Why use a Google Partner Agency for AdWords?

Posted on 26 Apr by Mark Davie.

We are often asked the question – Should I invest in professional AdWords Management or do it myself or have it managed internally?

We have a few tips to identify whether or not employing a Google AdWords agency is worth it for your business.

What is you monthly budget?

The first thing to note is your budget. If your budget is too low, there may not necessarily be enough value in having the campaign managed for you. For example, an AdWords manager may be able to optimise your campaign so that your cost-per-conversion (the cost of a lead or sale) is half of what it was before. You need to consider whether the improved campaign will provide you with enough benefit to offset the cost of outsourcing.

If an AdWords consultant is able to halve the cost-per-conversion for your campaign and they were charging the entry level price of $399 for management, you would only need to be spending $800 on Google AdWords per month to get a good benefit from outsourcing. It really takes years of experience to manage a campaign effectively and there are a large number of factors to consider. People often think that the amount you spend is the main factor, but this is definitely not the case! Often the competitors who are ranking above you in AdWords may be paying less per click than you.

Often if your AdWords budget is double the cost of your management, you can achieve a good return on investment by having your campaigns set up and managed professionally. This is without even taking into account the time you save by outsourcing and not having to stay up to date on the latest auction changes as well as the numerous updates to the AdWords platform.

So in the example above, for the user spending $800 per month, they could easily have their campaign managed for free ($400 on AdWords + $399 management) if the consultant is good enough to reduce their cost-per-conversion by 50%. If the management was added on top of the normal budget ($800 on AdWords + $399 management), this would be a better decision than doubling their budget to $1,600, as they would spend $1,199 for effectively the same $1,600 result. It sounds bold to say that we would double the result that someone is getting from AdWords, but in reality we regularly quadruple the number of conversions from the same budget for our new clients.

This example only shows the cross-over point for when AdWords Management becomes financially justified. However if you were to replace a $1000 budget with $5000 per month, the savings and return on investment is also dramatically increased.

Are you happy with the results you are getting?

It’s not uncommon when an individual first starts out with an AdWords campaign to receive a good number of clicks but not see any real return on investment for their campaign. We often get told by clients that they have tried AdWords and it didn’t work. More often than not, this is simply the result of a poorly setup campaign.

So what can we do to improve a campaign that failed miserably? We will review the campaign and we will be upfront and honest if we don’t think the campaign has a chance. But usually, it is just not setup correctly, either without effective conversion tracking or the campaign itself might need work. If it is not set up correctly, we start with conversion tracking. Conversion tracking is when we track the fulfillment of website goals, such as a lead or sale, but we might also track other engagement events on the website as well. We need to be able to track which keywords, ads, extensions and landing pages are working effectively for your business. We do this every day using conversion data.

Once we figure out which components of your AdWords campaign are actually working, we can adjust your campaign to get a significantly improved result.

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