A Guide To AdWords: Making PPC Work For Your Business

The Small Business Marketing Report

Episode 59 of The Small Business Marketing Report Podcast

In the first of a 3 part series on the Google AdWords platform we discuss whether AdWords can work for any business.

There are some exceptions but not many, business objectives are an important aspect to consider. Certainly the statistics for using AdWords are very impressive, and the return on investment can be significant well implemented well.

It’s not only your business model and objectives that play a factor though, your website needs to be fit for purpose. In the show we cover some typical issues that can impact a Google AdWords campaign performance.

In the last section of this show we touch on the commitment required from the business to ensure AdWords is given a fair chance of success.

Listen in to the show, and if you have any questions then please feel free to comment below.

Subscribe to this podcast via iTunes & if you like it we’d be grateful if you could leave a review.

3 thoughts on “A Guide To AdWords: Making PPC Work For Your Business”

  1. Hi Sean, I’m a big fan of the show and haven’t missed one yet – so many thanks for all your efforts, much appreciated by us small biz owners! In fact, you should do one per week – but I digress. I’ve a question about the latest podcast that i’m hoping you can clear up for me. At about 12 to 13 minutes you talk about gross margin, and say that if a biz spends £1000 on adwords and receives £3000 in sales, they’ve made a 30% gross margin, but have actually broke even. My understanding of gross margin goes like this: Total revenue (i.e. total incoming cash) minus total expenditure (including any operating costs). Then divide it by total revenue, multiply by 100 and you have percentage gross margin. In your example that calculates to 66% gross margin. Now I can’t imagine there would be no further costs involved, but if there aren’t, then that’s a pretty good return in my book. So how come this is break even? Apologies if I’ve misunderstood – I’m simply trying to get my own head around it – as obviously this is vital stuff to know. It may be I’m one of these biz owners you’re referring to who don’t know what the hell they’re doing! Anyway, thanks again for the great content, and looking forward to the next one from you both. Geoff 🙂

    1. Geoff,

      Thanks for helping me clarify this.

      Basically what I meant was that if from the £3000 revenue there was £1000 profit (£2k of the revenue was a cost – this would be a 33% margin, 50% markup if my maths is right?). Then after advertising fees you’ve made nothing.

      So many accounts I see are targeting revenue and pushing ad spend based on turnover not the actual profit made from the sale.

      Now if you were really clever and had repeat sales you may be able to account for the life time value of a customer in your ad spend as part of customer acquisition.

      But this becomes even more tricky and many factors can come in to play.

      Hope that better explains it.

      Thanks
      Sean

      1. Thanks for the clarification Sean. I’ve been guilty of this in the past and learned the hard way. You can have 10 times the revenue you had previously, but if ad spend equals it then you’ve made zilch – especially if it’s for ‘one-time’ sales. It could work out if, like you say, the customer repeatedly spends and you stop advertising, or reduce the costs somehow.
        Looking forward to the next instalment! Geoff 🙂

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