As if managing pay-per-click campaigns on Google AdWords weren't complex enough, Google has been, over time, quietly moving away from its original recommendations that marketers create large campaigns full of numerous, specific search terms. This has made it even more challenging for novice advertisers to successfully manage their campaigns and reap the benefits of having their ads in the "Sponsored Links" section of Google's results. It has also made it more expensive for the average company to participate.

In the past, Google has recommended that companies create campaigns with sometimes up to millions of keywords, all quite specifically targeted. These search terms are known as "tail terms," and are differentiated from the broader "head terms." To illustrate, here are examples for our longstanding client Abacus Solutions, which buys and sells used mainframe computers (among other lines of business):

Head terms: "used servers," "AS400"

Tail terms: "buy used AS400 computer," "refurbished IBM AS400 server"

In the good old days, when Google encouraged tail terms, it was a win-win for the searcher and the advertiser. Searchers looking to "buy used AS400 computer" would see ads tailored exactly to their needs, eliminating having to dig through the search results. Advertisers benefited because tail terms, with lower search volumes than head terms, are usually less competitive and therefore less expensive. In addition, searchers using tail keywords are often farther along the buying process (they know exactly what they're looking for) and are therefore more likely to make a purchase.

But times and Google's algorithms do change. Google AdWords' system has gradually increased penalties for tail terms. If a specific term has a low search volume (as tail terms, by definition, usually do), Google will either assign it a low "Quality Score" or turn off that keyword. The same thing will happen if your click-through rate doesn't meet certain standards within a fairly short period of time. There's a triple penalty that kicks in with a low Quality Score - Google's system will increase the required minimum bid (sometimes drastically), it'll lower your average position/ranking, and it'll display your ads less often. When your ads aren't being shown frequently, this becomes a self-fulfilling prophecy that's even more difficult to rectify.

It gets worse. We've noticed that launching new pay-per-click campaigns has gotten significantly more challenging just during the past several months. Google has a vast amount of data as to which keywords have historically performed, across time and across advertisers. Even if you're launching a new campaign, if some of your search terms have historically had low search volumes or low click-through rates for other advertisers, you could be branded with low Quality Scores before you even launch the campaign. Never mind that you may have done a much more clever job with your campaign than those who went before you - you'll still be punished. You will eventually establish your own campaign history, and you certainly can attain a high Quality Score on those terms, but it'll take time and money to get there. We believe it takes around 1,000 or more impressions on a specific keyword (head or tail) before you'll earn your own Quality Score.

All is not lost, however. Despite these challenges, pay-per-click advertising continues to be one of the most effective and cost-efficient advertising methods available, so it's definitely not something to give up on. The following strategies can help minimize the effects of Google AdWords' propensity to force marketers to spend more and focus on head keywords:

• Start with good search term research, not just relying on Google's tools, but judiciously checking a variety of sources, such as KeywordDiscovery. Do include tail terms - it's better to start broad and then narrow your pool of keywords, if necessary.
• When launching a new campaign, accept the fact that you'll have to invest for the first couple of months. Front-load your budget and set your bids higher than you normally would. As your campaign builds up its own history (and high Quality Score), your average cost per click will often come down and your average position will normally go up. After your campaign has proven itself, you can inch down bids and budgets, usually without impacting the campaign's performance.
• Keep a close eye on the campaign. If there are tail terms that continue to have low search volumes or poor Quality Scores over time, delete them (yes, I know it hurts to do that with relevant terms!). They can drag down the performance of the entire campaign.
• If you have to eliminate a lot of tail terms, you may have to rely on pricey head terms more than you'd like. Keep a close eye on their costs per click. Don't let your ego make you overspend just to see a high position/ranking. Instead, track your conversions, figure out your ROI, and determine how much you can afford to spend per click and still make a profit.
• Google's Quality Score factors in your click-through rate, but it also considers how tightly aligned the search term, ad text and landing page copy are. Groups of search terms on different topics should have their own ads, with text specifically about that topic (that is, don't display generic ad text for "used servers" for a keyword containing "AS400").
• Relatedly, we've had great success in developing custom landing pages that are created just for the Google AdWords system and the searchers who click on our ads. A well designed landing page not only boosts Quality Score (increasing position and decreasing cost per click), but it can also increase conversions and sales, so there are too many benefits there to ignore.

With planning, diligent monitoring, and going the extra mile with ad text and custom landing pages, pay-per-click on Google AdWords can still have a significant positive effect on your company's sales and bottom line.

About Us

Prominent Placement, Inc., is a full-service, award-winning search engine marketing firm based in Atlanta, GA, serving clients throughout the US since 2001. We provide strategic search marketing solutions, delivering efficiencies that traditional marketing channels can't touch, with a level of client service that can't be matched. We manage the process for you so that you can focus on your business. Since your business is unique, so are the recommendations we make, backed by hard numbers that give you the confidence and knowledge you need to make smarter decisions.

For more information, visit our website or call 888.SEM.MKTR.

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