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People are drawn to you when you're relevant. The formula for success on Google is relevance. When you're relevant, people will click on your ads, Google will explicitly reward you for it, your costs will drop, and your profits will grow. 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. Relevance Equals A Google Reward If you bid higher for clicks you can get a higher position on the search pages. However, as your click-through-rate increases, Google will reward you by giving you a better position on the search pages. That is to say they reward you for relevance. 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 fuller version of Google's formula is your bid price multiplied by your Quality Score. Either way, your CTR swings the biggest difference apart from the price you bid. 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. If you have a high clickthrough rate, then you don't have to bid as much for the position. For example, I bid $1 and my ad gets a CTR of 1 percent. Your ad gets a CTR of 2 percent. You can get the same average position as me by bidding $0.50. If you bid $0.51 then you'll get the position above me. If you're already in top position, Google will automatically charge you a lower bid price as your CTR improves. Not bad. Even though this may seem magical, it isn't. It does mean you are shelling out less money each month to Google and that means more money heading to your bank account.
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With over a decade of experience in adwords management , Kirt Christensen, will share his expertise in adwords management, by giving you tips he discovered that work (and some that don't work). www.managemypayperclick.com">www.managemypayperclick.com This article is available as a unique content article with free reprint rights.
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