Why Do Online Advertising? Part 1
An Introduction to Online Advertising & Google AdWords
Cityline Websites does online marketing – primarily for small businesses. Online marketing may involve Search Engine Optimization, Social Media, Link Building and Online Advertising. I would like to discuss the online advertisings side of things in this article – particularly related as to why would a company want to do it.
I will use Google AdWords as my example for this blog article, but it applies to any online advertising you may be thinking of. Please note that I am not a business coach, nor have specific training in this field, and the suggestions I give should be verified by a professional accountant or business expert. Note #2 is that I have taken a simplified approach to the Google Ads. There are different ad types, and different ways of creating ads and campaigns.
So you have a small business and you want it to grow. In today’s world, this generally means some sort of online marketing. You’ve talked to an online marketing specialist and they’ve mentioned the above areas (SEO, Social Media) and some outrageous number for online advertising.
You are told that gone are the days of the Yellow Pages phone book. They don’t even deliver them anymore unless you Google “yellow pages” to get their number.
What is Online Advertising?
Online advertising is the “new” yellow pages. It is having an ad show when someone is looking for a particular topic or service. These ads generally have a title, quick description and button to click to go somewhere on your website for more information. Some ads will have a click to call button right in the ad.
What determines your online advertising cost?
Using Google AdWords as the example, most often, ads are set up so that you pay every time someone clicks on your ad. Basically, the cost of the ad is related to supply & demand of the words you want to be found for. Legal/security/real estate related terms tend to be in much higher demand, so they will cost more per click when compared to inexpensive trinkets. Prices can be from $0.25 to $50+ per click. A marketing firm would probably help you set up a budget and add in their management fees.
What Budget Is Best?
I can’t answer that question without a discussion. You need to determine what you want out of the ads. Is it sales? Is it branding? Both? But in the end, you want to make more money than it costs you. What is the value of someone clicking on your ad? So there are sometimes more questions than answers. In the end you will need to determine your Return On Investment – using your Lifetime Value of a new client and the Cost Of Acquisition. I will discuss these in the next article.
Summary – Part 1
So this is an intro to Online Advertising and Google AdWords – just enough to make you wonder if it’s for you and your business. The next 2 articles will go into more depth as to how to crunch the numbers to really determine if online advertising is right for you and if it’s your ticket to success or failure.