Understanding How To Bid On Keywords

by Brian Basch

When you are creating ads for your Google Adwords campaign you will need to build them carefully around the right keywords. This seems like commonsense and many marketers have perfected this art. They do the proper research to find the best keywords.

Pay per click advertising campaigns have other factors apart from keywords that will make them successful. Something that should be kept in mind is the fact that searchers have very short attention spans. They will not usually look beyond the first 5-10 search result pages.

In order to be seen an ad must be positioned within the first 5-10 pages of the search results. How can you do this? By paying more money.

For the savvy marketer this section is merely repeating what you already know. However if you are new to the game you might find this information helpful. Simply put Adwords is similar to a large auction. There is usually fierce competition for a keyword especially if it is popular. Only if you are dealing with very obscure keywords will you have less competition, but you will also have very few searches.

This means that you are not the only one using a certain keyword. So how will the search engine decide on ad positioning? Adwords works on a pay per click basis. Although the price is usually small it can accumulate. The advertisers who bid the most money on a keyword will have their ad placed higher in the search engine results. This benefits the search engine, as they get paid per click, despite the fact that the ad may not produce sales. Of course search engines like these high paying ads and put them in positions were they would get read more.

All this keyword research takes time. It will necessitate some experimentation and you may suffer some losses as you try to find the ideal keyword. Bear in mind the average click to sales ratio is often around 10%. This means that there will be a fair amount of wasted clicks. Your budget and the actual cost of your product should be assessed, before you start to bid on keywords.

Bidding is almost as important as choosing the right keywords for your campaign. This is because if you do not have a good placement for your ad you will not draw enough traffic or sales. The road to a successful campaign is to take your time when you bid.

So when you create your Adword campaign be sure to remember these points. When you think about it you will be wasting a lot of time and money if your ad that you worked so hard on is not even being viewed.

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