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Google AdWords - 4 Factors That Determine How Much Money You Make (Or Lose)

Written by: Janet Beckers

Article Overview: What is Google AdWords and what factors determine where my ad will show. Surprisingly, it's not a matter of who pays the most!

Google AdWords - 4 Factors That Determine How Much Money You Make (Or Lose)

Google AdWords are the fastest way I know to get traffic to your web site. They are also one of the fastest ways to lose money if you don't do it right.

What are Google AdWords?

If you go into Google and do a search on a topic, just say something dear to my heart, CHOCOLATE, you will see a list of all the web sites that are relevant to that topic. On the left hand side are "organic" search results. These are websites that Google thinks are the best sites on that topic (the Holy Grail of search engine marketing).

On the right are "sponsored links". These are listings that people pay Google to display when people search on that keyword. This is what we'll be talking about today. You can set up your own ads in Google by setting up a Google account (you may already have one through gmail or you can just search for Google AdWords in Google to find where to start).

Factors that determine if your ads show at the top of the page or the bottom (and how much you pay to get there)

There are really 4 factors that determine where your ad will show. Surprisingly, it's not a matter of who pays the most!

1. How much you are willing to pay

Price is determined by auction. You say how much you are willing to pay and hope that it is more than your competitors. Google isn't too greedy. If you bid a really high price and the next person bids low, you only pay slightly more than the next highest bid.

2. Relevance

Google will reward you (ie, lower price and higher up the page) if you use the same keywords in:

• your list of keywords you say you want to advertise for

• your ad

• your website

3. Click through rate (CTR)

The click through rate is the percentage of people who see your add who choose to click on it. If more people click on it Google assumes it must be relevant and will reward you.

4. Web site quality

Google looks at how long people stay on your site after they click on your ad. If your web site is not what they are looking for they'll go back to Google and click on a competing web site.

The really powerful thing about Google AdWords is you can test and measure everything. There are some very simple strategies you can use that can easily double your income by testing and tweaking.

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Article Tags: all the web, auction, chocolate, gmail, google, google adwords, heart, holy grail, left hand side, money, relevance, search engine marketing, search on a topic, traffic, web site quality



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