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Google AdWords

Guest post by: Lou Sorell

Article Overview: What Google AdWords and PPC (pay per click) advertising is about.

Google AdWords

The concept for what eventually became AdWords was pioneered by Bill Gross, the founder of Idealab, who based the idea on the yellow pages. At first, Google tried to buy out the idea but was unsuccessful, and eventually ended up launching AdWords in 2000 instead. However, since AdWords followed the original Bill Gross model so closely, legal action enevitably followed, which Google and Idealab eventually settled. AdWords is now Google's most important and valuable advertising product and its biggest source of revenue.

In the beginning, AdWords advertisers would pay Google a monthly amount in exchange for Google setting up and managing their ad campaigns. Soon after, Google introduced the AdWords self-service portal to service small businesses as well as those who preferred to manage their own campaigns. In 2005, Google began providing a campaign management service called Jumpstart to assist advertisers in setting up their campaigns, however this service has since been discontinued.

Today, AdWords offers pay-per-click (PPC) advertising, and placement targeted advertising (formerly known as site-targeted advertising) for both text and banner ads. The AdWords program includes local, national and international distribution. Google's text ads are short, with just one title line and two content text lines. Image ads are also available and can be one of several different Interactive Advertising Bureau (IAB) standard sizes.

Pay Per Click Advertising (PPC)

Pay Per Click or PPC is a form of Internet advertising that is used on content sites (like blogs for example) as well as search engines and ad networks. Advertisers post ad content with various web hosts and the host is paid only if and when their ad is clicked. The term "pay per click" literally means what it says; the advertiser pays each time a visitor clicks on the ad.

Google AdWords is currently the most popular PPC provider (the next most popular are Yahoo!, MSN and Ask). When a user searches Google's search engineor the relevant local/national Google server ads for relevant words are shown as "sponsored links" on the right side of the screen, and sometimes above the main search results.

How the paid-for-listings are ranked depends both on other advertisers' bids (PPC) and the "quality score" of all ads shown for a given search. The quality score is calculated using a formula that takes into account historical click-through rates, relevance of an advertiser's ad text and keywords, and advertiser's account history and other factors as determined by Google. This quality score is also used by Google to set minimum bids for an advertiser's keywords. While a list of guidelines for sites is available from Google, the precise formula and its definition of "relevance" remain trade secrets.

Placement Targeted Advertising

In 2003 Google introduced site-targeted advertising. With placement targeting, it is possible for an ad to take up the entire ad block rather than have the ad block split into one to four ads, resulting in better visibility for the advertiser.

Using the AdWords control panel, advertisers enter keywords, domain names, topics and demographic targeting preferences, and Google then places the ads on what they see as relevant sites within their content network. If domain names are targeted, Google also provides a list of related sites for placement. Advertisers may bid on a Cost Per Impression (CPI) or Cost Per Click (CPC) basis for site targeting. The minimum cost-per-thousand impressions bid for placement targeted campaigns is twenty five cents, however there is no minimum bid for CPC.

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Article Tags: ad campaigns, banner ads, bill gross, campaign management, google, google adwords, idealab, image ads, interactive advertising bureau, international distribution, internet advertising, management service, pay per click advertising, search engines, self service, service portal, small businesses, targeted advertising, text ads, web hosts
Referred by: http://jaykubassek.com



Related Forum Posts
Re: That First Customer! - Hey Tristan, I felt the same way too with my businesses in the past. Getting the first customer is always the hardest. One day I used a free $100 Google AdWords coupon and got one visitor to buy my e-book. It was one of the best feelings. My advice is to keep going and change your approach to improve your service or website. Once you break through, the journey will become a lot easier.
AdWords - The way I understand it - with AdWords, the price depends on which keyword you choose. Some keywords are really cheap because they aren't in demand, while others are much higher because they are in demand. If you have 2 people that want one keyword, but 200 that want another -- the 200 are going to pay higher prices. I've only looked at it a little, but I have a Google account where I get paid if people click on ads and the amounts vary drastically. Chris
Re: Kevin's Case Study #7 - How do you promote your new book? - [quote="orxan":kako3o5q]Hi Kevin, Normal conversion rate is 2% for me. High conversion rate can be 5-6% or more probably. But if you use Google Adwords techniques properly and have the good sales letter, then it can be 25-30% or more. It depends on books too. If it is exciting and shocking book with great sales letter then it will determine the rate of conversion, too. Orxan[/quote:kako3o5q] Hi Orxan, What are some Google AdWords techniques you can share with us that generate 25-30% conversion rates? Thanks
Using Google Adwords - Can't you do the same thing in AdWords for $.05 and get more targeted keywords?
Re: How to bring Traffic? - [quote="kristopher":22wqqtae]How do I get more traffic to my site? Has anyone bought traffic to his or her website? I'd like find out if there's any effective programs out there.[/quote:22wqqtae] It all depends on what your site is. Is it a site where you sell goods, or sell services? Depending on what it is, you might try Google AdWords. I tried them and was majorly disappointed, but that's because my site isn't the type that can benefit from them, as I found out after only one week. The reason I say that is because for Google Adwords, you pay a certain sum for each keyword clicked, that brings someone to your site. And try as I might, I could never get my keywords down to a manageable level, from 1 to 5 cents a click. It was always 10 cents, 20 cents, 50 cents to a dollar, which was absolutely ridiculous. But if you sell big ticket items on your site - then of course it would be worth paying those sums to get the one person out of a hundred who'd actually buy something there.


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