What is Google AdWords and how does
it work?
How Geo Targeting can help you save cost and improve
conversion.
Google AdWords allows you
to advertise your products / services on the internet. Google Adwords
brings the visitors who clicked on your advertisement to your site.
Google AdWords differs from banner ads. It
displays your ads very selectively. Unlike banner ads which displays your ads to
anyone much like a newspaper advertisement, Google AdWords displays your advertisement
based on what the visitor is searching for. Google AdWords is very similar to a Yellow Pages
advertisement in this aspect.
As your ads are displayed to visitors who are actively seeking for your
type of services / products, it brings visitors who are more likely to buy from you.
Google AdWords is a Pay-Per-Click (CPC) advertisement. Unlike a
Yellow Pages advertisement where you the advertiser pays upfront, a Google AdWords advertiser does not pay
when your ad is displayed.
You pay only when when a visitor clicks on your advertisement. It does not matter how many times your advertisement
is displayed.
How much you pay when a visitor clicks on your advertisement depends on how much you bid for the
keyword. Your bid can range from a few cents to tens of dollars depending on the keywords you bid.
Google AdWords also offers another model of advertising based on Site Targeting. Site Targeting allows you
to select the sites which you want your ads to appear in. This method differs from the CPC model as you are charged
based on the no. of times your ads is displayed - Cost Per Thousand Impressions (CPM). You
pay irregardless if your advertisement has been clicked on or not.
If the services you provide are highly localised, such as plumbers, electricians, renovation contractors etc,
Google AdWords's Geo Targeting method would be most cost effective for you. It allows you to
display your ads to visitors based on their geographical location. It makes no sense to publish your ads internationally and
greatly improve your Return on Investments (ROI) by reducing non-performing clicks.
With Geo Targeting, your ads are displayed based on the search relevancy as well as
the geographical location of the visitor. For Singapore advertisers, you can select your ads to appear only
when visitors are searching from Singapore. Google is able to determine the searcher's geographical location based on the IP address
