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May 7, 2007

Understand and Make Money with Google Adwords

Filed by: Sheriff @ 9:54 pm Uncategorized

Google Adwords Introduction :-

Before Google Adwords, in the history of advertising, it was never before possible to spend 5 bucks, write a couple of ads, and get instant access to over 500 million people in less than 5 minutes. But that’s exactly what you can do with Google Adwords - you can set up ad campaigns on the world’s most popular search engine in 5 minutes, and get traffic coming to your or your affiliate’s website instantly.

Adwords is, hands down, the fastest way to bring new customers to a cash-hungry business. Google’s Adwords system is an awesome concept. Its extrememly well-thought and executed. Its consistent with all of the other ideas that have made Google the world’s number one search engine. It happens to be the most effective way to advertise any small or medium-sized business.

Compared to Overture, for example, Adwords is a little harder for beginners. But its vastly superior when you actually know what your are doing. You get lower bid prices, more visitors and more control over everything.

What is Google Adwords ?

Google lets you buy advertising space next to their free listings, on a cost per click basis. Your ad shows up when keywords you choose are searched for, and you pay when people click on your ad. This is called “Pay-Per-Click” Internet advertising.Google Adwords is the biggest and most advanced Pay-Per-Click (PPC) advertising system developed and maintained by Google. You might have already seen Google Adwords if you are a Google user, they are the small advertisements or ads you can see next to the search results on Google. They may also appear in Google’s Partner sites like Ask Jeeves, AOL, Teoma, Earth link and others. You can even have your ads show up on Google webmail sevice, GMail, when users send emails that include content relevant to the keywords you had bidded for.

Google AdWords are the portion of the search engine results page off to the right side of the Google search result page. Though these listings are more likely viewed than any other, the Google Adwords system is still economic in many terms when compared to Overture. Which network is more effective depends upon what industry you are in.

Google Adwords Vs Overture :-

Overture is the main competitor to Google AdWords. Overture is strictly price driven, which requires a ton of editors to perform countless hours of maintenance. Google is a highly mathematical company, and protect the quality of their listings in two ways: they have editors, and more importantly they monitor click through rate.Overture does not always show the correct ads in the correct websites, so it lead to low Click Through Rates (CTR) too.

What is Click Through Rate (CTR) in Google Adwords ?

As more and more people click on your ads when they see it in Google or any of its partner sites, your click through rate increases. Click through rate is a rough approximation of relevancy, in many ways this parallels the idea of grading the web on links. A relevant ad will have higher click through rates than a non relevant listing.

Google ads are not strictly price driven. Some think the added relevancy factor relates to the words in the add, while this is somewhat true, the true multiple is click through rate. If a web site has 3* the click through rate, that means Google can sell 3* as much advertising. To reward careful and considerate ads Google chops this price to 1/3 of what it would be with a site that had a third of the click through rate.

What is Cost Per Click (CPC) in Google Adwords ?

Cost-Per-Click (CPC) as the name suggests, is the amount of money you will have to pay Google Adwords when somebody clicks on your ad. Your CPC is automatically lowered to one cent more than your closest competitor. Google Adwords does not show you, your competitors bid price to you unlike Overture.


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