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| | The Marketing, Channels/Partnership & Sales Execs Network is not currently active and cannot accept new posts | | Adword Marketing | Views: 920 | | Dec 16, 2004 4:39 am | | Adword Marketing | # |
Mike Foley | | Does anyone have experience using google or any other search engine for advertising? I cannot comprehend how they calculate per-click costs, or whether such advertising is worth the expense. Private Reply to Mike Foley | | Dec 16, 2004 9:36 pm | | re: Adword Marketing | # | 
Ash Nallawalla | | Mike Foley wrote:
Does anyone have experience using google or any other search engine for advertising? I cannot comprehend how they calculate per-click costs, or whether such advertising is worth the expense.
Yes, Adwords is the first PPC account I'd recommend that most businesses should open and the last one to close. If you have a 5c click then you won't pay more than 5c, but you might pay less; say, you have left the account at default settings and a Content partner site brings you a click.
Your monthly budget is precisely that, so the daily spend could exceed the notional daily budget, but it catches up and you are not billed more than the desired budget.
The ranking of ads is based on the maximum cost per click times the click through ratio, so simply bidding high is not always a good policy. If your ads are not appealing, the CTR will be low and the good 5c ads will rank above your not-so-appealing 10c ads.
There is a lot to be learnt in Google PPC, as this engine has the greatest number of options. By contrast, Overture is a no brainer - pay more and rank higher. But with all PPCSEs, you could attract the wrong clicks because your ad was misleading.
Ash Private Reply to Ash Nallawalla | | Dec 16, 2004 10:21 pm | | re: Adword Marketing | # | 
Jeff Klingberg | | Mike,
The cost per click is dependent on two basic things. One, how badly the Keyword is wanted by you and your competition. Two, how far up the sponsorship roll you want to be. The first position is more expensive then say the 10th spot.
You are not charged until someone clicks on your link and is taken to your website. So you do have the advantage of getting some exposure just by having your "Keyword ad" come up. While Keywords can get to be quite expensive, you can control how much you want to spent each month.
For example, if the Keyword costs $0.50 per click and you don't want to spend over $200 per month that will get you 400 clickthroughs to your site.
In order for Keyword Advertising to be effective you must monitor your website metrics almost daily to find out what keywords and/or phrases people are using to find your site. Also, monitor what search engines are being used to search for your site.
Once you have this information you can select between Yahoo and Google or another source for this. In addition, you must have your website optimized to take advantage of this marketing tool.
I hope this helps.
Regards,
Jeff Klingberg
President/CEO
Konstanz Kommunikations, Inc.Private Reply to Jeff Klingberg | | Dec 17, 2004 12:11 am | | re: re: Adword Marketing | # |
Jay Berkowitz | |
Once you figure out the basics, there is a great eBook on AdWords written by Andrew Goodman at www.page-zero.com.
> Ash Nallawalla wrote:
> Mike Foley wrote:
> Does anyone have experience using google or any other search engine for advertising? I cannot comprehend how they calculate per-click costs, or whether such advertising is worth the expense.
>
>Yes, Adwords is the first PPC account I'd recommend that most businesses should open and the last one to close. If you have a 5c click then you won't pay more than 5c, but you might pay less; say, you have left the account at default settings and a Content partner site brings you a click.
>
>Your monthly budget is precisely that, so the daily spend could exceed the notional daily budget, but it catches up and you are not billed more than the desired budget.
>
>The ranking of ads is based on the maximum cost per click times the click through ratio, so simply bidding high is not always a good policy. If your ads are not appealing, the CTR will be low and the good 5c ads will rank above your not-so-appealing 10c ads.
>
>There is a lot to be learnt in Google PPC, as this engine has the greatest number of options. By contrast, Overture is a no brainer - pay more and rank higher. But with all PPCSEs, you could attract the wrong clicks because your ad was misleading.
>Ash Private Reply to Jay Berkowitz | | Dec 17, 2004 4:44 am | | re: re: Adword Marketing | # |
Ash Nallawalla | | > Jeff Klingberg wrote:
The cost per click is dependent on two basic things. One, how badly the Keyword is wanted by you and your competition. Two, how far up the sponsorship roll you want to be. The first position is more expensive then say the 10th spot.
Sorry but this is not the case with Google AdWords, which is the topic here. See my earlier post where I mentioned that Google uses a CTR x Max. CPC formula to determine the position of an ad. There is also the premium position at the top of the SERP, which is a special reward for popular ads.
If Mike's ad has a Max CPC of $2.00 and a CTR of 1%, the ad gets a Rank Number of 2.
If Jeff's ad has a Max CPC of $0.05 and a CTR of 5%, the ad gets a Rank Number of 0.25.
If Andrew's ad has a Max CPC of $0.10 and a CTR of 25%, the ad gets a Rank Number of 2.5.
Therefore the ranking will be:
- Andrew's ad
- Mike's ad
- Jeff's ad
If you think about it, the ad that generates the most revenue for Google is ranked highest.
Private Reply to Ash Nallawalla | | |
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