How the bidding works

Google Adwords pay per click is done on a cost-per-click basis on certain keywords or phrases that are searched for in a particular geographical location. The price you pay for a click is a bidding process against other companies that may be using those same keywords or phrases, hence why certain words cost more than others. Lets say for example that you run a marketing company based in London. You’ll be competing with at least another 100 or-so companies within your area for that first page on Google. Now, you can set budgets throughout a campaign period, or daily limit. For example, lets say the going rate is £1.00 per click for the phrase ‘marketing companies in London’. 100 companies are bidding for the top 10 slots. The top 10 who are bidding the highest amounts are shown first (£1 per click each). Once their daily budget has been spent (if they have set a daily budget, that is), the next highest bidding company from the remaining 9 slots in. With this in mind, the best PPC companies will customise bid levels per word or phrase to be used for your business, using niche words which are more specific to your company to ensure that; 1. your budget isn’t wasted 2. you are appearing in front of your most relevant prospects.

The boost in people seeing your advert

But… Don’t let the cost-per-click scare you. The number of impressions (times your advert is shown on the screen) gained from a good PPC campaign can be in excess of 100x the number of click-throughs.  Following the old ‘rule-of-thumb’ for branding recognition of someone having to see your advert 7-8 times for it to be subconsciously imprinted on their mind – the PPC campaign can be massively effective for your business.

The average Google Adwords CTR (Click-Through Rate)

The average CTR is between 1%-3%. A standard Google Adwords campaign with generic keywords will be costly to you and may also only generate a 1% or-so CTR.

A decent CTR is between 2%-5%. This is where you may be geo-locating where the searches are taking place. For example, only people within London who search ‘marketing companies in London’ will see the paid advert. Someone based in Portsmouth, would not.

A very good CTR is 6%+. These are often known in the industry as ‘unicorns’ as they are so rare! The best way to get 6% or higher CTR is by having an expertly managed Google Adwords PPC campaign created for your business using niche words and phrases that aren’t searched for so often – but when they are, they’re usually done by people who are after that specific service. For example ‘Thai restaurant takeaways, Newport, Isle of Wight’.

How we do it

When setting up a Google Adwords PPC campaign with a client, we follow a very simple 10-step process to help put your mind at ease with the confidence that your online SEM (search engine marketing) is in the best hands.

  1. Keyword research
  2. Create advert
  3. Develop an awesome landing page
  4. Set up the account
  5. Set budgets
  6. Launch the campaign
  7. Monitor performance
  8. Assess campaign
  9. Feed back to client
  10. Re-jig and go again


There are literally hundreds of varying factors to be considered when creating a Google Adwords PPC campaign, which is why we believe it is essential that you hire a good agency who understand exactly what they’re doing. They’ll save you money, and make you money.