Google adwords is the flagship product of Google Inc, and it is the biggest online advertising platform. Google generates more than 20 Billion US dollars via Google adwords. And yet it is probably the easiest advertising tool to use, you can set up an account with $5, choose targeting country and fill credit card information in, then choose your keywords and landing pages, write an ad copy and that’s it. Literally it can be finished with in 10 mins, super simple!

google adwords tax calculator

Today, I read a post on SEObook and found out this tool designed by ppcblog – Google Adwords Tax Calculator. It attracted my attention immediately. With my experience of managing multiple adwords campaigns containing tens of thousands of keywords and thousands of ad groups, I thought I should be pretty good. So I gave this tool a try, and I still waste 15% of my budget. Of course it might be inaccurate, but I think I should write a post to point out where should Adword newbies be careful about their accounts, Google Adword is easy to use and track ROI, and yet it is also very easy to waste money on it. (Otherwise how can Google earn $20,000,000,000 from it annually?)

Where are the easiest parts on Google Adwords you can waste your money?

We all know that Keyword Quality Score in Google Adwords determines how relevant your keywords are to the advertisement, and the secret of achieving maximum quality score has never been fully revealed. Recently I’ve been testing the impact to quality score by *Click Through Rate* Vs. *Ads relevancy to keywords*, the campaign is targeting local entertainment business. In this case, all the paid search keywords are local keywords, so click through rate was pretty high.

Before show you the results, you may want to watch this video officially released by Google. This is an introduction of Google Ad Auction system by Google Chief Economist Hal Varian. After this video, you will have a better idea why CTR is so important to quality scores.