When your ad is relevant searchers gravitate to you. The secret to successful AdWords is relevance. Searchers will click on your ad when you have relevance. When you have relevance, your profits will grow because your ad costs dropped, because Google definitely rewards 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.

Relevance Equals A Google Reward

If you bid higher for clicks you can get a higher position on the search pages. However, as your click-through-rate increases, Google will reward you by giving you a better position on the search pages. That is to say they reward you for relevance.

Roughly speaking, the first position has always been given to the highest bidder. But Google has long maintained an ingenious little twist. Here's a simplified version of its 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.

Which CTR, exactly? The CTR of your individual keywords as they perform on Google alone, not the total CTR of your ad groups, not the CTR of any of your ads, and not the CTR of your ads as they're performing on Google's search partner sites or AdSense.

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!

It may seem like some magic formula but it's not. What it means to you is that you are paying out less money to Google each month and that is money in the bank!

Kirt Christensen, a veteran of over 10 years of adwords management , will be your guide and show you exact results of all the adwords management tricks he tests and uses every single month. www.managemypayperclick.com">www.managemypayperclick.com
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