Advantages and Disadvantages of AdWords

Today, we will discuss the advantages and disadvantages of AdWords. Let’s skip the introduction and go directly to the issue.

Advantages of AdWords:

Advantages and Disadvantages of AdWordsProficient Market Research & Ad Creation: Through the AdWords tool, you can search keywords, the high and low in demand and incorporate them in optimizing your site as well as to create ad campaigns.

The AdWords search tool will give you multiple keyword options. You can also see the competition range as well because the keywords search tool also signifies its use by other competitors in the same segment.

Further, the keyword analysis tool will also help you research the potential effectiveness of multiple tags on your website. You can use your chosen keywords for in-website SEO and for creating advertisement ads.

However, make sure you choose the right keyword matching pair for your ads to become visible every time someone searches for your chosen keywords.

Once Google approves your application and you understand how AdWords work, you can instantly create an ad campaign, give a heading, write the copy and insert the destination URL.

Inexpensive Ad Campaign Cost: Before AdWords, small businesses had to buy targeted ads or keywords costing thousands of dollars. Its return on investment was unsure since you cannot predict how much those ads will be successful.

Moreover, companies from where people purchased ads didn’t give the buyer much say on the advertisement content. Basically, people paid for ads without getting a full return on their investment.

But AdWords changed this completely – you can run ad campaign on less than $10 daily. There is no minimum buy involved. But, before allowing your ad to go ‘live,’ do a test run to check everything is running smoothly.

Further, to protect the advertiser’s interest, AdWords does not allow the same user to click ads several times. Why? Because when people click your ads, your account gets billed. Viewing ad does not cost money, clicking on them does!

The Google system allows you to securely connect your credit card to the AdWords account. The best thing is Google allows you to set a maximum amount of cost per day. Let’s say, you set the maximum cost at $20 per day @ $0.01 per click, which translates to 2000 clicks per day. Once 2000 clicks are complete, Google will automatically stop billing for the day.

Placement Bids: Google asks you to bid for ad placements, which is necessary if you want best ad placements. Now, ad placement is based on keyword popularity and how much the advertiser is willing to pay for placement / per click.

If you choose less popular keywords, it will cost you a few cents per click, but if you choose highly popular keywords like “dating,” it can cost you $60 per click. Google receives thousands of bids daily. The best ad placements are given to those willing to pay the highest for a particular keyword.

Pausing Ad Campaign: You can stop the ad campaign anytime. This is necessary to make ad copy changes or if you have fewer funds, you can pause it for few days and restart whenever you want.

Disadvantages of AdWords:

Time Spent in Learning: New AdWords users need time to understand how the campaign works. You will be lucky to get any sales in the first few weeks and its going to deplete your resources. Moreover, you cannot become a seasoned ad writer in minutes.

You have to devote time in comparing how your ads are working, which keyword/s are getting more clicks and find new ways to tweak ad campaigns – all this is time consuming, thus, a lot of learning is involved. In the beginning, do a test run for one week.

Invest in low cost per click campaign and compare the results. Assume the money you spend in a test run as a non-return on investment. Spend time at the Google AdWords Learning Center to learn the tips and tricks.

More Money Means Top Position: Unless you are using less popular keywords to capture your target market, you need to shell out more for getting the top ad positions. As we mentioned earlier, you can set up your campaign for less than $20 per day but the reality is, you need to pay more for top ad positions. This translates to spending $5 to $10 per click.

You have to be really clever with ad tweaking to reach out to your target market without spending exorbitantly. This is difficult for an individual business owner but not for a company with large budget. If you are an individual business owner, set aside a substantial budget for AdWords campaigns.

Website Quality: Google assesses the quality of the listed website periodically and accordingly assigns a low quality, high quality score. If the website and the campaign is of low quality, Google has the privilege to increase minimum ad bids cost. The only solution is to create excellent ad campaigns and keep the website quality top notch.

Readership Problems: The ads you see on the right-hand side of the search results page are the paid ads. The pitfall of this arrangement is that these right-hand side ads get less readership/clicks than the organic ad listings on the right-side.

If you can afford this, its best to invest in getting your ad campaigns listed on the right-hand side of the results page of course, first page ads demand more money expenditure; therefore, you can settle for third or fourth page ad placement.

No Tracking System: Last and the most problematic disadvantage of AdWords is lack of an efficient tracking system. For newbie businessmen, this spells a problem because they don’t know how to track keywords that converted into sales.

Further, if you have multiple campaigns, tracking is difficult and complicated. You cannot ignore tracking too because it helps you to calculate ROI. (Return on Investment)

Despite these disadvantages, the AdWords system is the best advertising tool available for small business advertisers. You must have understood by now that AdWords is more of a trial-and-error system. You have to tweak ads to make it better and placement friendly.

Our advice is not to spend too much at the onset. Keep AdWords performance under observation for few weeks – determine what keywords are working and what not – and then launch a full fledged campaign with both high and low per click keywords, depending on your target market and projected response.

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