[Real Estate] Spotted: Agencies using Google Ads today
Here are some agencies and portals spotted advertising on Google this afternoon for a handful of CDS property keywords in English on Google.co.uk. I didn’t clear my browsing history so it’s possible some were triggered via Remarketing instead of the keywords. In any case it’s all Google Ads. I’ve removed any clients of ours from the list.
In no particular order…
So who gets to have their ad at the top of page 1?
For the sake of not going into too much detail, this next part is simplified. Just know there’s more too it 😉
There are 7 ad spots on the first page of Google, of which only 4 are at the top of page 1. As it’s an auction, all things being equal, if 20 of those 50 or so companies bid for top of page 1 for, say “villa for sale in marbella”, the four with the highest bids win. And there’s only 1 spot at the top of the page, so any bidding for that only one will win, the one willing the pay the most.
So if you take the above from a current active Google Ads campaign, you can see the conversion rate of click to lead is of 3.92% for combinations of keywords using the words: new + villa + estepona. This means that for every 100 clicks x4 leads are produced on average. This conversion rate is fairly typical, perhaps slightly on the low side. In any case, it suggests it will take x25 clicks to generate a lead via that keyword. Now if you look at the cost to bid for top of the first page it’s a very reasonable €0.60 per click, so if you bid €0.60 your ad will normally appear at the top of page 1. As we know it will take 25 clicks to generate a lead, the cost per lead would be in the region of €0.60 x 25 = €15. In this case we’ve edged the bid up to €0.91 per click to achieve 92% impression share, hence you’ll see that over this period there were x2 leads at €17.02.
However if you look at the suggested bid for first position at the top of page 1, it’s a whopping €10.50 per click. Per click! On that conversion rate it could end up costing €10.50 x 25 = €262.50 a lead.
Surely not I hear you say? Although it’s true that just because you bid for €10.50 a click it doesn’t mean you’ll pay €10.50 a click (just how much you’re prepared to pay) last week one CDS agency we know got x2 leads via Google Ads at a cost of €314.40 each. Ouch.
Moral of the story? Perhaps it should be that when the market is crowded on Google Ads, bid for results not egoShare this: