Questions about Google Adwords?

[Byron]

If you and me were both selling candles and we did not appear naturally (organically) in Google for searches yet, we could "pay Google" (essentially) to show us on page 1 - in paid results (Google Adwords / SEM).

Now if YOU were paying Google £1 per click and I was only paying £0.50, the you would be higher than me - I would say "no more of that" and bid £1.50 per click. Now I am above you and if you want to go above me; shove up your bid!

Now, when someone types in "best candles" (if we were both writing about or selling candles) and me and you were paying Google to show or sites for that keyword (best candles) then that person who searched for it will see my site and yours on top of Google search results in ads. Now if THEY CLICK on my site, then instantly, I am charged £1.50 and you would be charged too if they clicked on yours.

So why are we bidding?? Well if you were "selling candles", then that click from that person could mean a sale and £5 in your pocket or after 20 clicks (£30 of ad clicks) you might make £40, then you are spending money to make money!

The cost per click is determined by 2 things - the AMOUNT of people bidding for Google to show them higher AND the value of the click - insurance related keywords can go for as high as £80 per click.

Best of luck.