Google Adwords - Pay Per Click Search Engine Advertising Program

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Google Adwords

Pay Per Click search engine advertising program Adwords produces 95% of revenue for Google. The number one guideline of this Pay Per Click program is to enhance the users' experience by employing a ranking strategy based on cost-per-click times and click-through-rates, allowing ads to improve without increasing cost. Adsense is the PPC search engine contextual advertising program that offers relevant content pages of non-commerce sites targeted to an advertiser's site and site content. However, 70% of all clicks on Google are organic search engine listings¹. This means that it is more beneficial to be listed in the organic search results optimized by a professional search marketing and custom website development company like Dynamic Digital Advertising (DDA).

Cost of Adwords
The cost of Google Adwords depends on an advertiser's goals and budget. Adwords PPC program begins with a minimal activation fee that can be as low as $5.00. After that an advertiser pays for the clicks on their keyword-targeted ads with costs per click ranging from $0.01-$2.00. Daily budgets can start low and can expand to whatever amount an advertiser is comfortable spending. Advertisers can choose to run a site-targeted PPC advertising program with a minimum of $.25 per thousand impressions. With a site-targeted campaign an advertiser can choose the sites they want to advertise on or use the Adwords matching system to analyze input and create a list of sites with relevant content for the advertiser to choose from.

The Problems with Adwords
The Adwords online advertising system has also proven to be very costly. Sponsored ads are an auction with prices going up more than 20% per year. Because of the stiff competition, acquiring keywords is becoming so expensive that many advertisers are spending more money on PPC programs like Adwords than they are making in profits. Google also admits that they have "regularly refunded revenue" to advertisers that they obtained through click fraud, a problem Google recognizes could "hurt their brand"².

¹ Internet Retailer
² Google 3rd Quarter Report 2004

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