More With Google AdWords

The business mission of Google Inc. was to construct a mechanism or search algorithm which present information to who is seeking for it, but exactly what you are looking for as fast as possible.

They develop an algorithm capable to calculate who visit web sites and why, with that information they refine their own search engine.

So… when google start to sell ads over the pay per click mode, they where so interested that the ads where relevant for the advertisers and they run over the same idea that the search engine.

It works this way: Google award you if you are relevant y allow people looking for information vote in you. If your ad is “clicked”, so you are relevant. If not, you aren´t. That simple it is.

When higher is you Click Through Rate (CTR), these mean when more people look at your ad and they click it you will pay less for the clicks. But if your ads are with low relevance, google will make you pay a lot for that click. This creates a “Darwinian” effect, award to the professionals and let amateurs out of business.

So, what is good for google clients is good for google and also for you.

A Trivial change can diminish your cost by key Word in 90%.
Why the auction price is not the real price that you pay and the huge difference that this makes for you?

What to do when your key words appear as inactive?
The price that you establish for the key word auction (bid price) almost never is the price that you really pay. Always you pay less than it.

You really are paying one cent more compared to the immediately position (down of yours), not the maximum price that you are allow to pay.

But there are another “secret” more important that is a key to get lower and lower prices, doesn´t matter how many “players” are in the game.

Your Click Through Rate is much more important than the price that you allow to pay for every click.

If 100 people search, your ad will be shown 100 times and if only 1 person click in your ad, your CTR is 1%. Simple.

Suppose you have 1% CTR and you will pay just U$1,00 for the second position. Now suppose that your CTR is 2% now. If you make the right things, you must only pay U$0,51 for every click in the second position, living you a free 3rd position.

In other words, you is twice more relevant and for that, you will pay only the half. Contrary, if I would like to have your position I will have to pay one cent more than your double, that is U$1,01 for every click!

The rules of the game are simple, and their impact is enormous.
When you get high CTR rates, your costs will go down, down, your ad will stabilize in the same position in the page and the amount of visits in your site will grow.

The difference could be amazing.