Welcome back to another edition of Three Money Methods Traffic Tuesdays.

I’m your host Jonathan Kraft.

I was talking with someone recently from the Three Money Methods community and who asking me, “you did a really basic explanation of Adsense; but you never did a basic explanation of Adwords.”

And I thought, well there are all these other great people out there who are talking about Adwords and know way more about it than I do, but I’ll do one anyway, just to help people maybe try and break it down really simply.

I’ve also posted a video right below here (from Google actually) about how Adwords works.

Adwords — (my understanding of Adwords anyway) and ways to bring traffic to your websites.

So you have a product or a service – let’s pick an actual, real-world example; so let’s say you sell wallets – I don’t know I’m just making this stuff up! But let’s just say you sell wallets.

So if I’m looking for a wallet on Google or wherever, I might go in and type in the words, “leather wallet,” “women’s wallet,” “men’s wallet;” a whole bunch of other stuff.

I may use all kinds of keywords to describe what I’m looking for.

One of the very cool things, I just moved this to the left here because I think it’s going to work better over there, one of the very cool things about internet technology that is so different than any other sort of advertising that existed before it is that you can target the person who’s looking for wallets.

You can make an ad specific to the person who’s looking for a leather wallet.

You can make an ad specific to the person who’s looking for a women’s wallet.

You can make an ad specific to the person who’s looking for a men’s wallet.

These are different kinds of customers.

What’s really cool is then you can write an ad specific to the wallet person, “Wallets are the Best with Us. Click here!”

That kind of person is going to have a different sort of reaction to this page, if you have different pages on your website, is going to have a different kind of reaction.

So for example, a women’s wallet or a men’s wallet – if you have an ad advertising men’s wallets to somebody looking for a women’s wallet, that’s not going to work.

So you want to have a specific ad that is targeted to someone looking for a women’s wallet and a specific ad that is targeted to someone who’s looking for a men’s wallet.

So your ad would be here; you would take those people to different kinds of landing pages; because if I’m looking for a men’s wallet, you don’t want to take me to your general wallets page. If I’m looking for a women’s wallet, you don’t want to take me to your men’s wallet page, right? You want to take me to a specific page that’s targeted to what I’m looking for.

What Adwords allows you to do is to write ads that are targeted to specific keyword searches and then send those people along to pages that are specific to what they were looking for to begin with.

It’s a really cool system and a really cool setup.

There are other kinds of things you can do as well. You can say, ok, someone who is looking for wallets, are they going to respond to “wallets are the best with us” or are they going to respond to “you can find the best wallet here! Click here.”

Which one of those sets of copy are they most likely to respond to? You can test all of that stuff inside of Adwords. It’s just amazing the amount of things that you can actually test to see what works.

And then yes, you pay every time someone clicks on your ad and goes to your webpage; you pay per click.

That’s what’s called Pay per Click marketing, PPC marketing. Adwords is a form of Pay per Click marketing.

There are other kinds of things that you can do inside of Adwords as well. But just to give you a basic overview, this is how Adwords works.

Let’s use our example of Adwords here and I have done a search on Google here for wallets and you can see Herbergers.com is advertising, so is Macy’s, so is MyBuxtonWallet.com; there’s a bunch of people advertising on the right too, “High quality leather wallets for the guy on a budget.”

If I’m a woman looking for a wallet, this advertisement probably doesn’t appeal to me that much. But if I’m a guy looking for a wallet, that advertisement probably appeals to me more than just “general wallet.”

So let’s look for men’s wallets.

You can see there’s a different set of people who come up for men’s wallets. Bloomingdale’s is advertising using “Men’s Designer Wallets,” TUMI is advertising using “Men’s Wallets;” Brooks Brothers is not using “Men’s Wallets.”

So it’s probably more likely, if I searched for “men’s wallets,” that my ad would be more likely to be clicked on if I actually used the keywords they used when they were looking in the search results (whoever was looking).

Now “Men’s Accessories from $20” probably doesn’t get as many clicks as “Men’s Wallets.”

“Men’s Leather Wallets” at Wallet Gear: “Hard to find men’s wallets for the guy on a budget.” That probably gets pretty good click-through. They may not be at the top of the search results because they don’t want to be at the top of the search results.  The people who are at the very top of the search results are (generally) paying the most and may not be getting the most return for their money.

My guess, based on just looking at these because it’s got the most stuff around it, they use Google Checkout, they have a $5 off deal here because they use Google Checkout, and this ad is probably getting the most clicks.

Let’s go back and do one more search here just to show how this targeting could actually work.

Let’s look for “women’s wallets” and see what else comes up.

I don’t think it’s very good here. You have J.Crew who is advertising in the Number 1 spot, talking about “Great Looks for Summer and New Arrivals for Him and Crewcuts.”

I don’t think that if I’m looking for “women’s wallets” this is what I want.

I’m not sure why J.Crew is coming up in the number 1 spot; probably because they’re bidding the most.

They’re probably paying too much per click and they’re probably not getting targeted customers coming to their page.

Tusk.com – again, they’re running an ad for “Men’s Designer Wallets” when I Googled “women’s wallets.” Am I likely, as a woman, to click on this ad? Probably not!

But Macy’s now, “Women’s Wallets at Macy’s,” Macys.com/womenswallets. “Shop Women’s Wallets at Macy’s. Free Shipping with $99 order.”

So they are doing a bunch of different things in that ad; we’re not going to go through all of that. But you can see that if you target an ad to a specific kind of search, you’re going to get better results.

I don’t want to click on any of these advertisers, but I would like to show you some advertiser’s landing pages. We’re going to go to the LizClaiborne.com/wallets just to see what’s on this page. But remember, I looked for “women’s wallets” and this is the page that I’m ending up on. What’s fascinating is … check this out! I go to the display URL that they had in their ad, LizClaiborne.com/wallets … “sorry, this page cannot be found.” If I had actually clicked on the ad, sorry Liz Claiborne, I’m going to cost you some money; we’re actually to go see what page this takes them to.

I’m going to click on this ad and see what page it actually takes them to.

But shouldn’t they have their display ad actually take you to a page?

I just typed in the URL; anyway, whole other topic!

The point of this is to go into a very specific topic about women’s wallets. But why wouldn’t they call this page, “Women’s Wallets,” and have a page specific to the keyword term “women’s wallets;” so that when I’m on this page, the first thing I see is wallets for women!

And maybe Liz Claiborne only sells wallets for women, I really don’t know. But you can target specific to the market that you are trying to attract and you can then sell very well to a specific market based on actually targeting the keyword search from the beginning.

You can target “leather wallet” or “men’s wallet” or “women’s wallet” or whatever is in your market.

Google gives you all kinds of tools to help you generate massive lists of keywords. I’ve put a couple of videos right below the video here to help you understand Google Adwords as well as a couple little tips.

I think I put a video here right below from Glenn Livingston about how to find your keyword ad groups.

But this is basically the idea of how Adwords works.

You can target:

– a specific keyword searcher
– for a specific result
– so you can actually help them find exactly what they’re looking for
– from start to finish

I hope you understand Adwords maybe a little bit differently, or a little better than you did before.

Please come back and visit us next week; I’m going to talk about something I know a little more about which is actually getting traffic to your website through a variety of different methods and getting free traffic to your website!

So we’ll be talking about that next week in Three Money Methods Traffic Tuesdays.

Thank you very much for visiting us at ThreeMoneyMethods.com!

Explanation from Google Adwords