Miami Internet Marketing | SEO | Josh Nelson

Understanding How the Google Ad Auction Process Works

Many people believe that your position in the sponsored listings is driven exclusively by your bid price. There are actually several variables that come into play in addition to bid price to determine where your ad will appear in the sponsored listings:

• Max Bid Price – this is the max bid for a given search term  –  set by you
• Quality Score – is determined by Google based on a number of variables
  • Click Through Rate (CTR)
  • Relevance
  • Quality of Landing Page
  

Your Max Bid Price X Quality Score = Your AdRank

• AdRank is the position in which you will appear in the listings.

Here is an example of how you Google determines your AdRank:

So in this example, the advertiser bidding $2.00 per bid with a 12 quality score actually ranks #1 and the advertiser bidding $4 does not even show up in the top three listings because his quality score is too low.

The next questions is, how is your Cost Per Click determined:

With Google, you only have to pay as much as the maximum bid of the bidder directly beneath you in the bidding auction.

Google has a formula that is written as P₁ = b₂q₂ / Q₁ - Ultimately it is AdRank of advertiser below / quality score of advertiser 1. Take a look at the example below:

So even though advertiser 1 bid $4.00 he is only paying $3.00 per click.

*** By increasing your Quality Score you can actually reduce your Cost Per Click and improve your position in the sponsored listings.

Forrester Research projects that US Search Marketing spend will increase from $15 Billion in 2009 to $31 Billion by 2014. Take a look at the chart below from Forrester Research:

As an Internet Marketing Consultant I help South Florida Businesses significantly improve their sales and revenue performance by effectively marketing online via Search Engines (Google, Yahoo, Bing, MSN, etc), Social Media (Facebook, Twitter, MySpace, YouTube, etc) and other internet platforms.

I have a passion for sales & marketing as well as a burning desire to help business owners accomplish their goals. During my initial meeting with potential clients I provide them with value that they will benefit from whether they decide to do business with me or not:

• Educate them from a high level on internet marketing, how search engines work, local search marketing and new methods for driving sales opportunities and revenue to their local business that they may have never even considered.
• Provide them with an overview of the monthly / daily search volume for their products & services within their service areas. Most of my clients are floored to see how many people are actually searching for their services here in the South Florida Market.
• Show them how they could be tapping into these local searches to drive increased sales revenue.
• I personally configure their company listing with Google to ensure they are properly registered to appear in the “Local Map Based Searches“.  According to Google, 90% of local businesses have not completed this process and as result they are missing out on a significant opportunity.
  

I would welcome the opportunity to meet with you in person to discuss your marketing initiatives and explore the possibilities of working together. You can reach me at 786-325-6761 or via email josh@joshnelsonimc.com to schedule a Free one-on-one Consultation.

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As a local business you might ask – “what is local search engine marketing”?

Simply put, it is getting your company to appear at the top of the major search engines (Google, Yahoo, Bing, MSN, AOL, Etc.) for the search terms describing your product or service that your potential customer may be typing. For example, a local Kitchen Cabinet Design company would want to appear at the top of the search engines for “Miami Kitchen Design” or even better all searchers within a 45 mile radius that searched for “Kitchen Design”.

Through Search Engine Marketing you can now position your company to appear in the “Sponsored Area” of the major search engines for any of the search terms you define. See the illustration below:

Curious how many searches there are for your companies services on a monthly basis? Give me a call to set up a meeting and I will provide you with an overview (based on Google’s historical data) of the total monthly and daily searches specific to your business.

You can reach me at 786-325-6761 or via email josh@joshnelsonimc.com

I have a passion for helping companies leverage best practices to increase sales, drive new streams of revenue & accomplish their goals. I’ve been in sales & marketing for over 10 years and worked within major companies such as ADP, Lason Systems and Data Impact. I’ve also flexed my entrepreneurial muscles by starting a few companies of my own – Develacom, Digital Film Solutions & Sunshine Investment Holdings. Over the years I have learned from some of the brightest minds in business and studied more than 300 of the best books / programs on business development, marketing, and sales. Through my experience and studies I have been exposed to Best Practices and Ideas that can be implemented at any company to drive significantly improved sales & revenue performance.

I chose to join the ReachLocal team because their services align perfectly with my personal passion. After working with ADP for a few years I did some serous soul searching and determined that life is too short to spend it doing something you are less than enthused about, so I set out to identify what my true passions were – what excited me & got my blood pumping. After months of reflection I realized that I love sales & marketing. I enjoy thinking about ways to engage with customers and drive sales. I could read / listen to / study sales & marketing books or talk with a business owner for hours about their business development strategies (lead generation, sales process, etc) without feeling the time pass. This is my passion, this is my calling – working with business owners and helping them significantly improve their sales results. With that in mind I started researching companies in today’s market that had developed solutions proven to increase sales and drive performance. It didn’t take long – I came across ReachLocal the 39^th fastest growing company in the US according to INC magazine and #1 according to Deloitte. I started researching the company, reviewing the success stories & understanding their services. The more I learned the more interested & excited I became. This company had revolutionized the Online Marketing Industry and was helping local businesses tap into the World Wide Web (Google, Yahoo, MSN, Bing, Facebook, LinkedIn, etc) to drive new sales activity. More importantly, they were providing tangible, measurable results to Small & Medium Sized Business across the country and taking their sales results to higher level. This was the type of company and service that I wanted to be a part of.

In my role as an Internet Marketing Consultant I work with small & medium businesses that are looking to increase their sales. I help them evaluate their sales & marketing strategy as a whole and implement programs that drive results and propel them toward the accomplishment of their goals.

Always Work with People Who “Play At” What You Have To “Work At”

I truly enjoy and “play” at sales and marketing. That is why I am so good at it, and willing to go the extra mile to help you grow your sales and revenue. My passion has driven me to learn & develop proven processes that you can start to put into place to improve your sales performance immediately.

You can reach me directly on my mobile phone at 786-325-6761 or shoot me an email josh@joshnelsonimc.com.

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