Why New Google AdWords Advertisers Always Fail

Posted on 25th January, 2007

We know that an advertiser’s AdWords history is important when it comes to ranking new AdWords ads. What we don’t know is that it so important, it can make or break your business.

MindValleyLabs had conducted an experiment where they paused several very successful campaigns which had been running for over one year and created a new Google AdWords account.

Then they launched identical campaigns on the new Google AdWords account. What they found were shocking. Their average daily click count basically dropped to zero and they got hardly any impressions.

Nothing had changed except moving the campaigns from an existing Google AdWords account to a new Google Adwords account.

So how can this be explained?

The only difference is History.

In this experiment, everything was kept constant except moving campaigns from an existing Google AdWords Account to a new Google AdWords account. And, when you move accounts, the only thing that you lose is history.

Why is history so important?

• In Google, everything is based on the Quality Score which is a combination of how your ads have been performing over time relative to ads of the competition.

• Ads with a higher quality score will get surfaced more often and have a dramatically lower required bid minimum. When we drilled into the new Google AdWords account we saw bid minimums that far exceeded the maximum bids that we used previously. So, if your account has no history, you might have to spend extra to establish a good history by bidding high just to get started.

• We also know that ads with a higher click-through-rate will have a higher quality score and that ads that start appearing in a higher position will have a higher click-through-rate because people click on more links that appear higher on the page. So, once again, new Advertisers will have to spend extra to quickly drive up the Quality Score.

Recently I deleted several of my long running and successful campaigns and created new ads based on the same keywords with the same AdWords account.

What I found was that, with a good history under my belt, my ads didn’t take long before they occupied the top three spots with more or less the same amount of cost per click.

So it seems to me that your history is not only based on the particular campaigns you had but also based on the performance of your account as a whole.

Therefore it’s not too far fetched to suggest that, if your AdWords account has had a bad history, the only way to improve it without increasing your budget is by creating a new account so you will be back at square one.

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  • […] However, in some highly competitive niches, you may need to bid higher than your competitors especially if you have not accumulated enough history under your campaign or AdWords account. Check out a related post here where I explained why most newbies fail with AdWords. […]

  • CFA Level 1 says:

    Good article and interesting insight. Thanks.

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