Question : Google AdWords: Cost too much?

Dear All,

I currently use Google AdWords, but I don't find I'm getting a great conversion rate for my IT consultancy (offering web design and IT support and alike). I have set-up other campaigns and it works OK for companies offering specific services such as limousine hire in a specific area, but I don't find it works as well for my IT consultancy as this is presumably a more competitive market. Wondered if anybody had some feedback on this. I'm also looking at starting an Overture campaign doing a similar think.

Is anybody running a web design company and getting most of there business through this method for example?

I think I am employing the right techniques, using negative keywords, a number of banners to see which are most effective ... etc.

Any help much appreciated.

Regards,

Ben.

Answer : Google AdWords: Cost too much?

Actually, we do custom web analysis software, SEO, and design and have existed entirely on GoogleAds (and a little input from Overture) for some time.  I've actually been in business on the web since 1995 with nothing but search listings and online ads to bring in the customers.  We also run GoogleAds for accountants and tourist sites, and build GoogleAd tracking systems, so we see a wide range of campaigns.
Here's what we know:
1)  CTR of 5% is average, across the board.  I have peaked with one client at 12.5% for a very targetted ad at a specific moment.  Overture is MUCH worse (less than 1%)
2) If the ad title is the same as the search phrase - better result
3) If the landing page displays the search phrase VERY prominantly, so it's the first thing they see - 30% more people stay on the site
4) You need to know what path you want people to take, and design the site accordingly - and NEVER expect them to read more than 3 pages before they enquire.  Totally free navigation sucks - herd them into predesigned paths.
5) Put a contact form EVERYWHERE - we have one on every single page - if you ask them to click to contact, you'll loose about 40%
6) The shorter the contact form the better - after all all you need is enough to call them - name and phone is sufficient - forget email - and respond FAST, by tomorrow they've forgotten you
7) Centered forms get 10% more fill ins than justifed (don't ask me why, it just is)
8) Put the benefits of contacting you around the form - keep selling as they fill in
9) For some bizarre reason ad response drops after a few weeks - so you need to make minor tweaks. New ads simply get a better response, even if they've not been changed much (no idea why)
10) If you can't be at the top of the list, be at the bottom - the middle sucks
11) Broadreach is a waste of money - response is poor, conversion worse
12) DO YOUR NUMBERS - you should have a 2% conversion for visitors to enquiries - if you've got less, fix the site first.  Then calculate the conversion of enquiries to sales, and the profit on the sale, then work that back to determine how much you can spend per visitor (knowing your conversion rate).  

We have a client doing affiliate marketing purely off GoogleAds - running thousands of ads and paying literally tens of thousands each week - they work on a half-percent margin, are the 3rd largest e-bay advertiser in the world, and are making obscene amounts of money.  It can work if you pay close attention, and see the process from search to ad to site to contact as a seamless process.