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New to Adword - How much to spend realistically




3:15 am on May 11, 2007 (gmt 0)

5+ Year Member

Hello. I run a new movie website and I want to get more traffic, but I don't want to spend a lot of money with adword. I'm new at it so please bear with me.
Can I spend like $30.00 a month? I know they say that you can set your budget, but could it be any amount?
*Thanks in advance


3:40 am on May 11, 2007 (gmt 0)

10+ Year Member

If you have some traffic already, figure out where they're coming from. You should have a stats package with your hosting account. If you don't, there are other ways to get an insight into this.

Adwords is all about keywords. You need to work on growing a list of keywords/phrases that visitors you want would be typing in. Bid on those. Watch the logs after you start getting traffic, you'll see what people are typing in to find your site. (Lather, rinse, repeat)

I have my Adwords account set at $1 or $2 per day, that's OK.

New concept: CPC = cost per click. Make sure you're happy with what you're paying for hits. You don't have to bid on things that cost too much, if you can find 20 other keywords that you can pay less for and generate a similar amount of traffic.

[edited by: Slade at 3:42 am (utc) on May 11, 2007]


4:26 am on May 11, 2007 (gmt 0)

5+ Year Member

thanks for all your info. My site is new so I get very little traffic. I think we have a good product, but how do I know what keywords people are looking for movies? I'd love to know :)


6:20 pm on May 11, 2007 (gmt 0)

WebmasterWorld Senior Member rocknbil is a WebmasterWorld Top Contributor of All Time 10+ Year Member

Wouldn't we all! :-) "What does someone enter when searching for my product?"

You can use the keyword tool in your adWords account for suggestions, but of course that's no guarantee those words will work for you. You have to try them out, see what works and what doesn't. A good sense of your customers, how they think, what they are looking for, will give you a good place to start.

$1/day = $30/month, actually that's where I started. You won't get many clicks, your budget will get eaten up quickly, but it's a good way to learn to be frugal from the start and begin testing the waters.

Something that took me a while to understand that applies to your keywords question, think TARGETING. "Movies" is an extremely broad keyword and can apply to various topics - movie reviews, buying movies, movie plot, movie prop, etc. Each of the preceding are slightly better than just "movie." You will find the better targeted your search terms are, the more clicks you will receive and the less those clicks will cost you (most times.)

Apply this to your ads too. You will get a better sense of what "works" by creating LOTS of ads with very few keywords in them. Lots of keywords in one ad to try and catch everything actually dilutes your results, and confuses things. Very few of my ads exceed 3-5 keywords, and most of those are variations - example, scifi movie, scifi movies, sci-fi movie, sci-fi movies, science fiction movie, science fiction movie (those are still very broad, just examples.)

Of course as you dig around you'll find it's a lot more complex than that and I'm by no means any expert, but after a few months the light bulbs start coming on. :-)


6:43 pm on May 11, 2007 (gmt 0)

5+ Year Member

I try not to approach a situation like this with a budget in mind. Rather, you need to determine what a visitor is worth to you. How much revenue does the average visitor generate? How much of that revenue are you willing to spend on "marketing"? That number is your maximum CPC. Your goal should be to buy as much traffic at or below that CPC. As long as your AdWords traffic converts like your overall traffic and your revenue numbers hold up, you can't lose.

Here's a hypothetical situation. Through traffic analysis you determine that you earn $1.00 for each visitor that comes to the site. You also know that the COGS is 40%, your overhead is around 25%, and you'd like to see a profit of 15% as well. That leaves 20% left over for marketing. In other words, any time you can buy an on-topic click for $0.20 or less, you should be meeting your financial goals. As far as cash flow allows, buy as many clicks at this price as you can and carefully measure the conversion OF EACH KEYWORD to ensure they are meeting your projections.


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