Does pausing Adwords affect performance?
Yes it does, undoubtedly. Look at every keyword as a separate market. The market dynamics are affected constantly by changing consumer and advertiser behaviour. Your involvement in the market affects that dynamic, and as Google always rewards relevancy, a good clickthrough rate (CTR) and a good conversion rate will always earn a lower cost-per-clickthrough (CPC). But don’t rely on Google to give you the lowest possible CPC - you’ll need to explore a little bit. If you’ve got a well optimised landing page (so your keyword matches your ad, matches the title tags and body content of your landing page), you can lower CPC further and still achieve the same Ad rank and conversion rates.
But all of this good work is destroyed when you pause your ads. You’ve withdrawn from the marketplace (this is analagous to selling shares, you’ve left the market), and you’re no longer playing. When you re-enter the market you can’t expect the dynamics to revert to the point when you exited.
It’s a pain though, because there’s lots of times when you need and want to pause - your site might be down, or performing badly or you might be releasing new products. You’ll need to make the call on what you do at this stage. Perhaps the safest strategy would be to reduce your keyword bids to very low levels. You’re still in the market, but your traffic will be practically non-existent.
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