Niche Markets and How They Affect Adwords Campaigns

Not everyone is a potential customer for a given product or service.  Smart business owners know their niche – the particular, well-defined segment of the population that will have interest in what is being sold.

In order to be effective, adwords campaigns must address the advertiser’s niche.  This requires an in-depth understanding of who comprises the market and why they buy, and a tightly focused keyword list.

• Who is buying the product or service?  Successful advertisers develop a profile of their typical customer.  Keywords, titles, and descriptions must appeal to this person.  A health-conscious person would be more likely to click thru an ad for “organic meatless recipes”, for example, than “delicious hamburger recipes”.

Reaching the right market – the niche – is necessary to avoid the cost associated with clicks by people who are not likely to buy.  Advertisers should strive to avoid viewers who will click but not buy, because they will pay a higher CPC without attaining sales to balance the expense.  Low conversion rates are one way to recognize that ads are reaching too broad a market.

• Why do they buy?  Marketing experts suggest that purchasing decisions are made for one of three reasons: to fulfill a basic need, to solve a problem, or to create positive feelings about the self.  Adwords campaigns should communicate specifically what need will be satisfied, problem solved, or self-image achieved through the purchase.

Viewers are given pages of hits when they enter a search.  They need a compelling reason to choose one ad over another.  Effective ad titles will increase click-thru rates.  The result of these two steps is a lower CPC and a better qualified lead.

To zero in more closely on the niche market, advertisers can employ negative keywords.  These are the words that, when included in a viewer’s search, will cause the ad NOT to appear.  Developing an accurate list of negative keywords involves several steps.  First, using a keyword research tool, enter the keywords chosen for the advertiser’s website.  A list of phrases commonly searched that contain those words will be produced.  An advertiser selling tulips, for instance, might find that the search phrase “pictures of tulips” is frequently used.  The negative keyword “pictures” would then prevent the ad from showing when a viewer wants an image instead of the real thing.

Use keyword phrase matching to further ensure the ad will reach the right viewers.  Variations in spelling, common misspellings, interchanged words, and the use of singular and plural forms of keywords allow the maximum number of potential customers to receive the ad in response to a search.

Knowing one’s niche and reaching that segment of the market can enhance an advertiser’s success with Adwords campaigns.

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