Adwords Basics

Adwords Material

AdWords Study Guide

Chapter 1: Introduction to AdWords 2
Chapter 2: Getting Started with AdWords 5
Chapter 3: Targeting 8
Chapter 4: Costs and Billing 11
Chapter 5: Tracking Ad Performance 13
Chapter 6: Optimizing Ad Performance 16
Chapter 7: Account Performance Tools 18
Chapter 8: Google Analytics 20
Chapter 9: Managing Client Accounts 22

                                               Chapter 1
                              Introduction to AdWords
AdWords Basics
Google and Google AdWords

Google is a search engine
Google uses keyword based advertising to target your ads to users searching for your product or
The text ad headline is limited to 25 characters (including spaces)

Basic AdWords Features

The CTR helps determine whether your ad is effective
If you elect to show your ads on the Google content network, your ads will be eligible to show on
websites that contain content related to your ad.
Google ads can be targeted to any language or location available worldwide.

Benefits of AdWords

There is no minimum spending limit with Google AdWords
AdWords allows an unlimited amount of changes to an account per month
Google Ads appear primarily on the right hand side of the screen or above the search results and are
titled “sponsored links”
Your ads will appear when a user’s search query includes a keyword that is part of your ad campaign
You control the budget for your advertising campaign. You can set a daily budget and Google will stop
showing your ad when you reach the daily limit.

AdWords Policies
Link Policy

A Destination URL must
Link to a working website
NOT link to website under construction
NOT require users to download software
Sites can not have pop-ups on the landing page
An example of an appropriate URL would be

Editorial Policy

Punctuation Policy allows only one exclamation point in ad text
Google allows certain common misspellings or variations of words in ad text (for example: E-Z or foto).
If you can find the word in an online dictionary, it is probably ok
Prices stated in ad text must be supported within 1-2 clicks of the landing page.
Free offers in ad text also must be supported within 1-2 clicks of the landing page
Superlatives are only allowed in ad text if the claim can be backed by a legitimate third party.

Image Ads Policy

Text in image ads must adhere to editorial policy guidelines
A display URL is NOT necessary to include in an uploaded image
Image ads are NOT allowed to be rotated or inverted
Image ads must be rated family-safe only
Images must be clear and readable
No mock animated features may be included in an image ad


Google trademarks are not allowed in ad text. Google, Froogle, Gmail, Orkut, keyhole, and PageRank
are all trademarks owned by Google.
Advertisers are responsible for their use of other companies’ trademarks in their ad text and as
Google encourages trademark owners to resolve trademark disputes with advertisers directly, but will
begin a limited trademark investigation after all mandatory information included in a claim is received


Google’s policy on copyright claims applies to ads, search results, and Google group postings.
You can send a Google copyright claim form by ground mail or by fax

Google Invalid Clicks Policy

Repeated manual clicking, use of click robots, or automated clicking agents or tools are prohibited
Invalid clicks are used to inflate publishers’ earnings through AdSense or drive up an AdWords
advertiser’s costs.
Google closely monitors campaigns for invalid clicks and automatically filters them out of any reports
before you are charged
If Google discovers you were accidentally charged for invalid clicks, you’ll receive a credit for those

Identifying Invalid Clicks

If your web log shows identical IP addresses, it does not necessarily mean you have invalid clicks.
Possible reasons for increase in clicks:
Users may be comparison shopping
AOL, Earthlink, and Comcast assign identical IP addresses to multiple users in the same
geographic region
Your ad may be too general
Competition may have decreased
Your ad may have been approved for the search or content network
Seasonal products may be more desirable at certain times of the year
Increase in CPC bid will show your ad higher on the page and increase clicks
You should suspect invalid clicks if:
Review your account for suspicious activity
2 or 3 times normal amount of clicks on a single day
Number of impressions is equal to number of clicks
Compare your clicks over time
If one week is unusually different from another and can’t be explained
Compare web log to Google reports
Web logs should not have higher number of clicks than Google reports show
If you suspect invalid clicks contact click quality control with the following info:

Campaign, ad groups, and keywords associated with suspicious clicks
The dates and times of the suspicious clicks
A paragraph explaining why you believe the click activity is invalid according to trends in logs or
Data in weblogs or reports that indicates invalid clicks

Pricing and Ranking
Paying for AdWords and Ad Ranking

No minimum spending requirement.
One time $5 activation fee
You control your cost through:
Daily budget
Quality score
If your daily budget is set to less than the recommended amount, your ads may show intermittently
throughout the day, but will not stop showing completely
Higher quality score = lower CPC minimum bid
You can set your CPC for each keyword or ad group in your campaign
Keyword targeted ads are positioned based on rank number
Rank number is determined by your quality score and CPC bid
Google determines your quality score by considering:
Your CTR
The relevance of your ad text
Historical keyword performance
Your ad will never be locked out of top ranking position solely based on price

Terms To Know

Search Engine – A website that gathers and sorts information from the Internet based on a specified topic
Search Field – Input box in the middle of the Google homepage
Search Query – The keyword(s) a user types into the Google search engine to find information on the
CPC – Cost per Click – You are charged every time a user clicks on your ad, but not every time your ad
appears in the search results
CPM – Cost per Impression – You are charged every 1,000 times your ad appears on Google whether it is
clicked or not
CTR – Click Through Rate – Clicks/Impressions x 100 = CTR%
Keyword Based Advertising – Advertisements that are triggered by users search query
Daily budget – The daily spending limit for an AdWords campaign
Text ad headline – The title of your ad – used to attract users interested in your product or service
Display URL – Last line of an AdWords ad. It indicates the URL of the website the ad is linked
URL – Uniform Resource Locator (also called web address)
Affiliates – People who get paid commission to promote a merchants website
Superlatives – Words that emphasize superiority over others (i.e. Best, Greatest, etc)
Call-To-Action Phrase – Example “Buy here” or “Click here” are not allowed in ad text because they are
unrelated to the content of the site
Image Ad – A Google ad that includes an image
Trademark – A word, phrase, logo, or symbol that identifies and distinguishes a product or service from
others in the marketplace
Copyright – The legal right granted to an author, composer, playwright, publisher, or distributor to exclusive

publication, production, sale, or distribution of a literary, musical, dramatic, or artistic work
Invalid Clicks – Clicks generated through prohibited methods often with the intention of driving up
advertiser’s costs
Rank Number: The result of your CPC bid x Quality score
Daily Budget: Spending limit you set on each campaign

                                           Chapter 2
                                 Getting Started with AdWords
Account Types, Setup, and Structure
Starter Edition vs. Standard Edition Accounts

Starter Edition – simplified version of AdWords used to advertise a single product
Standard Edition – utilized by users with multiple ad campaigns and provides all the features AdWords
You can graduate to a standard account at any time, but can not switch back to starter edition once you
have upgraded
You may want to graduate to a standard account if
You want to sell more than one product
You want to create more than one campaign
You want to target multiple geographic locations
You want to target multiple languages
You can always edit your keywords after setting up an account

AdWords Account Structure

Your account contains all your campaigns and ad groups
Email address, password, billing information, and account preferences are all part of your
account information
Each Campaign has a name, start/end date, daily budget, ad distribution preferences, and
language/location targets
Each campaign is either keyword or placement targeted
Each campaign contains at least one ad group
Ad Groups
Keyword or placement targeted
Successful advertising= many small and highly targeted ad groups
Versatility – you can run as little as one ad with a few keywords or up to 25 campaigns with as many as
100 ad groups each

Account Navigation
Campaign Management

You can edit campaign language and location targets at any time
You can search for words or phrases across all campaigns, ad groups, and ads in your account by
using the “search my campaigns” box on the campaign summary page
You can customize the columns on the campaign summary page

Choosing Accelerated Delivery tells Google to show your ad as quickly as possible until your daily
budget is met
Ad groups within a campaign can be paused from the campaign details page

Ad Group Management

Keywords Tab
Magnifying glass icon is used to see whether a keyword is showing ads and to check the quality
Edit your CPC bids
Check to see whether a keyword is showing ads
Pause individual keywords
It is possible to pause an individual text ad

My Account Tab

Billing Preferences page
View method of payment
Change contact information
Edit payment details
Account Preferences
Edit login, email address, password, display language
Edit Google Analytics
Billing Summary
View invoices
Access page
View and control others’ access levels
Invite others to share the account
Grant users access
Disable users access
Report Center tab
Contains detailed account statistics
Generate reports for different levels of your account

Starting Off Right, Organization, Keywords, Ad Text
Selecting Keywords

List 2 – 3 word phrases that searchers might use to find your product or service
Use the keyword tool
List plural variations, synonyms, and spelling variations
Keep lists small and manageable
Exact match keywords only show your ad when a searcher types in the precise phrase without any
words before, between, or after
Single word or general keywords are often too broad and can lead to too many clicks from uninterested
Use negative keywords to increase the accuracy of your campaign target

Writing Targeted Ad Text

Rotate your ads and automatically show your best performing ad more often
The most effective headlines directly relate to the keywords being searched
Your display URL does not have to be the exact same as your destination URL

Using Different Ad Formats
Image Ads

Can be banner, leader board, small square, square, inline, large rectangle, skyscraper, or wide
skyscraper format
Can not exceed 50k file size
Image ads can be created in groups that target keywords, placements, or both

Video Ads

‘Click-to-play’ ads – the first thing a user will see is a static image
It is best to deliver key message as soon as possible
Before creating a video ad you must enable the content network

Local Business Ads

Can NOT appear on Google content network
Before creating an ad you must create a local business listing in the local business center and on
Google maps
Format of Local Business ads is different on Google maps and Google search network

Mobile Ads

Ads that appear when users search on mobile devices
Contain 2 lines of ad text with a maximum of 12-18 characters per line
Your mobile ad can connect users to your business phone
Mobile ads are either pay-per-click or pay-per-call

Traditional Media Ad Formats

AdWords can help you reach offline customers with print and radio ads
Track performance in Report Center
Only available to U.S. advertisers
Free call reporting
You can choose what newspapers and what sections of the paper to show your ad
Print Ads
Announce sales and promotions
Communicate a branding message
Target key audience segments
Support multimedia campaigns
Generate leads and promote conversions
Audio Ads reach hundreds of AM and FM stations across the country
Reaches over 82% of population
Increase brand awareness
Influence brand perception and appeal
Cost effective
Auction Audio Campaign
Works like pricing of keyword targeted campaigns
Set weekly budget and max bid per 1,000 listeners
Ads broadcasted based on available time slots for your price
Reserve Audio Campaign
Provide more predictability than auction campaign
You can reserve the exact time for ad to be broadcast

Pay a set price determined by station

Terms To Know
Keyword Tool – generates potential keywords according to your existing campaign settings and account
performance history
                                         Chapter 3
Search and Contextual Targeting
The Google Network

Search result pages like Google do not make up the majority of the web pages viewed on the Internet
Search pages make up 5% of web pages
Google Network provides an alternative to search pages
Google automatically formats your ad to match the look and feel of different network sites
Text ads can appear on search and content pages while image ads can only appear on content pages
You can set bids separately for both search and content page ads
Fine tune your ads for search targeting by:
Target specific languages and locations
Choose highly relevant keywords
Use keyword-match types
A low CTR on the content network will not affect the ranking of your ad on search result pages
A low CTR on content pages does NOT indicate that your ad is not profitable

Contextual Targeting

An effective strategy for creating contextually targeted campaigns is to create overall keyword themes
A Placement Performance Report provides the best information on your textually targeted campaign
Use the site exclusion tool if you find that a particular site does not convert well over time
Point all ads to the same destination URL
Use the Google content network to:
Increase awareness by using multiple ad formats
Highlight your unique product to convert casual site visitors into buyers
Use call to action phrases like “Buy now”

Placement Targeting

Ads with placement targeting do not share the ad space of a content page with any other Google ads
Placement Targeting campaigns are useful for advertisers who want to build brand awareness
Placement Targeted campaigns can be expanded text ads, image ads, or animated image ads
Campaigns with placement targeting offer the ability to
Expand your ad to fill all ad space on a page
Pay on a CPM basis
Choose which sites in which you want your ad to appear
Exclude sites that do not provide a good ROI

Creating a Placement-targeted Campaign

The Placement Tool gives you four different ways to choose placements on which to show your
The Site Tool helps you choose sites on the content network on which you wish your ad to appear
You can choose sites based on categories, topics, similar URLs, or demographics

Pricing and Ranking

Ads with placement targeting compete with keyword targeting ads
In order for an ad with placement targeting to appear, it must outrank the effective CPM bids of the top
four text ads with keyword targeting combined
Language and Location Targeting
How AdWords Targets Users
Google does not consider a users previous purchasing history when determining whether to show your
Google does not translate ad text
Google determines the location and language of a user through:
Google domain (i.e.
Query parsing
IP address
Language Preference Detection

Language and Country/Territory Targeting

Targeting ads to all countries and territories is ideal for businesses that sell products globally
Country and territory targeting allows your ad to show anywhere in the locations you select

Region and City Targeting

Helps keep your quality score high and cost low
Appear in a different format than Country/Territory targeted ads – ads include the chosen region/city in
the last line of ad text
Best for businesses that sell in a specific region or city and want to avoid extra clicks from country wide
Use the names of cities and regions you do not want to advertise to as negative keywords

Customized Targeting

Customized targeting is best if you wish to reach an audience in a very specific area
It is possible to target an audience within a specified radius of your business location
Three types of customized targeting
Create a circle around a specific address
Create a circle around a specific point (latitude/ longitude)
Multi-point or polygon
With multi-point targeting you can create target areas of any shape or size

Keyword Targeting
Keyword Matching Options

Four types of keyword matching
Broad – reach the widest audience/ allows other words included in search query, mixed order of

words, related words (i.e. car = buy used car, used car = car used, car = vehicle)
Phrase – triggers ad to appear when your keyword phrase is included in a search query/ can
include extra words before and after keyword phrase (i.e. “buy car” = buy car cheap)
Exact – most precise method of targeting/ triggers ad only when precise phrase is searched (i.e.
[buy new car] = buy new car)
Negative – prevents ad from appearing when irrelevant keywords are present (i.e. ‘buy toy car’
won’t show your ad if you specify toy as negative)
The default setting for any keyword is broad-matched
No punctuation is necessary for broad-matched keywords
Quotes are used to specify phrase-match keywords
Brackets are used to specify exact-match keywords
You can change keyword match types at any time

Implementing Keyword Matching Options

Broad-match keywords provide the best possibility for a high number of impressions
Exact-match keywords will provide less impressions, but a higher rate of conversions
You can use multiple keyword matching options for different keywords in the same ad group
Negative keywords can be applied to an entire campaign or to specific ad groups

Combining Keywords and Placements

AdWords ad groups can have keywords, placements, or both
If a placement is targeted by both keywords and a placement, the individual placement bid will take
The keywords and placements you choose, along with your campaign settings, determine where on the
content network your ad will appear
Three possible ad group targeting combinations
Keywords only
Ads can appear on search or content network
Placements only
Ads can appear only on content network and only on pages you have specified
Keywords and Placements
Ads can appear on search or content network
Keywords and placements work together to determine where on content network ads will
Once you have created an ad group, you can add or remove keywords or placements at any time
Keywords and Placements work together
AdWords first matches keywords with possible sites on the content network
AdWords checks to see which placements match the possible sites
You Choose
Search network – Google and/or search partners
Content Network – Relevant pages across the network or relevant pages only placements
A Placement Performance Report (PPR) lets you see which sites are providing the best conversions for
your ad

Terms to Know

IP Address– Internet Protocol Address is a unique number assigned to each computer connected to the

Query Parsing– Google uses the query entered into the search field to determine what language and location
ads should show
Content Pages – web pages in the Google Content Network that show AdWords ads
Contextual Targeting – targeting determined by the page a user is currently on
Broad–Match Keyword – trigger ad from a search query including related words or mixed words
Phrase-Match Keyword – Ad triggered when keyword phrase is included in the search query
Exact-Match Keyword – Most precise method of targeting/ triggers ad only when precise phrase is searched
Negative Keyword – Prevents ad from appearing when irrelevant keywords are present in a search query
                                            Chapter 4
                                     Costs and Billing
Cost Control
How AdWords Controls Costs

Google rewards high quality accounts
Your Daily Budget must always exceed your CPC or CPM bid
Choose between standard and accelerated delivery of your ads
Standard Delivery shows ads smoothly throughout the day
Accelerated Delivery shows ads until the budget is reached
Google may “overdeliver” your ad up to 20% more than your daily budget to make up for days when the
budget was not met
If Google exceeds your monthly budget you will receive a credit
Preferred CPC bid allows you to set an average amount you want to pay, rather than the maximum
Content Bids are available for keyword targeted campaigns and allows for different bids on the content
and search networks
AdWords reduces your costs with the AdWords Discounter and “Smart Pricing”
Discounter reduces your cost to the minimum amount needed to win your spot, works all the
time, and causes your actual CPC or CPM to be lower than your maximum bid
Smart Pricing works all the time and reduces the price you pay for a click on the content network
if data shows it is less likely to turn in to an actionable business result

Billing Cycle
Basic Billing Process

All accounts are subject to a one time $5 activation fee
The amount billed may be more than the credit limit since ads do not stop running between the time the
billing cycle is triggered and the time the charge is completed.
Prepay and Postpay options depend on your address and chosen currency
Prepay – pay in advance of receiving clicks and Google deducts from your balance
Postpay – you pay only after users click on your ads and you accrue charges
Billing occurs every 30 days or when the account reaches its credit limit
The Google billing threshold gets raised each time an account reaches its credit limit within a 30-day

The initial credit limit of $50 is raised each time an account reaches its credit limit within a 30-day
period and the charges are paid.
Credit limit increases from $50 to $200 to $350 to $500

Billing Details and Issue Resolution

The Billing Summary page differs for prepay and postpay accounts
Prepay will show balance remaining
Postpay will how balance due
Pending charges are advertising costs accrued since the last time you were billed and can be viewed
on the Billing Summary page under Outstanding Balance
Invoice Details page will show charges broken down by campaign as well as billing adjustments like
invalid click credits
If a payment is declined, Google suspends advertising for that account until payment is received

Payments Outside The U.S.
Payment Options

Advertisers may not switch between Prepay and Postpay options
Google Postpay options include Debit card, Direct Debit, and Credit card
Using Direct Debit allows Google to withdraw accrued charges directly from your bank account
Google accepts Visa, Mastercard/ Eurocard, American Express, and JCB
Google Prepay options include Bank Transfer only
When Google receives your bank transfer funds you will receive a confirmation email and your ads will
start running

VAT or EU Advertisers

European Union Value Added Tax = EU VAT
Customers living in the European Union, with exception to Ireland, must self-assess their VAT charges
All European Union advertisers are effected by the VAT tax
Advertisers enter their VAT registration numbers upon account creation
An advertiser that does not submit a valid VAT number will be charged the Irish VAT rate

Invoicing Basics

Advertisers that meet Google’s requirements may apply for Credit terms and monthly invoicing
Advertisers on monthly invoicing must pay each invoice by credit card, check, or wire transfer
To qualify for invoicing, an advertiser must spend at least $1,500 per month for 3 months and have an
established credit history with AdWords
Once on invoicing terms, the advertiser’s campaigns are no longer subject to suspension if a credit
card is declined
Credit terms are determined at Google’s discretion
In order to receive credit terms and monthly invoicing you must submit a credit application and in some
cases, additional documentation
If approved, you will receive an offer of credit terms via email
Upon accepting Google’s credit terms, you will need to confirm billing information and your account will
be switched to monthly invoicing

Terms to Know

Standard Delivery – shows ads smoothly throughout the day

Accelerated Delivery – shows ads until the budget is reached
AdWords Discounter – reduces the cost of CPC or CPM to the minimum amount needed
Smart Pricing – reduces the price you pay for a click on the content network that is less likely to turn into a
VAT – Value Added Tax

                                                  Chapter 5
                                 Tracking Ad Performance
Quality and Performance Basics
How It Works

Your keyword will be inactive for search if your CPC is below the minimum bid
Quality Score is determined by CTR, Quality of ad text and keywords, and Landing page relevance
A high Quality Score will decrease your minimum bid
Keyword’s Quality Score, minimum bid, and keyword state can fluctuate often due to the dynamic
nature of search
A High CTR usually means your campaign is performing well
A low minimum bid usually means you keyword is performing well
Ads Diagnostic Tool allows you to see if your ad is showing for a particular keyword query
Monitor your account to continually improve quality

Ad Visibility and Trouble Shooting
Account Wide Issues

Billing information must be entered into AdWords before you can start advertising
Email must be verified to see ads on Google
If credit card is declined your ads will stop running until billing information is updated
Not sure why credit card was declined?
Make sure you entered the correct credit card number
Check to make sure you haven’t reached your credit limit
Check your cards expiration date
Make sure your billing address is correct
If everything on the checklist is correct contact your bank

Campaign-Specific Issues

To get full exposure of your ads from your daily budget, view the AdWords recommended budget
If your ad’s target location does not include your location, you will not be able to locate your ad on
Ads will not show for a campaign that is paused, deleted, or ended
A paused, deleted, or ended campaign can be reactivated
On the Edit Settings page you can:
Edit the end date of a campaign
Change the daily budget and compare to it to the recommended budget
Change delivery method

Change target audience and location
Be sure none of your keywords are cancelled out by negative keywords

Ad Group Specific Issues

Your ads will NOT show if the CPC or CPM are greater than the daily budget
If your ad is disapproved because of editorial policies it will only show after you have made the
appropriate changes and re-submitted it for review
Ads in paused or deleted Ad Groups will not show until the Ad Group is reactivated
Sexually explicit ads will only show on pages with adult material

Keyword and Site-Specific Issues

Keywords that are inactive for search can be re-enabled by increasing the keywords Quality Score
Keywords marked inactive for search can still trigger ads on content network sites
A poor performing keyword can affect the Quality Score of an entire ad group or campaign

How to Create a Report

Access the Report Center under the Reports Tab
AdWords Reports allows you to:
Monitor the performance of your campaigns, ad groups, ads, and keywords
Identify important trends over time
Generate spreadsheets to download
Report Center allows advertisers to email reports, download report spreadsheets, and view both data
and graphs for selected reports
You can view your report data, graphs, or data and graphs together
While a report is loading you can turn off your computer
To create a report:
Go to Create Report under the Reports Tab
Choose what type of report to generate
Keyword Performance
Ad Performance
URL Performance
Ad Group Performance
Campaign Performance
Account Performance
Search Query Performance
Placement Performance
Choose time period the report will be over– daily, weekly, monthly, etc
Choose date range
Choose which campaigns to include in report
Name your report
You can choose to run the report automatically every day, month, or set time period

Additional Reports Features

You can save your report within your AdWords account to view later
The Report Center will only save your 15 most recent reports
If you create more than 15 reports, the system automatically deletes the oldest
Whenever a report runs you can have it emailed to multiple recipients

Basic ROI and Conversion Tracking
Understanding ROI

ROI: Return on Investment a.k.a. ROAS (Return on Ad Spend)
CPA: Cost per Acquisition
CPA can be a measure of advertising effectiveness
ROI Percentage= (Revenue-Cost)/ Investment x 100

Introduction to Conversion Tracking

To use Conversion Tracking, you must have an active ad and the ability to edit the HTML of your
Google’s Conversion Tracking tool is free
In order to pause conversion tracking you must click the “Pause Conversion Tracking” button
Steps To Set-up Cross Channel Tracking:
Choose an advertising channel
Create a campaign for this channel – a separate campaign for each destination URL
Paste the tracking URLs into your related channel’s ads
Insert JavaScript code (provided by Google) into your websites landing page
Test your setup
A Site Stats text block should appear on pages where you have placed the conversion tracking code
Recommended placement of the text block is in the lower right hand corner of the conversion page (the
page that thanks your customers for their purchase or visit)
Do not hide or modify the text block
Verify correct setup of Cross-Channel Tracking
Check that you can see the ‘Site Stats’ text block on the pages that you’ve placed the code
Test Data Gathering by completing a test conversion or wait for a conversion to occur to avoid
incurring an ad click yourself
Check cross channel reports
Reporting may take up to 24 hours

Advanced Conversion Tracking
Introduction to Advanced Conversion Tracking

Effectively tracking advertising costs is essential to understanding your ROI
Use the Conversion Tracking tool under the Campaign Management Tab to set up advanced
conversion tracking
Four Main Types of Conversions
Purchase/ Sale – tracks purchases and sales
Lead – how many users request follow-up calls
Sign up – sign up for subscription or newsletters
Page View – how many pages a user views and time spent there
Other – define your own conversion type
Choose language and security level – https:// is more secure
Define the value of a conversion (a sign up may be worth $25 to your company)
Dynamic variables can be used in code for non-static conversion values
Adding a dynamic variable to the ‘Total Value’ field of your conversion tracking code will allow you to
calculate the accumulated value of conversions consisting of several purchases, each with a unique

Terms to Know

Quality Score – determined by CTR, quality of ad text and keywords, and landing page relevance
Report Center – AdWords tool that allows you to generate, email, and view reports on the performance of
your account
ROI – Return on Investment
ROAS – Return on Ad Spend
ROI Percentage – (Revenue – Cost)/ Investment x 100
Conversions – Purchase/sale, lead, sign-up, page view, or other
Conversion Tracking – a way to edit the HTML of your webpage to automatically track conversions
Site Stats Block – a block that appears in the corner of your webpage to confirm conversion tracking is

                                                Chapter 6
                              Optimizing Ad Performance
Optimization Overview
Preparing to Optimize

Optimization: Adjusting parts of your account to improve performance of your ads
Start optimization by reviewing the webpage of the advertiser
Go through the motions of a customer to understand how they would experience the site
The ‘About Us’ page or something similar is a good place to start
This page often offers good keywords to use in ad text
Review the products and services offered
Review existing AdWords campaigns to see what has worked well so far (and what hasn’t)
Research competitor’s sites
Figure out the similarities and differences in your products or services
Find factors of your business to highlight in your ads

Your Website
Choosing Landing Pages

Users need to find what they want on your site quickly
Link the most relevant pages to your ads
Landing pages should be easy to navigate
Landing pages should include unique content that highlights your service or product above the
Clearly define what your business is
Provide information without requiring users to register or log in
Be honest and clear about how and why you would be collecting someone’s information
Provide an easy path for users to get to products and purchasing page
Make sure your page loads quickly – 4 seconds is best
Your Account
Account Optimization
Optimization makes your ads more effective
Increases the rate at which you connect with customers

Raises your ads position on the search results page
Increases your CTR
Decreases your costs
Three main areas for Optimization
Campaigns – organize, modify location or language
Ad Groups – edit keywords, ad text
Website – choose more relevant landing pages, make page easier to use
If your CTR is low or costs is high, it is time to optimize

Advanced Optimization Features

Ad scheduling – control the days and times your ads appear
All ad groups within a campaign follow the campaign scheduling
Enable ad scheduling on the ‘edit campaign settings’ page under ‘advanced options’
Set correct time zone
You can raise and lower your bid during set time periods

Optimizing Ad Position, Position Preference

If you know your ad gets the most hits when in a certain position, you can set a position preference
Position preferences are not guaranteed
Selectively target less expensive positions in order to increase ROI
Beneficial if you are only interested in position 1 and 2 – your ad will only show in those positions
You can set highest and lowest preferred positions
The AdWords system will adjust CPC to fit within preferred position
Position preferences can be enabled for campaigns and individual keywords
Position preferences do not work with Budget Optimizer tool
The Report Center can show position preferences
Does not work with preferred CPC bidding

Specific Optimization Strategies
Increasing Traffic/ Clicks

Create new or unused unique keyword variations
Use plurals and misspellings
Create keywords for unadvertised products
Create keywords for product categories
Product types or Models
Include more general keywords
Generate lots of impressions
Separate high traffic keywords into different ad groups
Increase daily budget to increase traffic on all keywords
Increase maximum CPC or Quality Score
Ensure distribution preferences are set to maximize traffic
Broaden Geo targeting settings

Increasing Conversions

Conversion Optimization requires understanding the Buying Cycle
Consumers go through different stages while buying a product
Keywords should address each part of the Buying Cycle
Awareness/ Interest: Customer learns about product

Consideration/ Purchase: Ready to buy – target with words like ‘buy’ and ‘purchase’
Retention/Advocacy: Target with words like ‘accessories’ to target loyal owners of a product
Negative keywords help filter out uninterested users
More specific keywords tend to convert at a higher rate
Including prices in ad text may save you the cost of a click

Adjusting CPCs to Maximize ROI

Adjusting your CPC should be an ongoing process to reach your ideal CPC
CPC affects position which in turn affects CTR and ROI
Monitor your account after making changes since CPC can drastically affect CTR and Impressions
Factors to consider before changing CPCs
Length of time keyword has been running – It takes time to acquire the data to tell if a keyword is
performing well
Position – position affects CTR and ROI, try changing a poorly performing keyword’s position
before deleting it
Determining ROI
How much value a keyword generates as compared to cost
Track conversions from keywords
If value per click is higher than average CPC there is a profit
If average CPC is higher than value per click than there is a loss
Increase CPC of profitable keywords for more exposure and traffic
Decrease CPC of non-profitable keywords
To determine your minimum bid
Create a custom report for minimum bids
Edit your keywords’ CPCs or URLs in your Ad Group Details page
Edit your keywords in your Ad Group Details page

Terms to Know

Optimization – the process of adjusting your account to improve performance of you ads and produce a
greater ROI
Buying Cycle – the process consumers go through before purchasing; awareness, purchase, retention

                                                Chapter 7
                                   The AdWords Toolbox
Account Performance Tools
The Keyword Tool

The keyword tool is used to
Find new keywords
Find negative keywords
Estimate traffic for existing keywords
View expanded matches that may trigger your ads
Ad new keywords directly to an ad group or download them
The Keyword Tool provides results based on your existing campaign settings and account performance

If the keyword tool offers irrelevant variations, you should ad them as negative keywords
When selecting keywords from the keyword tool, look for terms that are highly relevant to your product
or service
The keywords generated by the Keyword Tool have not been reviewed and are therefore not
guaranteed approval by AdWords
Site Related Keywords Tab – used to generate keywords based on the content of a webpage
After adding keywords from the Keyword Tool, you can
Estimate their potential traffic
Add them to your ad group
Download them as a .csv file

Site Exclusion

The Site Exclusion Tool allows you to stop your ad from being shown on certain websites in the Google
Content Network
The Site Exclusion Tool is located under ‘Tools’ on the Campaign Management Tab
Site Exclusion is applied at the campaign level

Analytics Tools
The Traffic Estimator

Used to estimate:
Your ads position based on keyword selection and max CPC
Your daily advertising costs by keyword or Ad Group
The number of impressions and clicks your keywords will generate
Your keywords status and minimum bid
The traffic estimator is located on the Campaign Management Tab under ‘Tools’

My Change History Tool

Located on the Campaign Management Tab under ‘Tools’
Used to view changes you have made to your account in the last three months
Allows you to view changes within
Daily Budget
Keyword edits and additions
Change in distribution preferences
Changes made via the AdWords API
If multiple people manage the account, you can view who made what changes
The My Change History Tool will not display
CPC changes made by the Budget Optimizer
Changes made by the Ad Automator
Ad approvals or disapprovals
Password changes

Troubleshooting Tools
Ads Diagnostic Tool

Used to:
See if your ad is appearing on the first page of search results
Determine why a particular keyword is not triggering your ad
Identify why a particular ad or group of ads is not showing

Access the Diagnostic Tool under the Keywords Variation Tab to get information on each individual
Or access the Diagnostic Tool from the Campaign Management Tab under ‘Tools’
Hover over the Magnifying Glass icon next to a keyword to be presented with details on that particular

Disapproved Ads Tool

Tool displays:
All ads in your account that have been disapproved
The location of your disapproved ads
The reason for disapproval
Suggestions from AdWords to get your ad approved
Date of the disapproval
Disapproved Ads Tool is located on the Campaign Management Tab under ‘Tools’
Once you edit your ad it will automatically be sent for review by AdWords for approval

                                                   Chapter 8
                                            Google Analytics
Google Analytics Basics
Introduction to Google Analytics

Google Analytics is used to report on the performance of your webpage
Google Analytics provides reports on:
Performance of all your ad campaigns
How visitors use your website
Understanding how users interact with your website is key to building an effective online business
Helps answer questions like
Why are visitors abandoning my shopping cart page?
Is the design of my website inefficient?
Which marketing initiatives work best?
How are people finding my business?
What do users do while visiting my site?
What keywords generate the most conversions?
Some of the things you can do with Google Analytics include:
Evaluate ROI of all marketing efforts
Evaluate visitor navigation to identify problem areas
Track revenue and conversions
Track any browser based events
Define groups of users by age and gender
Spend time exploring reports to fully understand the large amount of information provided
To install Google Analytics to your website, simply place the Google Analytics Java Script tracking code
within the body of the HTML on each page you want to track

Introduction to Google Analytics Settings


Profile – one complete set of Analytics reports for one domain
Use multiple profiles to track several domains, sub-domains, or sub-directories
You can have up to 50 profiles in your account
Under Website Profiles Area you can:
Add new profiles
View reports for each profile
Edit profile settings
Delete profiles
Editing Conversion Goals
A conversion occurs when a visitor to your site completes an activity that you have identified as a
goal, such as a purchase, signup, download, or page view
A funnel is a series of pages a user must pass through before reaching the goal
Editing Filters
Filters are used to manipulate your data to depict your reporting objectives
Exclude Filters – exclude specified data from your reports
Editing Profile Users
A user is someone that can log in to your analytics account
Change first or last names and access type
Access type can be administrator or ‘view reports only’
Add new or existing users
Analytics and AdWords logins are separate

Tracking Your Advertising Campaigns

Campaign Tracking enables you to monitor the effectiveness of various marketing efforts
AdWords Ads
Other CPC Ads
Banner Ads
Email Newsletters
Offline Advertising
Reports allow you to compare different ads side by side
Campaign Tracking Variables are identifiers you attach to the hyperlinks that lead to your website in
order to track ads
Reports will show where the clicks to your website are coming from
Attaching Campaign Tracking Variables to a hyperlink is called Tagging
Tagging is not necessary for all links since Google Analytics will track some types of referrals
You can enable auto-tagging under the Account Preferences Tab
Tagging is not necessary for
AdWords URLs
Links from search engines (organic)
Links from referral sites such as portals and affiliates
You should tag
All non-AdWords paid keyword links
Banners and other ads
Links are tagged with the following Campaign Tracking Variables
Campaign Name – track campaign name or product promotions, use auto-tracking feature for
AdWords referrals
Source – Track where customers found your hyperlink (i.e. or Email Newsletter)
Medium – Helps to qualify the source (i.e. organic or CPC from the source

For AdWords auto-tagged accounts the medium is automatically CPC
Content – Optional Variable used to test different versions of an ad
Called A/B content testing
For AdWords auto-tagged accounts, the content variable is the first line of ad text
Term – Tracks keyword or phrase that triggered the ad
If you don’t manually tag your links, Google Analytics will automatically assign source and medium
values that will show in your reports
Automatically assigned source values are usually the domain of the reffering site
Another source you may see in reports is “direct” which means the user had the URL
bookmarked or typed it directly into the browser
Automatically assigned Medium values will often follow the source value
Organic – visitors referred by unpaid search engine result
Referral – visitors referred by links that were not paid
Not Set – visitors referred by links which were tagged with Campaign Variables, but not with a
Medium Variable
Direct/None – visitors used a bookmark or typed the URL
Several Reports show traffic from tagged initiatives
All Traffic Sources Report – displays all traffic that comes to your site
Ad Versions Report – Traffic assorted according to content
Campaigns Report
Search Engines Report – View how well your paid keywords for a particular search engine are

Terms to Know

Campaign Tracking Variables – identifiers attached to the hyperlinks that lead to your website in order to
track ads
Tagging – the process of adding campaign tracking variables to links

                                                      Chapter 9
                                           Managing Client Accounts
My Client Center

The purpose of My Client Center (MCC) is to centralize and manage all your AdWords accounts
Useful for advertising agencies, search engine marketers, and automated bid managers
Useful for advertisers with very large campaigns that cannot be easily managed in one account
With MCC you can access all your accounts with one password and move between accounts easily
You can receive a My Client Center account by signing up as a Google Professional
Sign up under the “Google AdWords Professionals” link on the Google homepage
Google allows two or more of your clients to use the same keyword as long as they have separate
My Client Center allows you to
Run a keyword report for a linked account
View recent charges for a linked account

Modify the daily budget for a campaign in a linked account
The only way to edit a clients billing information, login, and password is to log directly into the clients
The Dashboard Report displays the following
Status Alerts
Start and End date
Account description

Selling AdWords
Selling the Benefits of AdWords

Google AdWords is effective because your ads reach users at the moment they are interested in your
product or service
AdWords is particularly effective for
Generating leads or sign-ups on your website
Generating sales or conversions
Brand marketing and brand awareness
An advertiser only pays when a user clicks on their ad
AdWords ads are seen by over 80% of Internet users in the United States every month
AdWords allows for easy tracking of conversions

Understanding the Basic Google Sales Pitch

Four steps to creat an effective advertising campaign
Create relevant keywords and ads grouped by goals
Test multiple ad copies and keyword variations
Use reporting tools to measure results
Refine campaigns and keep what is working
Once an ad campaign is created, it should be monitored regularly and modified for best results
Four step client start-up process
Define marketing objectives, metrics, and budget
Deliver proposal, including messaging and budget options
Receive client approval and sign-off
Launch, monitor, and modify campaigns to meet objectives
Share reports with client and refine

Handling Common Questions and Concerns

Why use Google over another search marketing organization?
Approximately 50% of Internet users use Google as their primary search engine
That is almost 2.5 times more than any other search engine
89% of Google users rated their experience as “strongly positive”
Why use search marketing?
Relevant, real-time, and extensive ad distribution
Measurable results
Total control of spending and targeting
Generates leads or sign-ups on your website
Generates sales or conversions
Effective for brand marketing and brand awareness
Respond to common objections such as “I don’t need to advertise” or “I don’t have the budget”

Start with a budget of one dollar per day to demonstrate the possible return on investment
AdWords will never charge more than the set CPC and with Smart Pricing, advertisers are
charged the minimum amount necessary to show their ad

AdWords API
AdWords API Overview

Application Programming Interface (API) is another way to manage your AdWords accounts through
programs that you write
AdWords API is most beneficial for online marketing agencies with multiple clients and for advertisers
with technical backgrounds and/or programming skills
AdWords API is a good substitute for screenscraping
In order to access AdWords API, advertisers must already have a My Client Center account
With AdWords API you could
Create/Manage campaigns and ad groups
Get traffic and performance estimates
View clicks, click through rates, average position
Retrieve account performance reports
Modify Ad Syndication preferences
Change account login information and password
View basic API usage information
Benefits of using API
High efficiency
Compatibility with many programming languages
Innovative uses of AdWords
Simple and quick to sign up

Getting Started

To sign up for AdWords API go to
Developer and Application tokens are necessary to access AdWords API
Token – a combination of letters and/or numbers that identify your AdWords API activity
Developer Token – one per account, shows user as approved developer
Application Token – one per account (can apply for more), shows approved application for API
Fee-based quota system
Rate is 25 cents per 1,000 quota units
The API operations quota is defined by the total account spend and the number of clients
Updating the bids on 1,000 keywords would equate to 1,000 operations

API Implementation

Web Services provided by AdWords that give programmatic access to AdWords accounts include
Data Services
Criterion Service – provides information about targeting criteria, create and modify keywords and
website targeting criteria
Keyword Tool Service – generate keywords based on a website or specific keywords
Account Service – modify AdWords account features
Info Service – allows you to obtain basic information on your API usage
Traffic Estimator Service – provides operations for estimating traffic for keywords, campaigns,

and ad groups
Report Service – allows you to request a report about the performance of your AdWords
Data Services
Campaign Service – create, update, access, list and perform campaign-wide operations such as
changing the daily budget, pausing a campaign, or adding new ad groups
Ad group Sevice – create, access, or update ad groups, add keywords and creatives
Keyword Service – create, update, or access keywords, specify keyword type and text
CreativeService – create, update, and access creatives
API Data Services allow you to manage campaigns, ad groups, keywords, and creatives
Use of batch operations is encouraged over single operations

Terms to Know

My Client Center – account management tool provided by Google
Application Programming Interface (API) – a tool used to manage AdWords accounts through programs
you write
Developer Token – a combination of letters and/or numbers that identify your AdWords API activity – only
one per account
Application Token – a combination of letters and/or numbers that identify your Adwords API activity and
shows approved application for API usage – can apply for more than one per account
Batch Operations – API applied to a group of items at once

You can also download the pdf at