Wordstream.com have created an infographic showing how Google Adwords auctions work. For many, the auction may be a mystery, but this graphic shows quite clearly how it works.

Our Book on Pay Per Click MarketingIf you have not yet read our PPC book (available from Amazon), you may want to check out Tips 66 – 68 about keeping your Quality Score as high as possible, just for starters. Maintaining your Quality Score could save you a fortune in successful bids for a high ranking, and although there are multiple factors which affect your PPC campaigns, QS is one of those which should be a top priority.

The fact that PPC is now an extremely complex subject that requires time and dedication (Tip 9 in the PPC book) is one of the reasons why involving a specialist/ PPC internet marketing agency with experience should be considered (Tip 100).

However, never put all of your eggs in one basket. PPC can help you to quickly find the search terms and keywords for your on and off page optimisation, link building, social media activity, and more. Understanding how your potential customers and audience search, and which terms trigger a click, can be researched through PPC, and then the results of this research can be deployed in your other internet marketing activities.

Understanding the search queries that Google enters your keywords and phrases into for the auctions is of paramount importance, and for this you should spend as much time as possible studying your analytics. (Tips 78-80) Or your agency should.

This will help to build a picture of the audience with whom you are having maximum success, as well as which long tail terms are leading consumers to you. There may also be unexpected markets for your products which you can remain unaware of if you ignore your analytics and the in-depth information available to you. For instance, once you have set up goals for visitors to your site, you may see results of goal completion from referrals you had not sought nor been aware of.

So, a website, forum, blog, twitter or social media user may be regularly feeding customers to your site who complete an action, such as a purchase or download, from a target market that you had not considered. Harnessing these actions by actively engaging with that market and creating PPC ads specifically for those that complete can help to keep your QS high.

The following infographic will help you to understand Google Adwords auctions and benefit from the simple steps (outlined in the 101 Guide) or suggested/utilised by your agency to ensure Value For Money from your PPC budget.

What is Google AdWords? [ infographic ]

© 2011 WordStream

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About the author:

A practising internet marketing consultant since 1996, Lindsey Annison helps companies improve their website marketing, online PR and information architecture. Lindsey is also a qualified adult education lecturer and author. As co-founder of the Access to Broadband Campaign, she has been instrumental in the provision of high-speed internet access to rural areas in the UK. Lindsey is also a past winner of Silicon.com's Outstanding Contribution to UK Technology