Google controls more of the search market than all of its competitors combined. With that being said, Google has a ton of advertising space to sell. If you know how to optimize AdWords better than your competitors you stand to achieve great profit.

Google vs Overture: Overture is the main competitor to Google AdWords. Overture is strictly price driven, which requires a ton of editors to perform countless hours of maintenance. Google is a highly mathematical company, and protect the quality of their listings in two ways: they have editors, and more importantly they monitor click through rate. Why does Google AdWords monitor click through rate?

Google Adwords Tips: Click Through Rate

Click through rate is a rough approximation of relevancy, in many ways this parallels the idea of grading the web on links. A relevant ad will have higher click through rates than a non relevant listing.

Google ads are not strictly price driven. Some think the added relevancy factor relates to the words in the add, while this is somewhat true, the true multiple is click through rate. If a web site has 3* the click through rate, that means Google can sell 3* as much advertising. To reward careful and considerate ads Google chops this price to 1/3 of what it would be with a site that had a third of the click through rate.

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