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Introduction to AdWords




                          Slide 1
What Is Google?
•Google has a search engine that will gather, sort & report information from the
Internet, based on your topic of interest
•But, Google also offers a lot more than search alone…
                              www.google.com




                                                                                   Slide 2
What is Google Advertising?


    Your customers see your ad when they search




                                  Your ad reaches users at the
                              moment they demonstrate interest


                                                             Slide 3
What is Google Advertising?

Your customers see your ad when they surf Google Network properties




             Google technology places your ad on the
             most relevant content pages
                                                                      Slide 4
Keyword Advertising




• Targeted advertising
• Better advertiser ROI than
  untargeted ads
• Improved user experience




                                Slide 5
A Typical AdWords Ad




   • Ad Title (25 character limit)
   • Ad Text (35 character limit)
   • Display URL (35 character limit)



                                        Slide 6
Google’s Ad Distribution Network




                                   Slide 7
Google Network Basics – Ad Distribution
The Google Network consists of Google sites & partner properties that use Google AdSense to serve
  AdWords ads
These properties include: Search sites, content pages, newsletters, email services & discussion boards


                                                    Other
                                                    20%                The Google Network reaches
                                                                        over 80% of Internet Users
                                                                               worldwide*
                                      network
                                        80%
                                                                            Content publishers,
                                                                                 including:
 Google properties,
          including:                                Search partners,
                                                        including:




* Source: comScore Media Metrix (September, 2004)                                                  Slide 8
Google Network Basics



With the Google Network advertisers can:

• Reach a vast and highly-targeted audience

• Target ads to search results and relevant Web content

• Opt-in or opt-out of search and content distribution (default is opt-in for
  all advertisers)



Note: by default, AdWords ads appear on Google.com




                                                                          Slide 9
Ad Distribution Example




                           Search query:
                              „SUV‟




                          Four AdWords ads
                            under the title
                          „Sponsored Links‟




                                              Slide 10
Benefits of AdWords




                      Slide 11
What Google can do for Advertisers


•   Advertising on Google can help an advertiser meet many objectives
•   Determining, measuring, and tracking metrics helps ensure success

    Objective                            Example Success Metrics

     Generate awareness             • Targeted impressions
     Build brand                    • Qualified visits your website
     Educate prospects              • Depth of involvement

     Generate leads                 •   Request for proposals
     Identify prospects             •   Coupon downloads
                                     •   Newsletter registrations
                                     •   Email address opt-ins

     Customer acquisition           •   Sales conversions = $$$
     Sales                          •   Lower cost per lead/sale




                                                                        Slide 12
Benefits of AdWords

The primary benefits of AdWords include:

  - Reach

  - Cost

  - Timing

  - Flexibility




                                           Slide 13
Benefits of AdWords: Reach


              The Google Network reaches over 80% of Internet users*



                                                             Other
                                                             20%



                                                           Network
                                                          80%
   Google Properties                                                  Content Publishers
                                                                      New York Times

                                                                      About.com
                                                    Search Partners
                                                    AOL
                                                    Amazon
                                                    Earthlink
* Source: comScore Media Metrix (September, 2004)                                   Slide 14
Google Reaches Global Markets


Reach customers around the world on one platform

  Your customers                                     #1 search engine in                                  Ranked #1 in 2005
 search Google in                                        17 out of 20                                     Web Globalization
over 100 languages                                   countries measured                                     Report Card




                             “Google is arguably the most global
                              commercial Web site ever built.”
                                                                                  – John Yunker, Chief Analyst,
                                                                                          Byte Level Research




Sources: Measured by Media Metrix and NetRatings (September 2004); “2005 Web Globalization Report Card,” Byte Level Research (November 2004)   Slide 15
Benefits of AdWords: Cost

• No minimum spend
• You choose your own maximum daily spending limit (daily budget)
• Choose how much you want to spend per click for every keyword
• Pay Google for users who click on your ad
• More cost-effective than Yellow Pages, Banner Ads & Direct Mail*
• Conversion tracking = real-time return-on-investment data




  ** U.S. Bancorp Piper Jaffray, New Methods in Search Marketing: Contextual Advertising and Other Evolutions (Safa Rashtchy), June 2004   Slide 16
Example: How AdWords Can Pay for Itself



                  $1,000 initial investment in AdWords
Increase revenue by reinvesting profit
                       $1.00 CPC ≥ 1,000 clicks


                    10% conversion rate = 100 sales


                          Average sale = $100


                 $1K investment returns $10K in sales


                    Reinvest profits, increase budget

                                                         Slide 17
Benefits of AdWords: Timing



Timing
• Ads are continuously matched to Internet users‟ interests

• Ads are placed as buying decisions are made



The Result:

• You reach your audience at the right time, with the right message




                                                                      Slide 18
Example: Ads Show on Relevant Content Pages

Your customers see your ad when they surf relevant Google Network properties




                 Google technology places your ad on the
                 most relevant content pages
                                                                         Slide 19
Benefits of AdWords: Flexibility



Flexibility
• See your ads on Google quickly

• Optimize and change your ads continually to increase ROI

• Target multiple locations and languages




                                                             Slide 20
Benefits of AdWords: Summary

• Reach
    - Access to ~80% of Internet users worldwide
• Cost
    - Low costs for high ROI
    - Pay Google when users click on your ads
• Timing
    - Ads are seen by users looking to purchase
    - Reach your audience at the right time, with the right message
• Flexibility
    - Start advertising quickly
    - Unlimited changes, whenever you want
    - You can target ads to the specific location & language of your
      customers



                                                                       Slide 21
Appendix: Basic AdWords Features




                                   Slide 22
Basic Features of AdWords



The basic features of AdWords include:

• Cost-per-click pricing

• Ad impressions & click-through rates

• Language & location targeting




                                         Slide 23
Basic Definition: CPC



                        CPC: cost-per-click

• Click: The action a user takes to select your ad and be taken to your
  website.
• Google charges the advertiser when a user clicks on your ad




                 A sample AdWords ad
                                                The Destination Website

                                                                      Slide 24
Basic Definition: CTR




                         CTR: clickthrough rate


Impression: The appearance of your ad on Google or one of our partner sites



             Clicks
                            = CTR (expressed as %)
         Impressions




                                                                      Slide 25
CTR Examples



          CTR is how Google measures relevance




                            20 clicks
Example Advertiser A:                      = 0.02 = 2%
                        1000 impressions




                             3 clicks
Example Advertiser B:                      = 0.03 = 3%
                         100 impressions




                                                         Slide 26
Benefits of AdWords – Location & Language Targeting

Targeting options: you can target ads by location and language
   •Regional/Local, Country, Global & Customized Targeting
   •Roughly 40 different language targeting options to choose from




                                                                     Slide 27
Region/City Targeting Examples


When should you use regional targeting?

• Example: you have local flower shops in the San Francisco Bay
  Area

• Example: you run a restaurant in Chicago




                                                                  Slide 28
Country Targeting


When should you use country targeting?

   • Use if you have national or global customers

   • Example: you ship to the U.S. only. Target your campaign to the U.S.




                                                                     Slide 29
Global Targeting



If you have a global business, give your campaigns global exposure

• Example: If you sell DVDs and have worldwide distribution, you should
  target your campaign to all countries




                                                                     Slide 30
Customized Targeting



Use Customized Targeting to target highly specific areas
For example, to reach customers located in an area that cannot be
  targeted accurately using region or city targeting
• Example: pizza delivery service




                                                                    Slide 31
Thank You




            Slide 32

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Introduction to Google AdWords

  • 2. What Is Google? •Google has a search engine that will gather, sort & report information from the Internet, based on your topic of interest •But, Google also offers a lot more than search alone… www.google.com Slide 2
  • 3. What is Google Advertising? Your customers see your ad when they search Your ad reaches users at the moment they demonstrate interest Slide 3
  • 4. What is Google Advertising? Your customers see your ad when they surf Google Network properties Google technology places your ad on the most relevant content pages Slide 4
  • 5. Keyword Advertising • Targeted advertising • Better advertiser ROI than untargeted ads • Improved user experience Slide 5
  • 6. A Typical AdWords Ad • Ad Title (25 character limit) • Ad Text (35 character limit) • Display URL (35 character limit) Slide 6
  • 7. Google’s Ad Distribution Network Slide 7
  • 8. Google Network Basics – Ad Distribution The Google Network consists of Google sites & partner properties that use Google AdSense to serve AdWords ads These properties include: Search sites, content pages, newsletters, email services & discussion boards Other 20% The Google Network reaches over 80% of Internet Users worldwide* network 80% Content publishers, including: Google properties, including: Search partners, including: * Source: comScore Media Metrix (September, 2004) Slide 8
  • 9. Google Network Basics With the Google Network advertisers can: • Reach a vast and highly-targeted audience • Target ads to search results and relevant Web content • Opt-in or opt-out of search and content distribution (default is opt-in for all advertisers) Note: by default, AdWords ads appear on Google.com Slide 9
  • 10. Ad Distribution Example Search query: „SUV‟ Four AdWords ads under the title „Sponsored Links‟ Slide 10
  • 12. What Google can do for Advertisers • Advertising on Google can help an advertiser meet many objectives • Determining, measuring, and tracking metrics helps ensure success Objective Example Success Metrics  Generate awareness • Targeted impressions  Build brand • Qualified visits your website  Educate prospects • Depth of involvement  Generate leads • Request for proposals  Identify prospects • Coupon downloads • Newsletter registrations • Email address opt-ins  Customer acquisition • Sales conversions = $$$  Sales • Lower cost per lead/sale Slide 12
  • 13. Benefits of AdWords The primary benefits of AdWords include: - Reach - Cost - Timing - Flexibility Slide 13
  • 14. Benefits of AdWords: Reach The Google Network reaches over 80% of Internet users* Other 20% Network 80% Google Properties Content Publishers New York Times About.com Search Partners AOL Amazon Earthlink * Source: comScore Media Metrix (September, 2004) Slide 14
  • 15. Google Reaches Global Markets Reach customers around the world on one platform Your customers #1 search engine in Ranked #1 in 2005 search Google in 17 out of 20 Web Globalization over 100 languages countries measured Report Card “Google is arguably the most global commercial Web site ever built.” – John Yunker, Chief Analyst, Byte Level Research Sources: Measured by Media Metrix and NetRatings (September 2004); “2005 Web Globalization Report Card,” Byte Level Research (November 2004) Slide 15
  • 16. Benefits of AdWords: Cost • No minimum spend • You choose your own maximum daily spending limit (daily budget) • Choose how much you want to spend per click for every keyword • Pay Google for users who click on your ad • More cost-effective than Yellow Pages, Banner Ads & Direct Mail* • Conversion tracking = real-time return-on-investment data ** U.S. Bancorp Piper Jaffray, New Methods in Search Marketing: Contextual Advertising and Other Evolutions (Safa Rashtchy), June 2004 Slide 16
  • 17. Example: How AdWords Can Pay for Itself $1,000 initial investment in AdWords Increase revenue by reinvesting profit $1.00 CPC ≥ 1,000 clicks 10% conversion rate = 100 sales Average sale = $100 $1K investment returns $10K in sales Reinvest profits, increase budget Slide 17
  • 18. Benefits of AdWords: Timing Timing • Ads are continuously matched to Internet users‟ interests • Ads are placed as buying decisions are made The Result: • You reach your audience at the right time, with the right message Slide 18
  • 19. Example: Ads Show on Relevant Content Pages Your customers see your ad when they surf relevant Google Network properties Google technology places your ad on the most relevant content pages Slide 19
  • 20. Benefits of AdWords: Flexibility Flexibility • See your ads on Google quickly • Optimize and change your ads continually to increase ROI • Target multiple locations and languages Slide 20
  • 21. Benefits of AdWords: Summary • Reach - Access to ~80% of Internet users worldwide • Cost - Low costs for high ROI - Pay Google when users click on your ads • Timing - Ads are seen by users looking to purchase - Reach your audience at the right time, with the right message • Flexibility - Start advertising quickly - Unlimited changes, whenever you want - You can target ads to the specific location & language of your customers Slide 21
  • 22. Appendix: Basic AdWords Features Slide 22
  • 23. Basic Features of AdWords The basic features of AdWords include: • Cost-per-click pricing • Ad impressions & click-through rates • Language & location targeting Slide 23
  • 24. Basic Definition: CPC CPC: cost-per-click • Click: The action a user takes to select your ad and be taken to your website. • Google charges the advertiser when a user clicks on your ad A sample AdWords ad The Destination Website Slide 24
  • 25. Basic Definition: CTR CTR: clickthrough rate Impression: The appearance of your ad on Google or one of our partner sites Clicks = CTR (expressed as %) Impressions Slide 25
  • 26. CTR Examples CTR is how Google measures relevance 20 clicks Example Advertiser A: = 0.02 = 2% 1000 impressions 3 clicks Example Advertiser B: = 0.03 = 3% 100 impressions Slide 26
  • 27. Benefits of AdWords – Location & Language Targeting Targeting options: you can target ads by location and language •Regional/Local, Country, Global & Customized Targeting •Roughly 40 different language targeting options to choose from Slide 27
  • 28. Region/City Targeting Examples When should you use regional targeting? • Example: you have local flower shops in the San Francisco Bay Area • Example: you run a restaurant in Chicago Slide 28
  • 29. Country Targeting When should you use country targeting? • Use if you have national or global customers • Example: you ship to the U.S. only. Target your campaign to the U.S. Slide 29
  • 30. Global Targeting If you have a global business, give your campaigns global exposure • Example: If you sell DVDs and have worldwide distribution, you should target your campaign to all countries Slide 30
  • 31. Customized Targeting Use Customized Targeting to target highly specific areas For example, to reach customers located in an area that cannot be targeted accurately using region or city targeting • Example: pizza delivery service Slide 31
  • 32. Thank You Slide 32