How to Know If You’re Spending Too Much Money on Google AdWords


Lots of people who use Google AdWords complain that it is quite difficult to optimise. Has this ever happened to you? How can you tell for sure if your online marketing efforts pay out and you’re not just spending too much time and money on it?

In my case, when I use the search engine to find online services and products, quite often large companies and brands bid ridiculous amounts of money on keywords that have nothing to do with their company, or for displaying adverts with irrelevant content. However, large companies aren’t the only ones doing this. Small business owners, medium companies or solopreneurs make the same mistake and countless others. Could this happen because the aforementioned companies simply cannot understand marketing? That’s highly doubtful.

Does this happen because marketing teams of large, medium or small companies have found the Holy Grail and managed to crack open the “secret keywords” safe, which ensures that they will enjoy a 100% click rate and even a 100% conversion on ads places by means of Google search? Nope, that’s not it.

Related: Biggest Mistakes Companies Make When Using Google AdWords

The fact of the matter is that AdWords is not all that easy to optimise, yet the people that use it manage to deal with it in spite of all the difficulties because of the traffic it delivers. Still, I’ll touch upon the question I’ve asked above. How can you tell you are not losing precious revenue on AdWords?

1. Lots of businesses, regardless of their size, lose a pretty penny on the location options aspect. Usually, AdWords defaults the location setting option for you: “People in, searching for or who show interest in my targeted location”.

The main problem with this setting is that it considers that the customers you want to attract find you via Google and NOT the physical location where the target client resides. Therefore, people living in Iran searching from Google will be more likely to see your ads that were intended for US residents. Thus, you could potentially pay for click from all around the world even if your company isn’t present in these countries. Instead of doing this, you should probably choose the option “people in my targeted location”.

2. Regardless of whether clicks are converted or not, you still pay for them each time a person clicks on your ads. While you may get tons of clicks, the users may have no intention whatsoever to ever purchase one of the products or services you are advertising.

3. Another thing that people don’t understand about Google AdWords is that the competition is fierce. And this means that the CPC (cost per click) is constantly going up.

4. Google AdWords has an extremely short shelf life. The moment your budget is spent, your ads are turned off instantly. In contrast, SEO is considered to be a long-term investment with a longer shelf life.

Related: Why the Almighty SEO is Not As Frightening as You Might Think

5. The learning curve of AdWords is more than steep, and from time to time it’s common that mistakes may occur. And those mistakes may cost you quite a significant amount of money. The time you need to put into setting up a successful AdWords campaign that will bring you a return on your investment (ROI) should not be taken for granted. Also, there’s the monitoring process and the time it takes to find out what’s converting and what’s not.

Related: Great Link-Building Methods for a Better Website SEO

6. Last but not least, most companies take landing pages lightly when they create a Google AdWords campaign. If you didn’t know, Google looks at the quality of your landing pages. Thus, if your website is not all that relevant to the search query, you shouldn’t rely on AdWords to provide you with traffic and neglect the SEO part of your website. Ensure that the landing pages are in order and that the people that click on your ads are able to relate to the content. By doing this you are able to improve the Quality Score, which will help you pay less for clicks.

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