Keyword Search Competition (Google AdWords, MSN Adcenter)

How do sites compete? Suppose two websites are selling two identical or similar types of widgets. Obviously the site that get more visitors sells more of the widgets. Lets note that these should be "good" visitors, searching for the product that your are offering and ready to buy it online. Therefore both of these sites compete to get more traffic of buyers from the internet.
Sites compete to be the first top or in the top results for a popular keyword or key phrase. Why? Most online surfers click on the top results of the search engines or product listings. There are two types of competition: among paid advertisers and among free search listings. Lets look at the paid advertisers first.

Logically the site that pays more per click moves on top in the search results. Together with that more visitors comes to the site and the online business generates more sales. However that comes at a price. Suppose a widget that you are selling costs $100 and you are making pure profit on a sale $40. From the past you have calculated that one of a hundred visitors that is redirected from a search engine buys the widget. That leaves you with $40 on advertising the widget just to break even. $40/100 = 40 cents per click. That is the maximum that you may plan to pay. In fact that number is significantly higher. The reason is that once your business grows, a word of mouth starts helping you to bring additional sales. Somebody buys a product at your site, tells his friend about it and his friend buys it too. From our experience these sales type account roughly for about 20% of our software product sales. So you may as well pay up to 50 cents. It may as well worth mentioning that top players among paid search results placement are Google with AdWords and Yahoo with it's ex - Overture business and now united MSN Adcenter.

Free listings bring visitors too. This pretty much comes to the cost of SEO (Search Engine Optimization). Well developed websites have people working on links exchange, page keyword optimization, site structure optimization, social networks marketing and other aspects of web page optimization and promotion.

Adsense and Overture are registered trademarks of respective owners.
Copyright © 2005-2012 | Promotion software | Rank software downloads