Adgroup setup is really simple since there are no special parameters or tricks. What I will explain here are just industry best practices. If we look within AdWords editor for the adgroup setting you will notice that there are only 4 options, Name, Status, Max CPC bid, Max Content CPC bid.

Adgroup Name – I like to name my adgroups based on structuring from the previous article. Internet Marketing Google Adgroups Logical Setup Strategies. Then I like to add the match type to the end of the name so I know what is contained. Example: “Ipod Touch – Exact” and “Ipod Touch – Broad”.

Status – The adgroup status can only has 3 options, Active, Deleted and Paused. Since this is self explanatory I won’t go any further

Max CPC Bid – This field is where you set you default CPC bid. I always set it to $0.10. This is because I do all bidding at the keyword level. Since I most likely will have anywhere from 2 keywords – 1,000 keywords within an adgroup, the one pricing fits all does not work. I set it to $0.10 just in case I forget to bid on one of the keywords within the adgroup, if this happens it will default to a very low and safe bid.

Maximum CPC Content Bid – I am not sure why this option was even created, but it was placed there to separate content bids from search bids. Best practices tells us that we should separate content completely from search and place it within it’s own campaign, so in my scenario’s I will never have to separate search and content bids. Also when content is separated within it own campaign, the Maximum CPC Bid can be used, thus eliminating the need for Maximum CPC Content Bids.

When you are all done, you should have something that looks like this

The idea behind adgroups is to group keywords around the idea of a specific marketing message. When you consider your adgrouping structure, don’t base it on the keywords, base it on the marketing message instead. Google only allows for 100 adgroups per campaign, and since we are limited on the amount of adgroups we can not have the option of 1 keyword per adgroup. At many times, my campaigns will contain anywhere from 1k – 10k keywords so you can see that model will not work. Successful management of these keywords requires a logically, pre-thought grouping strategy. Listed here are some of the most common methods of adgrouping that will allow you to have greater control over your marketing.

Product Grouping – This type of Ad grouping is based around the product keywords. In this method you plan on creating ads that specifically target one product. This will allow you to create highly targeted creative that could include specific product pricing and promotional messaging.

Service Grouping – This type of Ad grouping is based around the specific services your company or products offer. Promotional messaging would include how the grouping of keywords solve or fix a specific problem.

One To One Grouping – Some high volume keywords may require complete separation due to volume of impressions and clicks. When this happens you want to make sure that keyword performs at its best. Singling it out to its own adgroup is called one to one. Now you can make sure no other keywords affect it’s performance, and you can really target its messaging and controlled multivariate testing to increase performance.

Call To Action Grouping – this type of ad grouping is specifically targeting to keywords that contain a call to action. Buy, Sell, Purchase, Download, and etc are call to actions. You’re telling your visitor to do something, and many times they are searching for the call to action, meaning they are ready to do what you want them to.

Promotional Grouping – this type of ad grouping is targeted to some sort of discounted promotional messaging. Cheap, discounted, wholesale, liquidation and etc are all promotional messages. The visitor wants something for less or a greatly discounted price.

This covers the most commons ways to setup your adgroups. Adgrouping is not rocket science, but it helps to be prepared, and set things up logically in advance. It will help create more highly targeted promotional messaging, and allow for greater control for optimization.

I will pick a product that draws my attention on shopping.com and give you some examples of keyword adgrouping

And the product is…

The Apple Ipod Touch

Now let’s write out a few examples to get a clearer perspective.

Product Grouping

apple touch
apple ipod touch
ipod touch
apple 8 gig touch
apple ipod 8 gig touch
ipod 8 gig touch

Service Grouping

apple touch mp3
apple ipod touch mp3
ipod touch mp3
apple 8 gig touch mp3
apple ipod 8 gig touch mp3
ipod 8 gig touch mp3
apple touch mp3 player
apple ipod touch mp3 player
ipod touch mp3 player
apple 8 gig touch mp3 player
apple ipod 8 gig touch mp3 player
ipod 8 gig touch mp3 player
apple touch music player
apple ipod touch music player
ipod touch music player
apple 8 gig touch music player
apple ipod 8 gig touch music player
ipod 8 gig touch music player

Call To Action Grouping

buy apple touch
buy apple ipod touch
buy ipod touch
buy apple 8 gig touch
buy apple ipod 8 gig touch
buy ipod 8 gig touch
purchase apple touch
purchase apple ipod touch
purchase ipod touch
purchase apple 8 gig touch
purchase apple ipod 8 gig touch
purchase ipod 8 gig touch
sell apple touch
sell apple ipod touch
sell ipod touch
sell apple 8 gig touch
sell apple ipod 8 gig touch
sell ipod 8 gig touch

Promotional Grouping

sale apple touch
discount apple touch
cheap apple touch
sale apple ipod touch
discount apple ipod touch
cheap apple ipod touch
sale ipod touch
discount ipod touch
cheap ipod touch
sale apple 8 gig touch
discount apple 8 gig touch
cheap apple 8 gig touch
sale apple ipod 8 gig touch
discount apple ipod 8 gig touch
cheap apple ipod 8 gig touch
sale ipod 8 gig touch
discount ipod 8 gig touch
cheap ipod 8 gig touch

As you might be able to see, since the keywords are in line with each other writing a highly targeted promotional message will be a lot easier, and Google will most likely give you a better quality score due to higher keyword and text ad relevance.

In my next article I will cover all the attributes of an adgroup, what they mean and how to use them like a pro.

Campaign structuring is step one, which I covered in my last article Internet Marketing Campaign Structuring Tactics. Now that you have a properly preconceived structure in mind, the campaign settings menu has many attributes that you will want to take advantage of.

Campaign Name – The campaign name is used to identify the contents you are marketing. Name this something that is memorable and helpful to you. Google does not consider the name of your campaign when determining pricing or quality score. You can name it “My Google Campaign 1” or anything else, but it’s helpful to name it something that you will understand what’s inside that campaign.

Start and End Date – This setting allows you to choose when the marketing will start and end. If you decide you want to set up a campaign for next month’s advertising you can set it to day 1 of the next month and allow it to run forever. This is really helpful if you are building out a holiday campaign such as Christmas. You can choose the campaign start date the day after thanksgiving, build out the campaign months in advance and schedule it to end a few days before Christmas.

Budgeting – Budgeting is controlled at the campaign level and you set it according to how much you want to spend per day. Now that we have a highly controlled campaign structures we can also have highly controlled spending. Budgeting is very important, and must be used for each campaign to ensure you do not blow a year’s worth of marketing expenses in one day. Since some industries have a really high search volume it can become very easy to spend $1k - $5k by the end of a day, so ensure that you only put what you can truly pay for.

Delivery Method – This allows you to pick how your ads are displayed over the course of a day. Since some industries have a high search volume, and you may have a very limited budget that cannot allow it to remain on 24/7, you can set a standard or accelerated method of delivery. Standard will attempt to space out the ads throughout the day, and accelerated will show the ads as quickly as possible. If you choose accelerated and have a budget of $50 you could end up only being shown from 12am – 1am, which is only 1 hour of non prime time marketing. If you choose standard delivery you may get some spurts of traffic during the busy hours of search.

Keyword Bidding – This feature is automatically set to Maximum CPC bidding. If you plan on being an aggressive internet PPC marketer you will want to use this option, since it will allow you the greatest control over your campaign. However if you cannot dedicated much time to optimizing your campaigns you are given a couple other options as well.

Budget Optimizer – If you choose this option you basically tell Google how much you want to spend in 30 days and they will control CPC clicks for you. They will attempt to drive as much traffic to your site as possible for the given monthly budget. However, the main issue is that you no longer control any variables such as positioning or bidding, and you are not really sure if you are getting the best price as possible.

Preferred Cost Bidding – If you are unsure what to bid for each keyword but you have a target CPC you want across your entire campaign then choose this option. Assume you want to pay $1 per click, simply put that into this setting and Google will send you traffic that costs this much per click. Again there are many issues with this since you are leaving everything up to Google at this point, and you really have to put complete faith in them that they will give you the best traffic at the best costs.

Conversion Optimizer – This setting is not available for all Google Adwords users, especially since your campaign has to have a prerecorded conversion volume of 200 within 30 days before this option is available. If you do happen to have this option available then you have a really high producing campaign. This setting in theory allows you to choose a CPA (Cost per Acquisition) and Google will basically only charge you on this factor instead of per click. The idea behind it is great however, you should always be looking to lower your CPA over time and changes to your creative’s and landing pages could really affect your conversion ratio. If you successfully increase your CR you will end up paying more and more to your campaign monthly budget.

Since we want to take advantage of Google and not the other way around, I recommend sticking with Maximum CPC bidding and have complete control over the outcome of your campaign.

Ad Scheduling – This feature allows your ads to be limited to a certain time of day. Since it is possible for limited budgets to spend their entire day’s worth of advertising within 1 hour of starting a new day, you might want to limit the ad exposure to prime time hours. However, if your budget is too small, and bids are too low for competitive prime time advertising, you may end of with no traffic at all.

Position Preference – Many times an advertiser will discover that only a specific position will get conversions. Say over a period of testing you discover position 3 and 4 have the highest conversion ratios and greatest ROI. You may want to limit your exposure to only these specified positions so that you only spend on highly targeted and convertible traffic. This is especially great if you have limited budgets and are able to make this discovery.

Ad Serving – It is best practice to always be running 2 ads for each Adgroup at all times. You should be testing against a current creative and attempting to beat it with another. Google allows you to optimize your ads based on better performing ad giving you the options of Optimize and Rotate. Optimize will display the better performing ad more often and rotate will always split the ad delivery by 50% each. If you choose optimize you could run into the problem if a good ad trumping any news ads you try to test against. Since the longest running ad will always have more performance data than a new one, testing against a new ad could become challenging. Using the Rotate evenly option allows for quicker A/B testing, but will require that you are more responsive to turning off underperforming ads.

Networks – Google gives you the option to display your ads on 3 different networks, Google Search, Google Network and Content Network.

Google Search – If you choose this option your ad will only be displayed on google.com and no other websites.

Google Network – The network is made up of all the syndicated search engines that Google has partnered with. The network includes sites such as AOL, EarthLink, shopping.com, ask.com and many more.

Content Network – The Google content network are sites published by individuals like me and you, who use the Google adsense program. Many of these sites are blogs, forums, review sites, and articles.

If you are doing a PPC marketing campaign you should use both the Google Search and Google Network Options for maximum exposure. NEVER INCLUDE CONTENT with the Google search and network options. The content network works very much differently and should not be combined. Content should always be contained within its own campaign, but more on this later.

Languages – Google gives you the option to target only the languages of which your visitors will understand. Sending a Chinese visitor to your English only website is a waste of cash, so be sure to only specify the languages your site includes.

Locations – This is your geo targeting options. This will allow you to restrict your ads to the geographic areas that your website caters to. If you sell to all of the USA you can select USA, but if you sell only to Los Angeles, then you might want to restrict ads only to that area. Google even allows you the option to only target specific cities, so if you wanted to only market you site to 10 cities within Los Angeles, you can go in a check mark each city you want. However as a special note on this feature, not all the traffic will be accurate since some visitors might be using a proxy to surf the web, or the ISP might route all their customers out of one location. A good example is AOL. All AOL users in the USA are routed out of Virginia, and if you target Virginia you might get a lot more traffic than expected.

This basically covers everything there is to know about Campaign structuring and setup. I hope you have found this helpful. If you have any questions, please be sure to comment, and as always, I will be quick to respond and answer your questions.

If you want to get started with Google Adwords and create a successful internet PPC marketing campaign you need to understand the internal structuring. Google is made up of many sections which include campaigns, Adgroups, creative’s and keywords. Each of these sections has their own unique attributes that are really important to understand. Since we want to take full advantage of Google and have complete control over our campaigns we must become educated on all the features Google has to offer.

Once you sign up with Google you will be presented with the following hierarchy of information. You will be given an account which will contain Campaigns, and your Campaigns will contain Adgroups and your Adgroups will contain creative’s and keywords.

Campaigns

First up are campaigns, which each account in Google is allowed a total of 25 campaigns. Since we are limited on the amount of campaigns your account can have, it is important to structure them logically in advance. A campaigns main purpose is to segregate a specific marketing goal, control your expenses through daily budgeting, targeting to specific geographic regions, and limit exposure to the languages of your choice.

Marketing Goal – Campaigns are best organized around specific marketing goals such as individual products, manufacturer’s products, industry competitors, your brand name, national or global holidays, or physical locations.

Products –If you sell tangible goods you might want to build your campaigns around a group of products. If you sold computer parts you might segregate your campaigns based on component types, such as hard drives, processors monitors, and etc. If you were selling clothing you might campaign around T-shirts, pants, shorts, undergarments, and etc.

Manufacturer – You might want to build your campaigns based on the manufacturers of products. If you sold consumer goods you might build out campaigns around Sony, Toshiba, Samsung and etc. If you sold designer clothing you might build out campaigns around Guess, Levis, Gucci, Prada and etc.

Competitors – You might be interested is selling your products to leading competitors visitors. In this scenario you build out keywords including the name branded companies already established in the industry in hopes of persuading their traffic to consider your pricing and services instead. If you were in the home remodeling industry you might bid on keywords such as Home Depot, or Lowes.

Brand – A brand campaign is bidding on your own company name. If your company name is Acme Electronics, you would build out keywords around it such as acme website, acme deals, acme sale, acme login, acme website. It is well known that bidding on your own campaign name is one of the most profitable campaigns, since the customer already knows you exists and is looking for your site. This makes it easy for them to revisit and finalize their sale once they have completed their research, and usually the cost of brand bidding is minimal.

Holidays – There is almost some sort of holiday coming up every single month of the year. People are looking for deals and just need a holiday to give them a reason to spend. Take advantage of holiday keywords such as New Years, MLK Jr, Groundhog Day, Valentine’s Day, Mardi Gras, St. Patrick’s Day, Easter, Cinco De Mayo, Mothers Day, Fathers Day, Independence Day, Friendship Day, Labor Day, Columbus Day, Halloween, Thanksgiving, and Christmas.

Locations – Some businesses offer services limited to only surrounding areas. Campaigns are great ways to restrict your products are services within specified cities and regions. You may even have multiple locations across the United States and separating a campaign for each one will help control spending between the locations, especially if each location is responsible for their own bill. You may even consider taking advantage of location targeting even if you sell nationally or worldwide since New York keywords may be more or less expensive then Los Angeles and each geo location may convert differently.

Only you can decide on which way to structure your campaigns but the above are the most well known, and best practiced structures of campaigns in the industry. These structures allow for great control over your campaigns and allow you to better monetize your campaigns because conversion data is going to be more transparent and organize. You will know which brands or products have higher conversions with lower CPA’s, which competitors you can steal business from, measure your brand awareness, know which locations perform best, and what holidays bring in the greatest returns

Now that you have an idea of how to organize your campaigns I will give you a day to mull things over. In my next article I will cover all of the attributes within a campaign, how to use them, the reasoning behind them, and what the industry best practices are.

If you want to run a successful PPC campaign you need to have goals, you need to define your objectives and what you are attempting to accomplish. Starting up an AdWords account and hoping for a few sales or leads without any direction is probably going to end up in failure. Describe your goals clearly and make them easily attainable. It would be nice to start getting 100 new sales a day and become a billionaire overnight, but that is just not practical or reality. You have your limitations and so does your business and industry. Set your goals to something you are comfortable handling and set them to something that can easily be achieved. You can always refine them over time.

Define Your Objective

What are you looking for, Sales, Leads, Members, Subscribers? How many do you want and at what cost? The obvious answer is “as cheap as possible”, but again, practicality is important. If you make a sale on a product and you pocket $100 from that sale, what are you willing to pay $100 income? Some say $20 and others say $80.

Sales

Sales are one of the most common goals on the internet. You want to sell a tangible good which results in an immediate income. If you are getting into businesses that result in the direct sale of tangible goods, then you need to assess your products gross profit before marketing expenses. If you are selling a wide variety of products you may want to simplify the gross profit by determining your AOV (Average Order Value) and gross profit margin. Example, if 100 products are purchased within a small given amount of time, the average gross ticket amount is $356, of which your average gross profit margin is 20%, resulting in an average pocketed income before marketing of $71.20. Now that you have this analysis set your goals. Determine you targeted ROI, budget and volume of sales your business can handle without sacrificing customer service.

Leads

Leads are different since it adds another step in the conversion funnel. Since a lead is not a direct sale, and does not provide immediate income, you need to figure out the value of a lead and your gross profit from a lead to a conversion. Leads are usually associated with larger sale ticket items such as mortgage leads, financing leads, or project leads. If you were in the bathroom remodeling industry you would want to assess the average gross income value of each new client. Assuming your average contract will generate $3,000 of gross profit after all expenses, but before marketing expenses, you can now determine your targeted ROI, budget and volume of new clients your business can handle.

Memberships

Memberships are interesting since the value of the membership is usually perceived over time. If you are marketing a membership to a program or website, that requires a monthly fee, you will need to determine the average life of a membership and determine the value of each membership for that lifetime. You must also consider the costs associated to keep that member a continual member. If they are signing up for inside tips or training material, you must associate the cost to put that material together. Memberships can also become costly, especially if the cost per acquisition exceeds the return of a few months of paid membership. If you determine the average membership is 2 years at a cost of $19.99 per month, your memberships are valued at $479.76 over the length of 2 years. Now you can determine your targeted ROI and monthly budget. You may also want to consider you level of service as your membership grows. Larger memberships will put a higher demand on content and service.

Subscribers

Attempting to market for new subscribers are probably the least common campaigns, but they still exist. The main problem with subscribers is, there is no direct product being sold. Most income is generated from the referral of affiliate products and charging for advertising space on your site. Similar to a magazine, you don’t charge for the magazine, you charge to appear in the magazine. You can determine the value of a subscriber by adding up the income generated by your site and dividing it by the number of subscribers. Assuming you have 1,000 subscribers and your site generates $5,000 in one month each subscriber is worth $5 per month or $60 per year. Now, with this analysis done you can determine your targeted ROI, estimated monthly budget, and since your subscriber count will likely be increasing you will need to ensure you are still properly monetizing you new found growth to maintain the value per subscriber.

Set Your Goals

The point is, before you start your campaign be sure you define your goals and objectives. What type of conversions are you after and what are those conversions worth to you. Define how much you want to make, and how much you can afford to spend per month for those conversions. Setting up intelligent goals is your first step to a successful internet marketing campaign.