Hello and welcome to the November 2008 issue of the APD Newsletter.
I did say I wasn’t going to make comment on the financial markets and economic turmoil this month but I’m going to! I promise I won’t next month (unless something else outrageous happens)!
I have tried to avoid my old City chums this month to be honest, as the tales of woe are becoming a bit boring! But a few continue to call me with useful info, so I will very quickly tell you what I’ve learned as it is useful!
First up…Iceland. The Government knew in APRIL that Iceland was about to go bankrupt. How they could sit by and just let it happen without warning exposed consumers and businesses is absolutely beyond me.
In my opinion, this Government has made some serious gaffs, but that is the biggest of the lot…and it got very little publicity!
And what’s worse is that Gordon Brown has managed to spin the situation to make us think he’s the man to turn to in a crisis! God help us!
Secondly, I’ve had numerous calls telling me this is “the worst I’ve ever seen” in the markets.
I’m not only talking FTSE and Dow Jones type markets here, but also FX and Money Markets (and the like).
The Banks, despite the massive influx of Government funds are still unable to raise funds on the open market at reasonable interest rates. This is why, if you’re on a tracker mortgage, it’s doubtful yesterdays full rate cut will be passed on to you.
The Government may kick up a fuss about trying to get the Banks to pass on the cut and to lend more, but they have created a really juicy “Catch 22” with their actions.
You see the Government want to get the economy moving again so they want the Banks to lend at reasonable rates to get liquidity back into the economy. However, despite the capital injections (which just about saved the Banks) the Banks can still only raise money at 6-7% interest.
So, to make profits and pay back the Government they have to lend at high interest rates.
The rub for the Government is that if the Banks do as they wish and lend at low rates, they make massive losses and can’t pay back the taxpayers money.
What a wonderful Catch 22!
So, do the Government want the Banks to make profits and pay back to the public purse, or do they want them to essentially become “public servants” and help get the economy back on track by lending at a massive loss.
Oh…the irony of it all!
Now if we come back in to the real world what does this mean for the “man on the street”?
Well, I do remember telling you that this would be a mere ripple in the great scheme of things. Ummm…I might have been under selling the situation.
Neither I, nor my friends in the financial community realised the extent of the damage. It is now accepted the financial impropriety of the banks extends into the TRILLIONS!
I did say at the back end of 2007 we were in for a bumpy 2008. That was correct.
I am now predicting 2009 will be much worse! Globally!
This situation is now definitely more than a mere ripple.
If you have savings you will do well in the next 12 months, if you have debt you will not.
Inflation will melt away to be replaced with a degree of deflation. That means your savings will be worth relatively more (even without interest) but also in real terms any debt will become more in real terms.
House prices will continue to fall and by the end of 2009, they will be circa 33% below their peak.
The economy will shrink, by up to 3% – this is unheard of. There will be many bankruptcies and unemployment will rocket.
The services and banking sectors will contract violently. So will manufacturing, particularly areas such as cars and luxury goods (TV’s etc).
Credit will become even harder to come by.
In short, we are going into a very nasty recession that could easily tip into depression of the right decisions are not made at the top.
It is going to be the toughest year you have ever known. I was wrong about the ripple!
Whilst it’s still not a tsunami, it’s quite a big wave, but it could turn into the dreaded tsunami if world Governments are not very careful indeed.
Everyone I talk to, across all sectors are experiencing a severe slow down, 2009 is going to be pretty nasty – nothing and no-one is safe.
You have been warned, make sure you take precautions! I’m sorry I got this wrong, but…if the insiders didn’t know how bad it was what chance do you or I have?
On the bright side, whilst I expect the recession (that we ARE in) to be quite vicious, I do expect it to be over relatively quickly (12-18 months) provided all other things remain equal.
Enough of all that, let’s talk about how to make some money!!!
This month I’m going to talk about Pay Per Click marketing, a subject so vast and so complex…many people fail at this hurdle in their online business! Hopefully not you, and this month I’m going to give you some wise words on the subject of Google Adwords.
First up, if you want traffic quickly, Adwords is the way to get it. Free traffic takes time to build and is an ongoing process. Yes, free traffic builds over time and once you’ve done the ground work it keeps coming.
And, yes, PPC traffic is nebulous, you pay for it, it comes and mostly it goes again.
But, if you want traffic quickly, pay per click is the way to get it.
If you treat Big G right and play by their rules, it can be a real friend.
However, treat Google bad, or in the wrong hands, it can become a money sucking monster that will quickly cripple your business.
When I first started out I spent £1,397 on Adwords in my first month and got…wait for it…3 (that’s THREE) sales. I sold £210 in products…so as you can see a whopping great loss.
It definitely pays to get good at Adwords.
The first major point you need to firmly ingrain in your brain is that Google’s sole reason for existing is search. Indeed, their sole reason for providing search is to provide the best search engine possible.
That means Google’s reason for existence is to provide totally RELEVANT search results VERY quickly – therefore remaining ahead of the competition and retaining their position as the search engine of choice.
Consequently Google places HUGE emphasis on relevancy of search results not only in the SERPS but also the paid results.
If you are not relevant, you will be slapped!
So, if you place the keyword “red shoes” in an ad group that advertises socks and directs to a landing page about socks, you will be slapped. You may argue the two items are “linked” but in Google’s eyes they are not totally relevant.
Now Google has changed its modus operandi recently. You used to get your
keywords disabled for search. Now, they simply tell you that you are not paying enough to get on the first page of search and tell you what outrageous rate you have to pay to get there.
This is Google “code” for “we don’t think you’re relevant”!
I did hear it called “Google’s Stupid Tax” made me laugh that! Stupid in who’s eyes??? Pardon me, we must respect Google…they will be spidering this :>)
So, when you create a set of keywords that are totally relevant to your ad and drop down to a totally relevant landing page, you will not see those $5 and $10 per click prices.
Here’s an example.
For example, you sell “dog grooming brushes”.
Your initial thought may be to bid on keywords like “pet” and “pet supplies.” Google considers these keywords as too general – not specific enough and therefore not relevant.
People looking for dog grooming brushes will not most likely search on the
keyword “pet supplies.” Think about it…would you?
The person looking for a dog grooming brush already knows what he or she wants.
You need to target your ad directly to the buyer. These sorts of keywords are often called “buying” keywords.
Do this and your conversion rates will increase. So, if you think about it, that’s as good a reason as any to be relevant. It will also show Google you are relevant. This tends to translate into an increased click through rate (CTR) and a better quality score!
And of course, those two things mean a decrease in your cost per click. Not rocket science is it?
So, if you group and bid on keywords like “dog grooming supplies,” “dog grooming brushes,” and “dog grooming hair brushes”, you remain tightly focussed and relevant.
Each of these keyword phrases has one thing in common: the phrase “dog grooming.”
These are relevant. Make sure each keyword in each ad group has one common word or phrase.
You should always be looking out for new keywords and testing them.
Finding a list of converting keywords is an ongoing process!
You should use a keyword tool. You can use the keyword tool that’s in Google itself to generate new keywords on a regular basis. But don’t limit yourself to this tool when creating your keyword lists.
You can be as simple as using MS Word or other word processing program and enter some of your best keywords. Then use the built-in thesaurus. If your word processing program does not contain a thesaurus, go to www.thesaurus.com or any other online tool available.
This is a simple way to build a well targeted, original keyword list for
any successful PPC advertising campaign. The keyword tool in Google has recently been upgraded and does now offer much more functionality and information.
It is a good tool and of course the results come “straight from the horses mouth”!
You can find the Google Keyword Tool at the following link…
https://adwords.google.com/select/KeywordToolExternal
If you want to use a paid tool, in my opinion by far the best tool on the market is Keyword Spy. Using this tool allows you to build huge keyword lists in double quick time. And, what’s even better you can literally spy on your competition.
You can see their keywords, their ads and even see how much they’re paying.
If you’re serious about making money online you need this tool. It’s a little expensive, but it will pay for itself many times over very quickly.
Click below to have a look.
http://www.apd-marketing.co.uk/keywordspy.html
Next up you have to make sure your headline, body copy and display URL contain your keywords.
When someone performs a search, the keyword they searched for appears in bold, in the headline, body copy and web address. Ads with more bolded text stand out to the searcher, resulting in more clicks. Again, this is not rocket science but plain commonsense.
To take full advantage of this, you should try, wherever possible to have your keyword in the headline, ad copy and display URL. Sometimes it is just not possible without making your ads nonsensical or spammy, but generally the more often the better.
Again this helps you by driving more focused traffic to your site. Google will reward you for the higher CTR this brings with better quality score and giving you a higher position in the results for a lower cost. Your ad is shown more because you please the Google users because you provide exactly what they are looking for.
Again- The name of the game is relevancy – and Google will love you for it!
Finally, you should create a landing page for each root keyword you bid on.
One of the key “tricks” to getting higher relevancy and higher quality scores in Google’s mind is to drive traffic to highly relevant and specific landing pages.
Each keyword you bid on should be slightly altered so when someone clicks on your ad, they still see the same keyword or something very similar to it in the headline and in the body of your copy on your website.
To give you an example, if you search for “personal trainers in London.” If you then see an ad that says “Personal Trainers in London.” You will probably think “this is exactly what I want”. You click on the ad to go to the website.
The first thing you read on the web site is “3 Personal Trainers In London Reveal the Insider Secrets Of Special Fitness Programs That Can Easily Get You Fit And Looking Great In No Time At All.”
There is a pretty good chance this website gives you exactly what you are looking for. You are unfit, overweight and out of shape and you want a fix, and you just found someone local who can help you – now that’s relevancy at it’s best.
I guarantee you will have a high CTR, low CPC a Great quality score and loads of sales!
So, to finalise, just think relevancy from your ad groups through your keywords, into your actual ad and finally down to the landing page. Keep the root keyword common through the entire sales cycle and you can win the PPC game.
Hopefully you found that helpful. I’ll be back next month with…a bumper Christmas edition! I know, it just doesn’t seem possible does it? I haven’t shouted about it, but this is our second anniversary issue!
Yes, it’s true the APD newsletter is two years old today (well yesterday actually as I’m a day late this month). Why not have a dip into past issues, there’s loads of great info in them to help you in your quest for online profits!
Any questions, observations or comments drop me a line on the usual mail
derek@apd-marketing.co.uk
So, until next month, keep safe, keep positive and keep putting yourself out there.
Persistence is the only thing failure can’t live with!
As always…to *YOUR* success.
Cheers now…and have fun!
Derek
www.apd-marketing.co.uk
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