Google Adwords, when done correctly, brings you additional online sales that are still profitable after deducting the expenses associated with Google Adwords and the usual expenses of conducting business.
But there are other values that need to be recognized and valued. However these can be highly subjective, so they will never be the same for any two businesses.
Non-Purchasing Visits. These people visited your site but did not make a purchase. Is that worth anything? Maybe they’ll remember your site when they finally get the itch to make a purchase? Maybe they’ll bookmark your site or send a your link to a friend.
Opt-in Prospects. If people complete a form to get onto your email list, they have indicated an interest in buying your products or services in the future. But because only a small percentage of people actually open emails, you have to be very conservative about the value of additional prospects on your mailing list.
Branding. Let’s assume that NO ONE clicked your ads. Yikes! That would be really bad, right? Yes and no. Yes it is bad, in that you are not going to experience any online sales from your advertising. But No, in that you haven’t spent a dime, but still got your name and URL out there. Some people don’t click ads and, instead, just visit the site directly. Others simply see your ad, remember your business name and then get distracted or enticed by some other ad. This branding effect has a value, but it is very small.
Post-Purchase Activity. If someone did buy your products or services online as a result of your Google Adwords ads, they might, depending on your business and their satisfaction, make additional purchases with you in the future.
Taking Sales From Competitors. Taking revenue and profit away from competitors is often just as important as making the profit on a sale for yourself.
Your Google Adwords budget should be dictated by the actual sales that you can make at a profit. But don’t lose sight of the extra values that you earn. They help justify the expense, effort, and time that it requires to make Google Adwords work for your business.
If you’d like some professional help in managing Google Adwords, I am here to help.
Eric Strautman 816.797.9946