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How Small Advertisers Can Compete With The
Big Boys Through Google's Adwords Select Program
© 2002 Khemal Dole
Google's Adwords Select has soon become the focus of many
online marketers simply because it is the best pay-per-click
advertising options ever to grace the Internet. Many PPC
search engines like Overture had one fundamental problem.
Big advertisers with deep pockets were always able to out
bid the rest. And the rest did not have any means of
competing other than bidding a higher price per key word.
Google's Adwords Select is unlike that.
In order to maintain a high standard and yet enable both the
advertisers with deep pockets and those who have a limited
budget compete equally, Google's Adwords Select enforces the
0.5% minimum click through rate or CTR cutoff.
Simply put, if your ad was shown 1000 times and it was not
clicked on 0.5% of the time or 5 times then the ad is
disabled. You might think that this is a brutal rule to be
enforced. But here's how it can level the playing field and
help small advertisers compete with the giants.
Let's take a typical advertising scenario. Imagine that you
are selling home made muffins. You have a budget of just
$50. In order to have your ad displayed, you need to first
choose what key words or phrases you want to trigger your
ad. In other words, you need to pick a few keywords or
phrases that when entered by a person in a typical search,
would result in your ad been shown along with the search
results. Let's say you bid on the phrase "home made
muffins". It's pretty straightforward. And you are
willing to pay $0.05 for each click. This is the lowest bid
possible in the program.
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