Network Settings

Most advertisers should not be advertising on the display network. There are a couple main reasons for this. First, display network ads are usually seen while people are doing other things. This requires you to steal the user's attention and focus it on your product or service. Not the easiest thing to do. Second, AdWords includes the display network in its default campaign settings. Because of this, there are thousands of advertisers with display network ads who have no idea they are even on the display network. More advertisers means higher costs per click across the network. While display network clicks are often cheaper than search network clicks, they are still higher than they should be based on how well the traffic tends to convert. In spite of these issues, the display network can work well for some businesses. If you have a product or service that serves a specific demographic, and you are able to target this demographic in AdWords, then the display network is definitely worth testing. Remarketing Remarketing campaigns are the exception to the "you probably shouldn't advertise on the display network" rule. You first create an audience by placing a snippet of tracking code on your website that will compile an anonymous list of your website visitors. You can also get this data by linking your AdWords account to your Google Analytics account. Once your audience has been compiled, you can then create a remarketing campaign to show your ads to just these people. Because people who have already been to your website have a higher likelihood to buy, these ads become a much better investment than other display ads. Some advanced remarketing strategies (you will need to link your Analytics account for some of these): Create time-based remarketing audiences based on the user's first visit on your site, or based on the most recent time they've been to your site. Create different ads and landing pages for each segment of users (i.e. 1-5 days, 6-10 days, etc.). This will keep your ads fresh over time, and allow you to advertise new features, benefits, and offers to people who have not yet made a purchase. Make sure you use audience exclusions in your ad groups so your audiences do not overlap. Create remarketing audiences based on which pages of your website were viewed. Build ads to remind your audience of this content and bring them back to make a purchase. Create remarketing audiences based on how long people spent on your site and/or how many times they have been to your site. People who visit your site often and stay on the site for longer than average are usually worth investing more in.
Search Network The search network is what most people think of when they think of Google AdWords. You search for something in Google, and the top results are usually paid ads. These are text ads, so many people still confuse them with organic search results (even though they say "Ad" right next to them), which can be a good thing for us because people naturally assume the first link they see on Google is the most relevant.
There are some people who avoid ads and will only look at the organic search results. There are other people, like myself, who prefer clicking on AdWords ads when looking for a product or service. In some respects, each traffic source targets different types of people. Search engine optimization (the process of getting a website towards the top of organic search results) can be a beneficial thing. But AdWords is just as important – if not more – because these ads are shown above any organic results. Because Google is the place people go to find what they are looking for, search network ads are for companies that offer products and services people are already seeking. If you are trying to promote a new, unknown, or obscure product, then the search network probably isn't a good place for your ads to show.

Book name: Network Settings: Spend Your Budget Where It Matters Most (And The Little-Known Google Network That Can Make Or Break Your Campaigns)
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