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Google Adwords Fundamentals

Posted by Steve | Posted in Pay Per Click Advertising 101 | Posted on 17-03-2011

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Hi again,

Here is a quick post on some Google Adwords basics. This is for the newbies ( and some of the not so newbies).

Let’s take a look at the fundamentals of pay per click advertising  (PPC). Pay per click advertising involves opening a Google adwords account, constructing an advertisement based on your chosen keywords, bidding for an ad position, and defining a landing page for that advertisement.

We won’t go into the details of registering in the Google adword account we will just assume for the purpose of this post that you already have one set up but you are not experiencing a great deal of success or you are unsure where to start. We will also assume that you now what market you are in and what keywords are important. ( More on this in a later post).

Let’s start with the actual ad.  Your advertisement must include the following three components. Your Chosen keyword or Key Phrase. Your target’s problem or pain and a “call to action”. Therefore if you were constructing and ad around the keyword phrase puppy training the first line of your ad should include the words puppy training. The second line of your ad should identify a  problem the user may be experiencing and possibly some solution to that problem. (This can be difficult but you can make some assumptions). In the case of puppy training think what you would like to achieve because it is likely that you will want the same thing as most people.

Start with a title line which matches your Keyword or Key Phrase. The next line should identify a solve the  problem. The last line should be a call to action. See the example below which Google will see as an ad with a very high relevance for the search phrase “Puppy Training”

Toilet Training for Your Puppy

Your Puppy will never Pee Inside Again

Get the easy 7 Day System NOW


Now, in order for your ads to appear  you will have to bid a sufficient amount of money per click. Google will guide you to some extent how much you should bid for your ad to be shown. How much you have to bid will depend on a number of factors. The most important factors are the relevance of your ad to the search key phrase and the relevance of the landing page it points to.

The landing page is the page the user will land on when they click your advertisement. The name of this landing page and the content of this page should be relevant to the search phrase used. For example, if your website is named www.joethevet.com this is not a relevant landing page for the user and Google will devalue the advertisement. A better landing page would be  www.joethevet.com/puppytraining.htm.  Better still a domain called www.puppytraining.com (sorry…that one is gone!).

Again, the content of the page should include references to puppy training, which was the original search phrase, and will give Google the impression that the page is relevant to the search.

These three components are all about relevance to the search phrase. It is Google’s job to give accurate results based on the users intended search phrase (keyword(s). If you ensure that your ads are as relevant as possible in all these aspects Google will reward you by making your ad appear at a lower bid than those competitors who have not constructed  their ads and landing pages with the same relevance is yours.

Google does this because it wants to make as much money as possible from advertisers. If your ad is better than somebody else’s it will be clicked on more frequently so it will have a more prominent ranking than your competitor. Let’s say for example that your competitors bid is four dollars at their ad is poorly constructed and the ad is only clicked on 10 times every hour. Google  makes $40 an hour by positioning that ad at number one.

If you construct an ad that is significantly better because it is more relevant and users click 20 times an hour your ad only has to be a little over half the cost of your competitor and Google will make more money. In the example above if your ad bid was $2.10 Google would make 20 times $2.10 which equals $41 and they would therefore make more money on your ads being at number one than if your competitors ad was in number one. While the exact value of your bid may not be as simple as this the general principle is correct. Make your ad better and you will pay less.

I have to stress that this is an oversimplified example to illustrate a point. The full explanation of the Google Ad Ranking and PPC Cost can be found at the url below. http://www.youtube.com/watch?v=K7l0a2PVhPQ&feature=related

In these posts I am sharing some of the basic principles of marketing and advertising your products on the Web. In the early stages of the taking of very simple view of these principles. So far we have covered a few of the more important basics like Google ranking and why that impacts the domain names you should register and this latest article on Google ad words. In future articles I’ll get into much more detail? as the main purpose here is to cover the most common mistakes which cost you time and money.

Steve Williams

Don’t forget to check out this video “Make $100 per day on Clickbank – FAST”


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