It is very easy to become despairing with Google Adwords. That is because you can set up a great website advertising a great product that end up spending too much money on the ads and the campaigns become unprofitable. More people pile into the niche and outbid you and drive the prices up, further reducing your profit margin or making you lose money.
However, brute force bidding will rarely succeed against a careful tester. In order to understand why this is the case, it is vital to understand how Google works.
Google’s “mission” to provide its users with the best experience. If a user clicks on a keyword and gets provided by Google with the very best information possible on that keyword, it will keep coming back to Google. Such a user will keep clicking on ads on Google will make more money.
That is why Google doesn’t just rank adverts according to how much you bid, and also the quality of your advert, which integrates with your click through percentage but also the quality score of your landing page.
A specific advert sent to a generic page will often result in a poor quality score. That means that you will often have to pay more per keyword bid then many other people, or even worse, suffered the so-called Google slap where you are charged $10 or more per click.
Testing eradicates these problems. Often, the most effective way of testing something is to split test your ads to see which one get clicked on the most. Also, with scripts, you can rotate your landing page so that subtle parts are different. The headline may be different, or landing page A may be a video landing page whereas landing page B a text one. After you have sent sufficient traffic through these ads and landing pages, you will be in a position to know by looking at your analytics data which advert landing page converts better. Simply tweak and carry on this process.
By constantly testing and monitoring your advert on your landing page, you will often be able to reduce your costs per click by improving your advert click through rate and landing pages quality score. If someone comes in with a much higher paid but a much lower click through rate and landing page quality score you will still succeed in being ranked higher than them and have the satisfaction of paying considerably less than them to boot.