DJ Traffic

When your ad is relevant searchers gravitate to you. The secret to successful AdWords is relevance. Searchers will click on your ad when you have relevance. When you have relevance, your profits will grow because your ad costs dropped, because Google definitely rewards relevance.

If you are the businessman, paying out the cash yourself, risking everything, with your charge card being drawn on each month to pay for all those clicks, you won’t waste time with self-importance. Your customers don’t want to mess with it either. The place that tells this tale the best is with your AdWords management. When you are the one risking it all, what gets clicks and what doesn’t is a very fascinating topic.

Google Will Reward Your Relevance

Traditionally, you get higher positions on the search page by bidding more. But when your clickthrough rate goes up, Google actually gives you better positioning without charging you more per click. It rewards you for being relevant.

Essentially, the top position has always been awarded to the person with the high bid. But with this twist, here is the formula that has been used by Google to determine the order that the ads come in:

Your Relative Position = Your Bid Price x Your Clickthrough Rate

The more precise explanation of the equation is: your bid price x you Quality Score. But whichever one you use, your click-through-rate makes the biggest impact, besides your bid price.

What click through rate are we talking about here? It could be your ad group click through rate, or either the click through rate of your ads for search partners or AdSense, but that is not what we are talking about here. We are talking about the click through rate of your individual keywords and their Google performance alone.

With your good click through rate, you don’t have to bid as much for a good position. IE: If I put a bid of 1 dollar and I am getting a 1 percent click-through-rate and your ad get 2 percent click-through-rate, then you will be able to get the same position as I have for a mere fifty cent bid, and if you bid only one cent more than that 50 cents you would get a better position. To top that, if you already own the top position, as your click-through-rate increases Google automatically lowers your bid price. Way to go!

It may seem like some magic formula but it’s not. What it means to you is that you are paying out less money to Google each month and that is money in the bank!

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Tags: account, avi, Business, campaign, google, Links, money, profits, search, Source

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