How Markets Affect AdWords

Your target market will have its own characteristics that will shape your AdWords campaigns, ads and marketing strategies. It may for example that your target market usually shop in the evenings – where your exposure and positioning should be increased. Perhaps you offer a high-end product within a niche, and it might be worth filtering out unwanted customers with more specifically targeted ads (including pricing, for example).

AdWords is very maths driven:

• The demand needs to be high enough to generate the clicks
• The profit margins need to be high enough to afford the clicks
• The conversion rates need to be high enough to make use of the clicks
• The clicks needs to be cheap enough to bring in the conversions you need

Common barriers therefore will include too little demand for the product or service, too low a profit margin to afford the clicks to make a sale, too high click costs based on what the competition is bidding. If this is the case, then there is usually something to be learned from the competition in terms of how they are managing to make profits from such high bids.

Stand Above the Competition

If you’re being undermined by cheaper prices on bigger, better sites for the same product or service, then you’re in trouble. In the nervous economy, shoppers are comparison shopping more than ever. Its time to diversify, or explore unique selling points which your customers will find irresistable. Sometimes you may be able to afford more clicks for a conversion than it first seems – for example taking into account repeat business, word of mouth referrals, or life-time customers.

When taking on new clients, I take into account your competition on the AdWords listings, as well as their click spend and presence on AdWords. I may have some great ideas and techniques that they wouldn’t have thought of.

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