types. To compensate for the difference inmatch type performance, you can adjust your bidshigher or lower by match type. 54

Many advertisers use little or no negativekeywords, resulting in a lot of irrelevant clicks andconsiderable ad budget waste.The proper use of negative keywords (on acampaign or ad group level) can dramatically slashad costs and increase relevancy, without hurtingconversion rates. 55

Keyword research is an ongoing process, andthere are two goals behind it. One goal is findingnew, potentially profitable keywords, and the otheris finding new negative keywords for filtering outuntargeted ad clicks.When you see clicks on broad and phrase matchterms in your Adwords account stats, keep in mindthat the actual search queries which have triggeredthose ad clicks may not precisely match yourkeywords. 56

Knowing the actual search queries used can revealnew negative keywords. You can discover actualsearch queries in multiple ways:"Keywords" tab "See search terms" button.Adwords Search Query Performance report:"Reporting" tab "Reports".Google Analytics also does not currently showactual search queries by default, but custom filterscan be set up to reveal them.Server log files, etc. 57

Your ads are the first thing your potential prospectsand customers see, so theyre obviously animportant part of Adwords success.For tips on writing effective Adwords ads, see theprevious section, Overview: Adwords Account andSetup. 58

Although small ad changes can have a largeimpact on CTR, CPC, conversion rates and ROI,many advertisers are losing money by not testingmultiple ads to discover better performing ones.The good news is, Google has a built in featurewhich makes testing multiple ads quick and easy. 59

A/B split testing alone, where you simply test onead version against another, is a proven way toboost results. But theres a faster and better way,called multivariate testing. With it you can testmany different combinations of ad variables at thesame time.I offer a free tool which lets you test an equivalentof 81 different combinations of variables, with just 9test ads. Ill tell you how to access it later. 60

When testing Adwords ads, most advertisersoptimize for clickthrough rate (CTR), or conversionrate. But a more accurate way to determine adprofitability is to optimize by profit per impression.You dont need to know any special formulas or doany number crunching. A free online tool forcalculating profit per impression is atSuperSplitTester.Com 61

Although higher ad positions on search enginestend to generate more traffic, theyre not alwaysthe best positions, for various reasons:All else equal, higher positions cost more.Youre more likely to to get into bidding wars in toppositions.Higher positions often get more clicks frombrowsers and tire-kickers. 62

Rather than be in doubt about the best performingad positions for each keyword, you can find out inat least two ways:In Adwords, the Placement / Keyword report showsaverage position. A better option which compareskeyword performance by position, is in GoogleAnalytics: Traffic Sources AdWords Keywords Keyword PositionsGoogle has a position preference feature that letsyou specify a range of positions you want your adto show in, for each keyword. Enable it on thecampaign level under the settings tab, and specifydesired ranges by keyword, on the keyword level. 63

Advertisers often send visitors to the home page,which is usually not the best option. If yourepromoting a specific product or service locatedother than on the home page, dont force users tosearch for it; send them to the specific landingpage best matched to the keyword and ad.Remember that relevance is crucial, and the fewerthe steps (clicks) in the sales process, generallythe better. 64

Have you ever read a web page and were lefthanging at the end, wondering what the next stepwas, or which of multiple steps to take next? Thatwas likely because the next step was weak,unclear, or non-existent.Websites focused on glitzy design, without focuson clear, user-friendly actions, suffer from lowerconversion rates. Make it clear to visitors whateach next step is, with motivating and obvious callsto action that stand out on the page. Avoid orminimize other options. 65

No matter how good your conversion rates, theresalways room for improvement. A powerful way toboost conversions is by testing and tracking.Split testing has long been the best method knownby direct marketers for improving advertising &marketing response.Little did they know that there was an ingeniousmethod of testing multiple combinations ofvariables in a single test, known as multivariatetesting. 66

I pre-launched a multivariate testing tool I wasdeveloping with a programming partner, at YanikSilvers Underground Seminar. Afterward Googleannounced something I had no earlier clue about:The release of a powerful new multivariate testingtool, called Website Optimizer, for free.Rather than compete with one of the largestcompanies in the world offering a similar productfor free, I decided if you cant beat em, join em.I recommend that you use Website Optimizer toimprove website response rates. 67

1) Again, apply the 80/20 Rule: Test variableswhich tend to have greater impact, such as:Pre-headsHeadlinesOpening sentences & paragraphsSubheadsCredibility buildersBullet points 68

TestimonialsOffersPricesGuaranteesBonusesReason to act nowP.S.Point of action assurancesCalls to action 69

2) Heres a bullet point testing trick I like to use:From a list of bullet points, select half for testing.For each selected bullet, simply test with andwithout each one on the page.Such tests can reveal which bullets have strongerappeal and which dont. You can then expand onstronger appeals in future tests, perhapsincorporating them into headlines, etc., to improveresponse further. 70

3) Try to test widely differing variables (instead ofthose with subtle differences) with the goal offinding those which considerably outperformothers. 71

Google Analytics can provide valuable insight intowhere visitors come from, what they do, wherethey leave from, etc; insight useful for improvingsites and making more money, but many fly blindby failing to use it.Consider some specific insights you can gain withGoogle Analytics: 72

Track and discover which search engines, referringwebsites, Adwords campaigns, ad groups, ads,keywords, emails, landing pages, etc., work bestand which dont.Discover where the biggest response improvementopportunities, with the least effort, exist on yoursite.Adwords can track certain visitor actions asconversions; Google Analytics the gives flexibilityto track even more things, including "micro-actions"leading up to conversions. 73

Unless acted on, Google Analytics data is just that.So what are some of the more valuable, actionableinsights you can use?1) Monitor bounce rates by landing page, ad, trafficsource, keyword, etc. Bounce rate measures thepercentage of single-page visits, or visits wherepeople leave a site from the landing page. Thelower the better. 74

2) Setup conversion goals. Conversion goalsmeasure actions you want website visitors to take.Examples: Submitting opt-in or contact forms,placing orders. You can also measure micro-actions leading to main goals: Clicking order linksor add to cart buttons, visiting checkout pages,spending a certain amount of time on page, etc.3) Monitor keyword performance and determineactual search queries. Find new traffic generatingand negative keywords. Remove, reduce, or refinelower performers, and improve and expand onhigher performers (80/20 Rule). 75

Unfortunately we dont have time to cover manyother powerful features of Google Adwords, butnow that Ive shown you many costly mistakes toavoid, youre better equipped to enjoy much betterAdwords success as a result.But thats not all, folks... 76

Keenan Glass "twisted my arm" to come up with aspecial fast-action bonus for those who sign up asmembers of the Glazer-Kennedy Insiders Circle,and for current members.So I decided to make a copy of this slidepresentation (in PDF format) available as thebonus. See Keenan Glass or Jeff Wagner fordetails on how to get a copy. 77

I earlier promised you access to a free multivariateAdwords ad testing tool, which makes testing manyad variables faster and easier.You can access it, and also get a chance to sign upfor my free Adwords Maximizer email course,through the following link: AdwordsMaximizer.com/gkichouston 78

Adwords Account Startup PackageAccount Setup (optimal structure & settings)Keyword Research (traffic-generating & negatives)Ad Writing & TestingInstall Conversion Tracking (through webmaster)Install Google Analytics (through webmaster)Website CritiqueStrategy Session (30 min. phone consultation)A $447.00 Value: Just $297 79

Adwords Account Optimization PackageAccount Audit & RestructureKeyword Research (traffic-generating & negatives)Ad Writing & TestingInstall Conversion Tracking (through webmaster)Install Google Analytics (through webmaster)Website CritiqueStrategy Session (30 min. phone consultation)A $447.00 Value: Just $297 80

If you want ongoing Adwords optimization &management, or Google Analytics or WebsiteOptimizer testing help or consulting, we currentlyoffer this on an hourly or recurring monthly basis.Limited to 5 clients. As a family-friendly companywe decline clients in markets for potentially harmfulproducts, gambling, adult, Al-Qaeda, etc. 81