Folks are drawn to relevant ads. The way to be successful with Google AdWords is the have relevance. Folks will click on your relevant ads. You will be rewarded by Google because of it and your costs will drop and your Profits will increase. This is because of your relevance.

Arrogance falls by the wayside when you are shelling out the money, taking risks with your business and Google is dipping into your credit limit every month. Searchers don't want to deal with your arrogance either. This story is revealed best in the management of Google AdWords. When it is your card being charged, the information telling you what does or does not get clicks, is in urgent demand.

Google Rewards You For Relevance

Traditionally, you get higher positions on the search page by bidding more. But when your clickthrough rate goes up, Google actually gives you better positioning without charging you more per click. It rewards you for being relevant.

Basically, the number one position always goes to the top bidder. However Google has a long standing tricky little twist. This is the boiled down view of the formula:

Your Relative Position = Your Bid Price x Your Clickthrough Rate

The fuller version of Google's formula is your bid price multiplied by your Quality Score. Either way, your CTR swings the biggest difference apart from the price you bid.

Next question: Which CTR are we talking about? We are not talking about, the total ad group CTR, nor the CTR of any of your ads either in the search partners or in adsense. We are talking about the Click-Through-Rate of the individual keywords, their performance on Google alone.

With your good click through rate, you don't have to bid as much for a good position. IE: If I put a bid of 1 dollar and I am getting a 1 percent click-through-rate and your ad get 2 percent click-through-rate, then you will be able to get the same position as I have for a mere fifty cent bid, and if you bid only one cent more than that 50 cents you would get a better position. To top that, if you already own the top position, as your click-through-rate increases Google automatically lowers your bid price. Way to go!

This isn't magic, even though it looks like magic. It means you're coughing up less money to Google every month, and you're putting more in your own pocket every day.

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