Google Adwords Guide - More Advanced AdWords Topics

There are three main pay-per-click aspects you need to understand - popularity, competition and price.

Popularity - How popular is the topic you're in? How many people know about it and actively search for it? Popular topics will give you many clicks and more chances to convert prospects into customers. Higher popularity means higher profits margins.

The negative aspect of popular topics, of course, is that they are quite competitive. This usually means high bid prices.

Lower popularity topics can also bring profits, so don't ignore lesser known topics because there's less potential search volume in comparison to popular ones.

Competition - Competition means there's money in the industry. If the topic has low competition, you have to ask why. Is it because the market is unprofitable or undiscovered?

If it's undiscovered, you've just found your little gold mine. Hurry, because it won't be long before the vultures arrive.

Price - Price refers to the price of the products you're selling. If prices are high, then you can afford high bids with low conversion rates (cars, homes, boats, etc).

If product prices are low and profit margins are low (electronics), on the other hand, you have to find a balance. Don't go overboard with bidding because there's a chance you won't cover the costs. Keyword research becomes an essential piece of your campaign for items with low profit margins.

In the next article we'll go into more strategies such as advanced keyword research, keyword bidding strategy, writing the ads, ad elements, click through rate (CTR), landing pages and more.