KeywordRadar

14 June 2007

Optimizing Your Adwords Account For Maximum CTR And Quality Score

Many of you reading this already know this… but for those of you that don’t… here’s a very important concept to understand about your Google Adwords Account.

And if you follow these principles, you should be able to reduce your overall cost-per-click.

If you have a high CTR (click-through rate) within your adwords account, you’ll be able to pay less for traffic.

It boils down to simple math and opportunity cost.

If you get a 10% CTR on your iPod ad, and your competitor gets 5% CTR on his ad, then you are generating twice as many clicks than your competitor.

Google makes money each time someone clicks on an ad, so they’ll reward you by allowing you to bid less to remain in a higher position than your competitor!

It’s a win-win situation, because it costs you less to keep the ad running in that high position, and even though Google isn’t making as much as they were on your ad because they lowered your bid, overall, they still profit more from your ad than your competitor’s.

Now, there’s something in your account called a Quality Score, and this has to do with how well your landing page content matches the keyword and the ad that you are running. And this Quality Score does affect your CTR in some way.

I also believe that if you have a low CTR, then this will lower your Quality Score also. I’ll admit that I don’t have a full understanding of how Quality Score is calculated (actually I don’t know if anyone does besides Google!) - I just know the things to do to boost it up, and that’s what I’ll get into right now.

I believe that a huge thing that people overlook is how they structure their adwords account.

The good news is that you don’t have to know how to do this, because if you are using Keyword Radar, the “Build Adword URL” module will do it all for you!

The software will build your Google Adwords Account framework in a special from the keywords, ad copy, and other account settings that you specify. Setting up the adwords account in this way can maximize your CTR.

You can accomplish this on your own by placing each keyword into its own adgroup.

I know what you are probably saying - “I’m going to have hundreds of adgroups?”

Possibly, yes. And I’ll admit… if I was using the “old style” of editing my adwords account, this would be quite the daunting task!

But I show a new and easy way to edit your adwords account… and the secret is using the free Google adwords editor tool!

This is a Secret Ninja tool of many great affiliate marketers, and once I discovered this tool about 6 months ago, Adwords kind of got fun for me… in a geeky sort of way!

This adwords editor tool sits on your desktop, and allows you to make global changes to keywords, ad copy, bid amounts, campaign setting - really any item within your Adwords account, sort of like the way the “search and replace” function in Microsoft Word works, but much cooler!

I kind of got off track here talking about the adword editor tool, so let’s get back to the importance of how you structure your adwords account.

Placing one keyword in one adgroup is important for this reason…

If you have an adgroup loaded with high CTR keywords and low CTR keywords, that adgroup will be graded on how well the average CTR is.

So if you’ve got keywords with CTR as high as 20%, why would you want to have them in the same adgroup with another keyword that is only getting 0.5% CTR?

That’s why you “peel and stick” your good keywords into separate adgroups.

Well, using this method of one keyword to one adgroup, there is no “peel and stick” required. And there never is the chance of any poor CTR keywords dragging down your high CTR keywords.

Now I go a step further, by creating 3 adgroups per keyword. And each adgroup represents one of Google’s Match Types. Here’s what a typical setup would look like:

Keyword: Pink iPods

Adgroup #1: A1 Pink iPods
-represents the broad match option for the term Pink iPods

Adgroup #2: A2 Pink iPods Broad
-represents the phrase match option for the term Pink iPods

Adgroup #3: A3 Pink iPods Broad
-represents the exact match option for the term Pink iPods

Then, in Adgroup #1, I insert a negative match on the phrase and exact match options of this keyword which would look like this:

-[Pink iPods]

-”Pink iPods”

And similarly, in Adgroup #2, I insert a negative match on the exact match option of this keyword, which looks like this:

-”Pink iPods”

By embedding these negative matches in each adgroup, it will ensure that the appropriate adgroup gets triggered when a phrase is searched on.

So, extending this Pink iPod example, here’s the adgroups that would get triggered when people searched these phrases:

“pink iPod” triggers Adgroup #3

“small pink iPod” triggers Adgroup #2

“small new pink iPods” triggers Adgroup #1

Some might call this “Adwords Overkill”, but because I use the adwords editor tool and the URL builder in Keyword Radar, it takes me only minutes to build a campaign containing thousands of adgroups, if I wanted to.

Then I can easily sort the adgroups by the CTR, and ads to improve poor CTR, or just delete adgroups entirely, if they aren’t profitable.

If you saw one of my earlier videos, you can report your sales down to the adgroup, and enter your spend amounts to see which adgroups were profitable or not.

Seeing this report makes it really easy to figure out which adgroups to turn on, and which to turn off!

Your comments are most welcome!

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