Internet  Marketing Guide
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3.8.3 Google AdWords and Premium Advertising

If you perform a search on Google, you’ll notice that not only do you get a list of all the sites that return your keyword, you also get a list of other relevant ads on the right of the page and sometimes even at the top, above the regular (aka "natural") search results.  These are part of Google’s Adwords and Premium Advertising programs. Advertising like this can certainly be an important part of your marketing plan. Well developed ads with clever wording can prompt an immediate response from the reader to visit your site. Google and Yahoo! Search Marketing (formerly known as Overture) are making great profits with this kind of advertising and you can be sure the advertisers that buy their ads are, as well.

Buying an AdWords ad on Google is a little complicated but it can be very cost-effective. In effect, Google have combined the PPC system with their own relevancy calculations. You’ll need to select a keyword-or an ‘AdWord’ in Googlespeak-and write a short description. But you’ll also have to choose how much you wish to pay, and the price won’t guarantee you a position.

Advertisers enter a maximum bid per click and this is multiplied by the click-through rate (the percentage of users who click on the ad). That’s the score Google use to allocate position.

So for example, if you were prepared to pay a dollar per click, and one user in a hundred who saw your advert clicked on it, you would get a rank number of ($)1 x 1% = 0.01.

Let’s say that gives you top position. You might then get even more users and a higher click-through rate of 2%. That higher rate would reduce your price to 50 cents (0.01 divided by 2%).

 

All very nice, and it’s always fun to pay less than you’ve said you can afford, but how it works is less important than the fact that it does. All you have to do is figure out how much you’re prepared to pay for each click, how much you can afford to pay each month, and write a great description.

And once again, it’s the description that’s key.

Like the PPC’s, your description has to persuade users that you’re relevant; it doesn’t have to play to the search engine’s software. By all means repeat the keyword, but also make sure you have good, call-to-action copy like "Grab a great deal on DVD’s today!" or "Buy now, while supplies last!"

Always place the AdWord in the most appropriate category and track the responses you receive from it. Be proactive in redefining your strategy if you receive minimal response. You’ll probably have to play with the wording and the keyword selection to get the results you want.

Google Adwords Premium Advertising

This is the Platinum Card of Google advertising. For at least $5,000 you can be one of two advertisers to top a category.  This is very effective and very prestigious however it is also very expensive. $5,000 is the minimum bid.  This is certainly something to consider if you can make the money back.  This is beyond the scope of the beginning Internet marketer but it is defnitely worth mentioning and considering perhaps as a later date when you are more expereince.

 

3.9 Link Popularity and Link Analysis

The majority of the major search engines use link popularity as an important factor in ranking relevancy. As search engines have become more sophisticated, so, too, has link popularity. Link popularity simply is the number of links from other websites that point to your website. This strategy has gained immense success due to the crawling nature of most search engines. Spiders crawl from link to link and store pages into their database. Link popularity is generally gained through reciprocal linking. Other websites would usually point to your website only if you have a link to their website from yours.

A few years ago, the number of websites linking to your site gauged link popularity; little emphasis was placed on the "content relevancy" of the linking site. In an effort to gain more link popularity, "link farms" began sprouting up across the web. For a nominal fee, a website owner could join link farms and enjoy increased link popularity overnight.

Search engines caught onto this tactic and created better tools for detecting legitimate links. websites that have links from websites with "similar" or "relevant" content score higher, thus earn better placement in search engines.

However, Avoid joining "link farms"; some search engines consider them a form of Spam. Many engines will actually penalize sites for maintaining an abundance of links from non-related websites. It is more important than ever to develop a solid "link-popularity" strategy. One excellent, although time consuming, method is to simply write complimentary website requesting a link exchange.

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