In our case study example, John registers the website www.repair-laptop.net. He is a certified and known laptops technician, who gained several years of hands-on experience with the top brands while working in Miami, Florida. He lost his day job at the height of the financial crisis and decided to start a business for which he can offer his services online.
Step 1: Optimize landing page performance
Now that the landing page (which he selected to be the home page) seems perfect and within guidelines, John takes a piece of paper and brainstorms possible keywords to target for his first Google AdWords campaign. Of course, the site is receiving virtually no traffic because it is new, and no SEO campaign has ever been conducted for it.
Step 2: Brainstorming Targeted Keywords
So John decided to launch an AdWords campaign to immediately send him targeted traffic to his site from Google’s search engine and partner websites.
The following is the long list of possible keywords he selected during the brainstorming process (he decided to target an exact match since he needs it to appear relevant and specific):
Repair Laptops Miami
Repair laptops Florida
Cheap laptop repair
Cheap laptop repair Florida
Cheap laptop repair Miami
Laptop Repair Florida
Laptop Repair Miami
Affordable laptop repair
Affordable laptop repair Miami
Affordable laptop repair Florida
Since above appears generic; he also decided to dig deeper and brainstorm some of the popular laptop brands he can possibly target:
Dell laptop repair
Dell laptop repair Florida
Dell laptop repair Miami
HP laptop repair
HP laptop repair Florida
HP laptop repair Miami
Step 3: Determining the Budget and Pricing
John knows he did not have a massive budget to spend with his campaign, so he decides to limit his budget to something realistic. He decided to launch the campaign at first with a $5 daily budget. So his monthly budget is around = $5 x 30 = $150. Of course, to make a profit, the business should make more than $150 per month.
If he prices his service at $100 minimum per repair, he needs to have more than $150/$100 ~ 1 customer per month in order to make profit. But in order to support and make a decent living, he needs to attain more, so he decides to be careful with which keywords he is targeting.
Step 4: Profiling targeted visitors
Since he is known a bit in Miami and some other parts of Florida, he decides to make that area his priority. As long as customers are in the United States, though, he will be able to provide service.
Step 5: Getting data from Google Traffic Estimator
John wants to know what his campaign will cost, so he starts by gathering keywords cost data via Google traffic estimator.
He copies-and-pastes all the keywords from his brainstorming session into it. He sets the currency to the default, which is the US dollar. And then he sets the daily budget to 5 (for five dollars). The language is English, and the targeted country is set to the United States.
After he sets everything, he clicks "Continue" and downloads the .csv file.
Step 6: Conduct an ROI analysis of those keywords
The first thing he needs to do for the analysis is open the .csv file in Excel and save it as an .xls or .xlsx file. This will convert it to a pure MS Excel document. Okay, after that, John sorts the "search volume" column from highest to lowest. This will let him find the keywords with realistic traffic levels.
Since Column B, column F and G (Estimated ad positions), as well as Column J and K are not extremely useful input in the analysis, those columns and their data are deleted. The next thing he needs to do is replace all "no data" with 0.
To minimize confusion, he adds a column to compute the average of each value provided by Google. For example, "Laptop Repair" has a lower CPC (cost per click) of $3.15 and an upper CPC value of ($4.09). The average is ($3.15 + 4.09)/2 = $3.62. He does the same for the estimated clicks per day with values of 0 and 2 for minimum and maximum respectively. This gives an average of 1 click per day. This is done for all keywords in the MS Excel spreadsheet.
He also realizes that at his budget of $5 per day, he won’t be able to get clicks targeting local-based keywords (example HP Laptop repair Florida); it also means there are few searches for it.
So he removes such keywords from his list, and the final list of keywords is shown below (screenshot of the Excel manipulation results):
Step 7: Draw Conclusions and Recommendations
After all of that work, John has a list of four keywords to target with his AdWords campaign: Laptop Repair, b. Dell laptop Repair, HP Laptop Repair and Repair Laptops.
Based on the analysis of the data provided, he can do the following math:
Estimated average clicks from the campaign (entire month) = 2.5 x 30 = 75 clicks (2.5 clicks is the estimated sum of all keyword click-through per day: 1+ 0.5 + 0.5 + 0.5)
Since the traffic is highly targeted and using highly related keywords with a highly optimized quality landing page, the estimated conversion rate is around 5%.
The estimated conversion/sales quantity per month is around 5% x 75 ~4
Assuming the average service charge per laptop repair is around $100 (complete repair cost will be even more, depending on the extent of the repair), average monthly sales from his website is around = $100 x 4 = $400 for a 5% conversion rate.
Now his return on investment is around: $150 + $150(x) = $400, %ROI (x) = 166.7%
Step 8: Proceed to Google AdWords account
Now John has the complete list of keywords. He can now open a Google AdWords account for his website, targeting his list of chosen keywords.
Specifically, after John signs up for Google AdWords, he will look for the "Create your first campaign" button that will let him create his first campaign:
When John clicks that button, he does not need further advice; he then clicks on "Skip this step and create your first campaign now."
After clicking the link, Google AdWords asks for the following important information from John:
1. Campaign name: This could be any name, like "John campaign #1."
2. Targeted Country/location: US.
3. Networks: This should be set to "All available sites (Recommended for new advertisers").
4. Devices: This should be set to "All available devices (Recommended for new advertisers)."
5. Daily Budget: $5, as determined at the beginning of this article.
The above settings can be customized to any settings John would like in the future. On the next page, John will actually create his ad copy according to the keywords he selected. See screen shot below:
When John finally submits his billing information to Google AdWords, the ads may start appearing on Google and partner sites. During this period, John will start monitoring performance, conversions, and customer inquiries.