The finance, insurance, retail and travel industries spent the most on AdWords during 2011, according to research into Google’s finances, although search engine optimisation experts say small- and medium-sized enterprises should think more about how they pay for Google ads.
Stewart Media CEO Jim Stewart told SmartCompany this morning many businesses pay too much for their advertising.
“Typically … businesses simply pay too much for broad phrases, going for volume rather than quality,” he says.
WordStream has published an insight into how Google made its AdWords revenue in 2011, with a top-10 list of industries and associated keyword phrases. At the top of the list is finance and insurance, at a massive $US4 billion, with keywords such as “cheap car insurance” and “credit cards”.
The second-largest group was retailers and general merchandise at $US2.8 billion, with keywords including search terms for specific products, while travel and tourism came in third with $US2.4 billion with search examples such as “plane tickets” and “rental cars”.
The entire list:
1. Finance & insurance – $US4 billion
2. Retailers and general merchandise – $US2.8 billion
3. Travel & tourism – $US2.4 billion
4. Jobs and education $US2.2 billion
5. Home & garden – $US2.1 billion
6. Computer & consumer electronics – $US2 billion
7. Vehicles – $US2 billion
8. Internet & telecommunications – $US1.7 billion
9. Business & industrial – $US1.6 billion
10. Occasions & gifts – $US1.2 billion
The 10 industries represented 60% of Google’s revenue for 2011. Ads make up the bulk of Google’s money, with just 4% coming from other products and services.
The company has published an infographic that displays some even more fascinating information, including that Amazon, eBay, Macy’s and Sears spent more than $US167 million on AdWords, while “Zumba dance DVD” was the most commonly used keyword, at $5.18 per click.
In the travel industry, Booking.com spent the most at $40.4 million, while “New York Hotels” was the most expensive click at $US7.68.
The most expensive out of all the industries was “high speed internet deals” at $US26.74, followed by “funeral flowers arrangements” at $US20.95, “cheap hybrid cars” at $US15.57 and “custom business cards” at $US13.83.
The results also show that amid problems in insurance and finance, the industries are aggressively searching for customers, and consumers are still searching for goods, despite low sentiment.
But Stewart says too many businesses are spending too much money on key phrases, rather than more specific terms that could result in higher sales.
“Businesses often go for volume rather than quality, so they’ll go and buy the phrase “real estate” instead of “brick two bedroom”. It’s more specific, will cost less, and all about going for long-tail phrases.”
Stewart says this is especially important given the rise of mobile searches.
“We just worked with a car dealership, and they sold five cars directly through AdWords. It cost them $4 per car. And they were able to do that by targeting a specific area.”
WordStream says the list was compiled using the company’s own database technology, along with the Google KeyWord tool.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
