The past few years have witnessed the morphing of search engine optimization (SEO) into search engine marketing (SEM). And, as you are undoubtedly aware, SEM is a multi-faceted endeavor that demands careful integration of online marketing strategies. Today's astute SE marketer knows that page optimization, inbound linking strategies, and paid placements all dovetail together to form the winning combinations that drive traffic to sites that generate profits.

Of course, one of the cornerstones of SEM is Google's AdWords Program. However, unlike traditional pay-per-click advertising where the top placement is awarded to the top bidder, AdWords uses a formula that allows the underdog to triumph over advertising behemoths who might otherwise just buy the top ranking. On AdWords, one can rise to the top of the listings with a lesser bid by simply offering a more compelling ad that motivates visitors to "click" more often.

Perhaps you already know all that – but, what you may not already know are the various ways to beat the competition by making some lesser known, but very smart, choices within your AdWords setup and your keyword selections.

How Smart Choices Can Get You Top Placement For Less!

Unlike traditional pay-per-click engines, Google bases its ad ranking formula around two values – the cost per click (CPC) and the click-thru rate (CTR). Your CPC is what you pay every time someone clicks your ad. This fee is set according to the maximum amount you have agreed to pay for each click and typically reflects the competitiveness of search queries you're bidding on. If no one else is bidding on the same search queries, then your CPC would only be the $0.05 per click minimum fee. The opposite is also true. Popular search queries are more competitive and therefore bid considerably higher. Such competitiveness can substantially increase the CPC it takes to become the top bidder.

Your CTR indicates the percentage of people ...