Thursday, April 27, 2006

Google AdWords

You place small text ads for specific keywords. You determine how much you are willing to pay per click through. The more you pay, the higher up on the screen of results your ad is displayed. With all things equal, if several competitors are willing to pay 35 cents a click and you are only willing to pay 5 cents a click, then you will be at the bottom. Fortunately, few advertisers do thorough keyword research. This means, that you can usually find many keywords that still have few or no bids.

The CPC is not the only factor that determines your ad’s rank. The rank is also based on a proprietary formula that weighs Cost Per Click against Click Through Rate. So a lower bidder could potentially get a higher position, if they had a better ad that received a higher CTR. Google uses this system so that the most relevant results are the most prominently displayed.

I next asked myself, That are other keywords that people would search for relating to eBay, besides just the keyword ebay?.

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