Your Clickthrough Rate (CTR) is MORE important than how much you bid.
The Clickthrough Rate is the percentage of people searching who actually click.
If 100 people search, your ad shows up 100 times, and one person clicks through, that's a 1% clickthrough rate. So let's say I've got a 1% CTR and I'm paying $1.00 for position #2. Let's say you've got a 2% CTR. If you play your cards right, you may only have to pay 51 cents to get position #2 and knock me down to position #3.
That means that you were 2 times as relevant, and you got to pay 1/2 as much!
The rules can be very simple, but the implications are huge.
When you achieve high click-thru rates, you can pull your bid prices down, down, down and yet stay at the same position on the page, while your traffic goes up. The difference can be quite amazing. Here's an example of two ads - they are ALMOST IDENTICAL but one got nearly TWENTY TIMES the CTR as the other:
Beat your best, and you can get more and more traffic for less. I just explained how Google ranks your ad higher as your CTR goes up. Overture does not do this.
On Overture, the highest bidder always wins. That rewards people who have more money than brains. Which means that for the smart marketer, Google is vastly superior! Before I go, there's one other thing I need to tell you: This is precisely the thing that gets people all tangled up over keywords that Google suddenly labels 'inactive.'
While Google may tell you simply to bid more, the major reason that keywords get made 'inactive' is this: The message in the ad doesn't match what the person wanted when they typed in the keyword! How do you fix this problem?
By organizing your keywords into narrow themes and by testing different ads that match people's searches - like I described above.
Then watch as people's clicks vote on the words that actually sell. for more information in personal training visit http://www.adwords.la/
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