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Maximising Returns From Advertising Budgets – Why Advertising Buyers are Switching Their Spends to Google Adwords

posted November 23, 2008 - 6:01pm
Maximising Returns From Advertising Budgets – Why Advertising Buyers are Switching Their Spends to Google Adwords

Magazine Advertising VERSUS Google Adword Campaigns

Magazine Advertising keeps many sub-standard monthly publications afloat, is disproportionately environmentally damaging and infamously difficult to monitor. However, in most cases magazine advertising offers an extremely poor Return on Investment (ROI). Online advertising but particularly Google Adwords is not guilty of any of these offences and there is sufficient evidence to support these claims. We believe you can achieve twice as much (at least) by spending half what you would on magazine advertising.

Adword Campaigns Achieving 600% ROI!

Google offers determinable Returns on Investments to Advertisers via their Adwords Program. Anecdotal evidence suggests ROI outperforms other advertising mediums considerably. Cases of ROIs of 600% and 350% are reported by small adword investors see http://forums.digitalpoint.com/showthread.php?t=1019901 – but we can only speculate as to what larger companies are achieving. Readily available and insightful published information and common sense improves on mere speculation. Below our pitch to company representatives we seek to contact are case studies of companies with various business models who have invested in adwords. These will make interesting reading for them and for others looking into developing an adword campaign themselves.

PLEASE SEE ADWORD CASE STUDIES BELOW THIS SECTION

Are you Spending from £1,000 per month on Magazine Advertising?

OUR CHALLENGE TO YOU!

Invest half what you are spending now on advertising (including our fees) and let us put together and implement your first Google Adword Campaign.

ABOUT US

We represent accredited Google Adword Specialists and carry out ongoing research into making profits online. IndividualOpportunity.co.uk has a vast knowledge of website development, insider knowledge of advertising media, experience of working with many business models and the ability to offer advice and consult on web-development projects which aim to increase ROI.

Grants for B2B Website Development 25-80. Please enquire about these grants if you are a UK based company or organisation via www.IndividualOpportunity.co.uk

Our intention is to encourage advertisers to switch their magazine advertising budget to Google adwords – or at least trial a small amount for a few months. We are convinced a trial will show the huge potential of this medium. The following Case Studies (with full reference links) seek to illustrate how a variety of organisations use Google programs to increase sales or revenue from their online presence. We do not deal with any of the companies represented but have used readily available data to assess their operations.

CASE STUDIES – Selling Office Stationery and Computer Products Online

officedepot.com http://www.spyfu.com/Domain.aspx?d=5871386363058773355

officedepot.com are spending on adwords and seemingly setting no ceiling – presumably the ROI must be established and dependable. Since July 2006 they have spent $21,230 – $66,480 per day, which has generated 48,300k – 71,300 potential customers to their site/s daily. We calculated (pessimistically) that if the average profit from these visitors (including purchasers and non-purchasers) was 50 cents per click they would generate profits of $24,150 - $35,650 per day. Realistically the average profit must be $1 per day but based on the profit margins on some items (wholesale prices on some stationery items allow 100% mark-up) this could be substantially higher.

dell.com http://www.spyfu.com/Domain.aspx?d=-805675300758929724

Since July 2006 dell.com have been spending up to $209.38k per day and for their money get between 219,000 and 285,000 click-throughs to their website. If Dell.com make an average of 50 cents profit from their visitors (including purchasers and non-purchasers) they would achieve $109,500 and $142,500 ROI. Realistically, this figure must be $1 and this alone would provide a healthy ROI.

CASE STUDIES – Original Content Rich Sites

Xomba.com http://www.spyfu.com/Domain.aspx?d=2723686278602353638

Xomba.com (an article writing site generates its income via adsense only, which it splits 50/50 with its members or contributing writers) spent about $3 per day on adwords for about a year. This spend increased dramatically, to over $28 per day after a year. According to our source, their spend started in July 2007 and the dramatic increase (900%) took place a year later in July 2008. It is deduced from this that an analysis of their click throughs revealed a healthy, dependable ROI.

JOIN XOMBA HERE FREE http://www.xomba.com/referral/7779c333 (You can apply for a Google adsense account, publish original content, test out its popularity, promote sites and products and use your membership to drive relevant traffic to your site. ALSO earn revenue through Google adsense. This can provide useful research for marketers investigating Google and their Adsense (for online publishers) and Adwords (for advertisers) program.

Hubpages.com http://www.spyfu.com/Domain.aspx?d=-7481219954933547295

Hubpages.com (an article writing site generating its income via adsense - and other affiliate programs – e.g. eBay, Amazon and Konterra - which it splits 40/60 with its members or contributing writers) has spent on adwords since May 2007. They spend an estimated $0.16 - $1.96 per click and from $8.37 - $76.36 per day on 227 keywords.

CASE STUDIES Sites Where Google Ads Do Well

To discover this we looked at companies which earn a substantial proportion of their income from Google adsense. Google pays the owners of these websites a proportion of the agreed cost per click from their advertisers. Advertisers ads appear on these websites ONLY if their content is relevant to the products and services they offer. PLEASE NOTE: Advertisers with high traffic yielding websites may have the option to monetise their website with Google ads. In some case this will cover the costs involved in website development.

SpartacusEducational https://www.google.com/adsense/static/en_GB/Spartacus.html.

Spartacus is a Google Adsense success story. The site, set up in 1997, now records an average of 6 million page views per month and makes a “substantial” income from adsense. Its content runs to tens of thousands of pages and covers many topics of interest to a huge variety of readers. A similar operation but with less content pages is:

ScienceDaily.com https://www.google.com/adsense/static/en_GB/ScienceDaily.html

ScienceDaily.com was launched in 1995 and reported to earn “66%” of it revenue from Google adsense. The other 34% comes from other advertisers and affiliate schemes. The nature of this site (and Spartacus) – thousands of pages and original content ensures it performs well in relevant generic search engines. Both sites will have healthy “return visitor” statistics. We’d estimate this figure to be in the region of 20-45% for these sites.

ScienceDaily http://www.spyfu.com/Domain.aspx?d=-2449339280289187418

ScienceDaily.com’s Adsense ads account for less 20% of its advertising space, though the ads are given a prominent position. To supplement visitors gained via generic search, they seem to have started an extremely small adword campaign in April 2007, spending up to a maximum of 99 cents per day up until October 2008 to realise an estimated 1 visitor every other day.

CASE STUDY – An Interesting Adword Investor

OfficeLive.com http://confidencewiring.health.officelive.com/default.aspx

OfficeLive.com sell an ebook about confidence building. This seemingly profitable but low cost site sells an ebook which costs $11.99 to download. It also promotes a website blog – not monetised.

OfficeLive.com seems to run a highly effective adword campaign. A daily spend of between $500 and $5k achieves 1,120 – 1,960 click throughs to its site, with click costing an estimated $0.31 - $3.63 each. See http://www.spyfu.com/Domain.aspx?d=-584589690672541111

We hope the links provided and the information will be useful to prospective advertisers. We are told that in times of economic depression the worst thing we can do is to halt marketing, PR and advertising. Adwords offers savings on total advertising budget and could dramatically increase ROI. If you are a UK based company or organisation, spending more than £1,000 pcm on magazine advertising please contact us for more information about Adword Campaigns.

Grants for B2B Website Development 25-80%.

Please enquire about these grants if you are a UK based company or organisation planning to develop new or existing Vusiness to Business Websites or Ecommerce Projects via www.IndividualOpportunity.co.uk. Conditions apply.



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