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Adwords Secrets Revealed – Ad Position & CTR
Hello once again. In to todays article I want to show you how you can Advertise in Google, Get in a higher position than your competition in Google AND pay less than your competition all at the same time. Just think about it, how exciting would that be, you sitting in the #2 spot for only £0.50 when you competition is in the number 3 spot and paying £3.00. This one Adwords secret is basically how you can walk all over your competitors, and they wont even know what hit them.
Ok, So this may not be one of those Adwords Secrets Revealed kind of articles for a lot of you out there, but let me tell you: When I first started using Adwords, it was this technique that got me really excited, just the thought of being able to sit in my home study, and compete with some of the biggest companies in the world drove me to really master Adwords. But, no matter how many books that I read, or courses that I went on, no one ever really explained how this was done. They would tell me all about it, but not explain it. So thats what I want to do with you today. Explain how you can achieve this with great ease.
Before we begin, I want you to be aware that this article does not cover the basics of setting up your accounts. So for even more tips, tricks and killer Adwords secrets revealed Download a FREE copy of my Adwords ebook – The Adwords Handbook:
Ad position & CTR
OK, so lets take a look at how Ad position & CTR works. I’m going to break these down in to two sections: Ad position and CTR. I’m also going to give you an easy to follow formula that you can use to work out just how well your ad should be performing. But please be aware, Google does not release data about your competition. So although you can work out your own position, you can’t do the same for your competitors.
OK, first, what is CTR? CTR stands for ‘Click Trough Rate’, basically the amount of times that your ad gets clicked on, compared top the amount of time your ad is shown. Like I said, there is a very simple formula for working this out.
Adwords CTR formula revealed:
If your ad is displayed 1000 times on the first page of Google (in position 4), and out of those 1000 times, your ad gets clicked 10 times. Then this will give you a CTR of 1%.
Clicks / Impression = CTR
It’s that simple.
Note: Google dose not like your ads to be running at a CTR of 0.5% or lower. If this does happen to you, Google will force you to pay £2.50 or higher per click. So you must stay above this threshold.
0.5% CTR = Minimum
6% CTR = Very Good
Ad Position Revealed:
It’s no secret, your ad position is the position that your ad appears on Google Search page. Many of you may be thinking, that just buy bidding a higher amount for your Adwords ad than your competition is bidding, then you will be in a higher positions than your competition. But that is no longer the case. This is how all of the old style PPC advertising systems use to work. Until Google came along an revolutionized the system.
Google revealed a new method for it’s Adwords advertising, a system that would allow you and I to compete with the big guys. Google came up with a formula, which is now being used by everyone.
Max CPC = Maximum cost per click
Ad Position = Max CPC x CTR
So, lets take a look at some examples:
You: Max CPC: 0.50 X CTR: 3% = 1.5
Competitor: Max CPC: 0.50 X CTR: 1% = 0.5
As you can see, your both paying the same price, but because you have a CRT of 3%, you are going to be in a much higher position. This is amazing, because not only can you get in a higher position, but you can also decide (if you want) to stay in the same position, but reduce you spend.
Simple increase your CTR, then lower your bid.
It’s this reason alone that makes adverting on Google a must, this really is an area of your marketing that you need to master. As it can have such a huge impact on your profits.
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This post was written by David Moceri