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The Way to Bid on Keywords

When setting up a pay-per-click (ppc) advertising campaign like Google's Adwords it is vital to design each ad around the right keywords. Of course this is common sense. Many advertisers and marketers have made an art form of choosing the right keywords. With careful market research and search engine keyword data they can create a list of productive keywords.

Keywords, unfortunately, are not the only deciding factor in the success or failure of a pay per click advertising campaign. The simple fact of the matter is that internet browsers do not have the patience that consumers who are seeing their ads on television or hearing them on the radio have (and that isn't saying much). Each time that a search is entered into a search engine, pages of results appear. Realistically speaking, which of these pages are going to be viewed before the surfer turns their attention elsewhere?the first five, maybe the first ten if they are determined.

This means that for an advertisement to be viewed by a good number of viewers it is going to need to be among these pages. How can an advertiser ensure that their advertisement is among these pages? As with all things in life it comes down to money.

For anyone who understands the ins and outs of AdWords you can take a pass on reading the next section, however if you are not conversant with it, it is fundamentally an auction.

It is almost impossible for an advertiser to be the only one using a keyword unless it is an obscure word or phrase that will not generate a large amount of interest. Since the whole point of an advertising campaign is to generate as much interest as possible being the only one using a keyword would be very self-defeating.

That means that other advertisers will be using these keywords. What criteria does the search engine use to decide which advertisements are shown first?

The advertiser is charged a fee whenever someone clicks on their ad. It isn't a large fee, usually less than one dollar. These fees can compound rapidly.

So if an advertiser wants his ad put at the top of the search result page for a keyword, he has to be willing to pay more than the other advertisers that are using that keyword. This of course is great for the search engine's business. They get paid no matter if an advertiser gets a sale or not. They of course are going to give preference to the guy that will give him more money when someone clicks on his ad, so they put them at the top of the list so they will make more money.

Finding the balance with your keywords and bids will most likely take some time. Meanwhile you will earn and lose money quickly. Don't forget that you won't make a sale every time someone clicks on your ad; it is more likely that you will get a sale 10 percent of the time or one in every ten visitors will buy. Using that figure, the price of your product or service, and your advertising budget you can figure on what you should bid for your keywords.

Article Source: http://www.uberarticles.com/articles

Kirt Christensen's dynamic flair in AdWords Management as he handled over $612,000 of yearly ppc advertising for clients, has them praising about him! managemypayperclick.com
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