Managing AdWords - Handy Hints
by Kirt Christensen
Folks are drawn to relevant ads. The way to be successful with Google AdWords is the have relevance. Folks will click on your relevant ads. You will be rewarded by Google because of it and your costs will drop and your Profits will increase. This is because of your 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.
Google Rewards You For Relevance
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.
Basically, the number one position always goes to the top bidder. However Google has a long standing tricky little twist. This is the boiled down view of the 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.
With your good click through rate, you don't have to bid as much for a good position. IE: If I put a bid of 1 dollar and I am getting a 1 percent click-through-rate and your ad get 2 percent click-through-rate, then you will be able to get the same position as I have for a mere fifty cent bid, and if you bid only one cent more than that 50 cents you would get a better position. To top that, if you already own the top position, as your click-through-rate increases Google automatically lowers your bid price. Way to go!
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.
Kirt Christensen, a veteran of over 10 years of
adwords management , will be your guide and show you exact results of all the adwords management tricks he tests and uses every single month.
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