Google Ads for insurance agents is one of the topics Secure Agent Marketing is asked about most.
Today, we’re going to take a look at what AdWords is, how do they work, when you would implement them into your strategy, and what your goal for AdWords should be.
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What is Google AdWords?
Google AdWords is one of the oldest digital marketing products that exists. It is why Google is worth hundreds of billions of dollars. Essentially, Google AdWords is search advertising or search engine marketing. You pay per click to be on the top of the list that shows up when someone searches a term. There’s the option to pay to have that website traffic to go to your website, landing page, or whatever you want to do. You can even pay per call and have your Google Ad set up that way.
How do Google Ads for insurance agents work?
Google AdWords is a gigantic auction. Everyone bids what they would be willing to pay per click for a certain keyword. Whoever wins, gets to be number one versus number two. It costs more money the higher you want to show up.
Here’s an example of how that works when you search “Life Insurance Charlotte” on Google:
Typically, professionals can get you to show up higher on the list at a discount and drive lower-cost clicks and calls with some search engine optimization. Sometimes, their management pays for itself through SEM savings.
When do you want to use Google AdWords?
There’s two main criteria that decides when you want to use Google AdWords:
- Is there a demand for the keyword?
- Do you have the budget?
This is pretty self-explanatory. Professionals in the insurance marketing industry do lots of keyword research to make sure enough people are searching for a keyword in your area. Most of the time, there is. However, if you Google a keyword and see no ads, it typically means that keyword isn’t driving results. Therefore, you probably shouldn’t either.
As for the second criteria, you have to have a sizable budget to make AdWords worth your time and money. Google will tell you at least $1,000 a month. This is because you set a daily budget per click and per call. So, if your budget is too thin, you wind up having something like this going on:
You only have $400 to spend, so your daily budget is $13 per day. Then, your keyword costs $4-5 per click or call, so you only get three clicks per day and your ad disappears by 10 a.m.
What is the goal of Google Ads for insurance agents?
Really, the goal is simple: we’re trying to drive conversions, leads, calls, landing page form-fills, and etc. If you’re doing Google AdWords just for clicks, you’re doing it wrong.
You would be surprised at how many people are doing AdWords and they don’t have conversion metrics set up, they don’t know what their cost-per-conversion is, or don’t even know what a conversion is. We don’t care about buying clicks. We care about buying conversions and leads. And, really, we don’t even care about leads. We care about sales and revenue.
So, if I’m spending $1,000 a month on AdWords and driving $5,000 a month in sales with a commission at 20%, I end up making my money that way.
Should you use AdWords?
We’ll be the first to tell you that there is cheaper ways to drive leads than doing Google AdWords if you don’t have much of a budget. Google AdWords is what we call the “Big League” of digital marketing. You have to have a bigger budget to play and there’s big players in the insurance industry.
But, we will tell you, the keywords in the insurance industry are some of the most searched keywords, and some of the most expensive to purchase, in the nation.
So, should you do AdWords? Generally speaking, yes. But, not if you don’t have a big enough budget to play ball. It takes several months to determine if that AdWords budget is going to serve you well on a return-on-investment standpoint.
Secure Agent Marketing is a full-service digital marketing agency. We can audit your campaign if you’re curious to see if your current advisor is doing a good job. Building Google Ads for insurance agents is part of our daily routine.