AdWords Select - Google's Pay Per Click ServiceGoogle enters pay per click marketAfter completing Beta testing which started in January 2002, Google entered the PPC search engine market with their unique AdWords service on February 20th 2002.
Unlike the original AdWords program which used the pay per impression model, the new Adwords Select program uses the pay per click model made popular by GoTo (now Overture). The original Adwords has now been discontinued. How AdWords Select worksAdWords ads are displayed next to search results (normally on the right-hand side, but sometimes above the search results) when someone enters one of the keywords you identify as relevant to your business. The top 3 Ads are also shown on selected partner sites.At the beginning of your campaign, you set a maximum cost-per-click for each of your Ad Groups. An Ad Group contains one or more ads targeted to the same set of keywords with the same CPC. If the cost-per-click you've specified is higher than what's necessary for your ad to maintain its position, the actual cost-per-click you are charged is discounted automatically. You pay only the minimum necessary to stay ranked above the next lower ad - plus one cent. A $5 initial activation fee applies when you first open your account. The fee is not credited towards the cost of any clicks you receive. The minimum cost-per-click for keywords begins at $0.05 and varies according to that keyword's popularity. You can determine the minimum cost-per-click for a keyword easily by using the Traffic Estimator (accessible from the sign-up or campaign management pages.) In general the minimum keyword bids set by Google seem to be much higher than the clickthrough costs achieved in the original AdWords program. The position of your ad on the Search Results page is based on a combination of the maximum cost-per-click and the clickthrough rate for your ad. The higher the maximum cost-per-click you set and the higher your ad's clickthrough rate, the higher your ad's position. For example, if your ad is twice as effective as another ad, Google will rank your ad as if your maximum cost-per-click were double what you actually set. However you still only pay the amount you originally chose. The clickthrough rate component rewards advertisers who have well-targeted ads that are relevant to searchers. You get more bang for your buck if your ad pulls the clicks better than the opposition.
Having problems finding Profitable Keywords?How to Legally Steal Profitable AdWords CampaignsHow about a tool that can monitor existing AdWords campaigns and report back to you on which ones are successful and which ones are not. Not only will it highlight the profitable ones but it will tell you which keywords to bid on, which position they should be in,and which affiliate product to sell. You can literally steal dozens of other peoples profitable AdWords campaigns! For obvious reasons, only 300 people will be allowed to purchase this tool. Get in Quick! Click here for UnderCoverProfits SummaryThere is no doubt that Google have developed an impressive pay per click program with AdWords. It incorporates many unique features and avoids most of the shortcomings experienced with Overture and other PPC search engines.The ability to target specific countries and languages is welcomed by many advertisers. Also the reports are very detailed and flexible. Now that Adwords has been running for a while, many of the early Advertisers with good CTR's have been able to reduce their bids. Going on my experience (bids are not displayed on ads) bids are much higher than the results achieved with the original AdWords. One problem is the level that many minimum bids are set at. They vary according to keyword and are generally set quite high by Google. Update - If my experience is anything to go by, bids went up to unrealistic highs but have now fallen to sensible levels. Well written targeted ads are now giving small budget advertisers a chance to take on the big guys, unlike Overture where deep pockets rule. TIP: The best way to get an estimate of potential traffic is to actually set up a campaign and place an ad. Write your title and description in such a way that no-one will click on your ad. Every day Google will report on the number of times your ad was shown. Unless you have deep pockets or can come up with a super successful ad, it may be a case of bidding on the less popular keywords if you choose to use this service. Ads below position 13 attract very few clicks. My suggestion for Advertisers with small budgets is to put a lot of effort into writing an effective ad and start your campaign as high as possible, but not lower than position 12. If you are new to PPC advertising and would like to try AdWords then click on this link for step-by-step instructions - Google Adwords - How to place an Ad
NOTE: The only third party bid management software that supports Google Adwords at present is
Dynamic Bid Maximizer
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