If you do a search at Google, you'll notice that not only do you get a list of all the sites that return your keyword, you also get a list of other relevant ads on the right of the page and at the top of the listing. These are part of Google's Adwords and Premium Advertising programs.
Advertising like this can certainly be an important part of your marketing plan. Well developed ads with clever wording can prompt an immediate response from the reader to visit your site. Google and Overture are currently making a lot of money with this kind of advertising-and if they're making money, you can be sure their advertisers are too.
Buying an AdWord on Google is a little complicated but it can be very cost-effective. In effect, Google has combined the Pay-per-Click system with their own relevancy calculations. You'll need to select a keyword-or an 'AdWord' in Googlespeak-and write a short description. But you'll also have to choose how much you wish to pay, and the price won't guarantee you a position.
Advertisers enter a maximum bid per click and this is multiplied by the click-through rate (the percentage of users who click on the ad). That's the score Google use to allocate position.
So for example, if you were prepared to pay a dollar per click, and one user in a hundred who saw your advert clicked on it, you would get a rank number of ($)1 x 1% = 0.01.
Let's say that gives you top position. You might then get even more users and a higher click-through rate of 2%. That higher rate would reduce your price to 50 cents (0.01 divided by 2%).
All very nice, and it's always fun to pay less than you've said you can afford, but how it works is less important than the fact that it does. All you have to do is figure out how much you're prepared to pay for each click, how much you can afford to pay each month, and write a great description.
And once again, it's the description that's key.
Like the PPC's, your description has to persuade users that you're relevant; it doesn't have to play to the search engine's software. By all means repeat the keyword, but also make sure you have good, call-to-action copy like "Grab a great deal on DVD's today!" or "Buy now, while stocks last!" Remember, the more clicks you get, the more sales you'll make-and the less you'll pay.
Always place the AdWord in the most appropriate category and track the responses you receive from it. Be proactive in redefining your strategy if you receive minimal response. You'll probably have to play with the wording and the keyword selection to get the results you want.
Premium Advertising
This is the Platinum Card of Google advertising. For at least $5,000 you can be one of two advertisers to top a category. Very effective, very prestigious-and very expensive. $5,000 is the minimum bid. Something to think about-if you think you can make the money back.
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