The Secret AdWord Tip never told

October 31, 2007

AdWords is the world’s most popular online advertise program, but unfortunately is becoming extremely expensive along the years. More advertisers, more websites, more competition, more mistakes, Google’s profits are some of the reasons why the costs are rising.

I’ll give you two tips that might boost your campaign – Use WebPage Optimizer and keep your CLT at minimum 0.5%.

Let me explain.

The secret for your cost is your Quality Score. Google decides your ads’ position and minimum bids based on relevance. The higher your Quality Score, the better your ad position and the lower your minimum bids.

You can influence your Quality Score if you keep your CLT higher than 0.5% and if you use Optimizer. That’s because you are showing Google that you are reliable and developing your website towards in relevance; that you want to increase your conversion and the user final experience.

Just this move it’ll drop your average CPC.

According to Inside Adwords Blog:

“Why doesn’t Google show ads for every keyword?
We are often asked if we wouldn’t prefer to make additional revenue, rather than allowing keywords for which no ads appear. In point of fact, Google would prefer to show no ads for a user’s search query, rather than to show ads which provide a poor quality experience for users who click on them — and which might damage long-term user trust in the the quality of information delivered by AdWords ads.”

As I said, relevance is the key. Many advertisers believe that if they have no competitors for a keyword, their minimum cost-per-click (CPC) will automatically be lowered by the AdWords system to $0.01, the lowest possible CPC.

How it actually works: The minimum CPC for a keyword is not related to the number of competitors one has that keyword. Instead, minimum CPC is dependent on the Quality Score of the keyword, as it’s used in the advertiser’s account. This functionality was introduced in August 2005, when keyword bidding evolved to a quality-based model.

You can learn more about AdWords here

Cheers

Lucio Dias Ribeiro

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{ 2 comments… read them below or add one }

1 Fred October 31, 2007 at 11:32 pm

Thanks for the tips.
I had some problems to place the javacode, it took me couple of hours to have it working.,
Also My advice is to have more than 2 different landing pages, this can maximize your test.
Google doesn’t stop the test unless you’ve got at least 1000 conversions. So if your pages convert small take a seat and have patience.
fred

2 Lucio Dias Ribeiro November 1, 2007 at 3:09 am

Thanks for sharing your tips Fred, but remember all tests need to be measurable. What means that you need to make sure you can determine later after test what fact has caused the drop or raise in traffic/conversion,
If you test more than one variable your test can be masked for other facts,
Remember that everytime you prepare a test,
Cheers
Lucio

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