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Lesson 2a: Creating an Account Quiz
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Ad Groups, Ads, and Maximum Cost-Per-Click
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Objective: Learn how to create a successful ad group by writing effective ad text, choosing the right maximum cost-per-click, and estimating traffic and potential costs.
An ad group is the combination of a set of keywords with one or more ads. Here's a sample ad group with its keywords and ads: These ads would display when 'gourmet chocolate' or the other keywords are searched for. When an ad group has multiple ads (as with the example above), the ads will rotate evenly until one ad's clickthrough rate (CTR) begins to outperform the others. Then the higher-performing ad will be shown more frequently. You can see the CTR for each ad on your Campaign Management screen.
You named your ad group at the start of the sign-up wizard process, For the ad group in the example above, you might have named the ad group 'Gourmet Chocolates.'
Google AdWords offers a variety of ad formats. The most common format is text ads, followed by image ads. Additional formats now available include animated ads,video ads, local business ads and mobile ads. Let's take a look at how to create the most common type of ad (text ads): Your text ad contains three lines of text: a headline of up to 25 characters, and two description lines of up to 35 characters (limit is lower with double-byte characters and some special symbols that require more space). Ad groups are limited to a maximum of 50 text or image ads. It's generally best to avoid putting your company's name in the headline of your ad. Instead, write a headline that is closely tied to the keywords you'll be placing in this ad group and to the users who search for those keywords. To maximize your Quality Score, and thus improve your ad's position on the page, be as specific as you possibly can in the description lines. Avoid hype; you'll see the best results when you tell users in plain language exactly what you have to offer. After your three lines of text you'll enter a display URL, which is the main URL of the website you are advertising. This URL must be 35 characters or less. The destination URL is the page on which users will actually land on your website. This URL can be up to 1024 characters (it won't appear on your ad). Many advertisers link their ads to particular destination pages within their website, but use the simpler URL of their homepage as the display URL. Be sure your ad meets the format and content requirements listed in the AdWords Editorial Guidelines. After completing your text ad, click Continue.
To learn how to create other kinds of ads, please review the 'Creating Ads' section in Lesson 2: Setting up an Account.
Now it's time to place the keywords you've chosen into the text box provided. Each keyword should be on its own line. The keywords you enter should be highly specific to the nature of your ad group to ensure that you receive the most cost-effective results. You can also find additional relevant keywords by entering a term into the Keyword Tool box and clicking Get More Keywords. Our system will suggest related keywords which you may find useful. You'll be able to create additional ad groups or edit existing ad groups later, so you may want to start with just a few keywords here to begin testing what works. If you delay the account set-up process for too long, your session may expire and you'll lose your work. It's best to move purposefully through the set-up process, save your account, and then log in to your completed account to make additional changes. Once you enter your keywords, click Continue to move on to the pricing page.
Now you'll select the currency to be used for your account. The currency you choose will apply to both billing and payment. For example, if you select U.S. dollars, payment will be accepted only in U.S. dollars. Once you've selected the currency for your account, it is not possible to change it later. The currency you select will also affect the payment options available to you. To learn more, please visit our payment options page.
Now you'll select a maximum cost-per-click (CPC) for your keywords. Your maximum CPC is a lot like a bid at an auction. It represents the highest amount that you're willing to pay for a click on your ad. The maximum CPC helps determine whether your ad appears above or below other advertisers' ads. However, Ad Rank is based on more than just the maximum CPC. To ensure that users find useful information on Google and Google's partner sites, ads are also rewarded for being relevant. The higher an ad's Quality Score, the more relevant it is. Your keyword-targeted ad's position on search and content results pages is determined by your maximum CPC multiplied by the matched keyword's Quality Score. The higher your ad on the search results page, the more likely it is to receive clicks. The most important factor in setting your maximum CPC is understanding how much a visitor to your website is worth. In other words, what is the likelihood someone who clicks on your ad will purchase your product or use your services? You may not need to have your ad in the number one position if you find that you get a better return on your investment with a lower CPC. During the sign-up process, the AdWords program will suggest a maximum CPC for your keywords. You can accept this value, or adjust it to fit your advertising goals and budget. Your maximum CPC should not be higher than your intended daily budget. Once you set a maximum CPC for each of your ad groups, you'll also have the option of setting a maximum CPC for individual keywords. If you don't specify a maximum CPC for a given keyword, the ad group maximum CPC will automatically apply to that keyword.
With AdWords, you never need to worry about overbidding for keywords. The actual cost-per-click (CPC) you pay is always reduced by the AdWords Discounter. The AdWords Discounter discounts your maximum CPC to only what you should pay to stay above your nearest competitor. When you view your account reports, you'll see the actual CPC shown as an average. This reflects the dynamic, market-driven nature of pricing in AdWords.
After you select your preferred currency and maximum cost-per-click (CPC), click View Traffic Estimator. You'll see estimates of the number of clicks per day (Search Volume), predicted keyword status, the average CPC, your cost per day, and your average position on the page. This information is based on your chosen keywords, targeting, and maximum CPC. If necessary, you can change the keywords you'd like estimates for, or the maximum CPC bid to see new estimates. In the standalone tool click Revise settings at the top of the page. If you're using the ad group tool, change your estimate information at the bottom of the page, then click the Re-estimate Traffic button to see the new estimates. Here's a little more information about the column data you'll see: Keywords/Minimum Bid: Underneath each keyword, you'll see the amount that you must pay in order for your ad to run. Please note that the estimates provided are only predicted values and will vary depending on various conditions such as fluctuations in user behavior and dynamic search and pricing activity. For more information about cost control, overdelivery, and ad ranking, refer to the lesson on Pricing and Ranking.
Using the Keyword Tool (linked from the Traffic Estimator), you can add or delete keywords, or ask for keyword terms related to a particular keyword you have chosen. If you're not satisfied with the estimated volume of clicks, use the Keyword Tool to generate additional keywords that might help increase your traffic. If the estimated cost is more than you want to spend, reduce your maximum cost-per-click or delete some of your less-specific keywords to cut back on traffic. Keep in mind that the results generated by the Traffic Estimator are only estimates. The actual performance and cost of your keywords may vary. The next step in creating your campaign is setting your daily budget. |
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