When running a pay per click advertising campaign such as Google AdWords it is essential that each ad be carefully formatted around the proper keywords. This is only common sense, and the practice of choosing the proper keywords is one that many marketers have made an art of. They carefully research their market and the keyword history on the search engines and come up with a number of productive keywords. The rub is that keywords are not the only factor is making a ppc ad campaign a success or failure. The truth is that internet surfers don't practice the patience that tv or radio consumers do (that is not saying much either). When a search term is entered into the search engine many pages of results will show up. The reality is that only the first 5 or maybe up to the first 10 pages will be seen by the searcher until their attention is caught by something else. This means that for an advertisement to be viewed by a good number of viewers it is going to need to be among these pages. How can an advertiser ensure that their advertisement is among these pages? As with all things in life it comes down to money. If you are at all conversant with how Adwords works you can pass over this next part; but if you are not familiar with the way Adwords functions it is basically a big auction. Being the only advertiser using a particular keyword is not a very probable thing to happen, except if it is a word or phrase that is not very well known or well used and won't attract very many visitors. Since the main idea for advertising is to get interest and visitors you would not want to really use these keywords. Of course the upshot is that you won't be alone in your use of your keywords. So how then is it determined which ads will be on display first? Whenever an Adwords ad is clicked on there is a fee charged to the advertiser. It is usually less than a dollar and more than 5 cents. But that can add up fast. Therefore, the advertiser using a keyword that is willing to pay more per click than the other advertisers using that same keyword is going to have their ad placed at the top of the list. It's good business on the part of the search engine; they get their money whether the marketer makes a sale or not, and an advertisement which pays them fifty cents each time it is selected is going to bring them greater profits than one which pays twenty five. They want the higher paying ads to be selected more and therefore will place them in an area which is more visible. It often takes time to find the proper balance of bids and keywords; money will be earned and lost quickly in the meantime. It is important to remember that a sale is not going to be made every time that an ad is chosen; in fact, the percentage of viewers who make purchases is generally less than ten percent. It is important to assume that that will be the percentage of sales made. This can then be compared to the price of the product and the sum currently available for advertising to determine how much can be bid for a keyword.
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