10 Inside Secrets to Google Adwords - Part 1 - Bid to be...
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Secret #2 - Bid to be in position #2 or 3
When someone searches on Google for your keyword, the first page of search results are going to reach the most people. What you want to do is position your ad in one of the top 3 spots. You don't want position #1 necessarily, because that position costs the most and doesn't give you much more benefit than being in position 2 or 3. You pay less for these spots than position 1 and gain most of the benefit.
By being in one of these top spots, your ad gets a higher 'click-thru rate' (CTR). This is good is because the Google Adwords system actually rewards you for having an ad with a high CTR by charging you less per click! Google Adwords exists to make money for Google. If they have two companies advertising for the same keyword, and your ad pulls a 10% CTR and your competitor's ad for the same keyword pulls a 5% CTR, then Google Adwords makes more money from your ad. Google Adwords rewards you for this higher CTR by charging you less per click than your competitor!
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