Google Adwords allows advertisers to select keywords, and pay to have their advertisement appear on the first page when those words are searched. Google gives an estimate of how much it will cost to be on the first page based on how much other advertisers are willing to pay. The payment is made to Google each time the advertisement is clicked (whether or not it leads to a purchase).
It's a brilliant business model. If someone searches for 'SMSF', then of course an administrator of SMSFs wants to appear on the same page. And as high as possible.
But what is most interesting is how much it costs to make the first page. This is prime real estate because most searchers do not go on to other pages. So here are a sample taken in the week of 1 April 2013.
It shows where the money is. 'Self managed super fund' costs $19 a click, 'SMSF' is $11 and 'financial advice' is a bargain $4.75.
When you search on Google, did you realise that every time you click on an ad, you could be putting $19 into Google's coffers? No wonder searches are free.
