Frugal Internet Marketing

How is Google AdWords like divorce?

Because it's expensive, but sometimes it's worth it. 

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Today's New York Times' You're the Boss business blog has a great article about how a Long Island mom, Amy Gottesman,  started a party planning business, struggled to find effective marketing channels, and finally hit the jackpot with Google AdWords.

(AdWords are the paid ads which in the search results when you do a Google search.   They're on the right, and sometimes, above, what's called the "organic", or "natural" results. How can you tell they're ads?  They say "ads" above them.  AdWords is how Google makes its money.  Most people don't know this. )

Ms. Gottesman currently spends about $3,000 per month on AdWords and realizes about 6 times that amount per month in revenue.  So for her, it's obviously an excellent ROI.     Without AdWords, she says, her business would "instantly die."   Google makes about $20 billion per year on AdWords, and other sites offer pay-per-click (PPC) advertising as well, including Yahoo!, Bing, and Facebook.

Think of it like this:  Google, which commands about 75% of the search market in the USA,  is THE commercial real estate of the Internet.   Ms. Gottesman's $36K per year budget sounds expensive, but for her, it's worth it.  

The good news is that there is a no minimum buy-in for Google AdWords, and you can quit at any time.   The bad news is that setting up a Google AdWords campaign can be daunting for the moderately skilled Internet user.   AdWords has a ton of useful functionality, but if it's not set up correctly with correct keyword research and parameters, you can waste money.    This is why there are AdWords consultants and companies who will set up and manage your PPC campaigns for you.   

It is important to note that Google AdWords is not an effective tool for all  small businesses, and also that it does not necessarily have to be expensive.     I would estimate that there are fewer than 50 Cape Cod businesses who use Google AdWords regularly at the level of $500/month or more, and no more than 100 who do so regularly spending $250  per month or less.    I think more Cape Cod businesses, particularly stores, should be doing Google AdWords.

Is Google AdWords right for your business?  It's all a matter of numbers and who your target market is.  Here  is a helpful article to help you make the decision.    Have you had experience with Google AdWords?  Please comment below.

 Julie Brooks is CEO of eCape, Inc., a  South Dennis-based website design and marketing company founded in 1996.   eCape has developed over 300 websites for Cape Cod businesses and is also the operator of several high-traffic portal sites, including CapeCodToday.com, CapeCodTravel.com, and CapeCodKidz.com. One of  the Cape's prominent thought leaders in Internet marketing, Julie conducts several Internet marketing workshops for small businesses per  month at eCape's offices and also around the Cape  for chambers of commerce and other organizations. 

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