Are you a business owner that’s been considering Google AdWords pay per click ads to increase targeted traffic to your site? Or, maybe you’re already running ads on the Google search network and trying to optimize your campaign based on your historical performance..
Either way, Google AdWords is one of the most targeted ways to reach customers online, on a plaform they trust (Google Search). It can also be one of the most cost-effective ways to meet your imediate business goals, especially if you’re a business that is looking to acquire customers in specific locations.
Regardless of industry or focus, one of the most common questions we hear relating to AdWords is about measuing campaign performance. So, what is ‘good’ performance when it comes to Google AdWords PPC? Well, there are a lot of potential variables to consider which impact results.
We’ve written about quality score, which impacts bids and how your ads are served. Some variables are external, primarily the amount of competition in your industry or in your geographical area. Most variables, however, are factors that advertisers have control over — campaign structure, ad copy, delivery, and keyword selection just to name a few.
According to Google’s own reports, The average click-through-rate for camapigns on AdWords is 2%, and anything above that is considered above average. If you are running ads nation-wide or even world-wide, this is a good benchmark. However, if your business structure allows you to target by specific locations, there is a good chance that your performance has the potential to be much higher.
Are double digit click-through-rates possible? Can 10% or more of people that see your ads really be drawn in to your site on a given day? Absolutely. While it’s never possible to guarantee, with specific targeting and highly attentive campaign management, you can ensure that your keywords and ads are optimized to your targeted region well enough to allow for this kind of performance.
How does it work? Because 43% of Google searches are for local information, and because Google AdWords allows you to target locations as specific as individual postal codes, your business can reach customers that are within a few minutes of your door. In many cases, customers that are searching through Google (especially on mobile devices) are also looking for products and services for immediate purchase. This targeting is what makes AdWords one of our most recommended services to help grow businesses in Canada.
Of course, all of this is in addition to the other AdWords Best Practices, AKA the rules we live by online:
- Removing irrelevant traffic with negative keywords
- Taking actions to increase quality score (by making sure every keyword is relevant to each ad group)
- Optimizing keyword selection and ad copy to ensure every ad that is served has a good chance to reach its target
- Testing ads against each other to see which copy works best
- Including clear call to actions, as well as extensions such as a phone number and site links.