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Google AdWords PPC Tip: Dynamic Keyword Insertion

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PPC Marketing Webinar

One of the keys to achieving any level of success with pay per click (PPC) marketing in search engines is to increase the click through rate (CTR) of your ads.  (If you don't know much about PPC ads or Google AdWords, you might want to read the article Getting Started with Pay-Per-Click and Google AdWords first.)

Increasing your CTR does a couple good things for you.  First, you get more traffic (of course, you pay more for this additional traffic) that you can hopefully convert into more leads by building great landing pages.  Second, because more people are clicking on your ad, you can actually pay a little less per click because Google displays the ads based on how much money they will make (equal to how much money you will spend), not only on how much you bid.  Google knows that if you bid $5 and your ad gets a 3% click through, they make more money promoting your ad than promoting another ad that is bidding $10 and only gets 0.5% click through.

How to Use Dynamic Keyword Insertion in PPC Ads

If you look at search results, you can see that Google bolds the words in the search phrase if they appear in your ad.  Wouldn't it be great to always have the exact search phrase words appear in your ad?  Well, that's what dynamic keyword insertion does, and because your ad always contains those bold words, you typically get an increase in click through rate.

Here's how it works.  In the ad someplace (probably the title/headline) you can insert the text {keyword} and Google knows to substitute in the words used by the person searching.  There are three options for how to format the words in the search phrase.  Assuming someone is searching for "inbound marketing software", here are examples:

  • {keyword} will produce "inbound marketing software"
  • {Keyword} will produce "Inbound marketing software" (notice the capital K in Keyword and the capital I in Inbound)
  • {KeyWord} = "Inbound Marketing Software" (notice the capital K and W and that all the words in the search phrase are capitalized in your ad

One note, Google will reject your ad unless you also put in default words - these are required for cases where the search phrase is really long or there is an error.  To do this just add a phrase that is your default headline after a colon following the word "keyword", like this: {KeyWord:Demo HubSpot Software}.

A final word of caution - you really need to measure the overall cost per lead and cost per sale (using closed loop marketing), otherwise increasing your click through rate may actually have lowered your ROI if the new clicks you attract are converting into customers and leads at a lower rate than before.

Like this PPC tip?  Join our free marketing webinar today, Friday, January 9 at 12 noon EST called "Getting the Most Out of Your Pay Per Click Marketing Campaign". 

Register Now >>

 

Photo credit: lworcel


Posted by Mike Volpe on Fri, Jan 09, 2009 @ 07:37 AM

COMMENTS

Awesome little tip for web site admins! Thanks!

posted on Friday, January 09, 2009 at 8:59 AM by Ann Bevans-Selig


Thanks for the interesting tips. Keep posting!

posted on Friday, January 09, 2009 at 11:25 AM by Click and Inc


That is an awesome tip. I never thought about it. I'm going to try it and see if it works. Thanks for the recommendation.

posted on Friday, January 09, 2009 at 11:30 AM by Blog Guide


Great tips on inbound PPC marketing!

posted on Friday, January 09, 2009 at 11:40 AM by bellavitadesign


dynamic keywords for PPC - great advice!

posted on Friday, January 09, 2009 at 11:56 AM by Pete Codella


The format of the webinar was great.  
The nicest I have seen. Would love to know which company(ies) you're using!

posted on Friday, January 09, 2009 at 12:03 PM by Christine Sawyer


Great idea to start my Friday as I strategize on our PPC campaign and budgets for the year! Thanks! 
 
Follow us on Twitter @InvestorLoft

posted on Friday, January 09, 2009 at 12:16 PM by InvestorLoft


Heard your seminar today and found it very informative. How much should a small company be budgeted on SEO for an investment in Hubspot to make sense?- basically what is the minimum cost of entry into your services? I have a couple of clients that could really use this but don't know how to identify what they should be budgeting for.

posted on Friday, January 09, 2009 at 12:17 PM by Jennifer


The Only issue is if all you competitors use Dynamic Keyword Insertion (DKI) all the ads read the same. Take sometime and review competitive adtext to ensure you standout from all the static.

posted on Friday, January 09, 2009 at 12:30 PM by Modtri


I thought the new webinar format was great. What tools did you use to broadcast the webinar?  
 
 
 
One issue. After you started the webinar I no longer had the ability to put the slides in full screen mode. This was a problem with the math slides.

posted on Friday, January 09, 2009 at 1:00 PM by Ron Arden


This is great information for people / businesses who have the time to learn about AdWords. Although this is good to know and in fact a MUST know for competing for recognition on the web, it only further proves my thought that to truly make the most of AdWords, you have to invest in an AdWord education. It can truly be as tedious and detailed a task as writing software. The solutions that are surfacing now in the world of SaaS are really incredible. For example, small business who don't have the time or money to invest in really getting the "Art of AdWord" down to a "t", can reach out to products such as 1StoreFront (http://www.smblive.com/1storefront.htm) allowing them to enter in information pertaining to who they are and what they do and let the application do all the AdWord magic for them. Another great place to read about this type of marketing is the blog titled "Broadband Evolved" This is a good read http://www.typepad.com/t/trackback/2934066/37374650 
 

posted on Friday, January 09, 2009 at 1:31 PM by Beth


Links didn't make it through 
1StoreFront  
1StoreFront  
"Broadband Evolved" Broadband Evolved

posted on Friday, January 09, 2009 at 1:40 PM by Beth


Your blog is a terrific resource for markerters, and I always enjoy reading your postings. I think that you have become the authority on internet marketing! 
 
 
 
I have not been using dynamic keyword insertion in our PPC campaign because we are able to write different ads for each of our keywords. 
 
 
 
I went to an advanced AdWords class and was told that dynamic keyword insertion should be used with caution. 
 
 
 
For example, if someone types in something that you don't offer, your ad could come out looking like you do because it is automactially generated. 
 
 
 
An example of when to use keyword insertion would be: You are selling 2,000 different auto parts with 2,000 different part numbers. Instead of writing 2,000 different ads (one for each part number), you use dynamic keyword insertion. In this case the issue described above would be outweighed by being able to have targeted ads for each part you sell. 
 
 
 
I see vendors using dynamic keyword insertion in some of my searches (I think that Target.com uses it). You can tell because some things you type in the search box come up in their ad when you know they shouldn't. 
 
 
 
I was wondering what you thought about this... 
 
 
 
Thank you!

posted on Friday, January 09, 2009 at 2:49 PM by Kristen


Useful tip there. Will definitely try that tip out! :)

posted on Saturday, January 10, 2009 at 1:33 AM by megan


To achieve a higher CTRs, i think you have to use exact keyword matching by putting your keywords in square brackets like this [mp3]...I quite Agree with you on that!  
 
 
 
Ps: charles Brown 
 
www.ghostmoneyprint.com

posted on Sunday, January 11, 2009 at 8:17 AM by Charles Brown


Thanks for positing this blog/webinar! 
 
Quick Question: 
 
Can you have goggle AdWords appear only when there is a search for blogs? Or would we use goggle AdSense? We only want our goggle AdWords to appear on blogs (searches). 
 
Thanks! 

posted on Monday, January 12, 2009 at 10:49 AM by Shantel


I've noticed considerable increases in both CTR and Conversion Rate since doing this. Well recommended. Although, as with everything, watch and test continuously.

posted on Monday, January 12, 2009 at 11:11 AM by Company Searches Made Simple


Quick read but but very useful information given. 
 
 
 
Thanks, 
 
Sam England

posted on Monday, January 12, 2009 at 2:37 PM by Sam England


Thanks for the tip. CTR seems to be in a slump so it will be good to see how this works.

posted on Thursday, February 12, 2009 at 1:40 PM by Energy Haorder


I agree with Kristen, it gives a very negative perception of a company if they look as though they sell something, you click on their PPC ad and realize once you get to their website that they don't sell that 'something' at all. It's frustrating and time consuming and has negative brand impact. We had been using the Keyword Insertion across ALL our AdGroups. However, when you conduct a Search Query Performance report, you can see how many completely irrelevant searches your ad has appeared for. Of course, you can add certain words to your negative keywords and also change the match types of certain keywords if you think it warrants it, but this is almost like taking action AFTER the event. To prevent your ads appearing for something you don't offer, think VERY carefully before implementing the Keyword Insertion feature in your ads. Yes, your clickthrough rate WILL improve, but if your conversions do not (and your costs spiral out of control), then you have a problem.

posted on Thursday, May 14, 2009 at 9:06 AM by Nikki


Comments have been closed for this article.