How To Profit With Adwords

byRobert-A

10.9K followers

Updated 6 years ago

About Keywords And Adwords

Hi Folks

This past week I have seen so many questions asked on Live Chat about Adwords and how to work with the program so this blog is my advice and I will throw in a few tips as well. Read on...

As most of you will probably know by now, Google AdWords is a pay-per-click (PPC) marketing system. Its a great way to generate visitors to your website, but if you don't know how it works you can end up losing money and not making it. So, how can you achieve success with AdWords? I have to say that there is no set in stone guaranteed way to ensure success with AdWords. However you can increase you chances of success once you have some experience with it. You must become very familiar with every aspect of how PPC actually works.

You can greatly increase your chances of success by following my best piece of advice: do your keyword research. At the end of the day this is what it boils down to. No shortcuts folks, just do it. With most people when they decide to try Adwords they believe they can just go through their list of keywords and choose some keywords they believe will work with a PPC Campaign. They insert them into a particular Ad group and then sit back and wait for the sales and money to roll in. Not so I'm afraid.

Your keyword research will be the key to success or failure so do not stint on this. It should be the most time-consuming part of setting up any campaign. You should be doing your research all the time. Build up your list of keywords and do not stop doing it. Now let me explain a few principles.

Grow Your Audience: The Principles Of Working With Google Adwords

First of all you need to understand how Google will use your keywords to show your Ads.

You will place a bid that determines your maximum cost per click (CPC) for each of your keywords. This can be a different amount for each keyword it that's what you want to do. However This bid does not represent the amount you'll pay for each click (like on Bing). Its just the maximum you will ever pay for any single click. Are you following me so far? If not then here's an example -

If you have a maximum CPC of $0.50 in place for a keyword, you'll only have to pay the full amount if someone else bids $0.49. If that person decides to lower their bid to $0.30, you'll only pay $0.31. This is because no matter what your CPC is Google's bid discounter only charges you one cent more than the next highest bidder. So in theory you could bid $10 or even $100 and still only pay $0.31 for a click.

As you start getting impressions when your Ad shows up in the search results, and gets clicks, you'll have a click-through rate (CTR). This represents the number of clicks you receive per 100 impressions. The best bit about about AdWords is that the higher your CTR, the lower your click cost.

And because Google values relevance, you'll receive a bonus for having a relevant Ad, and CTR is the main indicator of how relevant your Ad is.

For example if you're competing with someone for an Ad position on page one of the SERPs for a particular keyword and your maximum bid is $0.50 and theirs is $1. You would think that their one should be way above you, right? Not necessarily so.

Lets say you have a CTR of 5%, and theirs is only 1%. Google factors in CTR when calculating Ad positions, so you end up with this: max CPC × CTR = ranking factor. In this case, your ranking factor is 0.025, while your competitor's is only 0.01. Which means your Ad shows above theirs for $0.50, even though they are willing to pay up to $1.

Ok folks and I know to the beginner the process might seem a wee bit complicated but after some trial and error you should get a pretty good idea how Adwords works and start to make some return on your investment.

Anyone with even more tips and advice can of course leave them below via a comment.

Have a great week and be successful.

Robert Allan