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1) Will our client find Google AdWords useful? Let me rephrase that. Is Google AdWords in particular and pay per click search engines in general useful for companies in the service industry? Are there any companies out there using Google AdWords solely for branding purposes?
2) Since the visitor does not actually take out a credit card and buy online, how do you think we should measure the "performance" of Google AdWords? By the number of leads per 100 visitors?
3) Their corporate site has email and telephone contact details. In addition to this, they have a dedicated sales team. Even if Google does send in a lead, how will our client track it? All I can think of is inserting "Where did you hear about us?" in the email form.
On the other hand you will probably have a hard time making the .5% minimum unless you restict your searches. Ad words can be good for branding but you do have to achieve that minimum click level.