Sunday, April 20, 2008

Relevance: How Important Is It In PPC Management

By Kirt Christensen

In summer of 2005, Google advertisers panicked as Google started implementing a new policy of keyword status. Every keyword in Google's system now has a minimum required bid. It can vary wildly, from two cents up to a dollar or more in some markets.

If you won't pay that minimum for a particular keyword, Google will simply put your keyword on inactive status and won't show your ad when folks search on that term. Agree to bid the required amount or higher, and your ads will show.

Many watched as their precious five-cent minimum bids got jacked up to ten and twenty cents and more. Some who based their entire selling strategy on this minimum price thought it would kill their business.

It didn't. If Google deactivates keywords and demands higher bids for them, you've got two options, not just one: (1) Bid what Google asks, or (2) tweak the copy of your Google ad to convince Google's computers that the ad is relevant, thereby lowering the minimum required bid.

Before going with option number one, figure if it is necessary and if you can afford it. When selecting option number two -we advise you to use this one -then this method works best:

Place the term and put into your ad in the headline.

If doing that messes up your ad and creates havoc for all your other keywords in the ad group, then you can try 'peel and stick' Remove that keyword from your list and create a new ad group for that word alone and write an ad using that keyword in the headline.

In this manner you will be able to induce Google's computers into believing you have relevant ads. You will likely be given lower minimum bid prices also. An added advantage is that you are almost assured a higher CTR.

The sad truth is that Google's computers can't judge you on true relevance only on perceived relevance. Their system can't lower your minimum bid price because you have a high Click-Through-Rate. They can only do that if it perceives that you are using your keyword in your ad.

It all boils down to whether the Google computers see you as relevant. It is not on any actuality of your ads being relevant.

Whatever the reasoning, by running their system in this manner Google is pushing you to do with your keywords and ad groups just what the more savvy AdWords managers are doing; dividing their keyword lists into small, compact groups.

If you have keywords in your list that don't show up in the ad, Google may well penalize you by putting your keywords into inactive status.

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