Debunking Google’s PPC Myths

Google’s PPC Model

Google is not a philanthropic organization reinforced by how Google leverages tips, CPC recommendations and Daily Budgets. Google is in business to make money and strongly encourages businesses to spend more.

1. Campaign Setup: Google, by default, encourages businesses to utilize Google’s direct search and content network when exposing Ads. Google also would rather you target large geographic areas vs. local areas by zip or radius surrounding a specific address.

2. Ad Development: Google encourages businesses to construct multiple Ads using multiple keyword phrases and does not instruct businesses to “match” researched keywords to specific Ads.

3. Keywords: Google strong encourages business use multiple keyword phrases within Ad campaigns. This drives more “unqualified traffic” and exposes Ads that do not reflect “matched” keyword phrases.

4. CPC (Cost-per-Click): Google utilizes online competition to assist businesses with determining how much they should spend on CPC. However, Google’s CPC is an estimate and is frequently inaccurate. In addition, Google encourages businesses to use high CPC bids in competitive categories vs. targeting less competitive keywords with lower CPC bids.

5. Daily Budget: Google strongly encourages businesses to maintain a high Daily Budget so Ad campaigns do not remain inactive or exceed their daily cap. Google does not recommend businesses to evaluate buying or traffic trends to determine if a higher Daily Budget is necessary.

Case Study

National Designer Dress e-Business

• Existing Google Ad campaign has followed all of Google’s recommendations:

• Google Ad campaign utilizes multiple keyword phrases diluting individual “matched” Ad text effectiveness. Merchant uses multiple Ads displayed on rotation further diluting Ad campaign effectiveness and conversions.

• Google Ad campaign utilizes multiple Ads with multiple keyword phrases reducing the possibility of keyword phrases to be individual matched to specific Ads. Ads use a general “sales” message with text that does not represent a specific keyword phrase.

• Google Ad campaign utilizes “broad” keyword phrases to increase unqualified traffic resulting in an increase of online sales at a prohibitive cost. CPC is too high compared to conversion “net” ROI.

• Merchant relies on Google’s recommendations to spend more and “mix” nondescript keyword phrases with exiting Ads which further dilutes Ad campaign effectiveness.

Successful Google PPC Campaign Elements

1. Individual keyword phrases must represent researched “literal search terms” that are cost-effective as compared to product ROI, represent good target markets, and are not mixed with additional keywords.

2. Ads must be constructed to emulate or “match” keyword phrases in order to mimic consumer keyword use and Ad identification. Ads must contain a compelling message that stands out and causes the consumer to “click” the Ad.

3. Landing pages (1^st page the consumer lands on after clicking on an Ad) must match the keyword terminology of the Ad and emulate the Ad inducement or “hook.”