Monday, October 27, 2008

How Google Adwords works

How Google Adwords works

Adwords is a trademarked name for Google's online keyword based advertisement system. Adwords also refers to the Keywords "taken" by the advertiser for the campaign. Taking the above example, the keywords "monitor," "Keyboard," and "mouse" are called the Adwords. When a Google user searches on Google by typing in this keywords - which you as the advertiser have chosen - the ad appears on the right hand side (or the top) of the result page, alongside the generic Web search results on the left. The placement of the ads depends upon the cost per click and also according to the relevance of the keyword to your ads, as explained before. Ebay, for example, has purchase hundred of fast-moving consumer keywords such as "mobile", "phone", "laptop", "ipod", and so on, so that when a potential user types in this keywords, he sees eBay.in (or ebay.com) in the sponsored links. Since eBay also set a higher price for many of the keywords it has purchased (highest cost per click), eBay ads are displayed first in the sponsored ads section.

Remeber that even if your site is listed in the organic link section, there is no guarantee that it will be listed in the first few search results. The web links could be in one of the gazillions of pages of the search results!

Sponsored Links have the name of the ads as the title followed with a very brief synopsis of the sponsored site. The title and synopsis of the ad is set by the advertiser. This is follwed with the address to the website, which, again, is set by the advertiser.

The advertiser here has more control of the ad because he can project certain ads to only certain geographic locations, or by only certain languages, allowing him to precisely control ad spending. Adswords offer more value for money because the adverstiser gets charged only when the user clicks the sposered link. To know more, visit https://adwords.google.com. and watch this video:



Building Adwords

There are two ways to sign up for Adwords, depending on the type of advertising campaign you are planning.


Choose the right edition


Location and Language_Starter

understand interface with a simplified sign-up process to advertise a single product or business. An advertiser can choose one or many keywords relating to his ad. Basic reporting like the number of clicks that was registered for the ad, the number of ads that were displayed for that keyword (the impressions), and the cost incurred due to clciks to advertisers advertisement are shown on this edition. One can also taget ads to a city, country or even by language in this edition.

Write Ad Here

This edition also has the templates that assist one in building the ad, by asking a few simple questions. Step-by-Step procedures allow the advertiser to get tips on what keywords should be selected.

Keywords

You fix your monthly budget and pay google in your local currency. The more you spend for the keyword, the ad will be displayed more often with higher ad positioning wheb the keyword is typed in to the search engine. This is bidding process: ads of the highest- qouted keywords are dislayed more often, with higher paid positioning.


Adwords Standard Edition has all the features of Starter Edition with a lot more tools. Here ads, can be targeted to multiple regions at once, whereas in the Stater Edition, it is only for one region or one language.


Budgeting your ad spend

When it comes to the pricing of the keywords, you have more options than with that of Starter Edition. Here, you have options of setting the price for each keywords, giving you, the advertiser, more control of how the ad money is spent, and proper strategy for the ad. For example, for the keywords we mentioned, you can select "keyboard" to be at higher price per click than the rest, thus having the ad displayed more often for "keyboard."

The content that goes as the brief description for the ad can also be bif for in this edition, where the higher bidder for keywords can display a certain set of words relating to the ad.

The placement of the ads - such as second position, also called position preference, can be done with the Standard Edition.

Adwords Standard Edition allows you to have multiple products with multiple ad campaigns, with each campaign having many keywords - and each one of these campaigns can runs simuntaneously. For example, Tata, a diversified company, has multiple products and each product has multiple ads for the different regions. The configurationfor such a scenario can be done at the second page.

Standard Edition also provides:
  • Extensive reports of impressions (numver of ads that were displayed for the keywords)
  • Number of times user clicked on your ads.
  • Statistics of impressions and click rates.
  • Billing of your ads, and custom report like the region where the most number of clicks were generated and the time of the clicks.
  • A graphical representation of the number of timeseach kewords was typed that month.
  • A traffic estimator that can estimate the traffic of certain keywords. It gives you an estimate as to when a paticular keyword search was more, like the time of a month or a month of a year.
  • Keywords tips so as to make the ads pop up more often.
  • An option to get the statistics of keywords, so that you can understand which keyword was use more often in the set of keywords that you chose - allowing you a stratagic and plan keywords more effectively.
  • Hints on relevent sites here ads can be placed through adsense, so as to increase traffic to your site.)
Hope you understand how to setup account to advertise online with Google adwords.
Get you Free Adwords ebook here

1 comment:

johan32 said...

This post about Google Adwords Management is absolutely great because I also want to try this technique for my newly launched educational blog so that the traffic is increased as quickly as possible. If you have any step by step guide for beginners, please share that too.