Getting the Best Ad Spots 1
The 'hot spot' for high click-through rates (and this is what you want - people coming to your site) is the the top three positions - either in the organic results or the sponsored results.
In the sponsored results it doesn't seem to make any difference whether you are number one, two or three. So for high click-through rates, you need to get into the top three. To make money you need to do this as cheaply as you can.
The first way to do this is to bid on key words relevant to your business, but for which there is not much competition. So for a store selling horse feed in Jacksonville, Ohio, you might have to pay 97c to get a top three spot for the phrase 'horse feed'. That would soon add up, and many of the people who clicked on that general phrase would not buy from your local business. Most of your customers are going to come from Jacksonville, or at least Ohio.
A top three spot for a general match to 'horse feed Ohio' might only cost you 19c. A top three spot for a general match to 'horse feed Jacksonville Ohio' might only cost 7c, and your conversion rate (the percentage of people who click on your ad and then buy from you) will be higher.
These longer, very specific keyword phrases are sometimes called ‘longtail’ keywords, and they can be very profitable. In particular niches (a phrase for a very narrow or specific market) there is often little competition for keywords, and people who enter these phrases are telling you very clearly exactly what they want. If you can meet their needs, your chances of getting a sale from people entering your longtail keywords as search terms is high.
Lots more at mAdWords.us
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