The Worst Summary of AdWords You Will Ever Read

Earlier today I came across what I will describe as the most uninformed, embarrassingly inaccurate description of AdWords I've ever seen that wasn't written as a joke.

The title of the article linked to above is Tech Solutions Your Small Biz' Can't Use by Gene Marks. Based on the content of the article (among other ridiculous comments Mr. Marks states small businesses shouldn't use anti virus software) I'm going assume that Mr. Marks doesn't own a small business, know anyone that does, or has even been in the presence of a small business owner. Even though he has a website that states otherwise I refuse to believe it.

This post will focus on the number 8 thing a small business doesn't need according to Mr. Marks, AdWords (or paid search in general). Here are Gene's comments relating to the use of AdWords by a small business:

"John's a pretty smart guy. He runs a company that sells specialty pet foods. He manages his own investments. He keeps an eye on his taxes. But I've found a way to turn John into a blithering idiot. I've asked him to figure out how to use Google's (GOOG) AdSense profitably. Are you interested in a mind-numbing exercise? Give AdSense a shot. Or Yahoo SM or MSN AdCenter. Don't you know how much to budget for "clicks" on your ad? Are you just a little suspicious as to who exactly is counting these "clicks" that conveniently turn into revenue for these companies? Like John, you've just entered the alternate universe of Internet advertising! Here's a word of wisdom: Leave the mass-market advertising to Coke (KO) and Pepsi (PEP). Small business owners should stick to less mystifying forms of promotion."

Ouch. Let's take a look at that opinion a few chunks at a time.

"John's a pretty smart guy. He runs a company that sells specialty pet foods. He manages his own investments. He keeps an eye on his taxes. But I've found a way to turn John into a blithering idiot"

Maybe Gene made John read this 100 times?

"I've asked him to figure out how to use Google's (GOOG) AdSense profitably. Are you interested in a mind-numbing exercise? Give AdSense a shot. Or Yahoo SM or MSN AdCenter."

Gene Gene Gene...even my 14 year old neighbor knows the difference between AdWords and Adsense. Glaring error in using the right term for what you're talking about aside, in order to AdWords in a cost effective manor you follow the same basic marketing principles you do when using other more traditional forms of media. The goal is to spend less than you earn...you know, make a profit.

"Don't you know how much to budget for "clicks" on your ad?"

You budget for AdWords just like you budget for any other marketing initiative. Use data.

"are you just a little suspicious as to who exactly is counting these "clicks" that conveniently turn into revenue for these companies?"

The company counting the clicks would be the company that you signed up with. In the case of AdWords, that company is Google. There are plenty of tools and services available that can also assist in auditing clicks if you are concerned.

Try auditing magazine circulation, direct mail deliveries and billboard exposure. The amount of information you can get about the people who clicked on one of your ads far exceeds the amount of information you can get about the person who saw your ad in a magazine.

"Like John, you've just entered the alternate universe of Internet advertising!"

Alternate universe? Are you kidding me?

"Here's a word of wisdom:"

I scanned the entire article and couldn't find it.

"Leave the mass-market advertising to Coke (KO) and Pepsi (PEP). Small business owners should stick to less mystifying forms of promotion."

Yea, because highly targeted relevant ads on search engines and content matched pages is exactly what I would consider "mass-market" advertising....

I personally know more than dozen small business owners that use AdWords to promote their business. Most have increased their spend with AdWords (and paid search in general) over the past few years as they watched the results speak for themselves. In terms of performance, most if not all of the small business owners I know would say paid search is the most effective form of advertising they do. It's more effective than Yellow Pages, television, radio, direct mail and print. Small business owners should without a doubt look into paid search as a form of promotion for their business. If they don't have the time to do it themselves (and most won't) they should consider hiring a professional to manage it for them. When done right the increased revenue will more than offset the campaign management costs.

I am actually astonished that the article being discussed was ever even published. The advice Mr. Marks is giving isn't just wrong, following it could actually harm (not using anti virus...I could tell you some small business horror stories...) a small business. While not using AdWords surely won't harm your business it could put you at a disadvantage and limit your growth potential. AdWords is marketing and marketing is a critical component to the overall successfulness of a small business.

My advice for small business owners would be to look into the viability of a paid search program now, don't take the advice of someone (*cough* Gene Marks *cough*) who doesn't even know the name of the advertising method he's telling you not to use.