Google AdWords is the most well known of all pay per click programs on the Internet today. Google provides a fast and easy way to get targeted visitors to your site. What Google does is provide advertising for you on a pay per click or cost per page view.
Google started this AdWords program in 2000. By 2003 they added site-targeting features to their ad units and now on certain platforms you can have video ads and more.
The great thing about the cost per click or cost per page view advertising is that you don’t pay anything until you get someone to click on your advertising. It used to be that advertising on websites was similar to advertising in a newspaper. You simply bought at space. Now you can have targeted ads of a few lines and a headline anywhere and you pay nothing until someone clicks on it. On top of this, in the right venues, you can have video advertisements as long as they are on the content network.
You have a choice between two different programs with Google AdWords. You can place ads based on keywords and you enter the keywords that you want associated with your ad and the ad is only shown on sites that are applicable while keeping your cost per click the lowest possible automatically. Or you can use a program that lets you place content bids so you decide on what you will pay per click.
The attraction to Google AdWords is that you don’t have to pay a lot of money up front to get advertising running within an hour or two. You also have a lot of control over what ads are run and where and how much you spend. If you only want to spend a few dollars per day you simply enter your daily spending limit and once that limit is reached the ads stop running for just that day and they start up the following day. With Google AdWords you are in control and you have a large say in where you want your ads to run.
Though Google is not actually a pay per click search engine, Google does receive the most broad coverage of any search engine. While providing what some consider to be the best search results on the market, Google decided to produce the most sophisticated pay per click marketing program on the web, Google AdWords.
Sponsored Results; the sponsored results are the portion of the search engine results page off to the right side of the Google search result page. Though these listings are more likely viewed than any other, the Google Adwords system is still economic in many terms when compared to Overture. Which network is more effective depends upon what industry you are in.
Google AdWords also has a large distribution network which includes AOL, Ask Jeeves, EarthLink, and many other sites (including a few of my own). Google offers a program called Google AdSense, which allows users to display AdWords ads on their web sites for a portion of the proceeds.
Google Adwords calculates an ad relevancy multiplier (based on consumer clickthrough rate). The click through rate used in the relevancy algorithm is determined by your 1,000 most recent ad displays on the Google website. Your effective bid price is maximum bid price * clickthrough rate.
You are allowed to make multiple campaigns for the same keyword and track conversion ratios and ad cost. You can either run two different ad creative or send the searches to different pages to A/B split test in real time.
Continually refining your ads through A/B testing will eventually drastically increase your profit margin.
Google AdWords is just about everything you could want in an advertising system. It is quick, responsive, offers free tracking, cheap to start, offers geotargeting, syndication of ads is optional…AWESOME.
Do not get in bidding wars for generic terms. Opt to bid on more specific terms.
Send people to targeted landing pages when possible.