Google AdWords Releases New Product - AdWords Starter Accounts

March 20, 2006

Google has released a new version of AdWords called ‘AdWords Starter Accounts’. This program drastically reduces the complexity of AdWords by not showing several features to these account holders. This appears to be an effort to increase the adoption rate of Google AdWords by SMEs (small/medium enterprise businesses). This product is currently only available in the United States.

The basic premise of Google AdWords Starter Accounts:

AdWords Starter Accounts are limited to:

1 AdGroup
1 Ad
1 Monthly budget (i.e. there are no campaign settings)
- There is no keyword level bidding.
- The budget optimizer is turned on.
All keyword matching options (including negative match) are available.

The Targeting Options Are:

Geographic:
- Country
- State
- Driving Distance (this is 100km radius around a zip code)

Distribution:
- The search partner and content match options are on by default and cannot be turned off.

Reports are Limited to 3 Graphs:

Clicks per day
Cost per day
Impressions per day
The date range is flexible

Google does provide information about their normal AdWords accounts within the interface, including instructions on how to upgrade. However, there is a warning that if one upgrades their AdWords account, they can’t return to the starter account again.

This AdWords account is very simple. It took me under 1 minute to create my first account without ever seeing the interface before (I would expect an SME to take longer as they have to read all the explanation).

The promotion of this product by Google, and the adoption rate by SMEs is yet to be seen. The possibility is there for SMEs to easily start an AdWords account and begin targeting their prospects is quite straightforward. However, this is what many SMEs still don’t have to be able to take advantage of this targeting:

Websites (many SMEs still don’t have websites)
Success metrics (without any conversion tracking, seeing how this option converts will be difficult).
see a Google charge on their credit card.
Sophistication. The majority of SMEs complete their marketing efforts in an hour long conversation with a Yellow Pages rep. If the SME has ongoing marketing, it’s usually handled by the local newspaper. They often need a middleman (i.e. marketing agency) who works with the YPs and Newspapers to promote internet advertising products.
Time. SMEs are very busy. While this is a simple product, it is more likely several will open an account, let it run, hope it does well, and then only revisit it when they

This is an interesting move by Google, and one that is needed to bring local marketing dollars directly to Google. For many, this will be their first taste of internet advertising. The first taste of something is often the most important in terms of perspective. If these accounts don’t do well, it could jade many SMEs to forego other internet marketing options.

So, the question is, will this be a product that helps SMEs succeed?
Or a product that just lets SMEs spend money without understanding the return?

Additional Resources:

Related Information:

« Google’s Responses to Click Fraud

Ask Jeeves Final Video and Future Outlook »

Written by Brad Geddes aka eWhisper · Filed Under Blog, Google AdWords, PPC Info

Comments

3 Responses to “Google AdWords Releases New Product - AdWords Starter Accounts”

Shimon Sandler on March 20th, 2006 3:23 pm

I think it is a big mistake that Google doesn’t allow the Starter account people to modify the “search partner and content match options”. The content network is notorious for click fraud and low conversions, and that could potentially hurt the newbies, and scare them off from paid search altogether…or just convince them to outsource to a SEM:-)
Google AdWords Launches New Tool - Allows Advertisers to Control Ad Position | Visibility Genie on April 7th, 2006 6:50 am

[...] The feature will not be available to starter accounts. [...]
bgtheory.com on June 30th, 2006 5:14 am

[...] The feature will not be available to starter accounts. [...]