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Title: Pay-Per-Click Strategies - How Cost-Per-Click (CPC) In AdWords Affects 
AdSense
Category: Internet Marketing
Word Count: 534
Author: Nelson Tan
Email: [email protected]
Article URL: 
http://www.internetmasterycenter.com/articles/ppc-strategies/cpc.php
Keywords: google adsense, adwords, cost-per-click, cpc, bid price, bankruptcy, 
cancer, lawyers, keyword research

Description: Despite the so-called "Death of AdSense" (which happens to be a 
smart marketing ploy), there are marketers who know enough of how bid pricing 
works to increase their AdSense earnings from PPC.

---

How Cost-Per-Click (CPC) In AdWords Affects AdSense

by Nelson Tan

Despite the so-called "Death of AdSense" (which happens to be a smart marketing 
ploy), there are still a few good success stories. At least, the marketers who 
carry the right beliefs within them know what they are doing to persevere and 
achieve desired results.

One of these correct beliefs is knowing how bid pricing works. Generally 
speaking:

1) If there are not enough ads to go around, that particular niche is too small 
to try.

2) If the "general economy" of the ads is rather low, avoid the niche too. 
That's why there are high-paying keywords and low-paying ones.

3) If one site performs better than a similar one in AdSense clickthrough 
rates, that site will be served better paying and better performing ads. That's 
how smart pricing works.

We're sure Google has many secretive and subtle metrics to disqualify junk 
sites and the corporation insists on surrounding itself with webmasters who are 
committed to providing quality work.

Going back to point 2), no matter how genuine sites are in providing valuable 
content, webmasters need to know something about the state of the competition 
related to a supposedly high-paying keyword.

There is a general belief that "certain keywords pay highly" (granted), like 
bankruptcy, cancer, lawyers etc., but without research to back them up, such a 
belief does not stand on a foundation.

Google does not take from AdWords advertisers the maximum bid price they put in 
their account; this is important to recognize. For example, the first-placed ad 
may have a max. bid of $12, but the max. bid of the second-placed ad stands at 
only $2. The top advertiser does not always have to fork out $12 to maintain 
his ad in first place. Google Advertising works such that it has a sliding 
scale for the bidding process.

In other words, you bid on the keyword 'bankruptcy' and you decide that it is 
only worth $1.95 but you are willing to pay up to $12 against your competition. 
Then one day, your closest competitor's bid is $2. Google will ante up 6 more 
cents on your behalf to keep you in the top position and continue to do so for 
as long as you can afford up to $12. Google sets these special perimeters when 
they set the account up for that keyword.

That means Google can only pay AdSense publishers as much as the next highest 
existing bid price. Then again, as you do your keyword research, Google only 
shows average CPC as the real numbers change dynamically. So it is crucial for 
publishers to appreciate the bid pricing gap between 1st, 2nd, 3rd and 
4th-placed bidders to make an educated guess of how much they will be paid for 
certain AdSense ads.

With all that being said, AdSense is very much alive and well. The AdSense 
program is just an attractive incentive to make AdWords advertisers happy that 
their ads will be spread out with the help of publishers. Google Inc. can take 
down AdSense; it's their choice, but it's not helpful. Honestly, it's the 
publishers' fault that they abuse the system so the company fine-tune 
it...meaning, make sure the distribution of earnings is better deserved and 
justified to esteemed publishers.


Nelson Tan is the webmaster behind Internet Mastery Center. Download $347 worth 
of FREE Internet Marketing gifts at http://www.internetmasterycenter.com

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