Before we start, we first want to make sure you understand some basics. We suppose you could call it "the anatomy of an Internet search" section. This chapter is a description of the roots of an Internet search. Once you read through this chapter, there is a video at the bottom of this page to help your understanding of this chapter's content further.
We will use Google as an example, since they are the ones that power the AdWords advertising. When you go to Google and want to search for something, you type whatever it is that you want to search for into the "search box" (as shown by the blue arrow below), and hit enter. What you type into the search box can be a single word or a short phrase relating to your desired topic. These are called "keywords". (We will explain in greater detail what a keyword is below). Then magically, the things you are searching for, show up on the results page(s).
Keywords are a word or phrase you type into a search engine to find a information about a topic of interest. If you are looking for a home business, such as Cash Power Course, you would go to Google and type in the word or phrase relating to home business. These words or phrases might include "home business opportunities". If this were the case, "home business opportunities" is your keyword. If you type in "work from home", then "work from home" is the keyword. A keyword can be one word or multiple words forming a phrase, that you type into an Internet search engine. These keywords will produce the results for the products or information you are seeking. As an advertiser, you choose the keywords that relate to the product that you are promoting. When someone types the same keywords into their search engine, it will trigger your ad to show up on the results page.
The results page is a compilation of related web sites that have to do with the keywords you typed into the search engine. On the search results page, you will see two different sections of results, as shown by the blue arrows in the picture below. Under the picture, we have described what these different results are:
A. Sponsored Links:
Sponsored Links are results that are exclusively the Pay-Per-Click Advertising (PPC) ads. Advertisers pay for these ads to appear in the search results that relate to the products that they are promoting. With Google, the Sponsored Listings appear as the first 2 or 3 results at the top of the page, and they continue down the right hand column. We will explain how advertisers do this in a minute.
B. Web Related Results:
The other results from your search, that fill the middle of the page are web site related results, or natural search results. The web site related results are nothing more than relative results, based on either text in the site's content, or something called meta tags. Google picks up on this information, from these web sites, and they end up in the search results. This is not something you need to understand, because we are going to stick to the Sponsored Links, since they are produced by AdWords. However, we will throw in some additional details about the web related results later, just so you know.
If you are an advertiser, every time your ad is displayed in the Sponsored Links for a search, it is called an impression. It does not matter what page of the results it is on. What I mean by this is, if you are on page 1 of the search results or page 50, it is still an impression. This is because your ad has the potential of being seen. Every time it has this potential, regardless of its placement, it is considered an impression.
Before we tell you how PPC works, here is what most people THINK it is. If you are an advertiser, you pay Google a certain amount of money to show your ad. When someone clicks on your ad, it costs you money. The more money you tell Google you will pay for each click, the higher you will be on the search results. When we say higher, we mean the placement of the ad, in one of the top positions of the Sponsored Links on the first page of results, as opposed to being buried on some other page. The ad that has agreed to pay the most, gets the top spot.
That misconception is close, but not entirely accurate. Google, and the other big PPC players, do things a bit differently. More people search on Google than any other search engine. Why? Because they offer the most relevant results to what you are looking for. In other words, you are more likely to find what you are looking for more quickly when you search with Google, as opposed to other search engines. Here is how they do that. Google rewards advertisers for the relevance of their ads. They want the most relevant web sites to show up first when someone does a search, so their customers are actually getting the information they are looking for, as opposed to information that has nothing to do with their search. Therefore, their customers are happy and do not get annoyed from sifting through the results page to find what they are looking for.
Relevance relates to how similar your ad, your keywords, and your product are to one another. The more relevance your ad has, the less you will be charged by the PPC service, and the higher they will position your ads. This is because they feel you are satisfying their customer's needs more by truly offering them the results that they are searching for. For example, how frustrated would you become if you typed gardening into your search engine and a bunch of information on cooking came up on your results page? This connection between your keywords and your results is called relevance. The higher your relevance, the lower your cost.
Why would you ever want to spend $2.00 per click for a top positioned ad, when you can spend $0.37 for the same placement. The difference of $1.63 may not seem like a lot, but trust us...it adds up fast! Just think, if you had 400 visitors in one day, you would spend an unnecessary $652!
Let's take a look at what a relevant ad would look like if you are looking for home business opportunities. Your search results with Google might look something like this ad:
The ad above would be a relevant search result for what you are looking for because it actually lists a home business opportunity. That is Google's goal. The quicker you find what you need, the more often you will use their search engine. A non-relevant search result, would be something you are not looking for exactly, but has one of the same keywords you typed in. Now, we will give you a non-relevant search result for your keyword "home business opportunity":
Let's put this into perspective. If you were looking for a home business opportunity you can actually do from your home, which ad would you click on? Example #1, of course. Even though the second ad had the word business in it, it is not an actual business opportunity.
So, why then did this ad pop up in the search results? First of all, they are most likely paying an extremely high bid price per click. We, as effective advertisers, try to avoid high bid prices, and still receive excellent placement. However, the main reason that ad showed up is because the advertiser doesn't know how to set up their advertising campaign effectively. They are using a keyword that triggers their ad, that they shouldn't use. This is because it is only part of the information the customer is looking for. As a result, their ad is not relevant to what the customer was actually searching for.
Now that you understand the difference between what a relevant ad, and a non-relevant ad are, let's explain what that means to you as an effective Google AdWords advertiser.
Since Google's goal is to display the most relevant ad's first, they reward advertisers who not only have a high relevance, but also have a higher click through rate. The reward is that they charge them less.
Click through rate (CTR):
A click through rate (CTR) is: the percentage of times the ad is shown (impressions) in the search results vs. how many times it actually gets clicked. Therefore, if the ad is shown 100 times a day, and the advertiser gets 10 clicks on their ad, this would result in a click through rate of 10%. If it gets shown 100 times a day, but only gets clicked on once, you would have a click through rate (CTR) of 1%. Let's examine the example ads that we showed you above, so that you can see why different ads would have different CTRs:
Relevant ad example:
This ad should have a high CTR, because it actually pertains to what the customer was looking for. This is because the customer typed in "home business opportunity" into the search engine, and this ad actually displays one. The relevance is high, so the CTR should also be high. People would click on it because it pertains to what they were searching for.
Non-relevant ad example:
This ad should have a poor or nonexistent CTR, because it has nothing to do with what the customer was looking for. This is because the customer was searching for a "home business opportunity", not a way for them to sell their business. So, now you're probably asking; "Why did this ad show up on the results page?" The quick answer is, the advertiser did not know how to set up their ad properly, and probably agreed to pay a high cost per click. We'll explain this more later.
In a nutshell, Google charges the 1st Company, with the relevant ad, a lot less per click than they charge the 2nd company, with the non relevant ad. The 1st company might be paying $0.10 per click, while the 2nd company is paying $2.00 per click. Here's the kicker, they are showing up on the same page! Google rewards the companies with relevant ads because they provide information about what the customer is looking for and because of this charges the advertiser less. Therefore, as an advertiser, this relevance is what you need to master, and you will, once you are done with this program. We will teach you all of our secrets about relevance and costs per click. With Internet marketing, the goal is to get the most traffic for the least cost. Make sense? We hope so!
Google is brilliant in this respect! We say that because some of the other PPC providers just allow anyone with money to rule the top of the results pages. Those who pay the most, get the top placement. A brain is not required. It's just a bidding war with them. They don't care how relevant the ad is. Whomever bids the most per click gets the biggest reward. This my friend, is why Google is superior. Superior for the customer and superior for the advertiser. There is a good reason you always hear people saying "Google it", as opposed to "Yahoo it", or "Ask it". They are superior to other search engines on so many levels!
This is how Google benefits the Advertiser that has a plan, just like you will, when you are done with this program.
How an advertisement shows up on Google:
Now, we will walk you through a step by step explanation about how an Advertiser gets an ad to show up in Google's search results, in a way you can understand. These are not steps to follow at this time, just basics so you can understand the process. Later, we will explain how to do all of this in detail. You have to lay the foundation before you build the house.
Step 1: Advertisers select keywords.
As we mentioned above, a keyword is what someone will type into a search engine to find what they are looking for. We will stick to the home business opportunity example we have been using.
Now, for example, we have this home business opportunity that we want to offer to people. The first thing we are going to do is think of what someone might type into a search engine, to find what we are offering. There is no limit to the amount of keywords you can use. In fact, you will generally get better results with more keywords that trigger your ad. However, you want to make sure they are relevant to what you offer. Don't forget that!
For example, let's say that we only chose 2 keywords for now. The keywords that we chose are "home business" and "home business opportunity". Now, when someone types in those keywords into the Google search engine, it will trigger our ad.
Step 2: Design our ads around our keywords.
You write these ads yourself. We will explain how easy it is later. For our keyword "home business", we might use the following ad. It should look familiar:
For our "home business opportunity" keyword, we may use an ad like this:
We wrote these ads this way, because they are the most relevant to what people are looking for. By now, you should know that means Google will charge us less per click, and rank us higher on the page.
Step 3: Tell Google where we want the customer to go, when they click on my ad.
This is also called a "destination URL". We want people to go to the following web address when they click on the ad: www.cashpowercourse.com (This is a recommended product for you to promote. We will discuss this more in detail in later chapters.)
Step 4: Tell Google the most that we will spend when someone clicks on our ad.
We enter in $0.10, for example. This will insure that we don't spend any more than this when someone clicks on our ad.
For this quick outline, we are done. Our ad is up and running almost immediately. At this point, when someone searches using our keywords "home business" or "home business opportunity", our ad will show up somewhere in the results. We can't be sure where, or in what place it will show up just yet, but on our Google AdWords home page, it will let us know shortly. When they see our ad, and click on it, we will be charged $0.10 and the customer will be sent automatically to the web page that we dedicated. In this case, it was www.cashpowercourse.com. Once they are there, our web site should do all the work for us.
Let's talk about our keyword "home business" for a minute. What if someone typed in "home business supplies" into their search engine. Even though they used both of our keywords in their search, we would not want our ad to show up, because we are not offering supplies. The sight that we are promoting has nothing to do with supplies. If it was displayed, it would bring our click through percentage down. Why? Because our ad would get shown (impression), but it would most likely not get clicked. Remember, Google rewards relevance and click through rate. Therefore, the question would be, is there a way to fine tune our keywords to make sure our ads show up only when someone is looking for that exact item? Yes, we will show you how to do that shortly.
Below, you can check out the video about this chapter:
Okay, before you move on, you should have a basic understanding of the following:
- How an Internet search works.
- What sponsored results are.
- What Pay-Per-Click is (PPC)
- How Google is different and superior to other PPC providers.
- What a non-relevant ad is.
- What a click through rate is and how it is figured.
- How an advertiser gets their ad to show up.
- How you are charged for Pay-Per-Click advertising
- The basic structure of a Google Adwords campaign.
If there is any confusion about any of this, you need to re-read the above material or watch the video again before you move on. In the following chapters, we start to talk about more advanced techniques and if you don't understand the basics, the rest may as well be in Chinese.
Here is what you will be doing:
You will be following our step by step method on becoming a Master Internet Marketer. The best of the best at this make over $200,000 a month. That is no joke. SO PAY ATTENTION!
Again, if you don't understand the basics above, PLEASE re-read them. It is crucial for understanding the rest of this program. Not to mention, I asked nicely.
AdWords(TM) is a Trademark
of Google Inc., Mountain View, California.
AdWords For Beginners is an independent consulting firm, and is not affiliated with Google.