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Bidding On Keywords
When running a pay per click advertising campaign such as Google AdWords it is essential that each ad be carefully formatted around the proper keywords. This is only common sense, and the practice of choosing the proper keywords is one that many marketers have made an art of. They carefully research their market and the keyword history on the search engines and come up with a number of productive keywords.
When running a pay per click advertising campaign such as Google AdWords it is essential that each ad be carefully formatted around the proper keywords. This is only common sense, and the practice of choosing the proper keywords is one that many marketers have made an art of. They carefully research their market and the keyword history on the search engines and come up with a number of productive keywords.
No matter how good a keyword list you have the fact is that that is note the sole factor in making an advertising campaign a success. Internet searchers don’t have the same attention span as say television viewers and radio listeners. When a searcher enters a search term what they are looking for had better get shown in the first 5 or maybe ten pages or they won’t be seen. Their attention will most likely be caught by something else.
The result of this is that if you want your ad to be seen by plenty of folks you need to be on these first pages. How can you be sure that your ads are on these pages? Well it is the same as with most other things in this world, money.
Anyone who is familiar with the workings of AdWords can skip over this next section; however, for those unfamiliar with how AdWords works it is essentially a giant auction.
It is almost impossible for an advertiser to be the only one using a keyword unless it is an obscure word or phrase that will not generate a large amount of interest. Since the whole point of an advertising campaign is to generate as much interest as possible being the only one using a keyword would be very self-defeating.
This means that there are going to be other advertisers using each keyword. How does the search engine determine whose ads will be displayed first?
Each time that an AdWords ad is selected the advertiser is charged a fee. This fee is generally small, less than a dollar, but will cause costs to rise quickly.
Therefore, the advertiser using a keyword that is willing to pay more per click than the other advertisers using that same keyword is going to have their ad placed at the top of the list. It’s good business on the part of the search engine; they get their money whether the marketer makes a sale or not, and an advertisement which pays them fifty cents each time it is selected is going to bring them greater profits than one which pays twenty five. They want the higher paying ads to be selected more and therefore will place them in an area which is more visible.
Balancing your bids and keywords takes time and effort. You will make some money and lose some. Never forget that you will not have a sale with each click. Most likely you will get a sale in only one out of 10 clicks. That is the probable sales percentage. With you product price, budget allotment and this percentage you can figure up how much you can afford to bid for your keywords.