Google actually has a long view of delivering quality results, more importantly than necessarily trying to buy your way to the top.
Mike: I appreciate your getting in-depth on that one. The second question has to do with budget, and I spoke about this just a few weeks ago- about how sometimes the hyper local market has a different requirement for how many times you try to come up in a day versus someone who’s state or national.
Jordan: Exactly. And so with the budget, it’s always important, because here at Google, we do a lot of studies and a lot of research, but you want to make sure that you’re focusing on a couple of things here. Within a week, we like to see you have a hundred clicks. Now the reason is not because we want to make a lot of money and so on and so forth; the reason we want to see at least a hundred clicks is because that way we can have a really good gauge of exactly what people are searching for, where they’re searching from, what search terms they’re using, things like that. Now the other thing you keep in mind is with quality score; quality score doesn’t actually come into affect until you get 10,000 impressions. An impression is anytime that your ad shows, not just from clicks, but anytime that your ad shows.
So anytime that someone does a search, and your ad appears, that’s considered an impression And so after, 10,000 impression,s those quality scores are then weighted. Before the 10,000, you’re going to have whatever the system sees as the average quality score over the industry; you have that quality score for that key word. Now, once you start to see that perhaps people aren’t really putting on their ads, that they don’t really like going to their page, that they’re not staying on the page too long, etc., they came back to Google within 15 seconds and did another search for the exact same thing and clicked on another ad. Well now, we know that that person really didn’t make too good of a campaign. Now as far as the local, regional, and the national goes – for local, you want to do at least 20 clicks a day for a campaign that will be running at least five days. So 20 clicks a day for a campaign on the local level.
Mike: Okay. Let me interrupt you real quick. When you mentioned the five days, what are the suggestions when you have a company that really is only open for five days. Let’s take it as a dentist predominantly is only Monday thru Friday, or even an IT services company, or we can list dozens of different companies that really don’t open on the weekend. Do you see companies typically shut off their AdWords on the weekend?
Jordan: Yeah. And so it really depends on the vertical industry they’re in. But typically I will ask. I’ll say, “What days are you open? Are you not open Saturday and Sunday? Because if you’re not open on Saturday and Sunday, we don’t need to run a campaign, especially if you’re a bakery. If you’re a bakery and people need to come in to get a cake, and you’re not open on Saturday or Sunday, then there’s no point in running your ads.. People are going to go to your page, and they’re going to see that you’re closed, and then they’re going to be upset; they’re going to go back to Google, do another search, and then go to your competitor. So you really want to make sure that you are, what we call, ‘ad scheduling.’”
“I’m open during these hours. I have people available to take calls. I have someone in the office these hours. These are the hours that are going to be the most important. Now obviously, there are those times when people are going to be doing searches at night for the next day, but then again, you want to make sure that, in the beginning, the preliminary spaces of your campaign, you are minimizing cost, because like we spoke, this can get expensive. It can get very expensive, and so you want to minimize your cost. And then, if you are starting to see your ROI increase, then that conversation about expanding it out a couple more hours into the night is just in case people are doing searches; then that conversation becomes more plausible. Because it wouldn’t make sense any other way.
Mike: Well, even from that perspective, I guess we can encourage them to create another campaign so that they can budget specifically and track it for that time.
Jordan: Exactly. Budget specifically, you want to track it for that time, and see what the engagement is. When people see my ad, when there’s an impression, how many people out of all those impressions have clicked on it? And that’s the click theory. You take the number of the clicks, you divide it by the number of impressions, and if that is anything under 1%, then we need to have a conversation about changing some of the ads.
Jordan: Because you’re going to have tons of impressions, and let me tell you, if you have too many impressions and not enough clicks, and your CTR (your click through rate) is really low, well, you’re going to start seeing your quality score getting down a little bit, because now we know that when people go to your page, they’re not finding what they need, and that doesn’t make us happy, because we know that that’s going to be a higher chance that they might go to another location.
Mike: Okay. So I appreciate you’re going on the tangent. So we were talking about like five days, 10 days, but related to a budget hyper local, regional, national (and you were mentioning a hundred clicks, 10,000 impressions before you start really understanding the quality scores(, you’re almost given a path for 10,000 impressions. You’re given the average of what’s going on in your industry at that point; you go back pack that, and you’ve got to be very, very careful really of the quality score and how that affects both budget and your opportunities to get higher on the page, and therefore get more opportunities for clicks.
Jordan: Exactly. The first week is a time where you want to watch it as closely as possible, because if you can get it right within that first seven days, it’s going to be gold the rest of the time. For local, we want to do about 20 clicks a day, and these are extreme minimums. For regional, or at the state level, we want to do at least 50 clicks a day, and this is all because you have to think about, “I have in a local area maybe a hundred thousand, maybe 200,000 people. So 20 clicks a day, I’m going to allow for 20 people to click on my ad out of 200,000.” That’s a very small number. And then again for regional, 50 clicks for a state level.
Now obviously that’s going to change for places like Texas, places like New York. Things are going to change based on population. But for a really an average state level, you want to allow for 50 clicks a day, just so that you can make sure you’re staying up a little past lunch, right? If you’re allowing for anything else, chances are that you’re not going to have as much success, because 50 clicks is a pretty good amount of clicks when you have 300,000, 500,000 people, and you’re only allowing 50, right? It’s just a very small number. And that’s what people kind of miss; they say, “Oh, 50 clicks! That’s a lot.” But I mean, think about the big picture here. How many people am I really going to be advertising to? Pretty much almost everyone, about 70% of people will do a search on Google, and then again at the national level, this is an extreme minimum.
On a national level, we want to allow for 100 clicks, and so maybe you have had this conversation before, but I can’t tell you how many times when I was a sales rep, I got people that would say, “You know what? I want to run a campaign, $20 a day. My CPCs are going to be a dollar and 50 cents, and I’m going to run it to the entire United States.” And then I let them know, “You know what? I want to warn you ahead of time, before you do, that your campaign may not stay up for too long. It may be down before you check on it again.”
Mike: What do you mean by down? Let’s go and explain it to the people.
Jordan: So your budget is going to reflect how long you can stay on Google.com, how long your ads will show. So if you have a very, very small budget, and let’s say you have a $20 a day budget and your clicks are $2 or $3, well it’s only going to allow for 10 to 14 clicks. Well, view that 14 clicks before noon, and your budget is gone; then your ads will no longer show. Once your budget is depleted, your ads will no longer show on Google.com.
Mike: Right. So let’s say that we budget only to your point; we only budget $20 a day, and Google will allow it to fluctuate up to 20% over and that’s only in order to …