Google Adwords

Accreditation Fundamentals Exam

Course Breakdown Fundamentals

Exams
1. Introduction to Adwords
2. Account Set-up and Basics
3. Ad Formats
4. Targeting and Placements
5. Bidding and Budgets
6. Ad Quality Topics
11. Optimising Performance
15. Selling Adwords

Introduction to Adwords
Module 1

1.1 Overview of Adwords

1.1 Overview of Adwords

Getting Started on Adwords

Benefits of Adwords

Relevance
Return on Investment
Reach

Basic Features
Keyword
Placement
Image Ad
Campaign
Ad group
Impression
Click

Basic Features
Click-through Rate
Cost per Click
Maximum Cost per Click
Cost-per-thousand Click
Quality Score
First page bid estimates
Optimization

1.2 Getting Started With Adwords

Account types:
My Client Centre (MCC)
Adwords Client Accounts

Client manager account

1.2 Getting Started With Adwords

Ad Creation marketplace
Google Advertising Professionals Search

Account Set Up and Basics

Module 2

Search Vs Display network

Google search
Mobile search
CPC

Google search partner

sites
Text ads on websites
Image ads on websites
Video ads on websites
Ads on mobile websites
Managed placements
CPM

Account Structure

Campaign
Daily budget
Geo-targeting
Syndication preference
Start and end dates

Ad Group
Ad Group
One set of
One set of
keywords
keywords
One or more ads
One or more ads

Account
Unique email address
Password
Billing information

Campaign
Daily budget
Geo-targeting
Syndication preference
Start and end dates

Ad Group
Ad Group
One set of
One set of
keywords
keywords
One or more ads
One or more ads

2.1 Account Management

Basics
Module 2

Monitoring Adwords Accounts

All critical account alerts related to payment problems,
pending budget end dates, credit and bank card expirations,
ad disapprovals, and other issues that will cause your ads to
stop being displayed are shown in the Campaigns tab, at
theAll Online Campaignslevel.
The alerts can be changed at the Notification settings page
(under My Account)
You can also set up SMS alerts

2.2 Campaign
Management Basics
Module 2

Key Concepts
From the campaigns tab:

Receive alerts
Create a new campaign
Change campaign settings
See the list of campaigns
View campaign status

Enabled: Set to run normally

Paused: Temporarily suspended and not currently running
Deleted: Deleted and no longer running
Pending: Not yet started running
Ended: No longer running as end date has already passed

Key Concepts
Clicks: The clicks accrued for the ads in each campaign
Impr.(impressions): The number of times that the campaign's ads have been displayed on Google
or on sites in the Google Network
CTR(click-through rate): The number of clicks divided by the number of impressions that the ads
have received. This is expressed as a percentage: 2 clicks for 100 page views equals a 2% CTR.
Avg. CPC(average cost per click): The average cost accrued for clicks on the ads within that
campaign.
Cost: The total costs that a campaign has accrued during the time frame that you selected.
Avg. Pos.(average position): This refers to the average position on a search result page that an ad
appears in when it's triggered by that keyword.
Conv. (1-per-click)(conversion rate): The number of user clicks that turned into actual
conversions for the advertiser. Conversion rate equals the number of conversions divided by the
number of ad clicks.
Cost/Conv.(1-per-click): The total cost divided by the total number of conversions. This tells you
how much each conversion costs. This applies only to users who have set up conversion tracking.
Conv. rate(1-per-click):Number of conversions divided by total clicks. This tells you your
conversion rate. This applies only to users who have set up conversion tracking.

Key Concepts
From the campaigns tab:
Account tree: Use this menu beside your account pages to switch between
campaigns and ad groups.
Performance summary graphs: Use these customised graphs to compare trends
on every level of your account. Click the "Change Graph Options" link to see data
points such as clicks, impressions and average position or to compare two of these
metrics at once.
Networks tab: This is where you manage your placements. You'll also see the
summary statistics for both your Search and Display Networks.
Campaign roll-ups: 'Roll-up' views let you see and edit all a campaign's keywords,
placements or ads in one place, instead of finding and changing them ad group by
ad group.
Dynamic help content: Help sections display the FAQs that you most likely need
for the page that you're viewing. Of course, you can also always click the "Help" link
in the top corner of your account to see the full Adwords Help Centre.

Key Concepts
Actions you can take from the Campaigns tab:
Campaign and ad group creation workflow: Create new
campaigns and ad groups with theNew+button at the top of
any table.
In-line editing: Edit ads, keywords, placements and bids
within the tables on the campaign and ad group tabs in your
account. Just position your cursor over a row to reveal the
editable fields.
Copy/move: A click of this button lets you copy and move
keywords, placements and ad groups between campaigns
without leaving the campaign management interface.

2.3 Ad Group Management

Basics
Module 2

Ad Group Management
Ad groups can be separately named, sorted by results,
paused, edited
Groups can host different keywords, placements, ads, bids
But location and bidding occur at a campaign level
Ad groups tab shows you a summary of performance/issues
in all groups

Adwords Ad Formats &

Best Practices
Module 3.1 + 3.2

Do you understand how ads are

placed?

Text Ads

Text Ads or Sponsored Links

Text Ads
NOTE: Double-Width characters (e.g Chinese or Korean) have
half the character limits. But punctuation is single width!

Text Ad Guidelines
Editorial and format:
Character limit: Your intended headline, text and URL must fit within the required limits and
not be cut off.
Prices, discounts and free offers: If your ad includes a price, special discount or "free" offer,
it must be clearly and accurately displayed on your website within 1-2 clicks of your ad's
landing page.
Punctuation and symbols: Among other requirements, ads may only contain a maximum of
one exclamation point.

Content:These policies relate to the products and services that you advertise,
and may apply to ads and the content of your site. For example, advertising is
not permitted for the promotion of certain weapons or for aids to pass drug tests.
Link:These policies relate to the Display and Destination URLs in your ad. For
example, the Display URL must be accurate and links to your website must allow
users to enter and exit the landing page easily.

Text Ad Guidelines
Ads should:

Be simple and enticing

Include prices and promotions
Strong call to action
Include the keywords in the text

Image Ads

Image Ads
Animated or static
Never on the search network
The power of the image
Give each image a title
Don't exceed 50 characters
Include an image description
Include the campaign or ad group name

All image ads need to first be approved by Google before they

start running
The display ad builder allows for template designs

Image Ad guidelines
Gif, jpg or png or animated in flash
Max size = 50kb
Sizes
250 x
200 x
468 x
728 x
300 x
336 x
120 x
160 x

250 Square
200 Small Square
60 Banner
90 Leaderboard
250 Inline Rectangle
280 Large Rectangle
600 Skyscraper
600 Wide Skyscraper

Image Best Practice

Call to action - such as "learn more", "buy now" or "visit us today"
Prominently showing your Display URL which typically contains a company's name, is a
major component of a text ad. You have more room in an image ad, so don't be afraid to
use your brand or logo as well
Include details like prices, delivery details and relevant special offers
Ads lead to a relevant landing page
Use appropriate capitalisation - the nice thing about display is that you can have all
caps
Promote a sense of urgency in your display ads if you have time-sensitive pricing or
offers. Use phrases like "hurry!", "limited time" and "special offer" to capture a user's
attention and push them to take action
Keep it simple
Include product images
Each frame should hold its own weight (has logo)

Video Ads

Video Ads
Think entertainment audience
One of the largest formats of media consumption
Formats
In stream text ads
In stream graphical overlay
Click-to-play ads

CPM or CPC + always Display network

You must use the display ad builder for your ads
Managed placements or keyword targeted campaign
Low impressions = increase bid

Video Ad Best Practice

Video audiences are not captive (unlike TV)
Display your message as quickly as possible (ppl drop off quickly)
Be clear about your message (there might not be a web visit)
Sight must equal sound
Opening image
Money shot
Rich sharp colours
Include a few words to describe offering
Tell users to click play to learn more
Different placements have different opening image sizes
Dont turn your banner image into your video opening image
Dont cram text

Video Ad Best Practice

Wait 30 days before testing results
In interaction is low = change videos and images
Rather bid by impression, if using CPC use negative keywords
Focus on interaction rates not click through rates as measure
of success
If one site is performing better, ad more sites like it

Mobile Ads

Mobile Ads
Smaller to fit on smaller screens
Mobile ads MUST lead to a mobile website
They can include a Call functionality
iPhones (and others) display normal ads, not mobile ads
Create a separate campaign (rather)
Mobile image ads work the same as the desktop versions
except 12 or 18 character limits

Mobile Ads Best Practice

Link policy language
wml (WAP 1.x)
xhtml (WAP 2.0)
chtml (imode, etc.)
PDA-compliant html
No flash!
6:1 Aspect Ratio
300 x 50, less than 7.5 KB file size
216 x 36, less than 4.5 KB file size
168 x 28, less than 3 KB file size
4:1 Aspect Ratio
300 x 75, less than 7.5 KB file size
216 x 54, less than 4.5 KB file size
168 x 42, less than 3 KB file size
Japan-standard size
192 x 53, less than 5 KB file size

Mobile Ads Best Practice

Start early
Be aggressive
Separate desktop and mobile ad campaigns
Choose different keywords for mobile vs desktop
Catchy ads win
You can still use display in mobile!
Apps work too
Target per device

Rich Media Ads

Rich Media Ads

Include videos, flash, animation, or a mix of text & images
Gallery in the Display Ad Builder (must use)
Managed placements (recommended at least 10) or keyword
targeted
CPC or CPM

Rich Media Ads Best Practice

Always respect copyright on the images you use
All ad policies apply
You may not use the ad to collect private information
Strategies for bidding
Compete place ad with text ads and the one that performs
the best will automatically be shown more often (remember
you are then bidding the same rate)
Own ad group In the ad auction text ads and display
compete against each other

Rich Media Ads Best Practice

Customising your ad

Colour
Strong call to action
Balance images and text in ad
Include a visible URL
Experiment! (copy, templates, colour, call to action)

Rich Media Ads Best Practice

Measurement
Driving sales

Compare cost to leads or conversions

Narrow targeting to focus on customers
Look at hover over rate
Analytics to understand website behaviour
Use conversion tracking

Summary Ad Formats
Format

Network

Cost

Format

Text

Search or partner

CPC

25,35,35,35

Image

Only partner

CPC or CPM

Ad builder

Video

Only partner

CPC or CPM

Ad builder

Mobile

Only partner

CPC or CPM

18,18,18, Call

Rich

Only partner

CPC or CPM

Ad builder

Adwords Targeting and

Placement
Module 4

The Google Network

Search Network

Display Network

Google + AOL etc.

Google search does not equal Search
Network

Gmail, YouTube, News24 etc.

By default ads are automatically placed on BOTH networks

Keyword targeting:
- Search phrases

Keyword targeting:
-Contextual targeting

No placement

Placement targeting
- Managed placements (specific sites)

Quality score is calculated separately for the two networks, so even in one
campaign the same ad may have different quality scores for search and display
Text ads

Text ads + images, video, rich etc.

Targeting
Search Targeting

Keyword-targeted ads on Google search +

Search Network
Target languages, location & keywords

Display Network Targeting

An entire website, or subsection or even a

specific ad unit on a page
Contextual targeting

Device Platform Targeting

1.
2.
.
.
.
.

Desktops and laptops or

iPhones or other HTML providers
Applied at campaign level
Can target the Google network
Stats with device breakdown
No impact on mobile campaigns

Keywords & Keyword

Targeting

Match Types
Type

Characteristics

Keyword

Matching searches

Broad

Default
Largest reach
Includes plurals and
synonyms

PR Agency

PR Agencies
Advertising PR agency
PR JHB agency

Phrase match

Keywords in exact
sequence

PR Agency

JHB PR Agency
FH PR Agencies
PR Corporate agency

[Exact]

Matches exactly
consumer search
phrase

[PR Agency]

PR Agency
PR Agencies
JHB PR Agencies

-Negative

Prevent your ad from

appearing when
another word appears
in a search

PR Agency Cape
Town

PR Agency
JHB PR Agency
Cape Town PR
agencies

-{Embedded]

Removes an
embedded exact
search phrase

-[Philips] Lighting

Philips lights
Philips lighting
Philips

Keyword Lists

Build
keyword
list
Using the
Google
Keyword tool

Group
keywords
by theme

Set the
right
match for
each
keyword

Refine list

Test &
refine

Monitoring Keywords
Quality Score (disabled by default)
Keyword analysis tool
Remember to adjust poor performing keywords and change the
match rules
Keywords must match what your advertising

Keywords best Practice

Group keywords
Broader match give scale but could blow budget
Narrow match gives fewer targeted clicks and can save $
Negative keywords rock
Dont forget about campaign level settings/adjustments
Keep keyword list tight 20-30
Two or three word phrases work best
Keep testing keywords and refining.

Adwords Location
Targeting

Language & Location

Language Target up to 40 languages
Location Any combination
Target the language spoken by the audience that you're trying to reach. This
should also be the language in which your ad is written.
Target countries or territories if you want to reach a wide audience across one or
more countries.
Target regions and cities if your business serves specific geographic areas or if
you want different advertising messages in different regions.
Target customised areas to reach specific geographic areas which may not be
available in region and city targeting.
You can combine these targeting options any way you like within the same
campaign.

How this stuff works

Language = Google interface language
Location =
Google Domain (e.g www.google.fr = france)
Search term (e.g. Johannesburg PR agency = JHB)
IP address

Location
Regional or City Targeting
Proximity or radius targeting

Location Challenges
IP address shows wrong location
A user outside the target area searches for something specific
in it (they will still see your ad, automatically)
You target country level, Google then uses their domain, but
the user is actually in a different location (e.g. Chris using
google.co.za in Amsterdam)

Best practice
Before setting location, check Google Insights for search,
optimise for country traffic
Check on campaign performance where traffic actually comes
from and optimise
Different regions can have different landing pages
Add location extensions to your ads

Placement Targeting
(Display Network)

Google Display Network Recap

Display network reaches 70% of all internet users in 20
languages in 100 countries
Automatic placements: If you have keywords in your ad group
and are targeting the Display Network, using contextual
targeting
Managed placements: If you choose to manage placements
separately for increased control, you'll use managed
placements.
Excluded placements: You can also choose certain placements
on which you don't want to run ads.

Contextual Targeting

Individual Placement
targeting

Placements
Your keywords are used to
No keywords required, you
match page level content
choose the sites. Ads appear
Remember this is set by default regardless of content
Can be the entire site, section
Bidding (in order)
or ad unit
Individual placement bids
Must be part of the network
Managed placements bid
Placement tool will help tell you
Display Network bid (or your where to place
campaign if you leave it
You still compete in the bid for
blank)
that space
Can exclude up to 5 000 sites

Managed placements
Allow for placement targeting
or restrictions
Separate bid management
First Google uses keyword
contextual targeting, then
managed placement rules
3

ways to select placements:

Manually
Automatic
Placement tool

Bidding (in order):

Individual bid.
Ad group managed
placement bid.
Ad group Display Network
bid
Ad group default bid

Monitoring Performance
Run a URL report and check:
Implement Google's conversion tracking so that you can understand how individual sites are
converting for you.
Don't focus on lower overall click-through rates (CTR). Remember: A low CTR on a given site
does not necessarily mean that your ads perform poorly. Users behave differently on Display
Network pages than they do on search sites. For more telling information, rely on your
conversion data.
When you find placements where ads from one ad group convert well, consider adding them
as managed placements on the Networks tab in your ad group. Try raising your bid so that
your ads will have a better chance of appearing whenever your keywords put your ad on that
placement. Or try doing the opposite with poorer-performing placements: lower your bid to
seek a better ROI on those specific placements.
Respond only to statistically significant data. It may take several weeks before you can see
how your ad is doing on a specific site. We recommend waiting until you have enough click
and impression data before making decisions.
Use the report to identify and exclude sites that are not converting for your campaign.

Other targeting options

Videos can be targeted, using the placement tool
Ability to target game sites
Ability to target RSS feeds
Ability to target mobile sites

Best Practice
Using the right keywords
Select placements that match your ad
Try using rich media
Use placement diagnosis to uncover problems

Bidding
Module 5

Types of bids
Cost per Click

Cost-per thousand
impressions

Conversion Optimiser

Only pay when someone clicks

Great for branding and

visibility

Set a cost per conversion per

campaign

Automatic bidding You set a

daily budget, Adwords gives
you the most clicks a day for
that budget. You can also still
set a max CPC
Manual bidding Set individual
bids at group, keyword or
placement level

Set on group or placement level Using the conversion optimiser,

Google attempts to give you a
When CPC and CPM compete
lower cost per conversion,
against each other eCPM is
lowers your bid automatically
used (or effective CPM). I.e.
for less likely clicks.
working out a CPC into a CPM
prising model
Campaign must receive at least
15 conversions in the last 30
days and maintain a similar
conversion rate
You can still set a max CPA

Important concepts
When setting up an account consider the value of a click and your daily
budget
Adsheduling - Adjust bids by time of day (using the bid multiplier, 10%
to 1000% of the original CPC.
Note this affects all ads in the campaign
Demographic bidding (Bid + %) Increase your bid when the right
demographic is being targeted
Best practice:
Choose the bidding strategy that fits your goals
Consider automatic bidding for new advertisers
Use bid simulator to see possible advertising results with different bids
and keywords
Review where the best bids come from and shift focus

Budgets
Daily budget = amount your willing to spend per campaign on average
Up to 20% over budget on a given day, but never over 100% of the budget over the
lifespan of a campaign
Standard delivery
Impressions are spread out through the day

Accelerated delivery
Display your ad as quickly as possible to your
budget

Googles recommended budget is calculated as follows:

Determining your total potential impressions
Comparing potential impressions with your recent performance and costs
Combining daily estimates
Tempering recommended amounts to allow for testing

Best Practice
Keep your total account spend in mind when specifying your
campaign
Remember your bidding amount when setting your budget
You may change your budget a max of 10 times a day

Ad Site Quality
Module 6.2

What is ad quality?
Google strives for relevance, in searches and ads (this makes the quality score so
important)
Quality Score is based on your keyword's click-through rate (CTR); the relevance of
your ad text, keyword and landing page; and several other factors.
This is calculated for EVERY relevant search
Landing page quality is influenced by the usefulness and relevance of information
provided on the page, ease of navigation,load time, how many links are on the
page and more
Quality score is used in:
influencing your keywords'cost per clicks (CPCs)
determining whether a keyword is eligible to enter the ad auction that occurs when a user
enters a search query
affecting how high yourad will be ranked
estimating thefirst page bidsthat you see in your account

How quality score is calculated

Google Search Network
CTR
Account History
Ad group CTR
Relevance of keywords to ad
Account performance in
region where ad would be
shown
More

Display Network
Contextually targeted
CPC:
The historical CTR of the ad on this
and similar sites
The relevance of the ads and
keywords in the ad group to the
site
The quality of your landing page

CPM:
The quality of your landing page
Placement targeted

Landing Page Quality

Influenced by:

Usefulness
Relevance
Ease of navigation
Load time
How many links and more

Each keyword receive a landing page relevance score

Improving Landing Page Quality

Relevance

Transparency

Navigation

How relevant is it to the user

query
Originality, feature unique
content
Dont link or redirect traffic
Content of substance

Define what your business does

Honour deals
No changing usual web
behaviour
No software installs
Policy in handling user data

Easy flow paths

Avoid pop-ups etc
Loads quickly

Sites with low scores

Data collection sites
Sites designed to show ads
Malware sites
eBook sites
Get rich quick
Comparison shopping sites
Travel aggragators

Monitoring quality scores

This can fluctuate
Keyword analysis:

Eligible
Disapproved
Paused/Deleted
Low search volume
Below first page bid
Low Quality Score

You need to enable the quality score tab to view the analysis

Performance Monitoring &

Conversion Tracking
Module 11

Performance Monitoring
Track performance and conversions = identifying which clicks
are more valuable and optimising budget. This requires
understanding what users are doing on your site

Selling and Representing

AdWords
Module 15

15.1 Adwords Value

Proposition

Brand
Marketing

Direct
Marketing

Ads
distributed to
those directly
interested in
your product
Generate
leads
ROI focus
CPC
AdWords
Discounter
Smart Pricing

Builds
awareness
Display
network
reach
Every stage
of purchasing
decision
Message
testing

Adwords Proposition
Targeting
Search query, Language & Location
Networks devices, placement targeting & exclusion tools
Pricing options
CPC
AdWords Discounter
Smart Pricing
Reporting

Changes allow 24/7

Account Snapshot | Keyword Report
Campaign Statistics | Ad Report
Conversion Tracking | Placement Report
Google Analytics | Search Term Report | Hourly Report

Saves time buying ads & measuring success

15.2 Selling Adwords

Steps in securing an Adwords client

Start with a clients need assessment
You can perform a needs analysis to determine a client's current online marketing involvement,
learn about their company/organisation landscape, know who the decision makers are and
uncover company weak points.

Points to consider:
Review their website: Have a basic understanding of the advertiser's business. What is their
flagship product or service?
Do some research: Are there articles about the business online? Are they already doing online
marketing? Are they in the organic search results? How competitive is the ad space?
Learn to speak their language: What vertical are they in? What is their sales cycle? Are there
unfamiliar terms? Is there seasonality? What challenges might they face?
Begin to plan: How might you build an AdWords account for this advertiser? What products or
services would you include in an initial marketing strategy? What products or services might
you recommend for expansion?

Steps in securing an Adwords client

Aligning client needs with Goals and Opportunities
Typical problems:

Limited time: Unable to effectively pursue new marketing strategies

Lack of experience: Mistakes in online marketing campaigns
Resource constraints: Cutting corners
Not targeting audience effectively: Failure to generate revenue
Inability to measure success: Sub-optimal use of marketing budget
Limited marketing strategy: Missing out on customer segments
Limited budget: Limited investment in future

Steps in securing an Adwords client

Typical scenarios
Are you concerned that you're spending too much/not spending
enough on marketing? (feature revealed: control over budget)
Are you worried that your current media plan isn't as efficient as it
could be? (features revealed: flexibility and local targeting)
Are you concerned you may not know how to best target your
advertising to your audience? (features revealed: reporting and
targeting)
Are you satisfied with the level of traffic, conversions etc., that you're
seeing? (features revealed: marketing reach and reporting)

Invalid clicks
Manual clicks to increase your costs OR automated tools

Google has three powerful tools for protecting clicks on AdWords ads:
Detection and filtering techniques:
Each click on an AdWords ad is examined by our system. Google looks at numerous data points for
each click, including the IP address, the time of the click, any duplicate clicks and various other
click patterns. Our system then analyses these factors to try to isolate and filter out potentially
invalid clicks.
Advanced monitoring techniques:
Google uses a number of unique and innovative techniques for managing invalid click activity. We
can't disclose details about the software, except to say that we're constantly working to expand
and improve our technology.
The Google Team
In addition to our automated click protection techniques, we have a team that uses specialised
tools and techniques to examine individual instances of invalid clicks. When our system detects
potentially invalid clicks, a member of this team examines the affected account to glean important
data about the source of the potentially invalid clicks.

Explaining the Search and Display

Networks
The Google Network lets advertisers reach users across the Internet - from small newsletters to large search engines. Since
search results pages make up a very small fraction of all pages viewed online, the Google Network provides a cost-effective
way to reach users on the greater portion of the web. The Google Network is split into the Search Network, which includes
Google and other search sites like Ask.com, and the Display Network, which includes Gmail, newsletters and sites like the
New York Times and HowStuffWorks.
In the Search Network, search targeting applies to keyword-targeted ads shown on Google search results pages and on
other search sites. Ads shown on these pages appear alongside, above or below the search results and are specific to that
particular search query. If the advertiser's keyword matches the user's search term, the advertiser's ad could appear.
The Display Network has the advantage of reaching potential customers at different points of the buying cycle. Not every
potential customer is focused on conducting a search. Not every visitor is ready to buy at a given moment. The advertiser's
challenge is to capture their attention at the right time.
For example, a user might begin a search for digital cameras with just an interest in reading reviews. However, while
reading a review, that user might take note of online retailers' ads or click the ads themselves. With search-only
advertising, this customer would have been missed.
With the Display Network, you can run ads in text and rich media ad formats. Image and video ads can be especially
important in branding and marketing efforts. Google charges no additional fee to serve these ads. That's just another
benefit of partnering with Google AdWords.
Here's one more benefit: If our data shows that a click from a Google Network page is less likely to turn into actionable
business results - such as online sales, registrations, phone calls or newsletter sign-ups - we may automatically reduce the
bid for that site. With no extra effort from you, Google technology helps you realise consistent value across Google and the
Google Network.

15.3 Maintaining Client

Relationships

Best Practice
Keep your client updated on progress often
Offer multiple metrics for success
Dont share your login credentials

Product
Why hire a 3rd party professional
Let's take a look at some pros and cons of each:
Guaranteed Clicks
Pros
Potentially easier to sell for an untrained sales force
Simple value proposition for unsophisticated advertisers

Cons

Requires more click-fulfilment strategy because AdWords platform is not built to support Guaranteed Clicks
Can create confusion by placing higher value on clicks rather than leads, phone calls, sales
Does not take into consideration click differences across verticals
Does not work well for very high-cost or low-cost advertiser packages

Budget-based
Pros
Facilitates operations because of Adwords platform compatibility with a budget-based product
Focuses advertisers' attention on value delivered rather than click targets leading to better performing accounts
Provides flexibility to allocate different CPCs based on vertical cost variations
Provides more flexibility to your Account Management Team

Cons
Challenging to sell to unsophisticated advertisers
Challenging to set advertiser expectations

Contracts
Short Term:
Better suited for risk averse advertisers because of increased flexibility
Usually provides more signups, but higher churn rates in the long run
Offer short-term contracts with auto-renew functions

Long Term
Better suited for advertisers with online experience
Usually provides fewer initial signups, but lower churn rates in the long-run
Offer long-term contracts with short-term cancellation policy

Metrics to share with clients

Clicks
Impressions
Average CPC
Ad Rank
Cost Spent on Google AdWords
Frequency
Send customers reports when they request them
Send a weekly/monthly report via the AdWords interface
Provide 'Report Access' into the AdWords account
Provide your own UI or technology for advertisers to view their
reports

Optimization Hiring an exper

Pros:

Reduced need to hire internal operations staff

Can support unexpected spikes in volume or results that exceed projections
Already existing search engine marketing expertise
Fast cycle to launch
Scale is inherent

Cons:

Less expertise gained than if running in-house

Less control over operational decisions
Less control over search networks used
New Google products not accessible until built into the AdWords API
May accrue additional costs

At a high level for in-house:

Pros:
Building in-house expertise for your business
Complete control over operational functions
Complete control over search networks used
Able to experiment with new Google products not offered by SEM

Cons:

Additional headcount needed to run operations

Sales may need to be throttled back if hiring is too slow
Need to acquire search engine marketing implementation expertise
Slower to launch
Scale needs to be planned for - beyond hiring more people

Prising Model
Some considerations:
Ensure your pricing model fits in with your other product offerings (if you offer other products)
Create price points that can be easily explained by your sales force
Commonly observed pricing models contain upfront monthly service fees or percent-based
markups (10-30%)
Examples:
10% mark-up + 50 monthly service fee + 100 monthly budget
30% mark-up + 50 monthly budget
100 one-time set up fee + 50 monthly service fee + 100 monthly budget
Deliver 100 clicks for 200
If you decide to bundle your products, here are some considerations:
Offer different packages for savvy vs. less savvy customers
Allow your sales force to offer customised price packages for higher spend customers

At FH
16.5% commission
Plus time to set up, manage and report
If we dont like them a 10% handling fee as well

Good Luck for the Exams!