D&M 008 : Google AdWords & Retargeting – The shortcut to getting noticed online

DMPodcastCoverSummary:
In this session of the Dan and Matt Podcast we discuss the importance of Google AdWords and why it is much less risk than normal advertising. Daniele steps you through how to format your add and Matthew highlights a new feature called re-targeting, which has been proven to increase conversion massively.

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Items mentioned in this Podcast:

1.How to gain access to the Dan and Matt training package – http://danandmatt.wpengine.com/marketing

2. Leadpages – www.leadpages.net 

3. Google AdWords – https://www.google.com/adwords/

Transcript:

Matt: Hi, and welcome to the Dan and Matt podcast. This, our 8th episode, we’ll be focusing on Google AdWords. And as always, I have with me, Daniele Lima.

Dan: Hi everyone.

Matt: So Dan, we are – get asked and get inundated constantly with, “Look, I understand marketing, I understand sales – or at least I’m starting to understand that.” But people keep approaching me and sending me emails about SEO and Google AdWords, and sponsored links. And so, I think in this podcast, what we’ve agreed to do is, is have a chat about this, and I guess really cover off on why AdWords is so important.

Dan: Yeah, absolutely.

Matt: So Dan, why don’t you start by running us through, Google AdWords and why they’re the main buzzword for marketers at the moment?

Dan: AdWords really are one of the most powerful and for SME’s especially, still under utilised tools out there. Essentially, an AdWord is a paid ad. And generically, we call them sponsored links. But if we’re talking about the Google search engine – and remembering that all search engines have these paid ads. For Google, they’re AdWords. And essentially what they are is that you write an ad that appears on the home page. Generally they’re on the left hand – sorry down the right hand side of the page. But also, sometimes you’ll see at the top, 2 or 3 spots above the organic ranking results, also as AdWords. And these are basically paid ads.

Matt: Definitely, definitely. And a lot of people don’t know this, but statistically, most people don’t look past the first 3 entries in Google. And generally those 3 entries can be sponsored links or Google AdWords – advertisements if you like.

Dan: That’s right.

Matt: And it was important that you – what you mentioned there Daniele about the fact that 4 Google AdWords, the – sorry – for Google searching, Google AdWords is what they call the sponsored links. However, all Facebook, Twitter – as you said, any search engine – Yahoo, Google, and different– Altavista’s, even some of the older ones, they all have different versions of sponsored links. But most people don’t realise that Facebook and Twitter are search engines themselves, and offer the ability to have these sponsored links as well.

Dan: Yeah, absolutely, absolutely that’s true.

Matt: So, I – I also, I guess– Most people don’t understand the power of Google AdWords and why it’s important to advertise on Google AdWords. So, what I guess we should get to Daniel, is what the customers miss out on if they don’t start to take on this, this trend?

Dan: Yeah, now you’ve kind of hinted at it Matt, that – the large proportion, the majority of people never go beyond the first page let’s say of Google. So, if you’re not on page 1 of any given Google search, to the vast majority of the market, you don’t exist. Now, it is critical, and we will obviously get to SEO again and again in this podcast. And, through week in, week out, we always want to improve the organic ability of everything we do. But while that’s happening in the background, it’s vital that we’re on page 1. So Google AdWords, first and foremost. They give us that incredible ability to be on page 1, and to be seen. So that’s the first thing.

The other thing is that unlike a lot of other types of advertising, your ad will only ever appear on the search page if the keywords that you’ve put in the ad campaign correspond exactly with the key words and searches and terms that are being put in by the person searching. So, it really is, Matt – a case of perfect alignment between what they’re looking for, and what you’re putting out there.

Matt: Just to, to really hone that in for people and the listeners at home. People constantly will pay for magazine advertising, for radio advertising. And anybody that has seen these or listened to them, they’re like, “Oh, not another ad.” If there’s an ad coming on for home loan insurance, the only person that cares about that ad hypothetically is a person that’s actually looking for home loan insurance right now. And, as a consequence of that, everybody else is upset with the advertisement – and may remember you when it comes time for them to look at home loan insurance. However, predominantly, you’re paying to speak to 100 000 people or a million people that perhaps aren’t – just aren’t interested in what you have to offer. Where, Google advertising, or AdWords really allows you to hone in on a person that says, “The cheapest way to get home loan insurance.”

Dan: Yeah, absolutely right.

Matt: Yeah, perfect. So, let’s, let’s, let’s continue down some of the other advantages for a business, Daniele?

Dan: Yeah, well – apart from what you’ve just said there, that it will only appear when someone’s interested in it. You as the advertiser are only ever gonna be charged for it when they click on your ad. Whereas with other forms of advertising, such as pay per day, pay per impression. As you’ve internated, you’re gonna get charged no matter what. And that’s particularly concerning to me. Because these days Matt, as you know, one of the real trends that’s emerging is that people are downloading apps that block ads, and depending on whose data you go by, up to 20% of people now actively block their ads. So, you might be paying let’s say $100 in advertising, but only 80% of that are actually seeing the ad, because of what you said. That they just don’t care about those ads.

Matt: Well, I know that I use – I use TIVO – well at least, I used TIVO a lot in the past before I got to just buying TV shows off iTunes for instance. However, TIVO allowed me just to fast forward the ads, and even provided a button that kind of got a good gist of how long the advertisements were, and just completely skipped past them. People are paying money for these – big money for these.

Dan: Yeah, and it’s because – as you’ve said, they’re not interested in what’s being put in front of them. Whereas, with pay per click advertising like AdWords, you only get shown ads that are relevant to you. And, as the advertiser, you only pay for that ad when someone clicks on it. And I guess the other thing Matt that goes with that, is that as an advertiser, you don’t want to wake up the next morning and find out you owe Google $27 000. So, it’s very reassuring to know that you set a maximum daily spend. Where you, you control precisely the level of cost that you’re gonna spend each day. And once you hit that level, your ad just disappears, and then it reappears the next day. So, you’ve got that perfect control of your budget and how much you can allocate to this, to optimise it’s effect.

Matt: There’s a couple of other factors too Daniele. It actually allows you to tap into a customer that is interested when they’re looking. For instance, I may be interested in getting a new credit card. However, while I’m in the car driving to work, worrying about other things, a credit card ad on the radio doesn’t have the impact as much as when I type in, “best credit card to get for my Qantas frequent flyer points.” or, “My United Airlines points.” Because at that specific time, I’m online, and looking to advertise. It also allows you to cover off on – when I’m advertising, I’m advertising for results. Anybody that advertises to not get results – it just doesn’t happen. So, with Google AdWords, what we’re really saying is– Somebody types in, “I’m looking for the new credit card.” They click on my link, I now have an opportunity to sell to that person – as opposed to a radio or TV campaign where I’m letting them know it exists, and as a result I’m hoping that they one day hop on a website, think of me, and type in my web address. It’s a lot more effective way of getting bang for your buck.

Dan: Yeah, I totally agree. And Matt, as you were just saying all that, one final advantage came into my mind. And that is that AdWords does allow you to – I guess – preset what sort of range you want the ad to have. So, from where you are, do you want it to go out with a radius of 20 kilometres, 50 kilometres? And a lot of businesses really are sensitive to the distance people will travel to get to them, such as retailers. So to have that precise control to be able to tell Google, “I don’t want this ad to go out any further than 10 kilometres.” Again, it really maximises the benefit of every dollar you spend.

Matt: Exactly right, and look, there are a lot of people that have a hairdressing salon for instance in a specific suburb, in a specific state. And, doesn’t matter how many customers they have finding them on Google from 30 miles away or 30 kilometres away. Those people aren’t going to travel to get their hair cut there. So, it, it, it safeguards the search engine. So you’re not paying money for waste of time. I mean, as a – perhaps a luxury item, if you’re the only Ferrari dealership in a state, then of course you’re gonna extend that search parameter to anyone in the state. However, I would still say that people that are closer to me are more likely to come. So I may split my budget so that a certain number of people can search it within a 30 kilometre radius, while – and I’m happy to pay for all of those, though anyone further out, I perhaps have a budget of maybe $50, $100 a day.

Dan: Absolutely.

Matt: So, let’s, let’s I guess quickly just touch on as well that – there are a lot of people with online businesses, or sell products online or by mail order or whatever. And these people will be listening to it saying, “Well I can sell to anybody.” Well, sometimes you can and sometimes you can’t. For instance, there may be areas that you can’t send your package to. There may be areas that you find that you may be overpriced, or perhaps different countries that aren’t interested as much in your products. And when they type in, for instance, “I’m interested in time management.” They may have a different understanding or a different type of delivery that they’re interested in. Perhaps they like – they’re more inclined to want books that they can read, rather than videos. Because, English may be their second language, and they need the time to actually understand the content.

Dan: Yeah.

Matt: So there are lots of reasons for why you would geographically cut off certain places or pick certain places specifically for your advertising. And I think is a good segue into, perhaps the risks or the negatives towards AdWords. Daniel, what would you suggest some of the negatives that you’ve experienced for certain clients would’ve been?

Dan: Yeah look, honestly Matt, I have to prefix this by saying there are very few – if any. And I guess the main thing is that you never know in advance, you never know unless you’ve actually tried AdWords for any specific segment of any particular market. How that particular group going to respond to it. So you could do everything perfectly, and for whatever reason, you just don’t get a – a huge uptake on the ad. Now, if this is the case – sure it’s disappointing they haven’t clicked on it. But even there, you haven’t really spent the money. And even if people click on it, but don’t actually do anything about it, you’ve got a little bit of a safeguard there at the front end of this, because Google typically provide a free $150 credit to encourage people to try AdWords for a couple of weeks.

So, for example Matt, if you were to set a  – let’s say, a $10 daily maximum, and you ran it for a couple of weeks, essentially that wouldn’t cost you anything, because you’d be covered by Google’s credit. And at the end of the day, you’ve got 2 weeks of data to see whether or not there’s any uptake in it. So really Matt, and I am trying to be balanced, but the risk of AdWords is so little that it’s, it’s virtually not worth talking about. It’s, it’s – there’s so many strengths, they just so totally overwhelm any possible downside.

Matt: Look, I agree with you, and I guess it’s – an important thing to point out, neither of us work for Google. And you can do this exact same thing on Facebook, you can do this exact same thing on Twitter, and many of the other search engine platforms. And as well there’s LinkedIn of course – all the social media platforms. So, you can look for these. We’re focusing primarily on Google, just because it is one of the major advertising platforms that provide a really solid foundation, and lots of additional material that you can download, watch on YouTube to gain access to really mastering this process.

There are a couple of other negatives I’d like to touch base on, and they’re not really negatives. They’re things that you can do to make a negative. And while – later on in the podcast we’ll cover some things you can do to make your results better or worse – one of the major things that I have seen people do is for instance. If I wanted to teach – or I had an online program to teach time management. And I set my criteria too broad, that could be a problem. Because I wouldn’t get the results that I expected. I may spend – maybe I set my Google AdWords campaign talking about management training. And, management training’s great, and time management is a factor or that. But the people that search management training are probably more likely to want an entire course. So, I need to figure out exactly what my target demographic is.

And, I mean – Dan, we talk about in our, The Dan and Matt Program, available at danandmatt.com. How to specifically understand what your niche is. However, if I want to set up for Google AdWords, it’s as simple as be very specific. There are millions of people out there searching millions of different things. Focus on the target demographics you know are more likely to buy your product. So, if you sell time management, and maybe you sell time management and technology. Then, do an advertisement that specifically talks about the technologies available to save people time. So that people that buy your – that go to that website and give you – that you’re gonna be selling to, are actually looking for exactly what you’re offering. Focus on them first, get a good result – and then, open your market, or have more open campaigns.

The next thing that’s important is not to be deceptive in your marketing. Sure, you may get more clicks by saying, “marketing training.” However, what you’re offering isn’t marketing training. So, the deceptiveness of what you’re actually doing, is actually hurting you in the long term. And there’s nothing more demotivating than getting lots of clicks – all those people click onto your website, see that it’s not fully management, it’s just time management and click off. ‘Cause each one of those costs you money. Where if you focused on what your core demographic was, and what you – people you really could sell to. You probably would have made a lot more sales there.

So, what – Dan – let’s move on to what the key, the key words role is in the AdWords campaign. And what is a key word firstly?

Dan: Yeah, absolutely. Look, the keywords Matt are essentially the tool by which Google aligns the people who need your ad to your ad. So, when you go to the back end of Google, and you set up your various campaigns, there’s a section there that allows you to pick those words that you want to be linked to this ad that you’re creating. So, for example. And using the example you just gave a moment ago, it would be “management training,” or, “nationally accredited management training.” I’d be words or terms that are likely to be put in by that person searching, that you think relate to what it is you’re selling. So, we use the various keyword tools that are available. Now, some of them are paid for, some of them are free. Google of course has got it’s own keyword tool that’s available as part of creating an AdWords campaign. And by putting in a single word, and hitting the click button there, it will list all the related words and terms that people have actually put in, which link to that word you are looking for. And, how much you’re likely to be paying if you choose that keyword for part of your campaign.

Matt: So, basically what we’re saying here – for everyone that’s listening is – a keyword, you pay for. So, Google AdWords, going back to the time management scenario – may say that “time management” is going to cost you $4. So if you want to advertise specific to people that are using the words, “time management,” that’s going to cost you $4. While, “time management in technology.” That combination of words may only cost you $1.75 per person that clicks on you.

Dan: Can I make a point there, you’ve really hit on something really important for cost effectiveness here. The longer the term, the cheaper it is, and Google call this a long tail. The longer the tail, the cheaper the word. So, if you’re selling digital cameras, I can promise you now, “digital camera,” is very expensive. But if you then say, “Canon digital camera,” that’s cheaper. And the longer it becomes, the cheaper it becomes.

Matt: Exactly right. A lot of people will type in something like, “Canon digital camera 8 megapixel.” And even adding that 8 megapixel may do more than halve the cost. Because a lot of people don’t. But the one’s or – the one’s that are interested in 8 megapixel, or know what that is – write “8 megapixel,” and as a result you get those people. And they’re more likely to buy from you, because they know what they’re looking for, and you are exactly what they’re looking for.

Dan: Yeah, exactly right.

Matt: So yeah, marketability – and there’s an application that’s wonderful. It’s called, “Longtail Pro.” And again, there’s – I’ll put details to it on the podcast notes. However, Longtail Pro, is a wonderful application for actually understanding what longtail keywords people are searching. So, you may be saying, “time management,” or, “Canon camera.” And it will actually pump out – there’s actually 1000 people a day searching for Canon camera, 8 megapixels. And as a result, you can then go onto Google AdWords campaign, and find out what those words are costing. You may – Longtail Pro, this is more used for SEO, and getting to the top of Google organically. Well it may say, it’s gonna be very hard for you to get to the top of “Canon 8 megapixel,” or, “Canon camera 8 megapixel.”

However, then you can take a shortcut, go straight into Google AdWords, type in “Canon camera, 8 megapixel,” and find out it costs you 75 cents to get to number one. And you may decide that that’s worth it, because those people are directly correlated to the people that buy from you. So, Google AdWords in connection with something like Longtail Pro, or other people know of something called, “Market Samurai,” can also give you a large example. You can do many of these things on the Google AdWords tool as well, however I just find using them together – given me a big advantage. So, Dan, I think we – at this stage, we should probably move on. And, the best – I think the best topic to move onto at this stage is the structure of an AdWords campaign.

Dan: Oh yeah look, this is critical Matt, because the architecture of the ad will, will largely determine how successful it is. Now, we know by looking at the ad – there are 4 lines in an ad. And let’s go through each of the 4. The first line is the most difficult line to do, it’s the headline. And this essentially, and this is basic to all advertising – it needs to gain the attention of the reader. ‘Cause it’s the first line they read, and if it’s not catchy, if it’s not a good hook, they’re just not gonna read the next 3 lines. So, it, it instantly needs to have that ability to act like a bit of flypaper. And it is the most difficult line, because you’re limited to 25 characters, and there’s no way around that. So, that’s not only the words, but the spaces between the words. So I – speaking to a lot of people, Matt, I know that like me, some of the best stuff they’ve ever written is literally 26 or 27 characters long. And it’s very frustrating, but we’ve all been there. And when that happens, just ditch it and start again. Because it’s very important that you stay within that 25 characters.

Now, apart from being the heading, a good heading has keywords in it. So, whatever they’re likely to search, if you can add those keywords to what you’re generating on that line, it’s very powerful. And I also recommend Matt, that if possible, as that it – put the line down in a form of question. Because, if it’s a problem that someone’s having, “Do you suffer, are you experiencing?” The person can read it and go, “Yes, I am.” So instantly, there’s that connection between the hook and what it is you’re selling, and the reader who’s looking at it. Now–

Matt: Especially with Google AdWords, it’s likely that they searched, “how to handle this problem.” For instance, “How do I? How do I fix x problem?” And if the Google AdWord says, “Are you experiencing this problem?” It’s an exact match to what you’re trying to achieve.

Dan: That’s it in a nutshell. So, always think, “Can I put this as a question? Have I got the keywords in there?” And, “Is it under 25 characters? 25 or less.” And if you can tick those boxes, you are off to a very good start with your AdWord. Now, the second, third, and fourth lines include your destinat– You’re URL, so obviously, there’s going to be a destination that when the person clicks on this ad, it takes you to a given landing page. So, we show the URL there. The third and the fourth line are also very important, but a little bit easier, because unlike the first line, they are 35 characters long each. And so, do give you that little bit of extra scope to express yourself. Now, the third line is actually about benefit. So, if you use this product, this is what’s going to happen. And the fourth line is outcome and call to action. So, if you gain that benefit from the third line, the outcome will be this. And to get this outcome that you desire, do this.

And I think Matt, speaking generally – it’s one of the tragedies of all advertising and social media that so often there’s no call to action. You watch a great little video on YouTube. The video stops, and you haven’t told anyone to do anything. You write a blog post – no call to action – it’s really lost potential. So, on that fourth line of your AdWord, what do you want the person to do? “Click here, call here.” Whatever it is, get them to do it, verbalise it. So, when we put those 4 lines together, we’ve got the template for a very powerful, action driven AdWord.

Matt: So Dan, let’s, let’s go into some examples. Because I know when I first started to try and understand AdWords and what was required for every line. As soon as I read one or heard one, all of a sudden it just made sense. So, let’s go through a quick case example so that really comes in clear for people.

Dan: Sure. Okay, well look. Let’s take something a little bit lighthearted. Let’s say that – and we know in the real world, there’s a lot of men who are losing their hair at different stages in life. So, you’re heading might be, “Do you suffer from hair loss?” Now, that is meeting all the criteria that we’ve spoken about. It’s under 25 characters, it’s question. It includes the keywords, “hair loss,” and it’s a problem, ’cause people don’t want to lose their hair. So, something as simple as, “do you suffer hair loss?” has ticked all those boxes.

Matt: And what you’ll also find is that the person that sees this ad would have probably searched, “How to fix hair loss,” or, “Simple solutions to growing more hair,” or something like that. And as a result, when they read this,  “Do you suffer from hair loss?” Well yeah I do, that’s what I’m searching. And you may be able to find something arbitrary, like, how to– “How to stop losing my hair.” And all of a sudden, up comes, “Do you suffer from hair loss?” Even though they’re slightly not connected, it’s exactly the right thing for them to be reading.

Dan: Absolutely right. Then, on the next line, you’d have your URL, which would be, www.morehair.com, let’s say. Because you’re product might be called “More Hair.” Then on the third line where we spoke about the benefit, you’d say something like, “More Hair stimulates the hair follicles, so this is what’s happening. Your follicles are being stimulated. And on the fourth line, where we spoke about the outcome and the call to action, “Click here to regain your hair and confidence.” So, what are we getting you to do? We’re getting you to click here to get that outcome of regaining your hair and confidence. So, that’s an ad that – if it were put in, would tick all the boxes for all four of the lines.

Matt: Now Dan, we put in, we put in a – just a standard web address here, but let’s take the opportunity quickly just to discuss – the standard web address would generally go to a person’s home page. Now, that’s fine, and “More Hair,” may not be your company website, it may be just a landing page that’s all about sell, sell, sell, sell, sell. See, a common mistake that a lot of people make during AdWord campaigns, is they make this wonderful ad that gets people to click on them. They then go to their front page, which does nothing more than explain a little bit about who they are as a company.

When you’re paying for AdWords, you really want to have a specific page that talks exactly about the connection to that ad, and generate somebody into making a phone call, clicking on a button to buy now – that generates business. ‘Cause you’re paying for it, you want to turn it into money. Where a website, you give them a web address, because that’s all about branding and making people believe that you’re a substantial business. This is a sales page that’s supposed to lead to – again – a finalised action of “buy now.”

Dan: Yeah, absolutely, and to that point Matt, that landing page. Google actually give you the ability to A – put in the actual URL, and then to put in what you would like the URL to look like when it appears on the ad. So, it’ll actually allow you to put in both.

Matt: Exactly right, and one of the other things I’ll point out here as well, is there’s a – if you’re saying, “Well hang on a second, I’ve got a website, now I need landing pages as well?” A landing page can be as simple as just one page in your website, dedicated to selling, with a “buy now” button. A landing page isn’t a website of it’s own. The other thing is, that there are lots of companies like Lead Pages out there, which is leadpages.net. Which actually focuses on just developing landing pages. And if you’ve got a WordPress site, there’s a quick plug in, otherwise you get your web developer to do it. But it creates – it has a bunch of pre-made templates, where all you have to do is grab the template, plug it into your website, and attach a link from the “buy now” button to your shopping cart or an external shopping cart, where you actually process the payment. There are options to both, and you need to make that as a structural decision for your website.

Just quickly, on the concept of landing pages or a page on your website that we should also touch on, is the fact that – a sell could be a “buy now” button, but a lot of people forget that sometimes it’s got to be just about getting a person’s email address. If you’re trying to sell a $2000 product, and the bottom of it is perhaps just a “buy now,” sometimes a lot of people get a lot better results out of saying, “Give me your email address and I will give you the first session for free.” That then allows you to then email campaign them over the next few weeks to try and get them to buy your future product. It also allows you to give them that product, and give them a taster of a $2000 product. I know a lot of people that get huge success out of selling their books, by emailing or getting people on their email campaign, with the first free chapter. And then sending them emails about the importance of getting the rest of the book for a period of 6 to 8 weeks.

And the reason why I mention this is the last thing you want to do is talk about hair loss, and as a result of them clicking on the website, there’ll be a whole, “Go on our website buy now, go on our website buy now, go on our website buy now.” And at the very bottom, you can put something as simple as, “Here is a quick resource that we’ve developed that gives you the 7 best steps for how to stop losing your hair. Put your email address in here, press submit, and we’ll send it to you.” And that at least gets them on your campaign – on your email campaign. Because the last thing you want to be doing is spending money on a website – sorry – on Google Adwords, and get people to click. And then, if they do leave – and hopefully they don’t if your sales page is good enough. However, if they do, at least you get their email to target them again later.

Dan: Absolutely.

Matt: So, the next one is, I guess the understanding. We’ve kind of touched off on this, but understanding the difference between getting to the top of an organic search, or an SEO search if you like, and getting – and focusing on AdWords. Are they both necessary, or should we just be focusing on organics or AdWords? Dan, what’s your view on this?

Dan: Yeah, look Matt, they’re both important, because as I said earlier – if you’re not on page one, in the minds of these target audiences, you don’t exist. So, through this whole discussion of AdWords, concurrently, we’re always working to optimise the quality and the – optimise the level of all our content. Both on our website, and on our social media platforms. That’s a given. Because SEO is so important. But while that’s happening, and we’re not necessarily at the top of page one, Google Adwords is critical, because what it does is it gives us exposure. It puts us on page 1. And the real question then becomes, “Well what happens if I’m on page 1, do I still need Adwords?’

And here I would argue that it’s still quite possible that it’s a good thing for your firm. Because, you could be on page in terms of organic search on the left hand side. But even though you’re there, and you’ve got an AdWord running on the right hand side. If that AdWord is at least breaking – it’s breaking even, or has a positive return on investment, there’s absolutely no reason you wouldn’t do both.

Matt: Look, I agree with you. The other thing that’s important to note is that generally the first 3 links in Google are paid for links. So, even if you are number 1 in organic search, you still would come number 4 in Google. And statistically, that’s still not going to get you the highest number of clicks.

Dan: Exactly, so why not do both?

Matt: Look, I agree with you, I agree with you. And one of the major objections I get when I talk to people and suggest this is that they continually tell me that, “Okay, Matt, it costs 3 or 4 dollars or a dollar even to get these clicks. 1 out of 20 customers buys my product. Which means I have to buy – I have to buy 20 clicks to get one sale. That’s a $20 cost. What is – if my profit margin’s only $20, why would I do it?” The first thing I would say to that is that yes, that is true, however, you need to focus on getting your conversion rate on your sales page up. If it doesn’t cost you anything, and you can continually improve the process, then eventually you’ll make more money out of it. The second thing is that you’ll achieve a wonderful thing called additional sales. Now, people call this the lifetime value of a customer. And Dan, can you just explain to people what that means, and how it relates to achieving your first sale through AdWords?

Dan: Yeah, absolutely Matt. Essentially, once you make a sale with someone, then if that person needs that type of a product for the next 20 years, then there’s a very good chance that if you look after them, your customer service is strong, etc etc, that they’re gonna keep buying from you. So, it’s not just that one sale, it’s the fact that they keep buying that product from you. And the other thing you’ve touched on there Matt, is the ability to cross sell. So, not only do they buy that product from you for many years, but you will also sell other products that they need. And then, because you’re doing such a great job, they might become an advocate and tell all their network about you. So it goes well beyond that initial purchase.

Matt: A good example of this is the Hyundai vehicles. Where, when they first entered into the Australian market, they were making $1000 Australian loss per vehicle that they sold. This is what’s called a loss leader. And what they did is they wanted to get market penetration, they wanted to get brand recognition. So, they decided that they were comfortable losing $1000 a car so that people would buy their cars, because they were cheap, and tell their friends about them, so those people would buy their cars. In the long term though, those cars were then retired, and new cars were purchased. And many people that bought those Hyundai’s then bought another Hyundai from the same dealership, where they actually made a profit. So, over the long term, they made additional car sales over 10, 20, 30 years. Also, each one of those cars, there were special offers to get their cars serviced at the Hyundai facility, to allow for the relationship to continue, and profits to be made on each additional servicing, or your cross sell if you like.

With Google AdWords, it gives you the absolute finite opportunity to create a relationship with a customer, where you may break even or make a lesser profit with a client. You may even decide to make a loss if you’ve got for instance a sale of – a product like an ink cartridge, where the first sale you lose on Google AdWords, but they have to refill their cartridges time and time again.

Dan: Yeah, that’s a great example.

Matt: So, the last thing that I really wanted to focus on, before giving some people some advice on how to get started, is – the new AdWords feature that’s just going gang fires for everybody at the moment. Which is the process of re-marketing. So, I’m sure everybody’s been in this situation, where they’ve had a Google search where they might be searching for the answers on how to fix hair loss. Next thing they know, they’re on Facebook, or their on Google, and all of the ads on the right hand side bar, all the Facebook ads that they keep seeing are about hair loss.

What that is, is that Google AdWords, and Facebook now, all allow you to add little cookies on your– Specific code on your website that allows you to leave cookies on a person’s PC, that then allows for your advertising campaign to recognise that cookie, and provide a re-marketing of the campaign. Basically, you’re following your customers around. So let’s say hypothetically off market, or online, I pay for a Google AdWords campaign to get my, my traffic up. But I might say, “I want to create – find people that are losing their hair.” People are searching that. I paid $1.50 for this person to get onto my website. The problem is, I was the first website that they targeted, and then they went on 2 or 3 other websites as well. Those 2 or 3 other websites – perhaps one of them had a Google AdWord, advertising section on it. And as a result of that, a picture for my business then shows up again to that customer.

Now, it wouldn’t if I didn’t have the cookie on my website. And you do need to change your privacy policies a little bit to do this, however, it’s commonly done with all big businesses now. So, as a result, you’re following that customer around. Every time I hop on Facebook, I see your ad. Every time – and I may not click on it, so it doesn’t even cost anything. Then I go back to Google, and I search something else – I see your ad. I continually see your ad, and it’s constantly making and having an effect on me. Eventually, I’d say, “That’s it, I’m clicking on it again.” You’ve paid for it again, but this time the person will buy.

And there’s lots of simple ways of doing this, and there’s lots of – hope on Google Ad– Sorry, YouTube, and look up “Re-marketing on Google AdWords.” And you’ll see plenty of material on this as well. However, re-marketing is something you should definitely look into after you’ve started to set up your first AdWords campaigns. Because once you’ve paid for them first, you don’t want to lose them in the mist of everybody else’s advertising.

Dan: Absolutely.

Matt: So, with that, Dan, I think we may call this session to an end. If you’re looking for other ways of figuring out about whether or not Google AdWords is for you, or how to start with understanding Google AdWords. Type into YouTube, “Learn Google planner,” or “Learn Google AdWords.” Or just hop on the Google Adwords page, and it will give you a lot of examples and a lot of videos on how to get started. Don’t forget, Google is a business just like any other, they want to make their platform as easy and as explained as possible. For you to spend money with them. Because, even though you’re spending money with them, and – you’re getting that money back off other clients.

So thank you very much for joining us today. We really appreciate you lending us your ear again, and we’ll see you next time on the Dan and Matt podcast.

Dan: Thanks everyone.

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