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Currently Browsing Bidding Strategy

The single most important number in AdWords

AdWords is a very powerful, flexible system, and with that comes complexity. This complexity can obscure some very important information, such as if and when you’re running out of your daily budget. This is where one of the most important and frequently overlooked numbers comes into play: Impression Share (IS). This is the percentage of […]

Conversion rate vs. ad position in Google AdWords

While it’s obvious that ad position effects cost, does it effect conversion rate? For example, does the top position AdWords ad get a higher percentage of clicks turning into conversions than an ad further down the page? Google has conducted studies and developed numerical models that indicate that if such a relationship exists, it is […]

CTR explained

A long time ago, we wrote briefly about how higher Click-Through-Rate (CTR) values aren’t always desirable, and our clients often ask how to best interpret the significance of CTR. CTR is literally defined as the percentage of people who viewed an ad that clicked on it.  For example, if an ad is shown 100 times […]

SEM bidding and traffic increase nonlinearity

Even PPC campaigns that have an Impression Share (IS) of nearly 100% can get more traffic by increasing bids. What happens when you do so? Will doubling bids result in twice the traffic? No, and here’s why. If you increase your bids, your ads will show up higher and will get both more impressions and […]

Lowering bids to increase PPC traffic

Increasing bids in a Pay-Per-Click (PPC) / search engine advertising campaign improves ad position, which usually increase the number of impressions and clicks. However, if you have a fixed daily budget that is always being spent, you will get more clicks if you decrease bids. Here’s why: The total number of clicks you can get […]

Theory of Bidding Strategy in AdWords and Yahoo Sponsored Search

Michael Schwarz recently gave a Google Tech Talk on the bidding systems used by Google AdWords, Yahoo Sponsored Search, and other PPC programs that utilize “Generalized Second Price” (GSP) auctions. The presentation provides a very interesting analysis of bidding strategies and stability of the GSP system, comparing it to others that in some cases are […]