Google, Making Profit on Ads since 2001 ($95.38 Billion in 2017)
Published on June 26, 2018
Since Google has pushed their sales teams and agency minions to actively push their AdWords Customers on increasing the spend on branded keywords I decided to share a counter argument.
For one, let’s do a quick recap on why Google likes to motivate people on spending more money on branded keywords.
If you are looking to buy a car and you have a brand and company in mind say, Nissan Dublin then yes, it is wise to spend on the keyword “Nissan Dublin” for your own company.
However, your competitors will also spend on that exact keyword even though they are not allowed to include “Nissan Dublin” in the Ad Copy, they can bid on the target keyword.
For example, the Ad we see for the BMW 3 Series 2019. Now this is a compelling story but there is one thing we are missing and that the Google Sales team is forgetting to mention which is Quality Scores and Relevancy.
The reason that this Lexus ad comes up when searching for a different car is the lack of relevancy and quality score (And most likely the keyword all together) for the BMW Ad Words account.
If they have in their AdWords campaign a keyword setup called “bmw 3 series 2019” this Lexus ad would have never appeared because the relevancy of the BMW page vs the Lexus page would be much higher.
So why do I not agree with Google’s approach in pushing their AdWords customers to spend more on branding?
Well two reasons:
Reason one: Spending on broad keywords using brand terms will spark an automated bidding war which will raise the prices per click for all companies. The only winner in this scenario will be Google who will make even more money per click
Reason two: Your AdWords account is most likely full of keywords that either don’t perform, are not relevant, have a low-quality score or cost way too much vs. the cost per conversion.
Great, but now what?
My recommended approach is first of all cut out all the keywords that have a low-quality score, that have generated a lot of costs but no conversions and just optimize your entire AdWords campaign to have an overall higher quality score.
With that change you will increase the available daily budget for your high performing keywords only and as a result increase conversion and reduce your cost per conversion
Secondly, when it comes to branding.
Create a separate campaign that includes your competitors branding terms first. Set a limited cost per click and make sure you use plenty of long tail keyword variations. Also make sure that your Ads within the competitor campaigns are targeted towards the reasons why your brand is different/better than your competitors.
For your own branding keywords make sure you do the same including many long tail variations of your branded keyword but also make sure your Ad stands out. The organic result will appear in the search box for sure, so your Ad needs to tell a different story that ads to the relevancy for example
The core of this story is, you have plenty of opportunities in your current AdWords setup that can increase your conversions while spending a lot less on each conversion.
Get that sorted first before spending more money on AdWords.
PS. Seditio has been helping customers reduce their average cost per click up to 70% while doubling their conversions since 2014 and we are a Google Certified AdWords and Analytics Partner.