Monday, December 19, 2005

Maximize your spend, enjoy a high Clickthrough Rate (CTR)

The Google Adwords experience can seem overwhelming at times.
When you first start your Google Adwords campaigns, it is quite easy to get discouraged.
It might all seem a bit too hard and intimidating because you might start to find that your ad will be disabled if your CTR (click-thru-rate) percentage isn’t high enough. Google requires a minimum 0.05% CTR.
This basically means that you need to make sure that a certain percentage of people click on your ad when it’s displayed. Google adjusts your bids automatically to keep you ahead of your competition at the lowest price.

Note: Clickthrough rate (CTR) is the number of clicks your ad receives divided by the number of times your ad is shown (impressions).

Note: The cost-per-click (CPC) is the amount your pay each time a user clicks on your ad.

Where your ad is positioned on the search results page, is determined by several factors. How much you are prepared to pay per click for that particular keyword or keyword phrase is not the only factor.
The Google Adwords system uses a cost per click (CPC) and clickthrough rate (CTR) formula which ultimately improves your Adword ranking without increasing the cost per click.

The higher your CTR % is, the higher up on the search results page you ad will appear.
Usually the higher up on the list your ad is seen, the more clicks you will receive.
The trick is to make each click count so you end up paying less per click.
When bidding on keywords, being on top should not be your number one priority, but being on the first page is a must. Around the middle is a good start without paying too much per click.

Now setting up your Adwords campaigns is not as easy as it might seem without wasting money.
Setting up Google Adwords campaigns can be done simply by creating an account then creating your ads or campaigns based on certain rules. Your whole Adwords campaign is controlled by you if desired,

You can put limits on actual daily spending, report on what’s working in almost real time and when changes are made they are pretty much instant.
Campaigns can be added or modified almost in real time.
You have the ability to run multiple ads, even for a single keyword at the same time.

A well planned Google Adwords campaign can start to generate highly targeted leads very quickly.
Now the best way to make this happen is by targeting your keywords properly.
Surround you keywords that consist of two words or less with square brackets [like this].
Keyword phrases that contain more than two words can be surrounded with quotes “like this also”.

So if one of your keyword phrases was ‘weight gain’ then you would surround it with square brackets like this [weight gain]. If you do not target your keywords properly then someone looking for ‘how to lose weight’ might bring up your ad on gaining weight. Somehow, I don’t think they will click on your ad.

How many keywords you have in your ad groups is not important, as long as they are targeted.
However, making sure they are arranged into separate logical groups according to subject, is.
Now how many groups you have depends on how you utilize your keywords in your ads.

If you want the optimum clickthrough rate, just make sure that each ad group includes its keywords in the ad, better still in the ad heading.

This might take quite a few groups and some time, but you will target your customer properly and at the same time increase your clickthrough rate (CTR) percentage.

This is the dream of every advertiser. Achieving this takes a lot of hard work and testing. Google adwords is unique in that your ads go online immediately. This allows you to test your ads as much as you want. When you are not satisfied, write new ads. You can also set CPC for campaign as well as for individual keywords.

One trick you can use to achieve this is to initially set your daily budget high, CPC high, and write good ads. This will position your ad well, 1st to 6th position. Once you have achieved a good CTR (4% to 7%) gradually lower your CPC while retaining a high daily budget. Always remember that a high impression and CTR will get you a high position even if your CPC is low compared to your competitors'

A high CTR% means less cost-per-click (CPC).
Target your keywords as strict as possible. An exact match on you keywords will help your ads get higher CTR%.

So remember, include your keywords in your ads, especially in the heading.

11 Comments:

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