Customer Evolution and Google Adwords!

When NOT to advertise through “Adwords”:

1. When the target group is people who are interested in gaining knowledge of the product.

2. When the site is already search engine optimized for the keywords and manage to appear in the first page of Google search.

3. When the target group is not using Google for the first time.

4. When it’s a product which costs more than $1000 (usually the cost at which people need approvals from higher level).

Why?!

Because customers have evolved over the period of time. Physically, NO! but Mentally, YES!!

The “Adwords” wave came to the shore, raked up some money and of course, delivered great value in its early period. And the wave is receding now.

A typical product life cycle curve:

In this case,

Product = Adwords; sales = capturing the target audience

the peak of sales was somewhere in 2006, when lot of people still believed that the right hand Ad’s were delivering value and made it easier for a prospect to “buy” what he needed. Even the marketeers across the industry believed that and they continued paying more and more to stay on top. 🙂 Eventually the customers evolved and realized that the marketeers are paying money to appear on top, which inherently eliminated the value of the ads, and thus the products. And where could they find value?! on the left side “organic search”!!

A recent survey showed less than 5% of the total customers ( the kind that fall into the category given above) have clicked the Ad on the right.

And if the product is in the “declining” phase of the life cycle, why is it still making large revenue?! Because there are still a lot of marketeers who believe that the product is still in its “mature” phase, and they are already hooked!

That is the evolution!

Sam Jayanth


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