What is a Google Ad?
Google ads, also formally referred to as Google ad words or ad words express, is an online advertising solution that businesses can use to promote products and services on other websites. Websites that allow for Google ads on their website can monetize these ads by the people paying for the Google ads. Pretty much any business or service can use Google ads.
Is a Google Ad the Same as Adwords?
A Google ad is the same word as Google AdWords, just a more updated version.
How do Google ads work?
Google ads work by displaying an advertisement when people search online for different products and services that you might offer. They may appear on YouTube channels, Google search results, and other websites. These ads can help get your ad in front of potential customers at the right moment so that they take action, or at least that’s the plan.
You first start by selecting your goal, what you really want your visitors to buy from you. Do you want them to contact you, buy from you, learn from you, or subscribe to you? You then select the geographical area where your ad should be shown and if this is a real estate brokerage, typically you’ll be within a certain demographic, geographical area, county or city. From there, you customize the ad and set your monthly budget. Once the ad is approved it will appear wherever users in your target area search for products or similar services to your own.
Can Google ads work for real estate?
Google ads can be a good source of real estate leads but like any marketing tool, you have to work the process. The unfortunate thing with Google, or it could be fortunate depending on how you want to look at it, is that the process changes frequently. To some it’s gotten easier over time, more simplified, and others, change is never good and you have to relearn a platform all over again.
To sign up for Google as you’ll need an existing Google account. Then you’ll utilize the Google ad system which can be as easy as googling “Google ads” and it will take you right to the page. You want to optimize your campaign for the proper lead generation and traffic. This will tell Google that the goal of the ad is to convert any clicks and traffic and actual leads. Make sure that you add your website to Google to track if the goal of leads is actually reached. This could be your homepage or your root domain or specific page just for lead sign-ups.
Consider using campaigns throughout ZIP Codes. While not everyone searches for ZIP Codes, it is easier to geo-locate and track using ZIP Codes for the area in which you service. If you live in a smaller market and don’t have a lot of ZIP Codes, you might use an entire city or even a county, whichever is more relevant for your demographic.
How much do Google ads cost?
The cost is determined by your budget settings. Google ads will give you control over your budget and your only charged when users interact with the ad. But, be careful, because more people may interact in your prepared for and then will have a hefty bill to pay. When they interact it means they’ve clicked to visit your website or called your business through the Google ad.
How much should I be spending on Google ads?
Of course, you have to do what’s comfortable for you, but if this is going to be a solid source of leads, a general rule of thumb is between $10 and $80 per lead. If it’s a solid lead, that could be several thousands of dollars in commission, well worth $50 or so. Smaller markets may have a less expensive leads based on competition.
The more people searching in an area and the more competition, meaning other agents that are using Google ad words similar to yours, will increase the cost per lead. Also, it depends on your landing page converts. If what you have when people get there is not compelling or entertaining or even worthy of a call or click through, you’re going to lose the lead. You can’t just set up a Google ad without a compelling website for them to visit. You’re going to lose them right away and waste your money.
Can I group ads together?
Yes. You can group ads together in the same category. Typically one for each ZIP Code or major metro area. Within that group, you can create multiple as with different headlines and descriptions. This is a great way to do a A/B testing to find out what’s really working and bringing in the leads.
How to analyze your leads.
There are several different ways to analyze the results. Your click through ratio means those that are actually clicking on your ad and following through to the website. Anything above 10% is usually pretty good but if it’s under 3 to 4%, you may want to adjust the ad slightly.
Lead to client ratio means your conversion ratio going from the click all the way to final closing. That, of course, is the key analysis because that’s where your income is coming from.
Traffic to lead ratio is how much traffic it takes to generate that one lead. A conversion rate of around 5% is actually pretty decent. For instance, if you had 300 clicks and you got 15 solid leads out of it, that could be upwards of $225,000 on average in commissions.
How do I know it’s working?
Again, it comes down to what you’re willing to work on. You can’t just set it and forget it. You need to look at where your dollars are being spent, your click-through rates, lead to conversions, and if it’s really working and then adjust if it’s not. You do need to let it play out for 1 to 3 weeks for each ad to really get a good snapshot of the success of the lead.
Need help adjusting your Google ads or setting it up correctly for your eXp Realty ads? Give me a call. Looking to start in the real estate business or if it’s time for a change to a brokerage where you can actually keep your commissions, contact me at any time!
Learn More about eXp Realty
- Zillow Leads Vs. Realtor.com Leads
- 20 Questions to Ask When Interviewing Brokerages
- What Experienced Agents REALLY Want in a Brokerage
- 100 Things I Wish I’d Known Before Getting Into Real Estate
- Increasing Your Real Estate Agent Salary
-
