The increasingly popular Google search engine introduced a cost per click (CPC) program called AdWords that is just a cut above the rest. This is not the usual "highest bidder wins scenario". They differentiated their service by adding a quality element. It means that those ads that receive a higher click through rate get a slight reduction in price. Some of my own ads produced a good reduction in cost so persuasive writing does make a difference.
Google's CPC program is complicated, even troublesome at times. However, it does have an automated feature called AdWords Discounter, that allows you to let them manage the bid price at a competitive level. Some of the more general and well used keyword phrases have a set minimum bid which makes some phrases very unattractive. That's why you won't see ads on Google for certain keyword phrases. It's just too expensive given the type of sales transaction that results from clicks on that phrase. The word free can sometimes be very expensive on Google AdWords.
To make matters worse, there are popular, general phrases that are less targeted. This means they develop less qualified visitors and thus a poorer sales conversion rate. Google's broad matching system means wide varieties of buyers are competing for the same phrases, even though they are selling completely different products or services.
This often results in bidding wars and demonstrates why you need to use a systematic testing approach is necessary for AdWords to perform well for you. If you don't have a system for discovering the best quality keyword phrases for you, you'll be spending a lot more money. On a large campaign it is essential to quickly discover what makes people click. Another reason is click fraud. There are estimates that 20% of all click-throughs are fraudulent, so expect 20% of your budget disappearing.
The AdWords Advantage
Google has the largest audience and their users spend much more time at Google than searchers do at other search engines comparatively. Google sets an example for choice, and users take this seriously by looking for better value. Google is available in many languages, giving you an opportunity to advertise to French, German and Spanish markets. It also has geo-targeting with up to 99% accuracy. My campaigns have shown Google produced about 80% more visits than the same expenditure on Overture.
Google has stated their click-through rates are 5 times higher than the industry standard. They serve ads to Earthlink, Ask Jeeves, Business.com, and AOL. Google's AdSense network additionally offers exposure on millions of web sites. If wide reach is what you need, you can choose to show your ads on this network.
So, total market exposure through AdWords could be very high. Your bids have to be among the top four in order to get listed on AOL. Up to ten ads may be shown on Google with ad placement at the top of the screen and downward along the upper right of the page in pink or green text boxes.
