Google AdWords

Chapter 6. Keywords

How Keywords Fit Into the AdWords Auction

Keywords are the basis of the AdWords auction. The auction is a competition between all advertisers who want ads to appear when a searcher types in the keyword or similar words.

AdWords advertisers specify the maximum amount they are willing to pay for an ad click (designated in the account as Max CPC, which stands for maximum cost-per-click). With AdWords, winners are not always the highest bidders, because quality is an important factor. The keyword bids and quality combined determine the winners of the auction, as well as the actual cost of individual clicks.

So how do you begin building a keyword list that competes well in the auction and results in profit for your business?

The first thing to keep in mind when building a keyword list is that you cannot force people to search in a particular way. In class, I often ask the group how they learned to search on Google, or if anyone knows how to use advanced operators. The vast majority stare with blank faces or shake their heads ruefully. This line of questioning illustrates that the majority of people never learn to search—they simply try words and phrases and look for a hit.

If searchers don’t find a relevant result, they try different keyword combinations until they find the results they want. The limitless combinations of search queries makes keyword building a challenge if you want to include every possible way to connect with likely prospects.

Consider why people ...