PPC Management: The Value Of Relevance
Google sent its advertisers into a panic back in mid 2005 when it began to implement a new keyword status policy. Each keyword in their system was assigned a minimum bid requirement. The minimum varies widely anywhere from 2 cents to a dollar or more for some keywords.
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 looked on as the minimum nickel bid they counted on rose all the way to ten, or twenty cents or more. For some the foundation of their business plan was ripped out and they thought their businesses would go under.
Not So. Should Google demand a higher bid and deactivate your terms then you have more than one option: (1) You could give Google the bid they are asking for, or (2) You can play with your ad copy and try to get the Google computers to believe that your ads are relevant and by that means lower the minimum bid required.
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:
Put the keyword in to the headline of your Goodle AdWords ad.
If you can’t do that without screwing up the ad and making it a mismatch for all the other keywords, then do peel and stick. Take that keyword out of your list and put it into a new ad group by itself with an ad that uses it in the headline.
This method will help persuade the computers at Google that you have relevant ads and you will be granted a lower bid price. The best thing is that you will most probably get higher click-through-rates.
It’s an unfortunate fact that you’re not really being judged on relevance here, you’re being judged on perceived relevance. Google’s system won’t necessarily offer you a lower minimum bid price because you’ve got a high CTR; the system will only do so if it sees that you’re using your keyword in the ad.
So when all is said and done, the test is not in whether you’re actually relevant to consumers; the test is only in what Google’s computers think looks relevant.
By putting their system together this way Google is driving you to do what other more experienced marketers have been doing all along. That is they are separating their lists into small-scale groups with a narrow focus.
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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