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Advanced Google AdWords E-Book

Brad Geddes

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Beschreibung

Master Google AdWords and get more out of your campaignsWhat's the secret to making every pay-per-click of your GoogleAdWords really pay? This must-have guide-written by a GoogleAdvanced AdWords seminar instructor-shows you exactly how to applyadvanced techniques and tactics for better results. Discover thebest tools for keyword research, tips on crafting winning ad copy,advanced PPC optimization tricks, winning bidding strategies, andmuch more. If you manage AdWords PPC accounts, you won't want tomiss this expert, detailed instruction.* Covers the essential and advanced capabilities of GoogleAdWords* Explores keyword research, PPC optimization strategies, theintricacies of Content Nation, how to interpret results andreports, and much more* Provides busy marketers, consultants, PR professionals, Webdevelopers, and others with an invaluable, step-by-step guide ofadvanced concepts* Goes well beyond the basics and offers tips and tactics thatyou can immediately apply to your own campaigns* Reinforces concepts through fascinating, real-world casestudies* Includes a $25 Google Adwords Gift Card for new customersIf you've been seeking a practical, expert book on GoogleAdWords, one that goes well beyond the basics, Advanced GoogleAdWords is it!

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Veröffentlichungsjahr: 2010

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Table of Contents

Cover

Title Page

Praise for Advanced Google AdWords

Praise for Advanced Google AdWords

Copyright

Publisher's Note

Dedication

Acknowledgments

About the Author

Foreword

Introduction

Who Should Read This Book

What Is Covered in This Book

The Companion Website

How to Contact the Author

Chapter 1: Understanding Search Theory

The Origins of Google AdWords

The Psychology of Search

Goal Alignment: Google vs. You vs. the Searcher

Best Practices for Applying Search Theory

Chapter 2: Keyword Research

Understanding the Buying Funnel

Understanding Keywords

Discerning Keyword Match Types

Using Negative Keywords

Taking Control of Your Ad Display

Best Practices for Conducting Keyword Research

Chapter 3: Keyword Tools: Extracting Valuable Data from Google

AdWords Keyword Tool

Using Google’s Search-Based Keyword Tool

Google Sets

Google Trends

Google Insights for Search

Google Labs and Microsoft adCenter Labs

Best Practices for Using Keyword Tools

Chapter 4: Writing Compelling Ads

Do Your Ads Reflect the Search Query?

Writing Effective Ads

Following Google’s Editorial Guidelines

Developing Unique Selling Propositions

Distinguishing Features and Benefits

Employing Themes That Get Clicks

Following the Law: Trademarks

The Quest for the Holy Grail of Advertising

Best Practices for Writing Compelling Ads

Chapter 5: Landing Pages That Convert Searchers into Buyers

Does Your Landing Page Answer the Searcher’s Question?

Everything about Destination URLs

Choosing Landing Pages That Increase Conversion Rates

Employing Usability, Trust, and Web Technology to Increase Your Conversion Rates

Best Practices for Landing Pages

Chapter 6: Advanced Optimization Techniques

Optimizing for Traffic

Optimizing for Conversions

Best Practices for Advanced Optimization Techniques

Chapter 7: Demystifying Quality Score

What Is Quality Score?

Viewing Your Quality Score

Landing Page Quality: Making Your Pages Relevant

Estimating Your First Page Bid

Understanding the Content Network Quality Score

Creating Highly Relevant Ad Groups

What to Do if Your Quality Score Drops

Quality Score FAQs

Best Practices for Optimizing Quality Scores

Chapter 8: Beyond Text: Image, Video, and Mobile Ads

Beyond the Desktop: Creating Mobile Ads

Beyond Static Text: Creating Rich Media Ads

Using Google’s Display Ad Builder

Best Practices for Employing Image, Video, and Mobile Ads

Chapter 9: Understanding the Content Network

What Is the Content Network?

Creating a Successful Content Network Campaign

Smart Pricing: Why Cost per Conversion Is the Best Metric to Measure Success

Learning How the Content Network Is Performing for You

Managing Automatic Placements

Placement Targeting: Choosing Which Content Sites Display Your Ads

Best Practices for the Content Network

Chapter 10: Advanced Content Network Techniques

Enhancing Your Content Campaigns

Setting Different Bids By Demographics

Creating Scenarios to Understand and Reach Your Targeted Audience

How to Write Effective Content Ads

Google Ad Planner: Free Access to Expensive Data

Best Practices for Advanced Content Network Usage

Chapter 11: Advanced Geographic Targeting

What Is Geographic Targeting?

Reaching Users in Specific Locations

Treating Locals and Non-locals Differently in Your Ad Copy

Viewing Geographic Results

Geographic Performance Reports

Best Practices for Geographic Targeting

Chapter 12: Save Time and Scale Accounts with the AdWords Editor

AdWords Editor Overview

How to Scale Your Account

Optimizing Content with the AdWords Editor

Best Practices for Using the AdWords Editor

Chapter 13: Profitable Bid Strategies

Setting Your Marketing Goals

Measuring Results with Google’s Conversion Tracking Code

AdWords Bidding Options

Profitable Bidding Strategies

Calculating Your Max CPC

Position Preference: Controlling Where Your Ad Is Displayed

Ad Scheduling: Automatically Changing Bids by Time Periods

Understanding Attribution Management

Examining AdWords Reports to Make ROI Bid Decisions

Best Practices for Utilizing Profitable Bid Strategies

Chapter 14: Successful Account Organization Strategies

What Is an AdWords Account?

Developing A Successful Campaign Structure

Organizing an Ad Group to Increase CTR and Conversion Rates

Best Practices for Account Organization Strategies

Chapter 15: Testing Techniques That Will Increase Profits

Testing Is Essential to Increasing Profits

How to Test Ad Copy to Increase Conversions

Ad Copy Themes to Spark Your Creativity

How to Test Landing Pages to Increase Conversions

Testing Profit per Click and Profit per Impression

Best Practices for Testing Techniques That Will Increase Profits

Chapter 16: AdWords Reports: How to Extract Actionable Information

Choosing General AdWords Report Settings

Using Reports to Optimize Your Account

Best Practices for Using AdWords Reports

Chapter 17: Step by Step: Create and Monitor Your AdWords Account

Before You Create Your Account

Creating Campaigns

Optimizing Ongoing Campaigns

Best Practices for Creating and Managing Your AdWords Account

Glossary

Index

Advertisement

Praise for Advanced Google AdWords

Most books about search advertising show you how to do it. In Advanced Google AdWords, paid search expert Brad Geddes takes it to the next level, showing you not only how to get the most from your search advertising campaigns, but more importantly why you should use specific features and techniques, who you should be targeting with your creative, and when to use the scores of advanced tactics he describes for maximum impact and profitability. I’d advise buying more than one copy of this book because you’ll wear one out from constant use.

—Chris Sherman, Executive Editor, Search Engine Land

The thing that differentiates this book from other AdWords guides is that it takes you inside the mind of a successful paid search advertiser and walks you through each and every step of the auction and advertising process. The two consistent strengths of the book are its ability to ground the reader in the core goals of their advertising program (generating leads and sales through effective targeting and messaging) and its relentless attention to detail. That perspective and thoroughness mean that the book is accessible to less sophisticated advertisers, and ensure that there are a series of valuable nuggets for intermediate and even expert AdWords users.

—Tom Demers, Director of Marketing with WordStream

Brad is the go-to guru for AdWords. Advanced Google AdWords is actionable, readable, and has tons of handy tips that any online advertiser can try immediately. Even if you think you know everything about Quality Score or the Google content network, you’ll find things you haven’t thought about that can boost your sales right away.

—Ron Drabkin, VP Business Development, JustAnswer.com

Brad has made a lot of people a lot of money in some of the most competitive markets of PPC marketing. Now he’s put all his knowledge into one book. Buy and read this book before your competitors do!

—Adrian Bye, Founder, MeetInnovators.com

Ironically, it’s hard to find complete, accurate, and intelligent information about how to build and manage paid search campaigns. Brad Geddes is one of the few people in the PPC world that I trust to deeply know the facts, communicate them clearly, and add value with insights that save time and/or money. This book is perfect for anyone who wants to really learn paid search and discover the best ways to improve their results.

—Craig Danuloff, President, ClickEquations

Brad’s book is the most comprehensive compilation of Google AdWords tools and how-to advice I’ve seen in some time. He gives a thorough explanation of the theory and history of search, and provides detailed, specific instructions on execution of strategies & tactics covering every possible facet of Google AdWords. Every online marketer, from novice to expert, will find this an invaluable resource in getting the most out of their AdWords campaigns.

—Melissa Mackey, Online Marketing Manager, Fluency Media; Search Engine Watch Expert Author, Search Advertising

Brad Geddes knows marketing, and he understands the inscrutable mind of Google—a killer combination when it comes to explaining AdWords. His book is a powerful combination of deep insight and simple prescriptions that will help anyone, from AdWords novice to seasoned pro, get more clicks and make more sales. I’ve never seen a clearer discussion of the buying funnel as it relates to choosing keywords and writing ads. And you ignore the chapter on Quality Score at your own risk. This book raised my game—and I’m sure it’ll do the same with yours.

—Howie Jacobson, Ph.D., author of Google AdWords For Dummies

There are many paid search experts out there, but Brad is unique in that he is not just an expert, but is able to effectively communicate his knowledge to those who are new to the field. It is rare to find someone in the industry that has such a deep understanding of a topic that can teach both the basics and the robust features of paid search.

—Barry Schwartz, CEO of RustyBrick, Editor at Search Engine Land & Search Engine Roundtable

Brad Geddes is one of the few AdWords experts I always pay attention to. He’s one of the best in the field. This book is incredibly comprehensive, illustrative, and readable. Both beginners and experienced pay-per-click marketers will find invaluable insights here. Brad fills in a lot of gaps that the AdWords Help screens don’t cover. Otherwise, you’d have to get the info from an AdWords rep, and only the biggest spenders get the best attention from these reps. Heeding this book’s advice from the start will save you a lot of money and get you much better results. Highly recommended.

—Brian Carter, Director of PPC, SEO, Social Media at Fuel Interactive

If Google set out to make AdWords simple—they failed. Brad steps into the breach and makes things clear, understandable, and profitable for us mere mortals with a marketing background.

—Andy Atkins-Krüger, CEO WebCertain

Successful PPC campaign organization and management is more complex than one would originally think. Thankfully, the author has provided us with a highly practical, easy-to-understand guide to launching and managing PPC campaigns that will simplify the process and increase the likelihood of great results. Brad really opens your eyes to not only how, but to why things should be done. For instance, in the chapter on ad writing you are given proven best practices, but also taught how to get into the minds of the search prospects and meet them where they are at in the sales funnel. Awesome! Whether you’re a beginner or have been running PPC campaigns for a while now, you can be sure your head will be exploding with new ways to make your campaigns more effective and profitable.

—Stoney G deGeyter, CEO, Pole Position Marketing

Brad gets it! He has a wealth of hands-on experience and shares it freely. If you want to drive and convert Google AdWords traffic, you need to read this book—now!

—Tim Ash, CEO, SiteTuners.com; author of Landing Page Optimization; chairperson, ConversionConference.com

I’m not going to lie. I’m jealous. This is the AdWords book I wish I had written. I’ve been following and learning from Brad Geddes for years and without a doubt, this is the single most useful, detailed, and comprehensive book on AdWords available.

Who is this book for? Absolutely everyone who uses Google AdWords. Not only will beginners get a lot from this book, but seasoned professionals with years of experience will pick up a lot more than a few nuggets.

This is it. This is the AdWords book that others will try to match. This is the only book about AdWords you will ever need. Brad has brought something truly useful to the advertising community.

—Dale Davis, Managing Director, RedFly Limited

This book translates years of successful experience into language anyone can learn from to improve their skill level and understand paid search at a higher level. For years Brad has been my go-to source for the hardest of AdWords questions no one else could answer. Understanding the evolution of paid search is key to taking advantage of the nuances and complexities of current search algorithms. Brad does the impossible by teaching you high-level skills that will equate to actionable strategies you can apply immediately. He describes the lifecycle of paid search, and most importantly how to create a strategy from this understanding that applies to you. Brad has stayed fresh and documented his decade of experience and teaches people with a patience level acquired from years of teaching in person that results in an attention to detail that will be hard to find in any other book on the subject. The money you will save on understanding quality score alone makes buying this book a no-brainer.

—Todd Malicoat, SEO Faculty at Market Motive

This is a book you’ll keep on your desk, not your bookshelf.

Brad Geddes explains advanced optimization in plain, simple language. You read it and it makes sense, so you trust it. You read it and you understand it, and so you can put it to work on your own campaigns. He makes it seem easy, and that’s the brilliance of this book. Even as Google continues to expand and evolve, the techniques shown in the book will still be perfectly valid—they are built on a very sold technical foundation.

I highly recommend it to any serious PPC campaign manager. Well done, Brad!

—Matt Van Wagner, President, Find Me Faster

Brad Geddes is the clearest voice on Advanced AdWords teachings, tactics, and strategies. I’m constantly referring to Brad’s articles and sharing them with others to help our clients make tens of thousands of dollars in their PPC campaigns—so be sure to grab a copy of Brad’s new book.

One of the best things I like about Brad’s knowledge is that he is constantly sharpening his blade by teaching (Google’s Seminar for Success, AdWords advanced courses) and doing (running his own campaigns) so his writing reflects his deep knowledge of the intricacies and details which, when followed, lead to improved campaign results.

There are a handful of books on the market which give you a broad understanding of the psychology behind how to advertise on Google; in Advanced Google AdWords Brad gives you that plus a practical, step by step plan to leverage what you’ve learned by including the technical details you need to turn your knowledge into action.

—Timothy Seward, Founder, ROI Revolution, Inc.

Brad has been the authority on Google AdWords for years, and this book is the best training tool I have seen since Google’s own training on their program. Brad goes a step further by explaining everything from where PPC advertising got started to advanced optimization techniques. If there is one part that I focused in on the most, it was keyword and ad group organization. As Brad says, it is the most time consuming but most rewarding tactic you can use in PPC marketing. If you want to learn AdWords, this is a fantastic book to read to get the whole picture.

—Kate Morris, Search Engine Marketing Consultant, KateMorris.com

Very few people have the grasp and understanding of Google’s content network or the ability to use words and illustrations to make it look so easy. From best practices to organizing your campaigns to the importance of placement performance reports, you’ll find it step by step in Advanced Google AdWords.

—Shelley Ellis, CEO, Shelley Ellis Consulting

Brad Geddes is the quintessential AdWords authority.

His love of sharing information and his deep knowledge of pay-per-click systems makes this book a compelling read.

This book hits the mark by blending practical with creative strategies to help me organize, quantify, and present ads for the most effective return on investment.

—Brett Tabke, CEO, WebmasterWorld

For years, I’ve been recommending Brad Geddes to people who ask me for AdWords resources. I’m thrilled to now have Brad’s book Advanced Google AdWords to recommend as well. This book clearly walks through every step of the paid search process in accessible, relatable language. Just as importantly, Brad keeps the focus on the audience. He understands that it’s not enough to know how to create and buy ads and ensure they are visible in Google search results. The real goal is to connect your business to the right searchers, engage them, and turn them into paying customers. That’s what this book will help you do.

—Vanessa Fox, author, Marketing In The Age Of Google

Many AdWords advertisers realize that the search and content network need different approaches. The problem is that most don’t know how to handle the difference so they just ignore the content network. Big mistake. The content network has the potential to deliver more visitors with lower CPC’s. Brad does a great job in breaking down, with a flowchart no less, how the approach to the content network differs and how to implement a winning content network strategy. Brad even goes a step further by showing you how to put a laser focus on certain content network sites to get the most out of what is available. If you want to boost your content performance you need to listen to what Brad has to say and follow in his steps.

—Rob Lenderman, Founder, Boost CTR

Brad Geddes takes the reader by the hand, starting with the basics of search engine marketing, and then steadily introduces more advanced concepts and more powerful tools. I really appreciate his consistent focus on maximizing conversion rates. All the traffic in the world won’t help us unless it generates leads and sales. As a primer, a field guide, and a reference, this book will be a constant companion for online marketers at all levels of experience.

—Brian Massey, The Conversion Scientist

This book is a must-read for anyone working with AdWords! Whether you only have a basic understanding of AdWords or if you are AdWords certified, this book will give you insight from someone that continues to see success within the industry. This book will take your understanding of AdWords to the next level. In this book Brad’s advanced knowledge in optimizing accounts for top performance is displayed. There are plenty of golden nuggets in this book that will surely help you optimize your accounts for top performance!

—Troy Stockinger, Senior Account Manager, Findability Group

For years I have been seeking out the one book that I can turn to when I need both a basic refresher and when I tackle more advanced AdWords tactics. Brad Geddes has finally provided me with such a resource. In Advanced Google AdWords, Geddes demonstrates his years of expert experience in paid search marketing as he demystifies the many components involved with AdWords and shares valuable secrets of those successfully dominating the AdWords platform. I can officially say my search is over—if you are looking for the one book that will help you drive qualified traffic to your site and increase ROI, you just found it!

—Joanna Lord, Director of Customer Acquisition & Engagement, SEOmoz

What separates Advanced Google AdWords from the others on the bookshelf is the brilliance of the author and the wealth of experience he has in the search industry. Brad Geddes is well known amongst other leaders in search and is often sought for his expert opinion on AdWords campaigns and optimizing campaign performance by decreasing spend while increasing overall ROI. He has consulted online advertising agencies on setting up keyword taxonomies, written articles for major search news websites, and has collaborated with Fortune 500 companies on the implementation and performance of their PPC initiatives. Frankly stated, Brad is frequently sought for his insights on all areas of search because he knows what works and more importantly, he knows how to explain paid search strategies to any audience regardless of level of experience. I am thrilled that Brad has written this book as I, as well as you, will use this tool frequently.

—Michael Martin, Director of Search Platform, AT&T Interactive

Brad has been the #1 resource on AdWords for many years and getting some of his insights has been priceless to many in the past. Now that he finally released his book I have to admit that this is probably the best book on the market for advanced AdWords topics. If you’re serious about using paid search, this book is a must-buy. Not only does Brad share tips that were never published before, but also gives help on how to use your time as efficiently as possible.

—Thomas Bindl, Founder/CEO Refined Labs

The word “expert” gets thrown out there a lot in the digital marketing industry, but Brad Geddes is FOR SURE one of our top experts in search engine marketing. I’ve had the pleasure to learn from Brad through the years through his various writings and speaking engagements. Bottom line, do you want to know how to win at paid search? Do you want to become an advanced AdWords user and make your organization successful at using PPC? Then read this book. Brad has compiled into one resource what it would take you a decade to learn yourself.

—Joshua Dreller, Vice President, Media Technology and Analytics at Fuor Digital

Senior Acquisitions Editor: Willem Knibbe

Development Editor: Tom Cirtin

Technical Editor: Patrick McLaughlin

Production Editor: Rachel McConlogue

Copy Editor: Lunaea Hougland

Editorial Manager: Pete Gaughan

Production Manager: Tim Tate

Vice President and Executive Group Publisher: Richard Swadley

Vice President and Publisher: Neil Edde

Book Designer: Franz Baumhackl

Compositor: Maureen Forys, Happenstance Type-O-Rama

Proofreader: Rebecca Rider

Indexer: Nancy Guenther

Project Coordinator, Cover: Lynsey Stanford

Cover Designer: Ryan Sneed

Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana

Published simultaneously in Canada

ISBN: 978-0-470-50023-1

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Library of Congress Cataloging-in-Publication Data

Geddes, Brad.

Advanced Google AdWords / Brad Geddes.—1st ed.

p. cm.

Includes bibliographical references and index.

ISBN 978-0-470-50023-1 (pbk. : alk. paper)

1. Internet advertising. 2. Telecommunication—Terminology. I. Title.

HF6146.I58G43 2010

659.14’4—dc22

2010004721

TRADEMARKS: Wiley, the Wiley logo, and the Sybex logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates, in the United States and other countries, and may not be used without written permission. Google AdWords is a trademark of Google, Inc. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book.

10 9 8 7 6 5 4 3 2 1

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To Lilith Rose for bringing joy and wonder to our lives.

Acknowledgments

Writing this book has been an amazing journey, and there are many who deserve a heartfelt thank you for contributing to this quest being completed.

I must first thank Sharon, my wife, who has supported my various adventures over the years no matter how crazy they sounded. During the creation of this book, our first child, Lilith Rose, was born. Lilith made it difficult for me to tear myself away from her to finish this book, and therefore, many pages were written with her sitting in my lap giving her interpretation of marketing.

Thank you to my business partner, Leslie Clark, who tirelessly read every single word. Her ideas helped shape this book. I must also thank her for keeping the company running while I was off writing and regularly ignoring emails and phone calls.

I was impressed with the team at Wiley. Willem Kibble not only had the idea of writing a book on advanced AdWords, but even after we worked through the details, he continuously provided input and assistance whenever necessary. Tom Cirtin was a great asset in many ways, and I truly appreciated his work in structuring every chapter to be a logical progression of comprehendible thoughts. Thank you to Rachel McConlogue and all the others who worked in the background to produce the final product.

Patrick McLaughlin checked my facts. Michael Martin checked my ideas. They are both good friends.

The teams at Google have not just given me support for the writing of this book, they have been giving me support for almost a decade, and for that I thank them. A special thank you goes to AdWords Advisor (who wishes to remain anonymous), who has been a customer advocate and a tremendous resource for several years. No one cares more about AdWords than Fred Vallaeys, who is constantly striving to improve the product and is willing to listen to my rants and feedback about Google.

Finally, I must thank the Internet marketing community. I have been writing, speaking, and blogging about online marketing for many years. During that time, I have been an active participant in forums, blogs, and conferences. My interaction with the community, made up of significantly more people than I could ever acknowledge on paper, has helped to increase everyone’s understanding and success with Google AdWords.

About the Author

Brad Geddes has been involved in online marketing for more than a decade. Over the years, he has provided a variety of consulting services, including usability, conversion optimization, product development, product positioning, and agency consulting. He has managed SEO, PPC, and affiliate marketing campaigns for both himself and others.

One of his trademarks has been demystifying the more complicated aspects of SEO, PPC, and Internet advertising through writing, speaking, and training. Brad does not withhold secrets as he prefers to educate readers on the various aspects of crafting marketing campaigns to ensure the success for all parties involved.

Brad is not one to call himself an expert or guru. He prefers to train marketers and let the results speak for themselves. Therefore, instead of writing paragraphs that use the words “master,” “wizard,” or “thought-leader,” and name-dropping companies he has worked with such as Amazon, Yahoo!, and Google, he prefers a simple bullet point list of facts to let intelligent readers make up their own minds.

As a Speaker:

Spoke at more than 30 conferences and 50 sessions in many countries. Such notable conferences as AdWords Days (Germany), Search Engine Strategies (SES), SES Local, SMX, SMX Local, Kelsey, PubCon, SuperZoo, Marketing 2.0 Bootcamp, SEO Class, and ad:tech.Spoke at events at both Google and Microsoft.

As a Trainer:

Is one of only two Google-approved AdWords Seminar Leaders.Conducted more than 55 officially Google-supported AdWords Seminars for Success, attended by more than 3,500 marketing professionals. AdWords Seminars for Success are two days of intensive training on Google AdWords.Worked with Google in implementing their reseller training program at R.H. Donnelley.Helped institute a training program for LocalLaunch! that managed more than 40,000 PPC accounts.Conducted training days in multiple countries for conferences such as SEO Class, Search Engine Strategies (in New York, Toronto, and Chicago), Refined Labs, and PubCon.

As an Internet Marketer:

Built first website in 1998.Started SEOing websites in 1998.Started affiliate marketing in 1999.Opened first PPC account in 1999.Formed first agency, iDjinni Consulting, in 2002, providing usability, PPC, SEO, and affiliate marketing services.Joined LocalLaunch! in 2004: LocalLaunch! began as a boutique agency, and then built a marketing platform that empowered sales forces to sell marketing products to their customer bases while it did all of the product’s management behind the scenes.Helped grow the LocalLaunch! agency that provided PPC services to companies such as Red Lobster, Encyclopedia Britannica, YellowPages.com, and Yahoo!.Helped build marketing products that were used by more than 100,000 businesses.Helped build a system that managed more than 40,000 PPC accounts.Worked with companies such as Amazon, World Directories, DEX Media, and Local.com.Continued managing vendor relations when LocalLaunch! was sold to R.H. Donnelley in 2006. Guided R.H. Donnelley to become one of the few Google and Yahoo! resellers in the world.LocalLaunch! was sold to R.H. Donnelley in 2006.Formed bg Theory in 2008bg Theory is a company dedicated to consulting, educating, and training businesses on Internet marketing theory and best practices.

Even More Stuff:

Author of Advanced Google AdWords.Co-moderated AdWords forum on WebmasterWorld since 2004.Has written a Search Engine Land column since 2007.Is a board member for Boost Media.Active blogger about PPC and marketing since 2001.Conducted the technical editing for Winning Results with Google AdWords, by Andrew Goodman.Participated in the beta test for Microsoft and became one of the first Microsoft adExcellence MembersOne of the first 100 Google Advertising Professionals.Worked with a range of companies that have spent from as little as $17.50 per month to millions per year.

Foreword

The need for advertisers to find customers—and vice versa—is an age-old marketing conundrum. With varying degrees of effectiveness, solutions have included phone solicitation, email outreach, print advertising, and more—all designed to connect consumers and advertisers at the right moment. I first got involved with pay-per-click advertising over a decade ago as a student at Stanford University. Using keyword buys on Goto.com, I started selling movies out of my dorm room, but my ads quickly lost effectiveness when I was outbid by advertisers with deeper pockets. There wasn’t a book like this one to teach me the tricks of the trade and soon, I gave up. Then a few years later in 2002, I started buying keywords for my photography business, but this time on Google’s brand new AdWords system. AdWords was revolutionary because it rewarded relevance as much as the maximum cost per click, making it a great fit for those who took the time to create more targeted ads. Like many other advertisers, I saw great success with my campaigns and I was so excited by this revolutionary new way of advertising that when the opportunity presented itself, I signed on to join the AdWords team to work directly on this ground-breaking new product.

During my many years at Google, I have been involved in countless product decisions in the development and decision-making process for tools like the AdWords API, the AdWords Editor, Conversion Tracking, Google Analytics, and many others that have helped shape AdWords into the advertising solution it is today. Nowadays, my role consists of helping AdWords users stay abreast of all our latest changes and working closely with our product development teams to relay feedback from our advertisers and ensure we continue building the best advertising solutions possible.

It’s all about results…That was the slogan of AdWords when I joined Google. My role has changed over the years but there’s always been a focus on making sure AdWords delivers the best results for advertisers and users of Google. Building a system that works well for a wide range of advertisers means adding many layers of sophisticated functionality and while AdWords is easy enough to use for novice advertisers, there are many advanced techniques for those who want more control. This excellent book will help you make the transition from novice to expert AdWords user and will give you a leg up in discovering some of the best ways to use AdWords to its fullest.

It is amazing how quickly search engine marketing has evolved into a key component of any successful marketing effort. This evolution continues today with new ad formats that combine the simplicity and relevance of text ads with new formats that make information more useful. We also continue to see new places where advertisers can connect with their target audience, such as on the Google Content Network, on mobile devices, and on television. The one constant thread amongst these many changes is our focus on delivering measurability and targetability. Regardless of where online advertising goes next, the expertise you gain in AdWords’ advanced features today will help you become a savvier marketer in the future.

From the very start when AdWords became available as a self-service product, we were fortunate to have an active community of users who were ready to share their expertise with others. Brad was one of the very first community members who stood out as a trusted authority on all things related to AdWords, not an easy feat considering the rapid pace at which AdWords evolved. When I first heard about Brad, he was a top contributor in the AdWords forums, helping anyone who asked. To this day, he remains one of the leading experts on AdWords and I regularly see him continuing to share his knowledge and insight with others at industry conferences.

In this book, advertisers looking to get more out of AdWords will learn from one of the leading experts on the topic and someone who has used the system himself to build a very successful business. Once you get the basics of AdWords, there are a lot of sophisticated approaches to drive additional results—and this book will show you how.

Best of luck with your campaigns and please let me know what you think about our program and how it’s working for you when you see me at a conference.

—Frederick Vallaeys

Product Evangelist, Google AdWords

Introduction

The first dollar spent on pay-per-click (PPC) advertising occurred in 1998. The medium had just been invented, and like all new projects, no one knew if PPC advertising would succeed or fail.

Looking back on those early years, it is now obvious that early-adopter advertisers enjoyed this medium. The returns were fantastic, and advertisers kept pouring money into PPC campaigns.

By 2009, barely a decade after the first dollar was spent, it is estimated that more than $15 billion has been spent on PPC. Not only did the industry succeed, it far exceeded anyone’s expectations, and it shows no signs of slowing down. Forrester Research estimates that more than $31 billion will be spent on PPC in 2014. In the same article, Forrester goes on to estimate that by 2014, search marketing will command 21 percent of all advertising spend (http://blogs.forrester.com/marketing/2009/07/interactive-marketing-nears-55-billion-advertising-overall-declines.html).

The biggest beneficiary of the search marketing boom has been Google, the company with the largest share of searches.

I once worked for a company that managed more than 40,000 PPC accounts and spent millions of dollars each month with Google. There are towns with both smaller populations and budgets. The amazing part is that there were other companies with larger portfolios than ours.

No longer is PPC dominated by the realm of Internet companies or early adopters. PPC does not care if you are a small local business or a large global enterprise. The rules are the same for everyone. The medium has brought equality to advertising for companies of any size or budget. Today, PPC should be a part of every company’s marketing mix.

However, PPC has brought its own set of demands that have never been seen before. Once upon a time, marketing for a small business meant a two-hour yearly meeting with a yellow pages rep, and maybe an hour a month with the local newspaper or radio rep. In a total of 14 hours over the course of a year, most small businesses had completed their annual marketing.

Then along comes PPC, where bid prices are constantly in flux, advertisers can start and stop campaigns within minutes, companies are visible one moment and then gone the next. No longer does advertising take 14 hours a year—for many companies it’s more than 14 hours every single week, or worse, every single day.

Along with the demands on time, PPC brings levels of transparency and control never before seen in any advertising medium. An advertiser can choose under exactly what conditions an ad will be displayed. The advertiser will then get a plethora of metrics where they can determine the success or failure for every click. More metrics, control, and transparency beg for even more hours of analysis and campaign tweaking.

Search marketing is still in its infancy. There are many more advances in targeting, tracking, analysis, and optimization still to come. Advertisers will demand even more controls. Search marketing will continue to add more features. Analytics will continue to bring new levels of analysis. Consumers will increase the time and money spent online.

To take advantage of these trends, advertisers have to become even more sophisticated so they can take advantage of the technology today and be ready for the advances yet to come.

Who Should Read This Book

Advanced Google AdWords is written for marketers who have a solid understanding of AdWords and have opened and managed their own account. What you will not find is information on how to open an account or navigate through the interface, or introductory material on keywords. These basics can be found in the AdWords Learning Center for free. This book begins where most blogs and training leaves off—optimization for intermediate and expert users.

What Is Covered in This Book

There are so many options with AdWords that it can be difficult to determine where to start or to understand what is possible. For instance, you could create an ad for a Google Android-powered phone that is only shown to a consumer if:

The consumer is in the business section of the New York Times website.The article being read is about the iPhone.The consumer is on a mobile phone.The consumer is located in Minneapolis.The day is Monday.The time is between 6:00 a.m. and 8:00 a.m.

While rarely will you want an ad shown under such stringent conditions, choosing one or two of those options to constrain your ad serving so that you reach your ideal customer will help you save marketing dollars while putting the correct ad in front of your target market.

Of course, there is more to AdWords than image ads and the content network. We start with search and end with step-by-step instructions. We will dive into detailed ad copy and landing page testing, account organization, ad copy writing, and even multiple strategies for setting bids.

Inside, you will find one of the most comprehensive sections ever written on quality score. If you have been advertising with Google for a while and either do not know what quality score is or have had problems with high first page bids or low quality scores, this book is definitely for you.

If you are an advanced user and are wondering if you can learn from this book, just flip to the last chapter. There you will find a step-by-step guide for creating and optimizing AdWords accounts. Every single section in that chapter is a reflection of what you will learn throughout this book.

This book’s two mantra words are creativity and profits. To be creative with AdWords, you need to understand your options and how various settings influence other settings. To increase profits, you need to understand testing, conversions, and bidding strategies. When you combine creativity and profits, you will stop just advertising and spending money. Instead, you will put the correct ad in front of your ideal customer at the time when they are most likely to convert so that your company can increase their overall profits.

What You Will Learn

This book does not just tell you how a feature works, it gives you strategies for using that feature. For instance, most national companies ignore location targeting. This is a mistake. Did you know you can buy a diet beer in Japan? Try selling a diet beer to Americans. You cannot buy Coke Lite in the United States or Diet Coke in Europe. Why? The words “diet” and “lite” invoke different feelings in different geographies. This book will give you strategies to determine your conversion rate and spend for different geographies, how to test different ads by geography, and how to maximize your returns in each geography where you are advertising.

Not everything is about location. This book examines how to find, measure, change, test, and implement strategies for a variety of topics, including:

KeywordsAd copyQuality scoreTime-of-day targetingTesting ad copyTesting landing pagesProfit by impression testingAccount organization

We will go through the steps of helping you learn where to best spend your time. With so many options, it can be difficult to determine where to start. We will help by not just showing you where to spend your initial time, but also how to set up reporting schedules so you can continue to grow and optimize your account.

By reading this book, you will learn step-by-step strategies that will increase your company’s profits through using Google AdWords.

How to Use This Book

Since Google AdWords is so complex, this book is intended to be used in two ways. First, read it straight through to learn about the different strategies possible. After you have read it once, this book is intended to be a reference you can refer back to as you are optimizing your account. Each chapter ends with a Best Practices section that contains easy-to-comprehend points about the subject material to quickly refresh your memory.

The last chapter of this book is a step-by-step guide to getting things done. Refer to that chapter when you are opening or optimizing accounts and follow along. If there is a step where you need more information, simply refer back to the chapter where that topic is covered in detail.

By reading and then referring back to this book, implementing new AdWords strategies to optimize your account will save you time and money.

Chapter 1: Understanding Search Theory: Learn about the history of PPC advertising and the psychology of search.

Chapter 2: Keyword Research: How the buying funnel and your keywords work together. Control when your ad is displayed by using a combination of both positive and negative keywords.

Chapter 3: Keyword Tools: Extracting Valuable Data from Google: Learn how to combine Google’s spiders with a dictionary to improve your keyword research. Learn how to use other Google and Microsoft free tools to improve your account.

Chapter 4: Writing Compelling Ads: From benefits to features to trademarks to unique selling propositions, learn to write ads that connect with the searcher.

Chapter 5: Landing Pages That Convert Searchers into Buyers: Learn how to choose the best page on your site for every keyword. Then ensure the proper elements of usability, trust, and option control exist on the page to convert the searcher into a buyer.

Chapter 6: Advanced Optimization Techniques: Learn strategies for increasing conversion rates, click-through rate, traffic, and ad impressions.

Chapter 7: Demystifying Quality Score: Each quality score factor is torn apart, examined, and put back together so you can see exactly how your quality score is determined. Then learn strategies for managing and increasing quality scores.

Chapter 8: Beyond Text: Image, Video, and Mobile Ads: There is more to Google than text ads. Dive into the best uses of video, image, and mobile ads.

Chapter 9: Understanding the Content Network: The content network may be the most misunderstood and least optimized part of AdWords. Understand how the content network really works and how to start taking advantage of it.

Chapter 10: Advanced Content Network Techniques: The content network’s reach is significantly larger than Google’s search reach. The techniques you will learn in this chapter will help you find new customers who have never searched for your products.

Chapter 11: Advanced Geographic Targeting: Control exactly where your ad is shown. Understand the technology so you can avoid pitfalls and take advantage of displaying unique messages through location targeting.

Chapter 12: Save Time and Scale Accounts with the AdWords Editor: When accounts include hundreds of thousands of keywords, and tens of thousands of pieces of ad copy, they can be difficult to create and optimize. This chapter will examine how to save you time in creating and managing small to enormous accounts through the AdWords Editor.

Chapter 13: Profitable Bid Strategies: Examine your business model so you can set and measure your marketing goals to ensure your company is profitable. Then learn how to set and manage bids by ROI, profit, position, day of the week, and time of day. Formulas and Excel walkthroughs are included so no one gets lost in the math and calculations.

Chapter 14: Successful Account Organization Strategies: Success starts with account organization. Read tips, tricks, and strategies that will help you find the correct organization for your AdWords account.

Chapter 15: Testing Techniques That Will Increase Profits: Testing ad copy and landing pages is essential to continuously increasing profits. Learn not just how to create and measure a test, but also how to determine how much money you make every single time an ad is displayed.

Chapter 16: AdWords Reports: How to Extract Actionable Information: Learn how to create and use all the valuable data that your AdWords account accumulates. Create a reporting schedule so you always have access to the data necessary to improve your account.

Chapter 17: Step by Step: Create and Monitor Your AdWords Account: After 16 chapters packed with information, it is time for a step-by-step walkthrough of how to create and optimize each campaign type based upon what you have learned. Refer back to this chapter every time you are working in AdWords to see what to do next.

Glossary: If you do not recognize an acronym or piece of jargon, refer to this handy reference guide to look up the term.

The Companion Website

Google AdWords adds or tweaks features over time. Therefore, we have created a companion website with additional links and features to help you through your AdWords optimization journey. The website can be accessed at http://AdvancedAdWordsBook.com.

How to Contact the Author

I welcome feedback from you about this book or about books you’d like to see from me in the future. You can contact me at www.bgtheory.com/contact/. For more information about my work, please visit our other sites:

www.bgTheory.comwww.AdvancedAdWordsBook.comwww.CertifiedKnowledge.org

Chapter 1: Understanding Search Theory

The search process itself may seem simple: A searcher visits a search engine, enters a search query, and receives results. Every step of the search process, however, is accompanied by the searcher’s thoughts and expectations. Understanding how your keyword and ads align themselves with the search process can help bring more visitors to your site and achieve more conversions from those visitors.

Pay-per-click (PPC) advertising is effective because it mirrors the search process, and the two work seamlessly with each other. Understanding the origins and evolution of PPC advertising will also give you a glimpse into its future, so you can continue to take advantage of this ever-expanding form of advertising.

Chapter Contents

The Origins of Google AdWordsThe Psychology of SearchGoal Alignment: Google vs. You vs. the SearcherBest Practices for Applying Search Theory

The Origins of Google AdWords

In 1996, a small company was formed that would forever change the world of Internet marketing. This company was called Idealab. It took two years of hard work and creative ideas before Bill Gross’s company would launch GoTo.com with a simple business model: Advertisers could choose to display their ads based on what a searcher was trying to find. A searcher would type a query into the search box (Figure 1-1), and if advertisers chose to advertise on that word, their ad would show in the search results. There were four simple concepts that made this business model revolutionary.

Figure 1-1: GoTo.com’s search page, circa 1998

The first was relevance, a word later adopted by Google throughout their AdWords program. Showing ads based on what someone was actively seeking made these new search ads more relevant than anything previous displayed on the Internet.

Note: AdWords is Google’s pay-per-click program where an advertiser chooses words that will trigger their ad. The advertiser is charged only if their ad is displayed and clicked by a searcher. This unique pricing model ensures that an advertiser’s message is not only seen, but that the advertiser only pays when someone arrives at their website.

Advertisers would only choose to display their ads on Keyword searches that were related to their products or services. Since their ads would then only be shown when someone was searching for related information, these ads would help the searchers find what they were seeking.

Before the days of PPC, the ads alongside a search results page were often banner ads that had nothing to do with the search query. While these ads did gather many impressions (an impression is when an ad is shown on a page), they were not relevant to the user and thus were rarely clicked. Advertisers were paying for exposure but were not receiving much traffic for their ad dollars.

In the early days of Google, before AdWords launched, the founders of Google had been questioned many times by their investors about how they would eventually monetize their search engine. At that time, the founders did not have an answer; however, they held steadfast to the belief that at the moment someone was shown a page of search results, Google had their undivided attention. It would be in that moment of someone scanning a page of search results that Google would make its money. It turned out to be an accurate observation by the early Googlers.

By displaying ads based on what someone was actively seeking, GoTo.com formed a synergy between searchers and advertisers that helped both reach their goals on a single search page. Advertisers would receive visitors who were actively seeking their products, and searchers would find products that were related to what they were seeking. This was a win for both searchers and advertisers.

The second concept was the pricing model. Previously, almost all advertisements were based on paying for impressions. A company would decide how many impressions they would like to buy for their banner ads, and then they would pay on a cost per thousand impressions (CPM) basis. This created a scenario where you had to have a large advertising budget to even sign an initial contract. In addition, you had no idea how many visitors or sales those ads would bring to your site. The world of Internet advertising was mostly formed of larger companies or companies with venture capital backing.

By changing to a PPC pricing model, advertisers only paid when they received traffic. This shift to performance-based advertising allowed companies to try out a fledgling business model with very little monetary commitment. The minimum monthly spend was roughly one dollar per day, a big change from minimums that were often several thousand dollars a month.

Because search engines were paid only when a click occurred, it also forced search engines to show only relevant ads. If an ad did not get clicked, the search engine did not make money. The pricing model helped reinforce that only relevant ads should be shown on a search results page. This forced advertisers and search engines to work together to create a better search page for the consumer.

The third concept—and how both Yahoo! and Google have built a base of hundreds of thousands of advertisers—was the signup process. GoTo.com removed the barrier of a salesperson between the advertiser and the inventory. Using a self-serve ad model, any advertiser could sign up for a PPC account and start selecting keywords and creating ad copy within minutes (Figure 1-2).

Figure 1-2: AdWords signup process is a simple wizard influenced by GoTo.com.

By choosing a self-serve model, a search engine did not have to pay commission to a salesperson. There were no contracts to sign, no insertion orders (IOs) to fax, and no phone calls had to be made before you could start advertising on the Web. This very straightforward approach allowed anyone from a small business to a Fortune 500 company to quickly experiment with Internet advertising.

The Internet was still a new concept to most people, and both companies and consumers were unsure how widely adopted the Web would become. Thus, having the ability to commit a few dollars and experiment with the new medium was paramount to introducing thousands of new companies to the concept that they could make money on the Web.

It also allowed the search engines to scale their advertiser base very quickly. People often slow down the advertising process, and by allowing a self-serve model, the only barrier to advertising was a little bit of time and a credit card.

The last concept is what has allowed Yahoo! and Google to make billions of dollars from their advertisers—the auction process. GoTo.com did not have a set price for what you needed to pay when a keyword was clicked in a search result. Advertisers set a price of what they were willing to pay, and the company willing to pay the most showed up highest in the search results.

If you were willing to pay more than your competitors, then your ad would show higher in the search results, which would gather more clicks and bring more visitors to your website. It is easy to see how the top positions were highly coveted.

Yahoo! vs. Google

In 2001, GoTo.com was awarded the patent entitled “System and method for influencing a position on a search result list generated by a computer network search engine.” This patent is the heart of PPC advertising technology. In April 2002, Overture sued Google over patent infringement. The lawsuit dragged on for two years, during which Yahoo! acquired Overture, until it was time for Google to transform into a public company. Not wanting to go public with a major lawsuit that threatened its revenue, Google finally settled with Yahoo! by issuing 2.7 million shares of stock in exchange for a perpetual license to the patent.

The process has become much more complex over the years as search engines, users, and advertisers have become savvier.

In October 2001, GoTo.com, Inc., renamed itself Overture Services. In 2003, Overture was acquired by Yahoo! for $1.63 billion. Today, GoTo.com is an unknown name to most people as the service is now called Yahoo! Search Marketing. GoTo.com is no longer owned or operated by Yahoo! and now redirects to a site unrelated to PPC advertising.

As described earlier, GoTo.com’s four founding concepts were quite simple: relevance, pay-per-click pricing, self-service, and auction-based pricing. However, these principles were combined to not only quickly gain advertiser adoption, but to also reap the monetary benefits of advertiser competition for the top ad positions.

Google Enters the Arena

Back in 1998, when GoTo.com was first launching, Google’s search engine was named BackRub and was running on Stanford University servers. Creators Larry Page and Sergey Brin were more concerned with moving their operations into Susan Wojcicki’s garage than making money.

Note: Susan Wojcicki’s garage served as Google’s first workspace away from Stanford’s campus. Wojcicki was instrumental in Google’s growth when she became one of their early employees and is often referred to as the “Mother of AdSense.” (AdSense is Google’s contextual advertising program.)

Over the next two years, Google moved to Mountain View, accepted $25 million in funding, and hired key employees to help in their evolution. Their early hires revolved around scaling their search technology. Craig Silverstein was their very first employee and served as the director of technology. Much of his early work helped scale the IT operations that would allow Google to grow. The next step was finding a way to start making money.

Google’s first offering was an uninspired CPM program. To advertise with Google, you had to talk to a sales rep and sign a contract for a fairly high minimum spend. While advertisers could choose to show an ad based on a searcher’s query, the four concepts that had made GoTo.com a success were not to be found.

The high barrier to advertising with Google was lowered in October 2000 when Google launched their first self-serve advertising program. The simply named Google AdWords started with 350 customers. However, AdWords was still bought on a CPM basis.

Google AdWords Select Revolutionizes PPC

February 2002 will always be remembered as the time when Google forever changed pay-per-click advertising. Google launched AdWords Select, which incorporated all of GoTo.com’s founding principles; however, in typical Google fashion, they added their own twist to the auction model.

On GoTo.com, the more you paid, the higher your ad appeared in search results. That essentially made it so the company willing to pay the most had the highest visibility. Google’s main advertising word was relevance, and they changed the PPC auction model to both increase relevance for a searcher and to maximize how much money Google made on a search results page.

Their twist was to incorporate click-through rates (CTR) in determining where an ad showed up in the results. They used a very simple formula to determine ad position: Maximum CPC (cost per click) multiplied by CTR.

Note: Search engines protect their most important metric, revenue per search (RPS), from public consumption. However, with some rough math the numbers can be approximated. In 2004, Google made around $0.10 per search, which increased to $0.19 in 2006, and finally surpassed $0.25 in 2007. Conversely, Yahoo’s revenue per visitor was roughly only $0.16 in 2007. As the economy dipped in 2009, so did Google’s RPS, to approximately $0.095, which was still higher than Yahoo.

However, it is difficult to blame the entire dip on the economy. As more information is integrated into the search results, there is less of a need for the consumer to always leave the search results. For instance, a search for “Chicago weather” will show the five day forecast within the search results, which results in less people clicking away from the page to find the weather forecast.

The logic was that if an ad was clicked more often, it was more relevant to the searcher, and the advertiser should be rewarded for showing an ad aligned with the searcher’s query.