Paid ads can be an extremely viable marketing option to offer your clients. It is important to understand what type of client will be more likely to convert. While this guide is not absolute, it can serve as a good baseline. This information can be used during the “on-boarding” phase to determine the validity of a Google AdWords campaign. I have covered many of these issues in a YouTube video I made.
Local Based Business VS. National Based Business
A local Google Adwords / PPC campaign will be much easier to successfully convert as opposed to a business with a “national” (or international) presence. This is due to the nature of how a potential customer will search and respond when the business is near to their location. I find the ideal Google Adwords client normally is a local based service industry client. Some of these include contractors (of all types), dentists, lawyers and accountants.
Service Based Businesses VS Product Based
This ties directly to the above (local VS. National), but a service-based business will be much easier to convert than one that is product based. In many cases the profit margins are not sufficient enough when selling a product over the internet to make AdWords a viable option. The exception to this rule is when your client is trying to promote their brand. Even in this case, it may be that a social media campaign is a better suited.
High Value / Lifetime Value to What is being Sold
Another consideration when deciding if a Google AdWords campaign is a good fit will be to examine the value of what is being sold. Assuming this is a service, you will want to make sure the service brings back enough value to justify the Google Ad spend.
Low Value / High Lifetime Value Example:
A perfect example of a lower value service with a high lifetime value would be the “$99 dental cleaning”. That service by itself will more than likely cost more than $100 to convert, but the “lifetime value” is the assumption that the customer will need additional work.
High Value / Low Lifetime Value Example:
An example of high value / low lifetime conversion would be a roofing contractor. A roof might last 25 + years, (low lifetime value), but a new roof can cost from $5000 on up on average. This will be enough ROI to justify a property run Google Ad Words campaign.
Low Value / Low Lifetime Value Example:
The best example I can think of for a low value / low lifetime value client is a local residential locksmith. It follows the first two rules (local / services based) but comes crashing down due to its low value / low lifetime value. The cost for conversion on a client like this would most likely exceed the amount being collected for the service. Once the home / car is unlocked there is a very minimal chance that customer would be returning.
Business has a Well Built Website
The website that is being targeted on a Google AdWords campaign will need to be one that lends itself to conversion. There should be the ability to easily create per campaign landing pages. A major factor in determining the “cost per click” will be what Googles calls “quality score“. A website with a slow loading time or that is not responsive can effect this score. The lower the score, the higher the ads will cost to run. In addition, a website that is not properly optimized will not convert as well.
Customer Has Budget & Patience
Another consideration is the customer is made aware that a Google AdWords campaign takes budget and patience. Any costumer with only $500 to spending looking for instant results can lead to frustration on both sides. If the person / agency is competent running a marketing campaign, they will be able to adjust and optimize the marketing campaign over time. The customer should be aware and willing to spend in the ballpark of 5% of their gross revenue.
Market Supports the Search Volume to Justify the Effort
Another consideration is making sure that the market will support the search volume to justify the effort of the campaign. There are a few reasons for low search demand. The first one could be a low population near the business. If you look at the below example of a plumber search in Johnson Country, Iowa, you will find a search volume of 10-100. The lower the keyword search volume the greater the tendency to go after keywords that make less sense and will not convert as well.
With a low keyword volume search client, the minimum fee to manage the Google AdWords campaign might not make it advantageous. The lowest I will take on a marketing client for is $350 per month. This would be separate from any ad spend costs. In many cases it would be better to focus on organic ranking. Normally these lower volume search keyword markets are easier to rank within a Google organic search.
Response Time from the Client
I ran a Google AdWords campaign for a retail client in the Denver area. He runs a very successful HVAC company. The ads were converting great. The issue was the lack of response to the inquires received. Phone calls would go to unanswered voice mails and emails were never responded to. The lack of company response to the prospective customers will negate any and all marketing efforts.
Completing with a National Brand
Another consideration is to make sure that what is being sold is not competing with a national brand with an unlimited budget. A local insurance company could technically meet all the best case criteria, but end up competing with national companies that will use ad spend as a way to brand. These bigger companies might not have the concern with the “cost per acquisition” as a smaller business would have.
A Google AdWords campaign is already very competitive. It is important to understand your practical limitations to be able to convey to your clients. In many cases I have found there are other alternative marketing methods. Feel free to contact me with any questions , comments and / or concerns.