How to Bid on Keywords

By: Kirt Christensen

When running a pay per click advertising campaign such as Google AdWords it is essential that each ad be carefully formatted around the proper keywords. This is only common sense, and the practice of choosing the proper keywords is one that many marketers have made an art of. They carefully research their market and the keyword history on the search engines and come up with a number of productive keywords.

Keywords, unfortunately, are not the only deciding factor in the success or failure of a pay per click advertising campaign. The simple fact of the matter is that internet browsers do not have the patience that consumers who are seeing their ads on television or hearing them on the radio have (and that isn't saying much). Each time that a search is entered into a search engine, pages of results appear. Realistically speaking, which of these pages are going to be viewed before the surfer turns their attention elsewhere?the first five, maybe the first ten if they are determined.

The upshot of this is that in order to be exposed to higher number of viewers the advertisements must be on the first 5 or so pages. What can be done to make sure the advertisements are on these coveted pages? It boils down to money.

If you are at all conversant with how Adwords works you can pass over this next part; but if you are not familiar with the way Adwords functions it is basically a big auction.

Being the only advertiser using a particular keyword is not a very probable thing to happen, except if it is a word or phrase that is not very well known or well used and won't attract very many visitors. Since the main idea for advertising is to get interest and visitors you would not want to really use these keywords.

Of course the upshot is that you won't be alone in your use of your keywords. So how then is it determined which ads will be on display first?

Each time that an AdWords ad is selected the advertiser is charged a fee. This fee is generally small, less than a dollar, but will cause costs to rise quickly.

So if an advertiser wants his ad put at the top of the search result page for a keyword, he has to be willing to pay more than the other advertisers that are using that keyword. This of course is great for the search engine's business. They get paid no matter if an advertiser gets a sale or not. They of course are going to give preference to the guy that will give him more money when someone clicks on his ad, so they put them at the top of the list so they will make more money.

Finding the balance with your keywords and bids will most likely take some time. Meanwhile you will earn and lose money quickly. Don't forget that you won't make a sale every time someone clicks on your ad; it is more likely that you will get a sale 10 percent of the time or one in every ten visitors will buy. Using that figure, the price of your product or service, and your advertising budget you can figure on what you should bid for your keywords.

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Kirt Christensen's dynamic flair in AdWords Management as he handled over $612,000 of yearly ppc advertising for clients, has them raving about him!

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