Making the Most of Pay Per Click Keyword Bids and Keyword Advertising

It's really easy to explain.

Advertisers choose a keyword that they feel describes what they are offering, and then bid on the right to associate their advert with that keyword. The price of the keyword rises the more advertisers decide that they would like to use it.

When a content producer chooses to display the advert, either through a contextual advertising system like Google AdSense, or directly, they are paid a fixed proportion of the keyword bid price if a visitor clicks on the advert link.

If there are no clicks, then the content prodcuer makes no money. It is as simple as that. Knowing which keywords drive traffic, which have high conversion rates, and which ones attract a high CPC (cost per click) is key to unlocking PPC keyword bids and PPC advertising systems.

The most important thing to understand is that there is a complex relationship between CPC, Conversion and Search Volume. Advertisers need to pay the lowest CPC for the highest search volume and conversion rates, whilst content producers will always want to optimize their keywords in favor of CPC.

This relationship leads to Keyword and Traffic Flipping, where content producers attempt to buy low CPC keywords with high search volumes, and 'flip' them for higher cost per action items. These could be high CPC AdSense advertising, or affiliate products.

Learn more from the invaluable resources below!