Google Adwords Management – A Useful Tip
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’ll be rewarded by Google because of it and your costs will drop and your Profits will increase. This is because of your relevance.
If you are the businessman, paying out the cash yourself, risking everything, with your charge card being drawn on each month to pay for all those clicks, you won’t waste time with self-importance. Your customers don’t want to mess with it either. The place that tells this tale the best is with your AdWords management. When you’re the one risking it all, what gets clicks and what doesn’t is a very fascinating topic.
Relevance Equals A Google Reward
One way for your ads to get a higher position in the search pages is to bid more. A superior way to position higher is to be rewarded by Google for your higher click-through-rate. Google will give you a higher position without charging you more per click. It is a reward for relevance.
Essentially, the top position has always been awarded to the person with the high bid. But with this twist, here’s the formula that has been used by Google to determine the order that the ads come in:
Your Relative Position = Your Bid Price x Your Clickthrough Rate
To explain more exactly, the formula takes your bid price and multiplies it by your Quality Score. Either way you do it besides your bid price your click through rate has the greatest impact on your position.
What click through rate are we speaking 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’s not what we are speaking about here. We’re 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.
It might seem like some magic formula but it’s not. What it means to you is that you are paying out less money to Google each month and that’s money in the bank!
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