7 BIG Adwords Mistakes You Should Avoid

7 Big Mistakes You Might Make When Setting Up Adwords

“Googling” things has become the default first step in our quest to find answers to any questions we have.

Because those questions include things like “where do I find this product?” and “who can help me fix this?” businesses have recognized that paid search is a great way to connect to potential customers.

Also, paid search allows businesses to easily monitor how effective their Internet marketing spend is.

Noting these advantages many businesses have created Adwords accounts, but due to some common mistakes, they may be unknowingly reducing the effectiveness of their online campaigns.

Here are 7 BIG Mistakes that should be addressed in order to maximize the return from your Adwords account...

1. Leaving the Content Network On

Content targeting, which is active by default, is what Google uses to match the keywords in your adgroups to thousands of publishers within the Google network, known as Adsense.

Instead of relying only on relevant queries in Google to return your ad, it places your ads on sites within the network that contain content it sees as relevant to your keywords.

For example, if you are a snack food company and are targeting “mixed nuts” in Adwords, Google may place your ad next to sites with recipes that require nuts and articles that explain the “health benefits of nuts” which are somewhat relevant, but it may also place your ad on sites with articles about “peanut allergies” which is not relevant at all.

Leaving this feature on is an easy way to spend a lot of money fast without reaching qualified customers. The simplest way to manage the content network is to turn it off.

If you choose to use content targeting it is very important that you create separate campaigns for just the content network so you can adjust the budget (discussed more below). You should also start out with a smaller budget and test the effectiveness before allocating more money to this method.

2. Not Implementing a Geo-targeting Strategy

If you do not create location-specific campaigns, then your ads will be served at the national level by default, and you may lose money from users who click your ads that live outside of your reach.

If you are a local plumbing company based in the Chicagoland area, it would make sense to allocate your budget to people searching for plumbers in that region instead of people all over the country. Needless to say, a Californian with a leaky faucet is not going to be the ideal customer for a Chicago plumbing company.

3. Not Tracking Conversions

The only way to determine if your paid search efforts are successful or not is if you are tracking conversions or the action you want the customer to take on your Web site. This may be obvious, but we see businesses make this mistake more often than one would think. Conversions can be anything from a purchase to a form submission, and you are not limited to tracking just one.

If you are a service company that does not sell anything online, then you want your ads to direct the user to a landing page with a form that they can submit with all of their information. If conversion tracking is setup properly, you will know exactly which keyword led to the form submission instead of just knowing how many total forms were submitted.

Knowing this information then allows you to go back to your campaigns and adjust budgets and bids according to which campaigns and keywords are bringing you the most conversions for the lowest cost.

NOTE: Before going onto Big Mistake #4, it might help to discuss how keywords, ad groups, and campaigns are organized within Adwords.

If you look at the tree structure below, you will see there are multiple keywords within each ad group, and multiple ad groups within each campaign. You can have as little as 1 or as many as 1000 ad groups within each campaign.

You want to group similar keywords together within ad groups to create targeted ads, and you want to group related ad groups within campaigns to allow for proper budget adjustment.

Looking at the example structure below: if you realize that a lot more of the people that are searching for “London homes” are converting compared to the other cities, then you can create a separate campaign for London in addition to the “UK Cities” campaign and add more budget to the London one.

4. Not Having Enough Campaigns

A very common mistake that we see is that all of the ad groups in the account are confined to just one or two campaigns. This is a problem because budget is adjusted at the campaign level. If everything is in one campaign and some ad groups are outperforming others, then there is no way to put more money towards the groups that are converting more without also funding the poorly performing ad groups.

If we see keywords that are performing well, we may even create a campaign just for the one keyword so we can garner the maximum amount of conversions possible from that word.

5. Not Having Enough Ad Groups

Organizing similar keywords into multiple ad groups gives you a better opportunity to have higher click through rates (CTRs) and quality scores.

The quality score is a rating from Google that ranges from 1 (not relevant) to 10 (highly relevant), and the main reason you want that score to be high is that it will enable you to bid lower for higher placements.

If your ad groups have too many keywords that are unrelated, then Google will not know which words it should base its relevancy rating upon and your CTR will most likely be lower leading to a low quality score. Generally if your quality scores are around 7 or higher you are in good shape.

6. Not Having Multiple Ads

It is best practice to have two or three ads per ad group to allow for A-B testing and optimization. If you only have one ad you are missing out on the opportunity to test different messaging, and to serve more relevant ads based on search queries.

For example: There is a sporting goods store and they have a 50% off sale on baseball bats, and are also offering free shipping on all of their products. If someone searches for “discount baseball bat” they know to serve a text ad that has copy about their “50% off discount on bats” whereas they may want to place a text ad with “free shipping on all bats” for the search query “baseball bats with free shipping.” If they find that one of the two ads is receiving more clicks and conversions, then they may want to modify the other ad to try and increase its effectiveness as well.

7. Using Only Broad Match Type for Keywords

When you are setting up the keywords in Adwords, you can choose between three different match types: broad, exact, and phrase. Google uses the match type to determine when to serve your ad.

Broad matches will give you the most placements because your ad will be served any time your key word(s) appear in a search query in any order. Exact match will serve your ads only when the query matches your keyword, and Phrase match looks for your keywords in the exact order they appear within search queries even if the queries have other words in them.

In most cases you can safely avoid the broad match type altogether, but it should never be the only match type you are using. If someone is searching for “red laces for shoes” and you have “red shoe” as your keyword using broad match type, you will serve an impression and potentially pay for a click if the unqualified user decides to browse your site at that point. It is very unlikely that the click from that user will lead to a sale.

If you do elect to use broad match type for some of your keywords, then you must use negative keywords (like “laces” going back to the example above) to prevent your ad from being served to unqualified users.

Addressing these seven big Adwords mistakes will enable you to
run an effective paid search campaign for your business.

It is important to remember that you must continually optimize your campaigns, ad groups, text ads, and keywords based on your return on ad spend (ROAS) and conversion goals.

About the Author
Jon Morris was recognized as one of Chicago’s top 30 entrepreneurs under 30 by the Chicago Sun-Times, and was the recipient of the Outstanding Academic Award for graduating first in his class at the University of Chicago Booth School of Business.

Over the last 14 years Jon has become a thought leader in the Internet marketing industry, and is currently the CEO of Rise Interactive, a company he founded in 2004. Rise Interactive is a Chicago SEO and Internet Marketing company that is focused on finding innovative ways to keep its clients ahead of the competition.