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Google AdWords Sponsored Links bidding question

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Aug 04.2010

I don’t understand the concept of how high the ad’s ranking (on the page) will appear, according to the bidding amount being paid. The more you pay per word/phrase, the higher the ranking on the sponsored links (on the right side), right? I watched several of the Google and YouTube videos, but don’t get.

For example, Google AdWords tool shows that there are 110,000 global monthly searches for the keywords Online Birthday Cards. If my ad is [COLOR=”DimGray”]Online Birthday Cards + the name of the website[/COLOR], how much money should I bid so that the ad appears on page 1, 2, 3, on the top of page 1, or on the bottom of page 1, etc.? If the cost rate is determined by the popularity of the word/phrase, then how do I calculate the rate and the ranking of the ad? Thanks.

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@locbtranAug 15.2010 — the popularity of the word determines how much you need to bid for that word. Sometimes you will be outbid by 1 or 2 cents. If you have a site that has very little traffic with a PR1 and another site with high traffic with a PR7, then that other site will pay less then you on the exact keyword cause google favors sites with high PR.

You need to fully understand adwords before jumping in cause it can be a very costly experience. make sure to set a limit of say $50/day and max limit of $1000 as your total amount. so your spending will never go over $1000

Never use pay per 1000 impression but rather select[B] pay per click[/B] cause if your ads is somewhere at the bottom that nobody sees then it is worthless.
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@garethjonesAug 25.2010 — Google works on several algorithm to put in practice, CTR history, bidding, and quality score.. I found one link that might be useful for you on that front.. http://adwords.google.com/support/aw/bin/answer.py?hl=en&answer=66292
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