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Managing AdWords - Handy Hints

By: Kirt Christensen..

People are drawn to you when you're relevant. The formula for success on Google is relevance. When you're relevant, people will click on your ads, Google will explicitly reward you for it, your costs will drop, and your profits will grow.

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 are the one risking it all, what gets clicks and what doesn't is a very fascinating topic.

Google Will Reward Your Relevance

One way for your ads to get a higher position in the search pages is to bid more. A better 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 is 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 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.

Article Source: http://www.dummiesguideto.com

Kirt Christensen, a veteran of over 10 years of adwords management , will take you by the hand and show you precise results of all the adwords management tricks he tests and uses every single month. www.managemypayperclick.com">www.managemypayperclick.com
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