Google Marketing Podcast – Return on ROI Ep 01 CONTINUED

“What can we do with AdWords?” We set up their campaign and, once again, slowly. They were getting three conversions the first month, which to them, that could be anywhere from 15 to 60 grand. And they only spent about $9,000 that month. I mean, that’s not going to be much when you’re going to be making $60, $70, $80, $100,000 for getting those conversions, right? And now, today, I just spoke to them, and they’re getting 14 conversions per month. And so if you want to do the math on that, it’s a pretty a good amount of money that they’re going to be bringing in.

Mike: Right. Well, some of the things that(when I was speaking to my clients as well) we talked about is the fact that any company that has a complicated sales cycle- and by definition, if you have a sales person, you have a complicated sales cycle- if it needs a person to sell it, this isn’t a pack of gum that someone picks up at the grocery store. Then you can look at it and find out how many sales people am I replacing? In the case of what’s going on, this legal team, they really don’t have probably outbound sales people. Is that fair?

Jordan: Exactly. They do not.

Mike: Yeah, they do not. So they’re looking at it right now, and they’re spending about how much a month?

Jordan: They’re doing about a thousand dollars a month, and they’re geared up as well.

Mike: Okay. So I’ll take even one of my clients (crosstalks)

Jordan: Ten thousand dollars a day. I apologize.

Mike: Oh, I can say, “Well, $10,000.” So right now, their hitting there may be $350,000. That’s one sales person. But if they’re getting 14 conversions, that’s more than one sales person can typically close in a week. That is equivalent…

Jordan: Exactly.

Mike: …probably to three qualified sales people. So a legal firm, the rates that they closed, you don’t have to pay the 20% sales commission fee, any of those things, because there is so much opportunity. And we, in fact, kind of implement that a little bit with one of my clients, where we were implementing a Google AdWords campaign inside Los Angeles, and we were able to grab someone who at the time of purchase, pulled them away from another competitor, and the AdWords spin ratio- this is a six-figure deal that we closed our return of investment with somewhere around 92 at.

Jordan: So wow!

Mike: They’re really ramping up. We’re implementing a lot of what we’re going to be talking about on this podcast right now. So within the budget, we talked about needing to be able to implement multiple clicks, so that we start getting an understanding of what’s happening, and staying right on top of it for that first week is so, so important.

Jordan: Yeah. And we will give you all the tools that you will need. They are going to be right in front of you. And anywhere, if you have a computer, you can log in and see how your campaign is going. There’s no contract. You can start or stop it at anytime, and so you never have to say, “I don’t know… I want to wait until next year.” Well, you can start it this month and end it next month, but we give you every chance to make sure that your campaign is profitable before you even start spending those high dollar amounts, $6000 a day, $7000 a day, 10, 12, things like that. And so that’s what we really focus on.

Very seldom do people call in and say, “I want to spend a thousand dollars a day or $2000 a day.” Typically, people will come in a little unsure, a little uncertain and say, “I want to start at 40 or 50 or 70.” Then we can start working them up as we start to get the conversions that we’re looking for. But if we can’t get conversions, at least a hundred conversions within the first week, we can’t even begin to make changes to the campaign, because we won’t be able to see any data.

Mike: All right. So there’s no way to measure and optimize that if we don’t have anything to measure yet?

Jordan: Precisely. And so campaigns and the optimizations are going to go based on the locality. “Hey, am I doing a local campaign.” With 20 clicks a day, I can optimize that in five days. I can optimize that. A regional campaign with 50 clicks a day- I can optimize that the second or third day. A national campaign, I can start optimizing that tomorrow or the same day, when the campaign starts running. You’re going to have more than enough data, because we really like relevancy. This doesn’t sound too relevant but a 1% click through rate is considered really well. And so again, that’s taking the number of clicks, dividing it by the number of impressions, and what you get is if you get 1%, and that’s really good!

And so if you can get at least 1%, chances are you’re going to be able to find someone that is actually looking for your product or service that’s going to be your peak customer, hopefully. Maybe it’s not a big ticket item; maybe it’s the detergent, or maybe it’s not gum, but maybe the CD that came out, maybe a new artist. We have all these types of venues, and I thought, “It’s got to be different kind of podcast, but we have more than just search.” There are other things that are out there, but those probably come in the future podcast though.

Mike: Yeah. So we’re talking campaigns today, and the next podcast, we’re going to start going a little bit deeper, and we’ll start discussing key words next and negative key words, which I think are so terribly important. And most individuals that are failing at AdWords are failing because of their lack of ability to implement negative key words.

Jordan: Oh, yes. And especially with people that are Google partners. They’re certified Google partners where they have taken a test, and they have proven that they know what AdWords are, and they know all know the fundamentals. Exactly right. When you have …