17 Nov Why Is Google AdWords The Best Advertising Channel For Many Businesses?
Many businesses today face a plethora of options when deciding how to allocate precious adverting dollars. There is direct mail, billboard advertising, newspaper coupon inserts, TV advertising, radio advertising, yellow pages advertising, Facebook, and many other possibilities to consider. Yet today, for many businesses Google AdWords has become the most efficient means for many businesses to reach the customer. Why is that the case, and how can it be proved?
The science of advertising has been utilized and studied in modern economies for over 100 years now. Many of the fundamentals are well known and big business relies heavily upon traditional advertising to boost demand, and ultimately the bottom line. But in small to medium scale businesses where the connection to expenditure of advertising is more direct, digital marketing channels are attractive for several reasons.
First, digital is where the customer spends their time today. In a world dominated by smartphones, tablet computers, laptops and desktops digital is the most direct channel to reach the customer – even compared to radio and television. And once the customer is reached, the result can be measured more directly in a digital advertising channel, allowing an advertiser to allocate resources with more confidence in the investment.
Google Advertising including search and shopping campaigns, is rather unique as an advertising channel because it is really a form of direct marketing, versus traditional advertising, and it is based around search engine queries.
When a search term is entered into the Google search engine, the searcher is looking for something at that immediate moment. The search engine’s function is to deliver results – which are often information about products, goods, and services – which are highly relevant to the search query.
So a PPC ad presents the ideal moment to reach the consumer, who may be in a buying frame of mind. The potential for a well designed Google AdWords campaign is to establish a link with the consumer at the ideal point in time, and to monetize that link or to establish a longer-term connection with the customer.
Businesses engage in business-to-business selling (B2B markets) often make for ideal AdWords users. However many business to consumer markets are also well-served by AdWords campaigns — attorneys, auto dealers, dentists, software developers and the like. eCommerce retailers can reach customers directly via Google’s Shopping campaigns.
The benefit of marketing via digital channels is, the result can be measured directly in order to gauge the usefulness of the advertising campaigns. Blastoff establishes a set of key performance indicators (KPI’s) for each campaign including things like click-through-rate (CTR), average cost per interaction (CPC), impression volume, click volume, conversion volume, cost per conversion or action (CPA), and conversion rate.
By interpreting the KPI’s over time, the return on ad spend (ROAS) may be directly managed whether leads and sales are obtained via phone calls, form completions on a web page, or instant messaging dialogs with a potential customer. When a customer relationship management system is being used (e.g. Salesforce), the AdWords campaign may be easily integrated into the CRM system, providing further benefits in managing the allocation of sales and marketing resources.
For many businesses today, a well engineered high quality Google AdWords campaign is the most efficient way to reach new customer, bar none. Blastoff can baseline the efficiency of existing marketing processes and compare it to the potential cost of acquiring customers via AdWords. For example, a recent project for a growing Dentistry determined that they were spending $425 per new patient via direct mail. After establishing an AdWords campaign this was quickly brought down below $100.
There are other digital advertising channels besides AdWords which often make since – Facebook, Twitter, Microsoft Bing, etc. Often it makes sense to start with AdWords, establish a baseline, then begin to experiment with other digital channels.
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