Google AdWords Management - A Useful Tip

submitted: Apr 20th 2008 | by: KirtChristensen | Total views: 19 | Word Count: 393 | |

When your ad is relevant searchers gravitate to you. The secret to successful AdWords is relevance. Searchers will click on your ad when you have relevance. When you have relevance, your profits will grow because your ad costs dropped, because Google definitely rewards relevance.

When you're the person laying out the cash yourself and it's your own business, your own risk, and your own credit card that Google is dinging every month, you don't have time for your own ego stroking. Your customers don't have the patience for it either. Nowhere is this more clear than in Google AdWords management. Putting your own money on the line has a funny way of wising us up to what gets clicks and what doesn't.

Relevance Equals A Google Reward

Traditionally, you get higher positions on the search page by bidding more. But when your clickthrough rate goes up, Google actually gives you better positioning without charging you more per click. It rewards you for being relevant.

Roughly speaking, the first position has always been given to the highest bidder. But Google has long maintained an ingenious little twist. Here's a simplified version of its formula:

Your Relative Position = Your Bid Price x Your Clickthrough Rate

The fuller version of Google's formula is your bid price multiplied by your Quality Score. Either way, your CTR swings the biggest difference apart from the price you bid.

Next question: Which CTR are we talking about? We are not talking about, the total ad group CTR, nor the CTR of any of your ads either in the search partners or in adsense. We are talking about the Click-Through-Rate of the individual keywords, their performance on Google alone.

If you have a high clickthrough rate, then you don't have to bid as much for the position. For example, I bid $1 and my ad gets a CTR of 1 percent. Your ad gets a CTR of 2 percent. You can get the same average position as me by bidding $0.50. If you bid $0.51 then you'll get the position above me. If you're already in top position, Google will automatically charge you a lower bid price as your CTR improves. Not bad.

This isn't magic, even though it looks like magic. It means you're coughing up less money to Google every month, and you're putting more in your own pocket every day.

About the Author

Need to optimize or "fix" your Adwords & PPC campaigns? Kirt Christensen manages over $600k in PPC spending & knows what it takes to make your account hum! When it comes to adwords help, he's the man!

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