- Ad rank is the position of your ad in search results.
- CPC is cost per click (sometimes referred to as MCPC when dealing with AdWords, meaning Maximum Cost Per Click).
- CTR is your click through rate.
- Bid rank is determined by max cpc x ctr.
It amazes me how many people have never changed their content based bids since the system went live.
I thought OV did a decent job of informing people of the system differences. Maybe if you don’t read your OV mail or belong to a board like this – you’d never know it happened.
The autobidders aren’t picking up on the search vs content difference, I’m guessing. I haven’t tested all of the software packages since the change went through.
We’ve have a multitude of content bids where we are in 3rd place with this type bidding structure:
A rough estimate says 75% of content bids have not changed once since the changes went through – yet their regular bids have changed.
Its very obvious who’s using do it yourself ppc auto bidding software, and who has a competent individual monitoring their accounts.
Just a reminder, don’t forget content bids.
I just finished putting together a report from some experimentation done with one of my accounts. I found the results interesting, and thought some here might find them interesting as well.
This is a site that I’ve been working on since pretty much the beginning of AdWords, so I’m very familiar with the KWs and ads for it.
I often find that people look at ROI over the bottom line, when its the bottom line that means more to me.
Average Sale Price: Roughly $200 (Numbers have been rounded off )
If we went by straight ROI, the 7.6 position is the way togo, however, position 3.5 makes $543 more over the trial period, and I’d rather have that bottom line. Even position 1.1 ends up with a higher profits than 7.6 with a much lower ROI.
As expected, there is a significant conversion difference between the various positions. The CTR of the ad in the premium position, admittedly, did surprise me. And therefore the CTR difference between position 1.1 and 3.5 was quite significant. The CTR of position 7.6 was around my projections.
But we really aren’t done yet. This site’s visitors usually buy more than once during a year, without going through the math of actual returning customers, I’ll simplify it saying that it averages 1.3x per customer per year. So
1.3 x $200 x #Sales – AdWords spend
is what we should consider. This leaves us with this profit:
1.1 position: $1972
3.5 Position: $2108
7.6 Position: $903
Clearly 3.5 is the best position for this particular product. However, (and this is where egos come into play), the difference between being first and on the side is minimal, and those would be sales that your competitor didn’t get. If the projections were made into year 2, then position 1.1 is definitely the way togo as those returning in the 2nd year will definitely make the profit margins worthwhile.
However, position 1.1 must maintain that conversion rate. Any drop with that CPC and the site will quickly get into trouble. Position 3.5 can drop the conversion rate a little and still be quite profitable due to it lower spend than the premium position. In fact, if its conversion rate drops to 2%, its still as profitable as position 7.6 in the short run, and better in the long run.
If this site offered a newsletter to keep in contact with former buyers and help to increase the average buys/year/customer, then I would definitely suggest the top position for the sheer volume of sales and therefore, a higher projected number of signups than the other positions.
In any case, enough ranting for now, don’t measure everything by ROI. It is definitely a measuring tool to be used, but don’t forget about the bottom line.
When Deleting Keywords – Do it Everywhere
If you decide you want to delete a keyword, either due to poor performance, the keyword being disabled, or moving it elsewhere, there is a very important rule to remember: Delete every instance of the keyword in your account.
Google AdWords gives you the ability to make many ads for each keyword group. Take advantage of this opportunity to try different ads. You will be amazed at the difference a few words can make in targeting your users.
These are the most common reasons a Google AdWords ad is not being displayed. There are more possible reasons, but this should give you a very good start in determining the reason.
The click through rate that matters in determining if your ad is meeting the minimum requirements to continue to be shown is based on the click through rate of your ad on Google.com only.
Do Not Ever Modify An Approved Ad
Once a http://adwords.com ad is approved, it is now syndicated on partner sites (such as AOL).
Google’s name has become synomous with search. It is one of the most used search engines throughout the world. Their pay per click program is titled, Google AdWords.
Google’s word is relevancy. This is what they strive for in everything they do. Therefore it is no surprise that Google has taken a different approach to bidding compared to the other pay per click search engines, which makes it by far the most complicated program to run. (For the technical details, please see http://adwords.com FAQ)
The top two positions on Google, when the link banners are above the search results and not to the right, are very coveted positions.
They use to be very expensive banner ads, but Google has since promoted certain AdWords to those positions.