Make headway with Google Adwords

By LBV

05 Oct 2011

How does it work?

A web user searches for a phrase, and advertisements appear, written and placed by companies who bid to display their ad against that keyword.

The advertiser usually pays when the user clicks on their advertisement, and not when their ad is ‘seen’, unlike traditional advertising. (Although Google does now offer this option.)

The “cost per click” is between a few pence and a few pounds depending on the competition for that phrase. “Loans”, “mortgages” and “insurance” are hotly contested phrases, with Google netting tens of pounds for some phrases.

Your ad can appear instantly – meaning that a brand new website can benefit immediately from visitors before traditional “SEO” has time to work.

Should you be using Adwords?

At first glance, it may appear ‘expensive’. However, the key to any advertising spend is the return.

A quick example… let’s consider our widget manufacturer, selling widgets online for £50 each.

A click for ‘plastic widgets’ costs £1 per click. That may seem rather costly when we’re used to ‘normal’ search clicks being “free”.

100 clicks may produce 10 sales (10% conversion rate), at £50 each – totaling £500. Therefore, every sale (10 out of 100 clicks) costs £5 – probably a positive return, especially if that customer returns to buy again without clicking on your ad.

A service based business may need to drill deeper, factoring in the cost of each enquiry, and the conversion of enquiries to business…

Do people really click on these links? (We’re asked this every day.)

Your ‘click-through-rate’ will depend on how well written the ad is, but typical click-through rates are between 1% and 10%. So yes – they do!

(Adwords accounts for 97% of Google’s $33bn (£20bn) revenues.)

For a targeted, accurate way to advertise to your consumer, customer or potential client – you really should consider trialing an Adwords campaign. Your competitors probably are…

Leon Calverley
Door 4

 

Enjoyed this? Read more from LBV

Latest news

1

Green light for Eden Morecambe 251219EPM BMSG Dunes

Green light for Eden Morecambe

16 Feb 2026

2

Burnley business leaders lobby government in Parliament Burnley Bondholders visit to Westminster

Burnley business leaders lobby government in Parliament

13 Feb 2026

3

Students learn about opportunities at third annual Lancashire Cyber Education Week Primary School students take part in a STEM workshop at BAE Systems.

Students learn about opportunities at third annual Lancashire Cyber Education Week

13 Feb 2026

4

Winners of Lancashire Tourism Awards 2026 announced

Winners of Lancashire Tourism Awards 2026 announced

12 Feb 2026

5

Design team appointed for £13.2m Samlesbury Innovation Hub The team looking at plans for the Samlesbury Innovation Hub

Design team appointed for £13.2m Samlesbury Innovation Hub

12 Feb 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

The Ultimate Network – February
Logo.jpg.jpg
LBV Hub Networking
19 Feb 2026 - 19 Feb 2026

The Ultimate Network – February

Brockholes Nature Reserve, Samlesbury, PR5 0AG

16:00 - 18:00

Future Forward Business and Skills Summit
Future Forward Business & Skills Summit
LBV Hub Networking
20 Feb 2026

Future Forward Business and Skills Summit

Lancashire Energy HQ , Blackpool, FY4 2QS

08:00 - 11:00

Armed Forces Covenant Business Engagement
Logo.jpg.jpg
LBV Hub Seminars
24 Feb 2026 - 24 Feb 2026

Armed Forces Covenant Business Engagement

Morecambe Football Club, Morecambe, LA4 4TB

09:00 - 15:00

Preston Freelancer Meet-Up: February
LBV Hub Networking
26 Feb 2026 - 26 Feb 2026

Preston Freelancer Meet-Up: February

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Lancashire Lifesavers
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Lancashire Lifesavers

The Story, Lancaster, LA1 1TH

10:15 - 11:15

Spring Forecast 2026 LIVE: Insights with PM+M
Spring Forecas.jpg.jpg
LBV Hub Seminars
03 Mar 2026 - 03 Mar 2026

Spring Forecast 2026 LIVE: Insights with PM+M

Blackburn Rovers Football Club (Red Rose Suite), Ewood Park, Blackburn , BB2 4JF

12:00 - 15:00

Chamber Breakfast Networking – March
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Chamber Breakfast Networking – March

The Storey, Lancaster, LA1 1TH

08:00 - 10:00

Your marketing measurement is useless
Event header.png.png
LBV Hub Seminars
04 Mar 2026 - 04 Mar 2026

Your marketing measurement is useless

Brockholes Nature Reserve, Preston, PR5 0AG

09:00 - 12:00

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2026 - 27 Dec 2025

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

Payroll Update 2026 Samlesbury Hall
payroll.jpg.jpg
LBV Hub Seminars
06 Mar 2026 - 06 Mar 2026

Payroll Update 2026 Samlesbury Hall

Samlesbury Hall, Preston, PR5 0UP

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin