How to make money from Adwords
Adwords are those little sponsored links that appear on the right-side of your search results in Google. At 95 characters they are the haiku of the advertising world, but the beauty of them is that you don’t pay unless you clickthrough (hence pay per clickthrough =PPC).
The amount you pay for each clickthrough (cost per clickthrough = CPC), depends on how much your fellow advertisers are prepared to bid for a particular keyword. If you’re a New York Lawyer, and your bidding for “New York Lawyer” you’re likely to pay around $10 for each clickthrough. Ideally, you want to find a keyword that your competitors haven’t spotted yet.
One of the ways you can identify those terms, is by using Overture’s keyword selector tool (Overture is Yahoo’s Search Marketing arm). Simply enter your target keyword, and Overture will list related combinations, and give an indication of likely traffic. Incidentally, this is an ideal tool for developing content for your site, where you can identify possible Google-wins, and design content accordingly.
After writing the ad, and working out your keywords, you should then ensure you’ve got a mechanism for tracking conversions. Without conversion tracking it’s impossible to calculate the effectiveness of your campaign. Speak to your developer about embedding Google code (or 3rd party tracking software, e.g. Interspire’s Trackpoint).
Your goal is to produce a campaign where your cost per conversion is lower than your net margin. To achieve this you’ll need to do some trial and error working, testing the copy of your ad, your keyword selection, your ranking, and of course the effectiveness of the landing page (the site where the ad points to).
Comments
2 Responses to “How to make money from Adwords”
Leave a Reply
Hello Philip,My name is Jayesh Thakker.I am from India.I have seen your blog on blogger.com,”How to make money from Adwords”.I have also posted my blog on the same site,but unless i do not log in through my password I my self is not in the position to reach the blog which I have posted than how others can reach to my blog? kindly guide me to ragister my blog in the index or tell me the way how the money can be made through blogging? My email id. is indiatimes1@yahoo.co.in. I hope an earlier reply from you.I had already ragistered my name in google adsence.With regards Jayesh Thakker,Your new friend from India.
Hi Jayesh
Thank you for writing. This post is really focussed on B2C or B2B websites who make money from customers visiting their sites. The key for these businesses is to ensure that the lead or sale that is generated yields more revenue than the cost of conversion.
It sounds to me that you’re looking to make money from the Google Adsense programme. To do this you’ll need to produce a really good content driven site that gets good Google visibility. You won’t make much money from Adsense without significant traffic.
Hope this helps,
Phil Balderson.