Wednesday, May 03, 2006

Understanding Adwords - Part I

Understanding Adwords: That is a tough task. Since there are many different components of Google Adwords, I will be splitting up this blog over the next few days or so. Let's begin with the essentials...

Google Adwords works similiar to many of the other PPC programs. You bid on keywords and you pay only when someone clicks on your ad. You may have a million impressions and no clicks, and it won't cost you a cent. So what is different about Google? Let's go through some of the main differences:

1) Ad position is a function of not only the minimum bid price, but also the history and the effectiveness of this ad to generate clicks.

2) GoogleAds rewards (or punishes) people for bidding on keywords that are relevant to the ad and landing page. Relevant keywords offer lower maximum bids than non-relevant keywords.

3) GoogleAds, generally, does not review ads immediately. (This can be a crucial advantange!)

4) GoogleAds allows for broad match, phase match, exact match keywords. Also plurals. Further, negative keywords can be defined.

5) Google allows for both search engine and content search advertising (discussed briefly in my blog about Adsense: Adsense, Does it Really Make Sense?

6) You are billed after the clicks are made, not before.

I am sure I can think of a few other differences which I will bring up as I think of them. Before I go for today, I really want to emphasize that getting GoogleAds to work effectively takes a bit of time and understanding. You can find yourself spending a LOT of money trying to learn the system through trial and error. I have read a few books and eBooks about GoogleAds and Perry Marshall's Definitive Guide to Google Adwords is one of the best (Click here to learn more...). The forty-some dollars it costs will save you hundreds in the future. Also, the quicker you understand the true details of GoogleAds, the faster you will be making sales. Much of my success occurred after buying this book!

See ya tomorrow!