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Google Adwords VS Twitter VS Facebook Social Media

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Recently, I've been getting a lot of RFPs from prospective clients who heavily spend on Google adwords. I'm here to stop that. 

Sure, there are many benefits and well, that's about it. Here they are:

The Pros For Paying Google Adwords
1. Immediacy
You start driving traffic immediately to your site. This is a major bonus when you've worked with 17 flaky designers who've all left your site in various states of chaos and disrepair of the last 8 months that were only supposed to be 1.

2. You get to Peek Into the Global Search Demand for Your Key Word Term
In other words, when you sign up for Google adwords, there's a keyword generator tool. It tells you how much traffic (RELATIVELY) there is demanding your term. So if you pay top dollar, you'll get valuable data about how much traffic your top competitor is getting.

3. You Get to See How Much Your Customer's Click Is Worth to Your Competitors
Just by being at the top of the sponsored ads, you'll immediately learn how much one click from a potential customer is worth to your competition. Some pay about $1.50 per click. Others, like "cosmetic surgeon beverly hills" can pay $175. per click. 

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Why You Should Stop Your Google Adwords Campaign
1. You've Had Time to Build Your Organic Traffic River 
Imagine if you could open a store in the Wilshire District of LA (all offices and no retail) and gradually inch it over onto Rodeo Drive, Beverly Hills in 2 weeks. Well, you can. At least online you can. Work on your social media Twitter, Youtube, Facebook, Forums, Communities, Blogosphere, Quora, Reddit, Digg, PR, and Organic Google positioning hard and intensively. You'll be able to generate fifty fold more traffic than Adwords and at a fraction of the cost.

Think about it, when's the last time you even clicked on a sponsored ad?

There's a whole lot more traffic and customers out there that Adwords can't even touch. Adwords only touches about 1/500 of them.

2. The #1 Google Organic Search Spot Gets About 20 Times More Traffic Than the Top Adwords Ad
Take my word for it.

And, you don't have to pay per click. Pay Per Click, PPC, is just a horrible business proposition. Whether you make any money or not, you're on the hook to pay Google. This means that they have absolutely zero risk. You have 100% of the risk. Why don't you just buy a 30 second ad spot from your local cable TV provider!

3. Rapport
A dollar is NOT a dollar is NOT a dollar. A dollar earned through an incidental adwords ad is worth about one dollar. A dollar earned through the recommendation of an influential blogger or a Twitter account that your can converse through will yield high value dollars--recurring customers.

This is a simple equation. If you searched for a product and bought it via Google Adwords, how many times will you repeat that behavior? If you saw a product mentioned through an influential blog or Twitter, how many times will you see that blogger or Tweeter? This is a recurring relationship that tends to yield recurring revenues.

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The Worst Part
Worst of all, do the math: Do you know how many clicks you need from Adwords to generate one sale? Scientifically, you'll have to generate about 100 sales to build numbers you can bank on. 

However, to generate just one sale, if you've done any Adwords advertising, you know that you'll need to generate about 800 unique views to convert into a sale. If you're at a common $2.50 per click (aka unique view) you're at a whopping $2,000 to generate one sale. Let me run that by you again. To sell a $40 item, you've got to spend $2,000. Which is fine if your $40 item is a sale that recurs daily. But it won't be. See #3 Again. 

So how do you drive traffic with high recurring revenue potential to your site? How do you do it at a fraction of the cost? Those answers are two clicks away. The first click, please fill in http://sparkah.com/marketing.php 

Thanks! And I'm looking forward to hearing about your goals! - Bob Wan Kim http://twitter.com/journik



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Comments (10)

Jan 21, 2011
Claire Jarrett said...
Interesting post, but I disagree with a couple of points here.

If you appear at the top of AdWords - you may actually end up paying less than the compeitor underneath you due to quality score.

Secondly - it depends on the market whether or not the top organic link gets most of the traffic. In particular, mobile AdWords ads get a HUGE percentage of clicks, more than the organic in many local markets.

Jan 21, 2011
Stephen Wade said...
If it's taking you 800 views to generate one sale, the problem isn't adWords - it's you. Geez, that's a 0.13% conversion rate!

From a sales perspective, organic traffic tends to be of higher volume and lower quality; our organic web initiatives generate more traffic but less revenue per visit than our paid ones! I'm hoping to rectify that, obviously :)

I would also disagree that this is an either / or discussion. Balanced internet marketing understands that conversion to sale often requires multi-touch messaging - including both organic and paid search initiatives.

Jan 21, 2011
Bob Wan-Qi Kim said...
Stephen ... there are many variables that create the 800 views to 1 sale ratio.
as you mentioned: the marketeer
b) website design
c) product
d) pricing
e) competition
f) economy

So it's borderline irresponsible to promise a strong conversion rate without testing all the factors... 800 to 1 is a conservative and realistic number

Jan 21, 2011
Stephen Wade said...
bro that's a challenge for any marketing promotion via any channel - and it's all marketer related, not medium related. Your organic revenue is going to suffer if you have a poor website or product or pricing or face higher competition or are subject to bad economy. The only difference is it takes you longer to figure out you're sucking it up when you do organic - you can quickly determine whether you're on the right track or not through adWords.

And, personally, I find that if you aren't converting from visitor to sales lead at > 5% (let alone, 0.13%) for search ppc, you've got a problem.

Jan 24, 2011
Jim Lastinger said...
The effectiveness of Adwords depends on many things, but the particular industry that you're in is a big one. Each industry will set its own market. If a law firm is paying $100/click for the term "malpractice" you can be sure that they have weighed that cost and decided that it is beneficial for them. Sure, it may be possible for them to get better bang for their buck somewhere else, but it's likely to still be profitable.

Here's an example. $100/click at a 3% conversion rate (probably low for that industry) yields about $3300 for a client. $3300 is probably pretty cheap for a client in the malpractice field. Tremendous opportunity for profit there.

It's all relative. You can't just say that Adwords = bad. Doesn't work like that.

Jan 24, 2011
Bob Wan-Qi Kim said...
@Jim while I agree that adwords can indeed yield a decent margin for the advertiser... my arguement is that relatively, adwords still sucks. If you paid google $3000/month to make you $50,000 .. you're leaving money on the table... a good pr person who knows social media and business... should be able to drive much more revenues organically.
Jan 24, 2011
Jim Lastinger said...
@Bob Talk about leaving money on the table... if I found out that my PR person was leaving $47,000 on the table then they would be fired immediately. I completely agree about the value of social media, but you can't ignore Adwords if it can be profitable for you. As with most everything, a combination of marketing strategies is usually going to be most effective.
Jan 24, 2011
WHOISBID said...
Google adwords are "paying" to be seen. You either spending in optimizing your website or you spend with adwords. Some do both. Whatever you do, time is money and so everyone has to spend money/time to get noticed whether it is by natural search or by jumping the queue by paying more.
Feb 28, 2011
Suzie Dsouza said...
I have tried facebook ad. My personal thought the traffic is not as good quality compare to adword. Visitors from adword are information seekers and real buyers. But facebook isn't target at keyword, visitors are just happened to be interested in your product when they saw it at the right corner and are not at final stage of decision to buy.
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Apr 28, 2011
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