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Often times the top ad position is losing money. To find out what the top position
costs on Google AdWords you can enter $50 as your bid price at the account setup
process. The estimated cost per click would be how much that position would cost
you assuming the standardized assumed click through rate (I believe this to be 1%).
You then can lower the bid price down until you get at position 2.0 then 3.0 and on
down. Each time you get to a different integer you can look at the estimated click
price to see what the click would cost assuming the standard click through rate. If
you have a higher clickthrough rate the bid price for that position will be lower. If
you have a low clickthrough rate your price will be higher.
Determine how Competitive a Market is:
Often markets shift rather quickly. If you notice certain ads appearing again and
again over time they are probably ads that are generating profits. For a quick glance
at how competitive a market is you can download the software product by the
name of AdWords Analyzer or Keyword Locator. Keep in mind there there are some
significant limitations to this type of software, as noted in my Keyword Locator
review.
You also will want to record the top 10 results every few days for a few weeks to up
to a month. If an ad is in around the same position (and is not from a huge
corporation) after a month has passed they are probably earning profits.
Listing Your ads on Top of Google Search Results:
While lower ad positions may have a better ROI in some markets they also may not
provide adequate distribution to create significant profits. Google AdWords will
occasionally list the top ad or two above the regular search results (versus off to the
right side like most other AdWords ads). The top ads usually have a high
clickthrough rate which helps lower click costs.
The ad position on the Google SERP right column is determined strictly by the
equation max bid times ad clickthrough rate. Before an ad can appear on top it has
to be reviewed by a human and the ad has to be deemed extremely relevant.
Relevancy is closely approximated by clickthrough rate, so the ads which display
above the Google search results factor in clickthrough rate more heavily than max
bid. If you get an ad which is placed in a premium position and then edit it your ad may
take at least a few days appear back in a top position.
Find the Best Products:
If you see a lot of affiliate ads then typically there is a dominant player or system in
that keyword termspace. You may want to try purchasing your competitors product
to see the whole sales path all the way through to the backend.
If there are more non affiliate ads than affiliate ads odds are that there is no
dominant player / system in the marketplace yet.
Checking Broad Match, Phrase Match, & Exact Match:
Often times simply using exact match can drastically increase click through rates.
To determine if a person is using exact match do a search for
keyword A adfkafdjsadf keyword B
If their ad still shows up they are using broad match. If their ads are showing up for
nonsensical broad match searches then they usually have a decent click through rate
and are making profits.
You then can search for keyword A keyword B dfadfkadfa. If their ad does not show up
for the broad match check and shows up for this check they are using phrase
match.
If their ad does not show up for the phrase match, then they are advertising via
exact match. Any time you are checking competitors’ ads you will want to refresh
the screen multiple times as sometimes certain ads will not show.
Extreme Local Targeting:
costs on Google AdWords you can enter $50 as your bid price at the account setup
process. The estimated cost per click would be how much that position would cost
you assuming the standardized assumed click through rate (I believe this to be 1%).
You then can lower the bid price down until you get at position 2.0 then 3.0 and on
down. Each time you get to a different integer you can look at the estimated click
price to see what the click would cost assuming the standard click through rate. If
you have a higher clickthrough rate the bid price for that position will be lower. If
you have a low clickthrough rate your price will be higher.
Determine how Competitive a Market is:
Often markets shift rather quickly. If you notice certain ads appearing again and
again over time they are probably ads that are generating profits. For a quick glance
at how competitive a market is you can download the software product by the
name of AdWords Analyzer or Keyword Locator. Keep in mind there there are some
significant limitations to this type of software, as noted in my Keyword Locator
review.
You also will want to record the top 10 results every few days for a few weeks to up
to a month. If an ad is in around the same position (and is not from a huge
corporation) after a month has passed they are probably earning profits.
Listing Your ads on Top of Google Search Results:
While lower ad positions may have a better ROI in some markets they also may not
provide adequate distribution to create significant profits. Google AdWords will
occasionally list the top ad or two above the regular search results (versus off to the
right side like most other AdWords ads). The top ads usually have a high
clickthrough rate which helps lower click costs.
The ad position on the Google SERP right column is determined strictly by the
equation max bid times ad clickthrough rate. Before an ad can appear on top it has
to be reviewed by a human and the ad has to be deemed extremely relevant.
Relevancy is closely approximated by clickthrough rate, so the ads which display
above the Google search results factor in clickthrough rate more heavily than max
bid. If you get an ad which is placed in a premium position and then edit it your ad may
take at least a few days appear back in a top position.
Find the Best Products:
If you see a lot of affiliate ads then typically there is a dominant player or system in
that keyword termspace. You may want to try purchasing your competitors product
to see the whole sales path all the way through to the backend.
If there are more non affiliate ads than affiliate ads odds are that there is no
dominant player / system in the marketplace yet.
Checking Broad Match, Phrase Match, & Exact Match:
Often times simply using exact match can drastically increase click through rates.
To determine if a person is using exact match do a search for
keyword A adfkafdjsadf keyword B
If their ad still shows up they are using broad match. If their ads are showing up for
nonsensical broad match searches then they usually have a decent click through rate
and are making profits.
You then can search for keyword A keyword B dfadfkadfa. If their ad does not show up
for the broad match check and shows up for this check they are using phrase
match.
If their ad does not show up for the phrase match, then they are advertising via
exact match. Any time you are checking competitors’ ads you will want to refresh
the screen multiple times as sometimes certain ads will not show.
Extreme Local Targeting:
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