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Understand Google Adwords as a Pay Per Click Option
Author David Schneider | Feb 03,2008  |  Print  | Share This
One of the most popular pay-per-click models is Google AdWords. For website owners seeking more exposure for their sites and products, the ads can bring in an enormous amount of traffic for a relatively low price. The best part for many advertisers is that they ultimately set the price they pay for the advertising.

Understanding Google AdWords as a Pay Per Click Option -- Choosing the Words

The AdWords model depends largely on the words that an advertiser chooses to represent the site. The advertiser must choose the best words related to the site, and it’s these words that drive the resulting ads.

The ads appear on Google and other sites within its network of reference sites. They can also appear on participating websites that frequently use the same words. By choosing keywords that are frequently searched through the major search engines, the site owner can get targeted customers who are actively searching for sites that contain what they’re advertising.

The keywords chosen should not be too general, as general words tend to be much more expensive than more specific ones. Choose words that are more targeted to the intended audience, in order to pay less and have the ads seen by customers who are more likely to be interested in the ads.

Understanding Google AdWords as a Pay Per Click Option -- Setting the Price

Using AdWords enables site owners to keep within their own advertising budget while purchasing the ads. Site owners place competitive bids for their chosen keywords. The bids are the maximum they are willing to pay each time a potential customer clicks on their ads. The bid amount is in competition with other advertisers who have placed bids on the same words.

Google sets minimum bid amounts for keywords based on how many people have historically clicked on those words. After placing the bids, Google ranks them using their quality score, which evaluates the ad and where the ad link leads. If the text in the ad is highly relevant to the keywords, and leads somewhere that is equally relevant, the quality score will be higher. The bid price also factors into the ranking, with higher bid prices given preference over lower ones.

Understanding Google AdWords as a Pay Per Click Option -- An Easy Alternative to Banner Ads

By choosing relevant, high-searched words and bidding within an accepted advertising budget, many site owners find AdWords pay per click ads an affordable alternative to buying banner ads or other, less targeted ads. The entire system is automated by Google, with minimal maintenance needed by a site owner. The ads are installed with a simple javascript provided by Google and require no further maintenance from site owners who feature the ads.

Google handles most of the advertiser’s work, as the site places the ads automatically to the sites that feature the chosen keywords. Perhaps the best thing for many small businesses is that the advertiser doesn’t pay just to have the ads sit on websites -- the payment is for when viewers actually click on the ads. When interested customers are clicking on targeted ads, many businesses find that apay per click ads are well worth the price. One of the most popular pay-per-click models is Google AdWords. For website owners seeking more exposure for their sites and products, the ads can bring in an enormous amount of traffic for a relatively low price. The best part for many advertisers is that they ultimately set the price they pay for the advertising.

Understanding Google AdWords as a Pay Per Click Option -- Choosing the Words

The AdWords model depends largely on the words that an advertiser chooses to represent the site. The advertiser must choose the best words related to the site, and it’s these words that drive the resulting ads.

The ads appear on Google and other sites within its network of reference sites. They can also appear on participating websites that frequently use the same words. By choosing keywords that are frequently searched through the major search engines, the site owner can get targeted customers who are actively searching for sites that contain what they’re advertising.

The keywords chosen should not be too general, as general words tend to be much more expensive than more specific ones. Choose words that are more targeted to the intended audience, in order to pay less and have the ads seen by customers who are more likely to be interested in the ads.

Understanding Google AdWords as a Pay Per Click Option -- Setting the Price

Using AdWords enables site owners to keep within their own advertising budget while purchasing the ads. Site owners place competitive bids for their chosen keywords. The bids are the maximum they are willing to pay each time a potential customer clicks on their ads. The bid amount is in competition with other advertisers who have placed bids on the same words.

Google sets minimum bid amounts for keywords based on how many people have historically clicked on those words. After placing the bids, Google ranks them using their quality score, which evaluates the ad and where the ad link leads. If the text in the ad is highly relevant to the keywords, and leads somewhere that is equally relevant, the quality score will be higher. The bid price also factors into the ranking, with higher bid prices given preference over lower ones.

Understanding Google AdWords as a Pay Per Click Option -- An Easy Alternative to Banner Ads

By choosing relevant, high-searched words and bidding within an accepted advertising budget, many site owners find AdWords pay per click ads an affordable alternative to buying banner ads or other, less targeted ads. The entire system is automated by Google, with minimal maintenance needed by a site owner. The ads are installed with a simple javascript provided by Google and require no further maintenance from site owners who feature the ads.

Google handles most of the advertiser’s work, as the site places the ads automatically to the sites that feature the chosen keywords. Perhaps the best thing for many small businesses is that the advertiser doesn’t pay just to have the ads sit on websites -- the payment is for when viewers actually click on the ads. When interested customers are clicking on targeted ads, many businesses find that apay per click ads are well worth the price.
 
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