Monday, July 7, 2014

Google Ads

Now don't get me wrong.  I love google.  The help me do research, and most important, they sell my books as long as I am willing to give my content away.  It is paradoxical, but there you have it.

And I do believe that google is conceived and executed as an intel arm of the USG, owned and operated by uncle sam but fronted by gee-whiz millenials in order to keep the center.  And I do understand also they punish people who say what I just said.

But so what.  This blog provided "free" by google (why do "free" things cost we taxpayers so much?) gives me about $20 a month in ad revenue, and I am told it earns about $.80 cents an ad.  Y'all are big spenders according to google.

I very badly wanted google ads to work.  I took their freebie offer and after spending about $500 of my own money running ads, I got to where countless schools arrived, and that is the cost of an enrollment for continuing education courses by advertising online is about $90.  Therefore, the method is pointless in this instance.

Ogilvy put the ratio at ten times.  If the ad does not bring in ten times the cost, then the method is pointless.  Ogilvy was particularly scornful of ads that won awards or had many viewers, but at the same time no generating ten times the cost in sales.  Minimum.  For my $500, I should have gotten $5 thousand in sales. Didn't happen.

I think online advertising is largely bogus, although it generates billion in revenue for google.  I know someone working for a prominent online media outlet who went unpaid for a long time since GM did not pay for their Camaro ads, awaiting bailout dollars, to do so, as related.  Got paid eventually.  But if that is typical, and look at online ads. then all of this is false economy.

Among small business people I speak with, universally they say google ads is inexplicably difficult, and it seems purposely so.  How come?   So agencies can step in and sell the unsellable, google ad efficacy.

Explain this....  the landing page for recruiting google ad users features a success story.

Ok... All is very high tech with a rollover that quotes a whopping doubling in clicks.  Well, clicks don't pay the rent, so who cares.  But wait!  A ten percent increase in sales!  Yay!

At what cost?

At what price did a 10% increase in sales come?  So let's go the Romis website and inquire directly about the no doubt paid endorsement.  Maybe we can find out.  Now to to that website, romiboutique.com and what do you get...

Update: twice last night I landed on a godaddy "no such webpage" placeholder.  A reader tells me it is now landing where it should:  http://www.romiboutique.com/  Confirmed!

Now I will ask at what cost came the 10% increase in sales.  I'll update with an answer if I get it.

Don't mix up google Adsense in which you are paid to let google place ads on your "property" with google ads in which you are placing ads.  Those are two different things.    For whatever reason, according to my experience and those of other small businesses who have tried it, it is impossible to manage.  Hence the ad agencies that will manage it for you.

Feel free to forward this by email to three of your friends.


1 comments:

DFG said...

Hello Mr. Spiers,

first, I'd like to thank you for your excellent book How Small Business Trades Worldwide. I find it fascinating, a must read book.

Said that, I couldn't help to write a comment, since I found the webpage of Romi boutique is still active. In your post I understood it is said it's out of business. Are we talking about the same thing?

Thanks,

David FG