Google AdWords may seem like a great way to get traffic to
your site but will this pay-per-click marketing system end up costing you a lot
of money without making you any? Have
you thought of all the ins and outs of it?
If you want to know the key to success with AdWords check out this
article. It’s in 2 parts. Come back for part 2 tomorrow. Let me know how useful you find it with a
comment below.
AdWords Tips:
All About Keywords – Part 1
By: Ryan
Cole
As you probably know, Google AdWords is a pay-per-click marketing
system, which is a great way to get traffic to your site. But if you don't know
the ins and outs, it can end up costing you a lot of money and not making you
any.
So, what's the key to success with AdWords? Well, I wish I could tell you there
were one or two simple tricks, but the fact is, the best way to ensure success
with AdWords is to be familiar with every aspect of the system. This will
likely take weeks or months of research, plus a few bucks spent testing out a
real AdWords account. However, you can greatly increase your chances by
following this bit of advice: don't skimp on the keyword research!
Maybe you had it in your head that you could go through your site, grab 20 or
30 words or phrases, load them into an ad group, and you'd be watching the
traffic and sales pour in. This is simply not the case. Keyword research should
be the most time-consuming part of setting up any campaign; not only that, but
you should be doing it all the time. That's right - never stop building your
keyword list. Okay, now let me explain a few things:
First, you need to understand how Google uses your keywords to show your ads.
You place a bid that determines your maximum cost per click (CPC) for each
keyword. This can be different for every single keyword, if you wish. This bid
does not represent the amount you'll pay for each click (like on Overture);
this is just the maximum you'll ever pay for any single click. For example, if
you have a max CPC of $0.50 set for a keyword, you'll only have to pay the full
amount if someone else bids $0.49. If that person decides to lower his bid to
$0.30, you'll only pay $0.31. This is because Google's bid discounter only
charges you one cent more than the next highest bidder, no matter what your max
CPC is. Theoretically, then, you could bid $10 or even $100 and still only pay
$0.31 for a click.
But that's not all! As you start getting impressions (i.e., your ad shows up in
the search results) and clicks, you'll have a click-through rate (CTR). This
represents the number of clicks you receive per 100 impressions. Here's the
really beautiful thing about AdWords: the higher your CTR, the lower your click
cost. Because Google values relevance, you'll receive a bonus for having a
relevant ad, and CTR is the primary indicator of how relevant your ad is. So,
let's say you're competing with someone for ad position No. 3 on the search
results page for a particular keyword. Your max bid is $0.50 and his is $1. He
should be way above you, right? Not necessarily. Suppose you have a CTR of 5%,
and his is only 1%. Google factors in CTR when calculating ad positions, so you
end up with this: max CPC × CTR = (what we'll call) ranking factor. In this
case, your ranking factor is 0.025, while your competitor's is only 0.01. Which
means your ad shows above his for $0.50, even though he's willing to pay up to
$1!
Author Bio
Ryan Cole runs The Internet Marketing Blog, a free resource for those who need help with Google AdWords, affiliate marketing, SEO, PPC, or any other online marketing topics. Visit for more info on keywords, WordTracker, and Google AdWords.
Ryan Cole runs The Internet Marketing Blog, a free resource for those who need help with Google AdWords, affiliate marketing, SEO, PPC, or any other online marketing topics. Visit for more info on keywords, WordTracker, and Google AdWords.
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Source: By Ryan Cole

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