Google AdWords connects products and services with the appropriate potential buyers. In other words, if Seller A sells musical instruments, and Buyer B is looking to buy musical instruments online, AdWords uses a complex algorithm to bring Seller A and Buyer B together. If you sell products or services, you want your audience to find you as easily as possible, no matter where they conduct their online searches.

AdWords uses an auction format. As a seller, you have the ability to bid on keywords. You then create ads which are used in Google’s Sponsored Listings. Whenever someone clicks your ad and visits your website, you pay a fee based on the value of your chosen keyword. Since AdWords functions as an online auction, highly competitive keywords will cost you much more than smaller niche keywords.

The benefit is that you only pay for the clicks your website receives. The downside, though, is that in order to be successful with AdWords, you must earn enough money in sales to pay for those clicks while still turning a healthy profit. That’s why it’s absolutely essential to balance your pay-per-click budget with a healthy conversion rate.

Why Isn’t My AdWords Campaign Making Money?

You may have heard about Google AdWords, and you may have even heard tried using the service yourself, but without achieving positive results. Like all technologies, Google AdWords has certain inherent challenges. These include understanding correct keyword research, building a good Quality Score, writing ads that translate to a high CTR and relevant traffic, and knowing how to geo-target your ads in an effective manner.

As the founder and CEO of Coalition Technologies, a major Los Angeles Google AdWords management agency, I have seen too many clients come to me after building their own initial AdWords campaigns, only to discover that they were losing huge sums of money each day. If you are new to AdWords, I strongly suggest seeking professional guidance and training, or better yet, simply hiring an expert to manage your campaign on your behalf, while you supervise.

In order for your ad to be profitable, you will need to perform an ROI analysis of your campaigns, ad groups, ads and keywords. You may have a profitable campaign, but you may be losing money on certain keywords or certain ads. You should constantly iterate and refresh your campaign with newer, better ads based on knowledge you have gleaned from your previous efforts. This is part of the reason why it’s so important to have a professional Google AdWords expert help you in managing your campaign: he has had the experience of seeing what works and what doesn’t work, and has good instincts about what can go wrong with your campaigns.

Giving Yourself an Edge

When it comes to AdWords, Google offers some specific tips for success. First, identify your advertising goals. Any business is familiar with goal setting, and your paid traffic goals should be clear and concise. Google also recommends organizing your account for maximum effectiveness, choosing relevant keywords and placements, creating straightforward and targeted ads, optimizing your site for conversions, tracking your performance, and testing your campaign to make any necessary modifications.

These are all excellent tips, but implementing them can pose tremendous challenges. For instance, how do you choose just the right keywords and then properly target those keywords? What are the ideal techniques for optimizing your site? How do you ensure that your ads are best suited to ensure the maximum conversion?

Challenges likes these are precisely why you can benefit tremendously from a professional helping hand. Our AdWords experts have seen, tested and implemented every possible AdWords scenario for a wide variety of business clients large and small, and we know how to optimize pay-per-click campaigns for maximum conversions.