In a Web world where Google rules, businesses are missing opportunities unless they understand online advertising warns Luke Jamieson, director of online search specialist DBG Technologies.

"As more business moves online, people are increasingly using the web to make purchase decisions before they even leave home,” Mr. Jamieson told a business audience at an invitation-only breakfast seminar. “If you want to compete, ignoring the rules of online advertising is like running a department store with no light globes – people won’t be able to find what they want.

“The good news is that following a few simple principles can provide you with a good start to projecting your business successfully on the web.”

DBG Technologies is an Adelaide-based company that specialises in providing web design and development for businesses. Its services include web design & development, e-commerce websites, content management systems and search engine optimisation and marketing.

Although Google started out in the late 1990s as a search engine company, today it generates most of its revenue from advertising. Hundreds of thousands of advertisers globally use the Google AdWords program to bid for their ads to appear alongside the search results for particular keywords. Advertisers can specify the location and time that their ads appear.

The Google-driven ads – which are displayed across the top or on the right hand side of the search window – are euphemistically referred to as “sponsored links”. As many as one in four people click on sponsored links rather than the “organic” search listing when it displays a relevant offer.

Mr. Jamieson said searchers click on the sponsored links because “an ad is shown at the exact time that a person wants it, and often includes an offer or discount”.

“You’re posting your ad for services at the exact time to the person who is searching for them. Also, Google rewards accuracy in your advertising. The more relevant your webpage is to your search terms and your ad copy, the cheaper the cost of your ad.”

The advertising process that drives Google AdWords is Pay Per Click (PPC), which only charges an advertiser if a “sponsored link” is clicked by the searcher. The cost of a click, calculated by a Google algorithm, can range from a few cents to more than $20 for highly competitive terms.

Mr. Jamieson said simple principles maximised the effectiveness of a Google AdWords campaign:

• Choose relevant and specific keywords to display your ads and design the ad with a simple, enticing offer. You can include location-specific keywords to focus on a particular area and even use “negative keywords” to exclude certain searches. The more relevant your web page is to the keywords and your ad, the cheaper are your click costs
• To increase sales, create a customised “landing page” on your website that is tailored to what the customer has searched for. This should include offers, specials or discounts, with a clear “call to action” such as a contact form or a designated phone number
• Just like any other form of advertising, calculate a Return On Investment by setting a budget and tracking your success. Weekly AdWords tracking and reporting allows you to monitor your campaign’s performance, so you can measure click costs against sales and profits
• Start small with few keywords and a low budget. Test everything, check your campaign often and track where your sales come from. It’s also advisable to set up the free Google Analytics software in order to create reports of website statistics on visitors numbers and traffic patterns.

Mr. Jamieson said while online advertising did not suit every business, managers needed to make informed decisions about how and when to use it. “High value high margin products benefit greatly from PPC,” he said. “Yet when an AdWords campaign works, it can fly. One client last year had such a successful campaign that they had to suspend their campaign - they ran out of stuff to sell!”

For more information about DBG Technologies, visit www.dbgtechnologies.com.au

Established in 2001, DBG Technologies specialises in providing web design and development for businesses in and around Adelaide, South Australia. We are passionate about design, usability and search engine friendliness. Our services include web design & development, e-commerce websites, content management systems and search engine marketing.

For media assistance, call John Harris at Impress Media Australia on 08 8431 4000 or email jharris@impress.com.au.