Search Engine Tricks

  Homes arrow Search Engine Tricks arrow Google Adwords guide - part 1
 Webmaster Tools
 
Base64 Encoding 
Browser Settings 
CSS Coder 
CSS Navigation Menu 
Datetime Converter 
DHTML Tooltip 
Dig Utility 
DNS Utility 
Dropdown Menu 
Fetch Content 
Fetch Header 
Floating Layer 
htaccess Generator 
HTML to PHP 
HTML Encoder 
HTML Entities 
IP Convert 
Meta Tags 
Password Encryption
 
Password Strength
 
Pattern Extractor 
Ping Utility 
Pop-Up Window 
Regex Extractor 
Regex Match 
Scrollbar Color 
Source Viewer 
Syntax Highlighting 
URL Encoding 
Web Safe Colors 
Forums Sitemap 
Weekly Newsletter
 
Developer Updates  
Free Website Content 
 RSS  Articles
 RSS  Forums
 RSS  All Feeds
Write For Us 
Contact Us 
Site Map 
Privacy Policy 
Support 
 USERNAME
 
 PASSWORD
 
 
  >>> SIGN UP!  
  Lost Password? 
SEARCH ENGINE TRICKS

Google Adwords guide - part 1
By: Developer Shed
  • Search For More Articles!
  • Disclaimer
  • Author Terms
  • Rating:  stars stars stars stars stars / 0
    2004-09-30

    Table of Contents:

    Rate this Article: Poor Best 
      ADD THIS ARTICLE TO:
      Del.ici.ous Digg
      Blink Simpy
      Google Spurl
      Y! MyWeb Furl
    Email Me Similar Content When Posted
    Add Developer Shed Article Feed To Your Site
    Email Article To Friend
    Print Version Of Article
    PDF Version Of Article
     
     

    SEARCH DEV MECHANIC

    TOOLS YOU CAN USE

    advertisement

    Google Adwords guide - part 1
    by David Callan

    The year is 2000, Google is seen as the leader in the search engine industry by now. Many of Googles competitors are trying their hands at different advertising models as a way to generate revenue. Google currently seeing the most growth of them all saw the potential it had as an advertising medium and therefore was sure to follow suite sooner or later.

    It did so with the launch of a keyword-targeted advertising program aimed more towards bigger companies. However it was not until later in the year when Google launched the Google Adwords program that they became a mainstream player available to even the smallest of businesses.

    The original Adwords program worked well enough, however it worked on the basis of payment by impressions which didn't guarantee the advertiser a single click so in February 2002 it received a major overhaul with the introduction of the Google Adwords Select program (nowadays it's usually just known as Google Adwords as the original program has been discontinued).

    What is Google Adwords?

    Adwords is Googles version of the pay-per-click advertising model. It allows you to display ads which link directly to your website when searches are done for your chosen keywords or keyphrases. These ads are located to the right of the results which Google gives you for a search and they're also displayed on Googles many partner sites which include AOL, Earthlink, HowStuffWorks and blogger. Recently with the launch of Googles Adsense program your ads could also be displayed on websites related to your keywords.

    When you create a Google Adwords ad, you choose keywords for which your ad will appear and specify the maximum amount you're willing to pay for each click. Remember Googles Adwords program uses a PPC model so you only pay when someone actually clicks on your ad and hence visits your website.

    Adwords enables you to save money as its program Discounter automatically reduces the actual cost per click you pay to the lowest cost needed ($0.01 above competition) to maintain your ads position on the results page.

    Google is competing well in this arena, in fact they now dominate the market, pulling more advertisers and revenue than former industry leader Overture.com does. I don't know how long this will last though as Yahoo INC! has just bought Overture. What has Yahoo got up its sleeve?

    Advantages of the Google Adwords program

    Just as the popularity of Googles search engine is derived from its strong technologically advanced features and results so too is its advertising program Adwords. Google Adwords has many advantages over similar programs such as Overture.com and Findwhat.com.

    One of these has been mentioned already, it's the Adwords Discounter feature which will lower your cost per click price to one cent above your nearest competitor to allow to stay ahead of his or her ad. This means that you don't have to be constantly checking if your competitors have lowered their bids in order for you to minimize your price, Google does this for you.

    The way Google Adwords positions your ads is also another great advantage of the program. In Adwords the position of a certain ad is determined by multiplying your CPC (cost per click) by your CTR (click through rate) and not simply by CPC alone as this would allow the big fish to win all the time.

    Googles stipulation that your ads must have a CTR of at least .05% means that a company with deep pockets simply can't outbid the competition. They also have to outwit them by using good ad copy and appropriate keywords. Even if your competition is willing to pay sky high prices for clicks this still won't save them, as if they can't write good pulling ads they will be dropped from the program, leaving you to move up a position.

    Other advantages which Googles program has over similar ones include setup time and specific country / language targeting. With Adwords your ads can be live on Google within five minutes of creating them so you can potentially begin to see results immediately, ads on Overture usually go live after a three to five day waiting period. Adwords allows you to choose who should see your ads from among 250+ countries and 14 languages, this means you have more control over your ads so you can be sure they're only shown to a highly targeted audience which means your more likely to be successful.

    How to profit with Google Adwords

    Now you know why Google Adwords is such a good thing, let's move onto how to actually use it in order for your business to make profit. First things first, you should determine how much you can afford to pay for a click. Doing this is important as it enables you to better understand the amount of money you can bid on keywords in Adwords while still remaining profitable. To do this your conversion ratio is needed, calculate your conversion ratio by dividing your monthly unique visitors by your monthly sales, then convert your answer into a percentage by multiplying by 100.

    Imagine in a month you get 20000 visitors and sell 500 products each with a gross profit for you of $50. Your conversion ratio simply put is (500/20000)*100 = 2.5%. This means that for every 100 people who visit your site 2.5 buy your product.

    Your gross profit per 100 visitors is calculated by multiply the gross profit on your product by your conversion ratio, to continue with the previous example - $50 x 2.5 = $125. Divide your gross profit per 100 visitors figure by 100 to determine how much you can bid in Adwords.

    In this case you could afford to pay up to $1.25 for a visitor and still break even. Rarely will you have to pay this much for a click, remember that the minimum CPC on Google Adwords is only 5 cent so play your cards right and you can have high profits.

    Continue to Google Adwords guide - part 2

    About the author
    Article by David Callan. David is an Internet marketing professional and webmaster of http://www.akamarketing.com/webmaster-forums/. Visit his webmaster forums for the latest discussions on search engines, website authoring and Internet marketing related issues and topics.

    DISCLAIMER: The content provided in this article is not warranted or guaranteed by Developer Shed, Inc. The content provided is intended for entertainment and/or educational purposes in order to introduce to the reader key ideas, concepts, and/or product reviews. As such it is incumbent upon the reader to employ real-world tactics for security and implementation of best practices. We are not liable for any negative consequences that may result from implementing any information covered in our articles or tutorials. If this is a hardware review, it is not recommended to open and/or modify your hardware.

    More Search Engine Tricks Articles
    More By Developer Shed

       

    SEARCH ENGINE TRICKS ARTICLES

    - Time for Your Site`s SEO Tune-up?
    - The Basic Parts of an SEO Campaign
    - Dynamic Content Still Challenging for Search...
    - Google`s Panda Update at One Year Old
    - Why Links Don`t Count Instantly
    - Check Your Code for SEO Issues
    - To Be an SEO, Start With What You Know
    - Don`t Worry About Bad Inbound Links
    - Guard Your Google Places Listing
    - Overlooked SEO Tricks
    - A Simple Long Tail Keyword Strategy
    - Writing for the Long Tail
    - Choosing and Using Keywords
    - Seven More SEO Myths That Can Hurt Your Sit...
    - Google Tips and Tricks

    Developer Shed Affiliates

     



    © 2003-2018 by Developer Shed. All rights reserved. DS Cluster - Follow our Sitemap