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Google Adwords

Without traffic, your web store won’t generate revenue. Therefore, it is essential to identify and analyse the different sources of visitors (also referred to as traffic). Most web store receive traffic from the following channels: search engines (mostly Google), partners (e.g. affiliated), direct traffic and through inbound links.

In the knowledge base we will discuss all sources. On this page we zoom in on the visitor source traffic from the search engine. Within this resource, we distinguish between unpaid (SEO) traffic and paid traffic (Google Ads). The latter is discussed here:

What is Google Ads?

Google Ads (the former Google Adwords) is Google’s advertising platform that lets you show your ads in Google in the “Sponsored Links” or “Ads” section. These are found on the top and right of the search results. Besides on the Search Engine, Google Ads also allows you to advertise on Publishers sites, Youtube and other platforms.

Advertise on keywords

With Ads, you advertise on keywords and audiences. These are the words or word combinations that users type in Google to search for. Once a Google user types a keyword you advertise on, your ad might be shown, because your ads can also target certain languages, geographical locations or other criteria.

This all is not free of course. As soon as someone clicks on your ad in Google, Google will charge you an amount. The ads are paid for via the pay-per-click principle. (There are also pay-per-sale affiliate platforms for example). Google Ads is based on an auction mechanism, which means that advertisements on keywords that many competitors want to use will be more expensive than advertisements on keywords that are less popular. A simple example: When you show an ad when someone searches for a mortgage, Google may charge 7 euros per click to your website (!). But when you show an ad for searches for “dog food” or “roof tiles,” your price might be just 10% of this amount.

Using Google Ads

Google Ads has become a quite complex system nowadays. The foundation can be mastered in a day, but to really understand the program, you may need a specialist. There are many companies in the market that can set up your campaigns for a fixed amount and / or on a subscription basis. Until that point, it’s smart to read a lot and maybe even create a Google Ads account to explore Ads opportunities. Google regularly delivers free ad credit through flyers, which you can use for your first steps.

Why is Google Ads important when I buy / sell a web store?

With 72% of the world’s market share of search,  Google Ads is the most widely used online advertising medium in the world. For many web stores, visitor flow from Google Ads is extremely important in relation to revenue. There are even web stores that depend entirely on Ads.

Google Ads spending can determine whether you earn or loose money, so take this aspect into consideration.

Roughly, the calculation is as follows: You advertise in Ads for example on keyword “bicycle rack” and Google asks 20 cents per click, then 100 visitors in your web store will cost you 20 euros. A 3% conversion is generally seen as good, so let’s assume that 100 ‘purchased’ visitors lead to 3 purchases. Then you must calculate 6,67 euros which weighs in on your profit per purchase from visitors that enter via Google Ads. (without calculating returns, etc.).

You will understand that many elements play a role here. In general, you may want to advertise on specific keywords. Because the more specific your keyword, the more likely you can offer what the visitor was looking for, and with that increasing the conversion rate and decreasing the average advertising cost per order. In addition, specific keywords are often cheaper to advertise, which also decreases costs. This process of tuning Google Ads campaigns can take years.

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