Google AdWords Optimization Tips Google Adwords Tips: Click Through Rate
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.
Google Adwords Tips: Keyword Selection
Successful ad buyers learn how to lower their prices by tweaking them in to match what the end user is looking for. Bidding wars should be avoided as they are a technique that indicate a lack of creativity. There are multiple ways to say the same thing, and few people are creative enough to think what is "searched for." Yes you can exactly describe your product, but you need the people who have a problem to find your solution weather or not it exists. You may even want some of your keyword phrases to be in question format.
If you take the time to be the only one listed for a creative relevant term you may seem like the only answer to a problem, or at least the only one who cared. If you have the keywords you want to list well in within your text it they will be bold when people search for them. This will also add to your click through rate.
Qualify your traffic. One word search terms frequently draw competitors and junk traffic to a level that usually exceeds any intrinsic value the listing may have. Not every ad makes money.
Google AdWords Tips: AdWords Groupings
You can place expensive words in there own ad group. You may want to use some ad groups for generic terms and others for specific terms.
As long as they are relevant and specific you are not likely to use too many keyword phrases, just remember to place them in various groups and track them.
The proper technique to gather accurate market information is to overspend off the start and see what happens in the long run. If you overspend you collect faster feedback. You learn from your account.
Google Adwords Tips: Bidding
The important tip as far as bids go is to bid enough to get first screen exposure, and do not keep throwing more money at a problem to do this. If the click through rate is garbage, fix the keywords and content of the ads.
If you start out way too low you will always be fighting an uphill battle. Remember that you are bidding against the best ads that have been developed over time so you are likely going to get your tail kicked for a while.
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