Whether you represent a startup or a seasoned business with years of experience you

will definitely be familiar with the age-old school fact that it’s an age-old school fact that
Google AdWords is the single most popular PPC advertising system in the world. The
AdWords platform enables businesses to create ads that appear on Google’s search
engine and other Google properties.

AdWords operates on a pay-per-click model, in which users bid on keywords and pay

for each click on their advertisements. Every time a search is initiated, Google digs into
the pool of AdWords advertisers and chooses a set of winners to appear in the valuable
ad space on its search results page. The “winners” are chosen based on a combination
of factors, including the quality and relevance of their keywords and ad campaigns, as
well as the size of their keyword bids.

More specifically, who gets to appear on the page is based on and advertiser’s Ad
Rank, a metric calculated by multiplying two key factors – CPC Bid (the highest amount
an advertiser is willing to spend) and Quality Score (a value that takes into account your
click-through rate, relevance, and landing page quality). This system allows winning
advertisers to reach potential customers at a cost that fits their budget. It’s essentially a
kind of auction. The below infographic illustrates how this auction system works.

As smart

Return on investment can make or break any operation – and it is a primary

consideration for anyone considering a pay-per-click (PPC) campaign.

You won’t know the actual results until after you’ve taken the plunge, but you
can (and should) perform a pre-launch analysis of your situation to give
yourself the best shot for success.

Managed wisely, AdWords and other PPC campaigns can provide a healthy
ROI. Done incorrectly, PPC can be an exercise in futility.

Successful PPC campaigns start at the beginning – they build from an

informed foundation of critical insights.

it is imperative you define your personal objectives and determine how you
will know whether or not they are being achieved. Otherwise, you’re just
shooting in the dark, hoping to hit an unseen target.

every time someone clicks on your link, you pay. But getting clicks isn’t
enough. In order to realize sufficient ROI from your PPC campaign, you need
to make sure the clicked link takes the viewer to a page with a high probability
of getting the reader to take the next step in your sequence – whether that is
requesting more information (lead development), placing an order, receiving a
message, or some other action.