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Google AdWords Management - A Useful Tip

By: Kirt Christensen

Folks are drawn to relevant ads. The way to be successful with Google AdWords is the have relevance. Folks will click on your relevant ads. You will be rewarded by Google because of it and your costs will drop and your Profits will increase. This is because of your relevance.

If you are the businessman, paying out the cash yourself, risking everything, with your charge card being drawn on each month to pay for all those clicks, you won't waste time with self-importance. Your customers don't want to mess with it either. The place that tells this tale the best is with your AdWords management. When you are the one risking it all, what gets clicks and what doesn't is a very fascinating topic.

Relevance Equals A Google Reward

Traditionally, you get higher positions on the search page by bidding more. But when your clickthrough rate goes up, Google actually gives you better positioning without charging you more per click. It rewards you for being relevant.

Roughly speaking, the first position has always been given to the highest bidder. But Google has long maintained an ingenious little twist. Here's a simplified version of its formula:

Your Relative Position = Your Bid Price x Your Clickthrough Rate

To explain more exactly, the formula takes your bid price and multiplies it by your Quality Score. Either way you do it besides your bid price your click through rate has the greatest impact on your position.

Which CTR, exactly? The CTR of your individual keywords as they perform on Google alone, not the total CTR of your ad groups, not the CTR of any of your ads, and not the CTR of your ads as they're performing on Google's search partner sites or AdSense.

With your good click through rate, you don't have to bid as much for a good position. IE: If I put a bid of 1 dollar and I am getting a 1 percent click-through-rate and your ad get 2 percent click-through-rate, then you will be able to get the same position as I have for a mere fifty cent bid, and if you bid only one cent more than that 50 cents you would get a better position. To top that, if you already own the top position, as your click-through-rate increases Google automatically lowers your bid price. Way to go!

It may seem like some magic formula but it's not. What it means to you is that you are paying out less money to Google each month and that is money in the bank!

Article Source: http://www.associatedigest.com

With over ten years of experience in adwords management , Kirt Christensen, will share his expertise in adwords management, by giving you tips he found that work (and some that don't work). www.managemypayperclick.com">www.managemypayperclick.com Click here to get your own unique version of this article.

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