Question: How does Google come to that price?
Question: Does the bid also include price for engagement?
Question: Can you please go into details about how the bidding process works in AdWords?
Answer: Lots of great questions here. First, AdWords is an AUCTION. Advertisers are BIDDING for each click, and ultimately the click goes to the HIGHEST bidder (assuming they have identified the target keyword and have what is known as a decent QUALITY SCORE). So all keywords are held to auction / and the price reflects DEMAND. Hence the personal injury attorney keywords are VERY expensive vs. keywords like animal boarding. AdWords is a 24/7 auction for keywords.
The bid / cost per click is ONLY for the click. You pay per click. But – that doesn’t mean every click becomes a sale, so as an advertiser you have to worry about AdWords conversion rates, and you want to monitor the return on investment: How much are you spending on AdWords clicks vs. what you are getting.
We teach this in more detail, of course, in the class on AdWords.
Got a question? Click this link to email Jason or call 888-993-1122. Dr. Jason McDonald is founder and Senior SEO / Social Media Director of the JM Internet Group. He teaches the SEO training classes for the group, and therefore provides most of the SEO tips for this blog. His goal with this blog is to provide an easy 'one-stop shop' for the busy marketer looking for tips, tricks, and secrets on how to get to the top of Google and Bing for free using proven SEO tactics. When not dreaming up SEO tips, Dr. McDonald lives in the San Francisco Bay Area with his wife, two dogs, a cat, four iguanas and twelve children (just kidding). Really you read down to the bio on this guy? Enjoy the blog.
on SEO | AdWords | Social Media