Online Advertising Experiment with Google AdWords

google adwords online advertising chart results seo

tl;dr By using a Google AdWords credit voucher we learned an obvious lesson – buying traffic is expensive and Internet marketing (web marketing) is a science. Paid adverts can help compliment an existing organic/SEO strategy.

The Experiment

In March 2012 Google kindly provided us with a credit voucher to test out Google Adwords. It seemed like the perfect opportunity to try out online advertising and potentially pull in some traffic to our blog (all for free!).

We spent £24.53 in 89 days to get 290 clicks (0.17%) and 166,800 impressions. However recent tweaking has yielded us 166 clicks (CTR 0.42%) in 13 days off £2.79 of spend.

If you are interested in traffic, you may want to read our 10,000 page view article.

The Evolution of Online Advertising

The web has radically evolved in the past decade. Web advertising has moved from irrelevant blinking banner adverts to well targeted text and multimedia adverts. Spam and advert blockers have made it harder for unsolicited or unscrupulous messages to reach us. Nevertheless the end user experience is still flooded by advertisers screaming for our attention. Getting the right message, to the right people is even tougher.

Google AdWords have developed a sophisticated advertising suite to tailor your adverts to the right keywords searches, websites and demographics. The available analytics is useful in identifying what works and what doesn’t.

Lessons Learned

Using a minimal daily budget (<$£0.50) we created and road tested 6 adverts. In summary we learned:

+ The number and type of keywords counts – Our early adverts were associated to less than 20 keywords. Once we increased the list to 100+ we noticed an instant increase in clicks and impressions.

+ The right type of traffic is important – Add keywords but ensure they are relevant to your site otherwise you risk bringing in the wrong visitors.

+ Our keywords – There is no clear winner when it comes the keywords we used. The following keywords sit at the top with a long tail for the remainder of keywords. (Group A = 5 clicks) home business, home business opportunities, business opportunities; (Group B = 20 clicks) start your own business, start a business, build a business (Group C = 67 clicks) startup, startups.

+ Paid advertising is expensive – Google AdWords is expensive and better alternative may exist. You may consider advertising in a industry/niche newsletter or online magazine rather than spending money on Google.

+ Paid traffic can help support your organic page rankings – Page ranking on Google can be ‘make or break’. Therefore paid traffic may help secure or boost your page ranking on Google.

+ Paid traffic can help with your sales funnel (if you have one) – If you are selling something, paying x for a visitor may well be worth the spend. You just need to make sure you can convert many of the visitors and you have some mechanisms to track conversions.

The Adverts and Results

Between March and September we set up a campaign with 6 adverts:

Ad Group #1:
Lean Startup Tips
Winning new business ideas!
Launch with success.

Days active: 89
Clicks: 38
Impressions: 81,902
Click Through Rate (CTR): 0.05%
Average Cost Per Click (CPC): £0.18
Cost: £7.02
Average Position: 3.8

Ad Group #2:
Entrepreneur Startup Blog
Lessons in business startup.
Turn a business idea into reality.

Days active: 89
Clicks: 7
Impressions: 22,666
Click Through Rate (CTR): 0.03%
Average Cost Per Click (CPC): £0.19
Cost: £1.35
Average Position: 3.8

Ad Group #3:
Business / Tech Startups
News and stories on startups.
Ideas for business startups.

Days active: 89
Clicks: 1
Impressions: 481
Click Through Rate (CTR): 0.21%
Average Cost Per Click (CPC): £0.22
Cost: £0.22
Average Position: 5.7

Ad Group #4:
Want Startup Success?
Interested in lean startup, models?
We share our experiences.

Days active: 77
Clicks: 77
Impressions: 21,637
Click Through Rate (CTR): 0.36%
Average Cost Per Click (CPC): £0.17
Cost: £12.80
Average Position: 5.5

**** Ad Group #5: ****
Want Business Success?
Winning new business ideas!
Launch with success.

Days active: 13
Clicks: 166
Impressions: 39,946
Click Through Rate (CTR): 0.42%
Average Cost Per Click (CPC): £0.02
Cost: £2.79
Average Position: 2.4

Ad Group #6:
Startup Success Stories?
Learn from the best startups.
Tools podcasts videos ebooks.

Days active: 89
Clicks: 1
Impressions: 179
Click Through Rate (CTR): 0.56%
Average Cost Per Click (CPC): £0.35
Cost: £0.35
Average Position: 6.5


You might also enjoy:
+ The Startup Dictionary – Learning the Lingo #3
+ Learning From Other Startups – 6 Real Life Stories
+ Startup Myths – I shall not be fooled again by gurus
+ Startup Weekend: How to prepare? (Day 0)

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About Spark N Launch

One response to “Online Advertising Experiment with Google AdWords”

  1. interworks one says :

    Interesting experiment. Thank you for sharing the results with your adwords campaign.

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