Tips to Optimize Your Adwords Campaign: A Step-by-Step Guide

Tips to Optimize Your Adwords Ads: A Step-by-Step Guide

Google Ads (formerly AdWords) is an advertising service that enables businesses to display ads within Google’s search results and advertising network. Using a pay-per-click model, campaigns are only charged when a user clicks on an ad displayed on one of Google’s networks, including Search, Display, and Shopping, as well as YouTube and Gmail. Although it is free to create an Ads account and connect it to an existing website, the cost of an individual campaign is driven by competing bids for the same keyword.

While these approaches are functionally very different, they both use a PPC bidding system, where advertisers bid to have their ads shown to relevant audiences. The Google Search Network allows you to show your ads to users actively searching for the keywords you’ve selected. If you own a landscaping business, you bid to have your ad show up every time a user types in “Landscaper in Tallahassee.”

Section 1: What is Google Ads?

The advertising services provided by Google – previously called AdWords Ads – allow companies to place their ads in search results, YouTube videos, and other places on the web.

In a business context, this means that if you wish to promote your business or have a page about your product online, Google will offer to place your ads alongside other search results. Google even provides a nifty, free tool called AdWords Audience Manager (AdWords AM) that can provide you with more detailed information about your target audience, which can be helpful when deciding whether or not your ads will be effective.

Your Ads, Made Visibly

SEO and PPC campaigns are two very different forms of digital advertising.

Why Optimize Your Adwords Campaign?

Being a savvy marketer, you’ve realized that the cost of AdWords bids (spending money) is only charged when a user clicks on your ad (which isn’t always guaranteed). The other cost, traffic acquisition, is charged when a user clicks on your ad but doesn’t convert.

By setting up a Google Adwords campaign, you get paid when someone clicks your ad but doesn’t convert. Traffic acquisition cost is a much more stable source of revenue for AdWords advertisers. However, if you’re not a savvy marketer, the ads will never be seen by your target audience. By optimizing your AdWords campaign, you can increase the number of ads you show and, therefore, the overall number of times users see them.

Advantages of Adwords

Compared with other forms of advertising, Adwords is one of the best tools available for increasing your visibility in the market. If you have a well-built site that captures a large number of quality visitors, you will undoubtedly find that many of them click on your ads. Since Adwords is a pay-per-click model, even if someone doesn’t click on an ad, your visitors still see it, which will often increase awareness for your business and offer you the opportunity to convert a visitor into a customer.

When we write about Adwords, we have to be careful about using the term “free” in the title because there is a fine line between this and “unlimited.” As it turns out, free is not accessible for an advertiser.

Tips for Optimizing an AdWords Campaign

As with many aspects of PPC advertising, there are many options for fine-tuning your Adwords campaign. Some of the most important things to consider include:

What are my keyword frequencies?

What are the click-through rates (CTR) and conversion rates (CR) for the keywords in my ads?

Are there any local keywords that can improve CTRs?

Is it worth running multiple ad campaigns for each keyword?

Do I have a proper Adword ads campaign structure?

How often will my ads be displayed on Google Search?

Should I focus on ad-buying campaigns for specific keywords or use various ad groups?

How can I optimize my ads?

There is a lot to think about optimizing your Adwords campaign, so we have created a comprehensive guide to give you all the tips you need to grow your business.

How does bidding work in Google Ads? 

Adwords bids are made in real-time, but some basic information is calculated in advance. For example, the average click cost varies based on the time of day, location, browser, and the device being used. This is also the primary information that determines how many ads you can show for a single keyword. Generally, your bids should be relatively high so that you’re able to run enough ads to get some accurate results.

How should I rank my Adwords ads in the Search Network?

By default, if the ads you’ve listed in Google Ads don’t rank in the top 1,000 for a keyword, you won’t be charged for ads that run. You can earn more Google Adwords money by increasing your Google Adwords ranking.

How do you optimize your bids?

Each keyword has a cost for each click, so optimizing your bid to the appropriate value is crucial. There are three basic optimization strategies:

Minimize your Bid Level (for any keyword)

Increase your CTR (click-through-rate)

Compare bids on all relevant ads.

Minimize Your Bid Level

1. Minimize your bid level for any keyword

With pay-per-click, you can bid on each ad and the entire campaign, which is a more flexible approach.

Suppose you’re bidding on a broad keyword with multiple ad groups or bidding on multiple ad groups for a keyword and want to maximize your earnings. In that case, it can be advantageous to bid on each of those ads individually. While paying per click can be highly competitive, minimizing your bid on each ad will give you a more even chance at a win.