Adwords Training – Tips & Tricks Day 4

Understanding the Ripple Effect

One of the interesting things about life in general is that things seldom occur or exist in isolation. Our surroundings, our environment and our situation all have an affect on us, on what we do and on how we behave, now and in the future.

You’ve probably heard about a concept called Karma. Karma is the law of moral causation. What this means is that everything has a cause. According to the law of karma, we are the architect of our own fate. Then we have Newton’s Third Law of Motion, which states that every action has an equal and opposite reaction. Well, think of the Ripple Effect as a mash up of these principles.

We know all this as cause and effect. If you do something, something will happen. If you do nothing, nothing will happen. It’s the way the universe works.
And it’s my belief that internet marketing must be appoached this way too.

So how does this impact on Google AdWords, you may be wondering? This is a good time to discuss the ripple effect. But before we do, understand that the ripple effect can massively affect and impact your on-line ad campaign as a whole.

Let’s look at a scenario to see how the ripple effect works when it comes to Google AdWords. I’ll use a very common situation that I come across almost every day. It is prevalent amongst those who are either new to Google AdWords or who don’t really understand the mechanics of how it works.

For example, if you were to lower your daily budget that you had set aside for your Google campaign, the first thing that would alter and cause a ripple effect would be the frequency with with your ads would be shown to users.

So what would that now alter? You guessed it, your Click Through Rate, simply because the ad wouldn’t be displayed as often as before, meaning less people would potentially be viewing it. Make sense?

Now, this in itself would cause a ripple effect. Your AdWords Quality Score would be affected, which would require you to take action if you wanted your ad to remain in the same position as it enjoyed previously.

You may, for instance, need to increase your maximum bid per click. If you did this, you would effectively be paying far more per lead or sale, with the result that your campaign’s overall return on investment (ROI) would be lower. However, if you were new to Google AdWords you would probably have thought you had simply deceased your ad expenditure.

Until tomorrow,

Internet Marketing Guru – Entrepreneur – Educator

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