Thread: This is how Google AdWords really works... Must Read

Most people I talk to don't understand exactly how Google AdWords really works. What do I mean by this? Most people believe that if you say you're budget is $100/ day, you will spend $100/day and that is that.

Well I figured I would break it down as simply as possible so that everyone really knows how it works.

Everything with Google has to do with algorithms and equations and the such. I will give you an easy to understand example.

Let's say for example you have a daily budget of $1/day.
If your Average Cost Per Click (CPC) is $1
and let's say for every 2 times your ad is shown you get 1 click, which will get you to your daily limit of $1/day.

So what that means is that by setting you daily budget to $1, your ad will only show 2 times/ day.

Let me know if that is hard to understand. Most people take a few tries to understand it.

The ability to work with any budget in Adwords means that almost everyone can afford to have some type of Adwords campaign going. If you are just doing PPC (Pay Per Click) then you are only charged when a person clicks on your ad, if you are doing Pay Per Impression then you are paying a certain amount for so many impressions regardless if they click through or not. I would say that if you are looking to establish a brand name then using Impressions makes sense, if you are looking just to get qualifed traffic from a very specific demographic then it makes more sense to use PPC.

Some of the other benefits of having and AdWords account are that you get your site indexed as soon as you activate your account, and google & yahoo are pretty much the main Search Engines, most other search engines get their results from Google or Yahoo. Otherwise you have to wait, or manually submit your site to Google, DMOZ, Yahoo etc...

Also you can see reports right away about what keywords are driving the most traffic to your site, what ad is working best, other suggestions generated by AdWords etc...so you can make changes based on that information to make your campaign more effective.

Mikel Ochs
AgentExcel, SEO Consultant

I just started adword and have been playing around a bit with the ads and keywords. Alot of trial and error so far but I like how the process works. I can see certain businesses profiting immensely from google ad wods

Google adwords IMO should only be use if you have a certain product or services that you want to promote. There you can create a landing page going directly to your web page.

But if you are after for long term organic results, I suggest have someone optimize your site to get a better ranking in search engines.

I think that Google is in business for profits. This meens they must deliver natural results to give customers (people searching for free) the info they seek as to bring them back. But the money trail leads to Adwords. This makes Google change what they require for natural results, pushing internet marketers to Adwords. If one site could find a way to get to the top of the Google page and stay there, Google would be out of business. It stays in business by finding new ways of sorting sites to keep searchers coming back, and to keep small business guys like me advertising( buying my way to the top of the page).

Google Adwords is a great marketing tool for most Realtors. However, it does take a lot of trial and error, which can get costly. So before you start do your homework and soak up as much free information as you can about Adwords.

Cheers!

To make money with AdWords you need to be selling something, or promoting something from which you will receive a commission. You need to understand, AdWords themselves cost you money, they are simply and advertisement. You make money using them by driving traffic to a product or service.

Originally Posted by Duncan

Google adwords IMO should only be use if you have a certain product or services that you want to promote. There you can create a landing page going directly to your web page.

But if you are after for long term organic results, I suggest have someone optimize your site to get a better ranking in search engines.

Yes its necessary to make sure that the landing page of your ad should be directly linked to the exact page that provides the details of the products or services. This gives you a higher chances of conversion.

One must also be very careful about what key words he is going to select. It is so because every one's blog would be identified by the key words he has selected.

hi,Google adword tool use to in a business profit.