Nowadays, everyone wants to be a Google AdWords professional and given the benefits that it offers, who wouldn’t? The advertising team of Google provides an open gateway any aspiring Internet market to earn money via AdWords advertising. Proper utilization of AdWords can result in great success as a marketer.
Google PPC (Pay Per Client)
Being one of the simplest ways of generating traffic to your website, Google PPC also provides an opportunity of making some reasonable profits from an AdWords campaign. For small businesses, Google AdWords is easily the most well-known form of pay per click advertising. This is partly because of the popularity that Google has with its AdWords advertising. Also, you can control your expenses by setting daily maximum for each and every advertisement in your Google AdWords campaign. You can determine how much you wish to pay per click and how much you wish to spend in a day.
The amount you pay determines how often your ad will be shown in the Google search results, Advertisers who have the highest budget for their AdWords campaign and are bidding highest on a particular keyword, show up first in the sponsored results of Google.
Need of understanding how AdWords work
Generally, for the marketers who are completely new to this, the advertising through Google AdWords starts as a trial and error method. Sometimes, if you wish to make some money, you need to spend some money first. Several times, users find themselves losing a lot more than they are making.
To have a really good knowledge of Google AdWords, a lot of research and reading is required. You need to understand how it works and how to make sure it is profitable for you. It is not just about guessing and throwing random numbers together. If you wish to become a Google AdWords professional, you need to study your niche. You must refrain from bidding wars and also choose your AdWord keyword list wisely. You should bid on whatever you are comfortable with. When you start making more money through your AdWords campaign, you can steadily start increasing your bids, but not straight away.
Google allows you to run several AdWords campaigns at once. This is really important, it allows marketers to test different advertisements and check which one is turning out to be more profitable. Marketers can use different description and keywords for different campaigns. After a few days of checking the statistics, you can know exactly which ad is converting better.
Earning Money through AdWords
Once you know that Google AdWords can be an excellent thing for internet marketers, you would definitely want to know how to utilize it for making more profit for your business. First and foremost, you need to determine exactly how much you are willing to pay for every click. This way, you can have a better understanding of the amount you can bid on specific keywords while still remaining profitable.
You need to know your conversion ratio, and to calculate it, you need to divide the monthly unique visitors to your site by the monthly sales. You can then convert the ratio into a percentage. For instance, if you get 50000 visitors in your website and sell 1000 products with a gross profit of $40, your conversion ratio would be 2% ((1000/50000) * 100). This means that out of 100 people visiting your site, 2 visitors buy your product.
Multiply your gross profit with your conversion ratio to determine how much you can spend. Continuing with the above example, your gross profit per 100 visitors would be $80 ($40*2). So, your gross profit for every single visitor would be $0.8 ($80/1000). In that case, you can afford to pay as much as $0.80 and still manage to break even. Now, once you have determine how much you can afford to spend, you can manage to have high profits if you play your cards right.