When you search for a product on Google, Yahoo and Bing, you see results on the right side of the main area of results. These advertisements in the form of keyword returns, which are part of a product website page, are pay-per-click advertisements. The pay-per-click results are bought from the search engine by a website in hopes that by paying the search engine to show their website through a keyword search, they will be able to generate more business.
There are three major companies in paid advertising. Google, which has its pay-per-click system established in AdWords and is the most dominate, Yahoo, and Bing, which has MSN AdCenter. Yahoo and Bing recently combined their pay-per-click sites, so Google might not be the most dominate pay-per-click in the business for long.
How pay-per-clicks are structured
So how is a pay-per-click (or PPC) advertisement campaign structured? Ideally, a website or product advertisement campaign would have different campaigns for different services or different products. It is then broken down into multiple ad groups with multiple keywords. The advertisement campaign for each product would then select key words that are closely related to each other and grouped into what is referred to as ad text. Ad text should closely match keywords in specific ad group.
This is then broken down in such a manner so different advertisement campaigns for different products and can optimize what the search engine generates related to a product campaign. The amount a campaign pays for their investment on returns of their investment is based on a budget. This is also considered as a daily budget that you can allocate for advertisement and you can afford to pay on a daily basis in the form of clicks to your website from a search engine search for something related to your product.
Measure CPC success
Key word or ad group bids are the maximum cost per click (CPC) that advertisement campaigns are willing to pay per click on their product after search engines produce search results for products related to yours and others through certain keywords. It is important for you, as an advertiser, to measure success of CPC advertisement campaign because you will want to have a good idea of what your return on the investment you made by bidding on the search return rankings will be. Each search engine does this generally for a campaign by measuring clicks, which is when the webpage you want to get users to is shown; impressions, which is how many times a campaign add is displayed in the search; and CTR, or click through rate, which is easier thought of as clicks divided by impressions. Any CTR generated above 5 percent is good. A campaign through the search engines tools will pay close attention to how much they spend on a campaign because they want to be sure PPC’s are converting into sales. They will monitor conversions, which tell them which keywords are working best, and conversion rates, which is conversions divided by CTRs.
You shouldn’t always go through cheapest pay-per-click search engines. You should try to analyze carefully the cost benefits of doing this, since the major search engines provide a huge volume of users, and therefore, you may not be saving much after you adjust for lost sales.
How well is your campaign faring?
There is an extensive array of pay-per-click tools available on the search engines to evaluate how well a campaign is doing. The most important evaluating tool on the search engine is the conversion tracking tool. All major search engines have some sort of conversion code in HTML that can see how much each conversion after users order your product costs you. Some conversion tracking tools also show you what items sold using particular keywords. Tracking conversions and tracking keywords to see what keywords are really working helps to evaluate if your campaign strategy is working. The next useful tool in your campaigns arsenal is the traffic estimating tool, which is useful to clean up a keyword list. You can do this by putting in keywords you’re using and Google will tell you which are working best.
The three types of bids
There is a broad match for keywords, which is a wide array of terms that may be related. The exact match of keywords, which generates a hit only if the keyword is typed in exactly. And finally, the phrase match, which is a keyword match between broad and exact match. When you use broad match, exact match and phrase match, most search engines allows can show you which keywords triggered the ads clicks on the keywords. This is helpful when you adjust keywords by cleaning your list up by throwing out bad keywords and emphasize good ones.
It’s important to start off with pay-per-click campaign advertisement before you invest too much money into SEO services, because it can give you a good idea on what terms are important and convert well to sales.
There is a technique to making money with Google AdWords, but the trick is these techniques are always shape-shifting because of how Google continuously updates how they evaluate merchandiser searches. One false move, and you can find yourself banished to the cellar of Google searches. So if you have already picked up the latest eBook on “How to Make Millions with Google AdWords”, you may have just wasted $9.99. The good news is that there is money to be made, but it takes long hours, hard work, and diligence. As they say, Rome wasn’t built in a day. Likewise, seeing the fruits of your online labor takes time, too. Here are a few tips to get your feet in the door, to at least make a little extra money, if not a living.
How Google picks those sponsored links
First, it is necessary to understand the way Google handles advertisers and decides which ones to show off to the under sponsored links. On the right side, any time you do a Google search, there is a list of advertisers. This is where you are aiming to get an advertisement inserted into, with the highest rank possible for merchandise you are trying to directly sell from your site, such as an eBook, or promote.
First you need to become an advertiser, and to do this, you have to open an account. Go to Google AdWords.com. Go through the prompts to register an account. Next, you have to sign up as a Clickbank affiliate. Once you are signed in, go to on “Promote Products” on the right. Each of these sites will ask you some semi-personal information to confirm you are who you say you are, but this is a necessary evil. The information isn’t too invasive, just your home address, phone number, and of course, card information to pay for the bids you enter. Once you have done this, you are an official Google advertiser and in the game.
The system of getting bids in is complicated. There are three parties that make Google AdsWorks work. They are the user, who searches for specific services or products online, and the advertiser, who wants the user to view their ads. To do so, they must have good ads. Finally, there is Google, who makes sure the ads are legitimate.
Time to bid
Now you are ready to start bidding, along with a group of advertisers who are also bidding for the top coveted slots. To get a good bid in, you have to follow a few Google rules. First of all, Google takes into consideration how good an ad is and rates it accordingly. It does this with a quality score ranking of ads on a scale from one to 10. To get this score, they critique three things: the click through rate, the landing page, and the relevance of the search to you by the user. The click through rate (CTR) is how many people actually click on your ad verses how many people just see it. Click through rate is the most important part of Google’s consideration for your score. They count this as a vote for your ads’ effectiveness and scores you higher or lower in this regard. The landing page is what you are trying to get people to link to. Google evaluates if the landing page has content that matches your ad. This means if you have a bad website, you will get a lower score. The third criteria is relevance to the user. The more relevant your ad is to a search query, the higher your score. It averages these three things and gives you a score. Once they have this number, they multiply the highest bid by your quality score, and rank your ad from this.
Taking your ROI and CTR into account
After you’ve jumped through these hurdles, you are ready to squeeze a little money out of AdWords. You do this by increasing sales of your products or someone else’s products for commission. To do this and maximize profits, you have to take a couple of things into consideration. They are the return on investment (ROI) and your click through rate (CTR).The ROI helps you determine how profitable your Google Ad is after you subtract the cost of running your ads from the amount earned in your Clickbank account. The CTR helps you fine-tune your ad so that you can increase the number of people clicking on it, especially if it’s a profitable ad. If more people are clicking on the ad itself, it would probably result in an increase in your affiliate income.