The strategy behind Google advertising is simple: people are searching for a term, and you need to place yourself in front of them.
The trick to Google advertising is this: you need to find the correct terms, and compose appealing ads that people will actually click.
A strong understanding of the bidding system and quality scores are also imperative.
Arguably, however, the most important ingredient to ensuring success with Google AdWords is the keyword research.
When conducting keyword research, we break the terms into 4 different categories. This will assure that we capture as many variances of phrases that people might be using to search as possible.
Major categories are:
“Profession” Keywords: These are terms that deal with people looking for the services of a professional, or of an organization. (e.g “Dentist Miami, FL”; “Divorce Attorney Seattle, WA; Atlanta Law Firm)
“Service” Keywords: These are terms dealing with specific services. (e.g “Dental Implants”; “Forensic Accounting”; “Litigation Services”)
Locations: All the areas you serve. (note: if you serve an entire county, include all cities and towns in that county)
State Variations: All different ways of writing the state’s name.
We make four different columns and write as much of these terms as possible:
All of these columns are incomplete, I put this list together in 5 minutes. You have to be more thorough.
When we combine all these different columns to form keywords, we get the following results from Google:
Working off of these estimates, it’d be reasonable to expect the following figures:
- 450 clicks / month
- $2100 in advertising spend
- 30ish new customers / month
According to a CPA, the lifetime value for a customer is around $5,000 for CPA firms.
So, every month, as you advertise on Google search, your firm generates an extra $150,000 in lifetime value.
By the end of the year, after signing up around 360 new customers, that’s an additional $1.8M in lifetime value.
Let’s also run through this scenario for a Dentist in Coral Gables, and a Miami Family Law Firm.
Coral Gables has a population of 51,000 people or so…
When we compile a sizeable list of terms, Google gives us the following estimates:
From this information, we can infer:
- 400 clicks / month
- $2100 in monthly ad spend (the minimal amount I recommend)
- 30 new clients per month
According to a post in Dental Economics, the lifetime value of a dental customer is roughly $3000.
This would result in an additional $90,000 in lifetime value by advertising on Google that “stacks” every single month.
On an annual basis, that would equate to something north of $1M in lifetime value.
Of course, the more you spend in advertising, the more you make; $2000 is the minimal amount I generally recommend to start with.
Also, for a dentist, I recommend advertising in three to four adjacent locations, not just one; the more people you can advertise to, the better.
The reason for that is because the more people you can reach, the less you will pay for each click; that’s because you will enter more auctions, and thus, have more “options” to bid on, thereby lowering your cost-per-click.
With the same ad budget, you could get an extra ten clients per month – which seems inconsequential, however, when you’ve been advertising for five years, that extra ten clients per month will have turned into 600 new clients.
(10*12 = 120 clients / year — 120 extra clients * 5 years = 600 clients after 5 years)
Those are 600 new clients that come with referrals, and referrals of referrals, and so on…this can dramatically impact your long-term profits from advertising.
Or you could have yourself a very nice retirement due to an increase in the value of your practice.
Moreover, you could add on to that with Facebook Ads, which we’ll talk about in the next post.
Your ad (Google) should look something like this:
Well-constructed and put together. Takes up a significant amount of screen real estate, and even includes the address.
The ad is even better in mobile, where it takes up the entire mobile screen!
Chances are this ad is getting at least 10% CTR on mobile.
I wouldn’t be surprised if this dental center is getting 3 new clients every day from this ad.
Very well executed. We’ll talk about how to engineer this level of success later on in the post.
Now, let’s talk about the Family Law Attorney in Miami, FL:
With lawyers, because the field is so competitive, and there’s so much business – a significantly increased advertising expenditure is required.
In this case, instead of $2,000 – I’d recommend starting off with $4500:
With these average monthly estimates:
- 350 clicks / month
- $4500 in ad spend
- 25 – 30 new clients / month
If the average lifetime value (“LTV”) for family lawyers is in the vicinity of $5,000 – that would mean roughly $150,000 in average LTV added through Google AdWords. Or $2.25M per annum.
However, the market for lawyers in Miami, FL is 10 times bigger (literally), with an aggressive campaign, the results would be of significantly greater proportions:
- $30,000 in monthly ad spend
- 2,500 clicks
This would net a large amount of clients, without a doubt.
The thing to keep in mind at all times is to perform thorough keyword research. Using the template outlined above, which we’ll also cover in the next section.
The key factors that I want you take away are:
- Include all profession keywords
- Include all service keywords (even if they’re not popular)
- Include all locations (every single city and town you service)
A small account should have around 5,000 keywords in a campaign (as in the “Coral Gables Dentist” example above).
Medium-sized accounts should have upwards of 15,000 (say: a law firm servicing Miami).
Large accounts most likely more than 100,000 keywords (for example: a construction company servicing all of South Florida).
II: AdWords Template
Now, let’s get into the fun part.
In order to put together thousands of keywords in an orderly fashion, you need a template.
There are various ways to organize your campaigns and ad groups, but I’ll share with you a template that has been fabulously profitable for all local businesses I’ve worked on.
The template is very simple to execute once you’ve done thorough keyword research as demonstrated above.
Also, an important reminder:
In order to know what’s what, you need to select an uniform naming method. That’ll allow you to identify which keywords are under which campaign and ad group.
So, the template is as follows:
Each campaign will be identified by using a roman numeral and match type.
For example: II – Exact
Roman numeral (“I”) denotes brand-related terms (people searching for say “Amazon.com”)
Roman numeral (“II”) denotes keywords + location (e.g. dentist coral gables fl)
Roman numeral (“III”) denotes keywords with location-based targeting (keyword: “dentist”; location “Coral Gables, FL”)
(Location-based targeting means that the ad show will to people searching for “dentist”, but they have to be located in Coral Gables, FL)
Each Roman numeral will be accompanied by 2 match types:
Exact-match keywords means Google will only bid on keywords that match that exact phrase (“basketball shoes”)
Phrase-match keywords means Google will bid on keywords that include that phrase (best “basketball shoes”)
Within each campaign, ad groups will be identified by category.
For example: Service (dental implants) or Profession (dentist)
The template would then look like:
- I – Exact (campaign #1)
- Professional’s Name (e.g. David Alvarez)
- Business’s Name (e.g. Alvarez Media Company)
- II – Exact (campaign #2)
- Profession (e.g. Miami attorney)
- Service (e.g. Miami incorporation services)
- II – Phrase (campaign #3)
- Profession (e.g. best Miami dentist)
- Service (e.g. affordable dental removal in Miami FL)
- III – Exact (campaign #4)
- Profession (e.g. dentist; location: Coral Gables, FL)
- Service (e.g. dental implants; location: Coral Gables, FL)
- III – Phrase (campaign #5)
- Profession (e.g. mortgage loan officer; location: Coral Gables, FL)
- Service (e.g. find mortgage loan approval applications; location: Coral Gables, FL)
Following this uniform, and orderly template, you’re able to organize thousands of terms and track them with ease. This allows you to know which types of keywords are performing well, and which aren’t.
That way, you can easily identify under-performing terms, and discontinue bidding on them without interrupting the profitable ones.
Stay tuned for Facebook Ads!