Google AdWords Management – A Useful Tip
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.
Arrogance falls by the wayside when you are shelling out the money, taking risks with your business and Google is dipping into your credit limit every month. Searchers don’t want to deal with your arrogance either. This story is revealed best in the management of Google AdWords. When it is your card being charged, the information telling you what does or does not get clicks, is in urgent demand.
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 more precise explanation of the equation is: your bid price x you Quality Score. But whichever one you use, your click-through-rate makes the biggest impact, besides your bid price.
What click through rate are we talking about here? It could be your ad group click through rate, or either the click through rate of your ads for search partners or AdSense, but that is not what we are talking about here. We are talking about the click through rate of your individual keywords and their Google performance 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.
Even though this may seem magical, it isn’t. It does mean you are shelling out less money each month to Google and that means more money heading to your bank account.
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