Determining Product Profitability Using Google AdWords

One of the biggest mistakes people make selling products online is marketing a product no one wants to buy. They waste lots of time and money trying to make their project profitable.

So how can you use Google AdWords to test the profitability of your product?

1. Keyword Research with the Google AdWords Tool

This free software provided by Google displays the:

estimated ad position
estimated average cost per click
global monthly search volume
advertiser competition
search volume trends

Keywords that receive little or no search volume should not be included in an AdWords campaign because you’ll be waiting forever to receive any clicks. Focus on keywords that receive a high number of monthly searches because this means people are actively searching the Net using those keywords.

A high cost per click means advertisers are willing to spend big money to display those ads.

2. Check for competing ads

Enter your main keyword in the Google search box to see how many advertisers there are. If there are many it means people are spending money to make money. If there are only a few or no competing ads it may mean there’s no profit in this product or there are no competitors (particularly if it is a unique product). This may be a good sign to run a test campaign to check for if it’s profitable.

3. Look for trends

Visit Google Trends to see what keywords people are searching on a daily basis. It even breaks it down by regions, cities and languages and can view trends over 30 day, one year or several year periods.

4. Create an AdWords campaign

The best way to determine the profitability of your product is to set up a campaign based on the keywords which receive the most searches then write an attractive ad that links to your landing page.

Run your ads over a week to a month to collect valuable data. Monitor and tweak your keywords, ads and landing pages to get the highest CTR and conversions. If you don’t receive many clicks or conversions after a period of time it it may mean your product is not going to be profitable and move on to another product.

By first doing the research mentioned above you’ll avoid a lot of mistakes and save precious time and money before marketing your product.


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