Month 3: Overview

In month 2 you learned how to start marketing your ecommerce store. The strategies you learned in month 2 did not include any paid marketing strategies.

Paid marketing strategies will be covered in this month. Most of these strategies will require you to pay a fee for the traffic you will receive.

Marketing your store online successfully requires you to use all strategies available; paid, free, inbound marketing etc. All these strategies need to work together to create your sales funnel. It is very important to know how to use paid marketing because it affects your bottom line. Learn how to properly setup paid marketing campaigns.

The strategies covered in this month are(click on topic to get guide) :

Download PDF and a Link to 3 Bonus Marketing Videos

Advertising has been and it is still one of the primary and the most important part of any marketing corpus. Traditional advertising is mostly concentrated on newspapers, magazines and other public mediums. And after the Internet revolution, digital advertising i.e., advertising on the Internet has become a league of its own.

The reasons why digital/internet advertising has gotten a strong hold is because of its inherent merits like,

  • Digital Advertising is highly targeted, you specifically target only people who search for your service/product or advertise on the niche websites where your potential customers might be.
  • Digital advertising can be tracked accurately and hence the efficiency of the campaign can be studied and further optimized.
  • Since the Internet advertising is highly concentrated and targeted, you can save a lot of money, by not showing ads to non-relevant audiences.

Google Adwords

Adwords is Google's proprietary online advertising network that primarily places your ads on relevant search results and Google's Display network.

Pricing Models For Online Advertising:

Broadly there are two types of pricing models that you can chose from for online advertising,

CPM: CPM is cost per impression where you pay a certain amount of money for 1000 impressions (for every 1000 times your ad is shown to the audience)

CPC: CPC is cost per click where you have to pay a certain amount for each time some one clicks on your ad.

Getting Started With Google Adwords:

Getting started with Adwords is so easy; all you need is a Gmail account. Visit Google Adwords and click on Get Started Now.

In the next page you'll be asked to enter the Gmail ID you are intending to use and after entering the country and the preferred currency click on save and continue

Adwords Hierarchy

Before getting into how to set up and run ad campaigns, one of the most important and basic things that you need to understand is the Adwords structure,

The structure has an Account on the top, which has a common email id, password and billing details. ,

Under the Account there is campaigns, you can have up to 25 campaigns per account, for instance if you are running an ecommerce store then you have individual campaigns for mobiles, cameras and laptops. ,

Below the Campaign you have Ad Groups, you could have up to 2000 ad groups per Campaign. For instance you can have separate ad groups for Nokia, Apple and Samsung phones. ,

Under each Ad group you have a list of keywords for which the ads are run and a relevant ad copy for those set of keywords. For instance you can have keywords like, ,

  • Buy nokia phones online
  • Buy nokia phones in California
  • Buy nokia phones cheap

Under the ad group that runs ads for Nokia phones.

Now click on Campaigns → Create your first Campaign

This takes you to the Campaign Settings Page where you can,

  • Set the campaign name; make sure the name is relevant and unique

  • Chose the type of campaign you are going to run, there are 4 types of campaign that you can run, they are,
  •            o Search and Display network (recommended for maximum benefits)

               o Search only

               o Display only

               o Shopping sites

  • Select where do you want your ads to be displayed, which includes Google search network (Google search results + Google sites like maps and shopping) and Google Display network that essentially includes millions of websites that runs Google ads on their websites.
  • Next you can select or restrict the geographies where your ads should be displayed

  • You could also restrict your ads to certain languages. For instance if you are running an ad in Spanish, you can now restrict your ads only to the Spanish language
  • Next comes the most important part of adwords, it is that which decides how you are going to spend your money on your ads, which is called Bidding. There are two types of bidding,
  •            o The first and the recommended bidding method is automatic, that is Adwords will decide the bids to help maximize the clicks

               o And the second bidding method is automatic where you can manually set your maximum CPC bids.

  • The final detail that needs to be set is adding an ad extension; you can now include all the relevant business information such as location, site links and phone number on your ads, which enables your customers to directly contact you.
  • Verify all the information once more and click on save and continue.

Creating Ad group:

  • Name the ad group, make sure the name is relevant, follows a logical nomenclature and it must be unique.
  • Now to create an ad, you must come up with an attractive headline, and a two-line description that tells the user what is that you are offering and why should they buy from you.
  • Enter a set of keywords that are relevant to the ad for which you think your ad should be displayed.
  • Click on Save and continue to billing.

To perform a keyword research, to know what keywords people are searching for, how competitive it is and what is its demand you could use the inbuilt keyword research tool.

Navigate to Tools → Keyword planner → Search for new keyword an ad group ideas.

For a start enter the set of keywords that you think people might search for and click on

You'll now get a list of,

  • Relevant ad groups that you can select and directly add it to your campaigns.
  • Relevant keywords that people are search for the closely matches the keywords your entered.


The last and the final part is the billing where you have to select the mode of payment and enter a valid billing address.

Ad Auction:

Now, to answer one of the most important question, since there are only 10 ad slots, what if thousands of people are bidding for the same keyword, how would Google decide who would be included on the slot and who amongst them will placed on the top?

This is where Ad Auctions comes in handy and it is based on the formula,

Max Bid * Ad Quality (CTR) = Ad rank

Higher the rank, better the positioning on the ad slot.

Let us consider a scenario where there are four advertisers and each has a Max bid amount and their quality score, when you take the product of both the entities the result you get is the ad rank and the bidder with the highest ad rank get the top slot. Do remember that, the actual amount that a bidder needs to pay is that minimum amount needed to maintain that ad rank position. So

Actual Bid = Ad Rank of the bidder below you / your quality score

Campaign Dashboard

Now that you have started running ads, the campaign dashboard gives you a comprehensive idea of how each and every add groups and keywords are performing.

You can optimize your ad campaigns by,

  • Increasing or decreasing the bid on certain ad groups or keywords based on the performance.
  • Increase the ad quality to increase CTR and hence quality score so that you pay much less for a higher ad slot position.
  • Pause campaigns that you are not sure of now, or on which you are losing a lot of money without conversions.


Running ads through Adwords is the most easiest and economically viable ways to reach out to your potential customers directly when they search for the products/service you offer. As experienced Ad managers always advise, always keep a tab of the bid amount and always strive to improve your quality score to get maximum results at a much lesser cost.

Next Step: Start Inbound Marketing

Learn the best strategies for inbound marketing to generate more traffic and sales for your eCommerce store.