How does Google Ads work?
Google Ads Management Services Company (formerly Google Adwords) is by far the most popular online marketing platform in the world and is constantly being expanded and optimized with new applications by Google.
Ongoing changes in interface, design, and technology have made Google Ads what it is known for today. See relevant ads in the right place at the right time.
Billing can be done either by click (PPC – Pay per Click), but can also be done in the Google Display Network (GDN) by CPM (per thousand impressions), but more on that later.
This is what Google looked like in its infancy
In this post, we will give you an easy-to-understand and quick introduction to Google Ads and answer the question “How does Google Ads work?”
With relevance to success
Google Ads Management Services Company is one of the great success stories of the internet age. To this day it is a story full of changes and innovations. Initially, Google remained ad-free, but that would change with the introduction of AdWords in 2000. At the end of 1999, Google tested selling advertising on a CPM (Cost Per Mile= CPM – price per thousand contacts) basis, at that time the most common model in search engine advertising, and advertisers paid a monthly fee for Google to run a campaign for them created and maintained them. However, in contrast to the competition, Google did not rely on colorful advertising banners, but on discreet text ads, which were displayed in line with the user’s search terms. A short time later, however, Google changed this concept and AdWords became a service
The new version of Adwords, introduced in February 2002, allowed advertisers to offer a price for a click on their ad (Pay-Per-Click). The advertisers could now decide for themselves how much they want to spend on a click.
To prevent advertising companies from now – intentionally or unintentionally – placing irrelevant ads, Google introduced the Quality Score.
This Quality Score combines click-through rate (CTR), ad text relevancy, keyword relevancy (the keyword’s past performance on Google), and landing page relevancy. Google Adwords thus enables a form of advertising on the Internet through keyword advertising and can place ads on Google search pages and a huge selection of websites that belong to the Google Display Network.
The Google advertising networks
The search network
The search network includes Google search results pages, other Google sites such as Google Maps and Google Shopping, and search sites that have partnered with Google to serve ads.
On the search network, your ads are counted per click.
So you only pay for your Google advertising when a user clicks on your ad and comes to your website.
The display network
The Display Network includes Google sites like YouTube, Blogger, and Gmail, as well as countless partner sites across the web. In the display network, ads can be billed according to clicks or impressions, i.e. the number of advertisements shown.
This makes the display network particularly suitable for building brand awareness. New campaigns default to showing ads across the network, but as a general rule, you should always separate search and display campaigns based on your goals.
If you’re not seeing a good return on your investment in a particular area of the ad network, you can exclude individual sites from the Display Network. You can also change your campaign’s ad network settings to enable or disable the campaign for individual ad networks
keywords
Keywords are words or phrases used to target your ads when users search for specific terms. When you set relevant keywords for your campaign, you reach potential customers at the right time.
For your ads to show when people search for your product or service, the keywords you choose must match the words or phrases being searched for.
If a user searches for a term that matches your keyword, your ad may enter an auction. Depending on the result, it is then switched.
The cost of a keyword depends on the quality of the keyword, the competition in the auction, and other factors. Make sure both your keywords and landing page are closely related to the terms a potential customer is searching for or found on websites a user is most likely to visit. To give you a better understanding of the quality of your keywords, each keyword has a Quality Score.
This value is based on the expected click-through rate, the relevance of the ad, and the user experience with the landing page. Higher quality ads usually result in lower costs and a higher ad position.
Reach potential customers with the right keywords
1. Match keywords to business goals
Think about the different ways potential customers find you.
Your keywords should align with the many different searches people make when searching for the products or services you offer.
2. Optimize traffic using negative keywords
Add new negative keywords regularly.
In this way, you avoid costs for clicks from users who do not become customers.
3. Increase the reach of the best keywords
Improve Ad Rank to get the highest exposure for your keywords.
Adding new alignment options isn’t the only way to increase volume. A higher bid combined with an attractive ad can have a positive effect on the search volume of existing keywords.
The ads
In the perfect ad, the text ad relates exactly to what the potential customer wants to buy. For example, a user searches Google for “flat screen express delivery” and sees an ad titled “flat screen 24-hour delivery”. He clicks on the ad and is taken directly to the retailer’s website, where he completes his order. Here are the top six tips for creating successful text ads:
Make it clear what you’re promoting: Your customers should know what to expect when they click on your ad. Include at least one of your keywords in the ad title. If you used “digital cameras” as your keyword, your ad title could be “buy digital cameras”. When using trademarked terms in the ad text, you must follow the Google Ads trademark guidelines.
Relevance: You should always provide your customers with an answer or solution. For example, if they are looking for a solution near them, your location is the most useful piece of information and should be added to the headline.
Match the description to the ad title: The ad must represent a coherent unit.
Match the ad to the landing page: Go to the page that is linked to your ad (the landing page) and see if the promotions or products from your ad are showing. Otherwise, users may immediately leave your website.
Ads must be approved: To ensure that only high-quality ads are shown, Google advertising must meet high technical and editorial standards. For example, redundant spaces, misuse of capitalization, exclamation marks, or ambiguous URLs are not allowed. Learn more about text ad requirements
Target mobile users: You can create mobile-friendly ads, use the mobile version of your website as a landing page, and offer offers specifically for mobile users.
The bid strategies
Google Ads Management Services Company offers different ways to bid on ads depending on the focus of your business. Most of the time, what matters most to advertisers is clicks, impressions, conversions, or views (for video ads).
When running ads on Google, it’s important to have a clear goal in mind. If you’re selling coffee, you might want to increase your customer base. On the other hand, if you run a hiking club, you may want to get more people to sign up for your newsletter. These are just some examples.
Knowing your goal can help you make the right bid strategy decisions.
Several bid strategies are available in Google Ads, tailored to different types of advertising objectives and campaigns. Which strategy is best for you depends on the goals you’re pursuing, the ad networks your campaign is targeting, and whether you want to focus on clicks, impressions, or conversions.
Choosing the right bid strategy is one of the most important measures for successful Google Ads campaigns.
Advertising goals and bidding strategies
The bid strategies are each suitable for different campaigns and advertising goals. There are four basic types of goals you can set when bidding.
Smart bidding
If you use conversion tracking and want users to take immediate action on your website, you should focus on conversions. Smart Bidding lets you do just that. Google Ads Management Services Company will then automatically optimize your bids based on your conversion goal. That is why it is extremely important to set the goals of your campaigns wisely.
CPC Bids
If you want to drive traffic to your website, it might make sense to focus on clicks. In this case, CPC (cost-per-click) bidding may be best for your campaign.
Clicks are a good place to start if your priority is to increase traffic to your website. When you use CPC (cost-per-click) bidding, you only pay when someone clicks on your ad and goes to your website.
CPM Bids
If your goal is to increase brand awareness rather than drive traffic to your website, then focusing on impressions is probably the right strategy for you. You can use vCPM (Viewable CPM) bidding to reach potential customers with your message. You can also use the impression share strategy to maximize viewability.
CPV Bids
If you’re running video ads and want to increase the number of views or interactions with your ads, consider using CPM (cost-per-1000-impressions) or CPV (cost-per-view) bidding. If you run video ads and your goal is to increase product and brand consideration, you can use CPV.
How much does Google Ads cost?
For many advertisers, the question of the cost of Google Ads is crucial. The price you pay for a click on your ad depends on the competition for a specific keyword and the quality of your ads.
Every search is an auction
For every search query on Google, Google Ads conducts an auction to determine the ads that will show for that search and their rank on the page. It is also determined whether ads are to be displayed at all.
Every time an ad is eligible to appear in a search, it must go through the ad auction. The auction decides whether the ad will be placed, where it will appear on the page, and how much it will ultimately cost to click on your ad.
