What is Google Adwords? and How Google Ads Work?

What is Google Adwords? And How Google ads work? These are common questions for beginners. 

So, Google AdWords is an online advertising platform that works on the pay-per-click algorithm. It allows advertisers to show their ads on the search engine result page.

Adwords work like an auction where people bid on clicks. It’s not necessary that the highest bid always wins. Google also considers the ad quality score. 

What is Google Adwords?

Google Adword is the largest online advertising platform that helps every type of business to get potential customers around the globe. Advertisers pay Google to show their ads on different ad networks.

It is called PPC (Pay-Per-Click), which means advertisers need to pay only for clicks on ads. This PPC depends on various factors such as target location, device type, keywords, and country, etc.

What are Google Ad Networks?

Google Adwords shows advertiser’s ads on two main networks – the search network and the display network.

On the search network, Google shows the ads on the search results in the form of text ads without any graphics. Advertisers bids on relevant and different keywords. When users type these keywords on Google, then it will be displayed on the top or bottom of the page with a small ad icon next to them. 

What is Google Ad Rank?

Google Ad rank is determined by two main factors, that is your ad quality score multiply by your maximum ad bid.

Google ads auction is focused on keywords. Advertisers choose a list of keywords to target. These keywords are relevant to their business offerings. Depending on the keyword’s competition and price bids, advertisers will get either upper or lower ad positions. 

Quality score depends on various factors such as:

• • The relevance of the ad to the search query.
  • The relevance of the landing page.
  • The relevance of the keywords.
  • Overall Account performance and CTR

Also Read: How to Advertise on Facebook Ads?

Setup Google Ad Account

1. Sign Up

Go to the Google Adwords website and create your account with your email. 

After filling in all necessary details you will land on a specific page to create your first campaign. Here you can choose a target audience, budget, writing your ads, and setting up bids, etc.

2. Set Budget

Now you need to set your campaign budget. Once you have entered a specific amount then it will never cross your expenditure limits. If you are a beginner then you should go with an average amount. 

According to a survey, the average conversion rate is 2.35%. This means, only 2.35% of users take the desired action after landing on the website. It is also called CPA  (Cost-Per- Acquisition).

Set your budget amount and currency, click on the Save button, and move to the next step.

3. Select Target Audience

Now time to select your target audience. You can set a specific geographical location to target your audience. 

This feature ensures that your ad will appear to the users who are searching with your keywords and are in the location specified by you.

With an advanced search option, you will get “Radius Targeting”. Radius targeting allows you to target a specific area in a city. Also, you can adjust bids as per the radius target.

For instance, you can bid lower within a 30-mile radius but higher within a 10-mile radius.

4. Choose a Network

Now, you need to select a network between Google Search Network or Google Display Network.

Search network will display your ads on Google SERP’s and Display network will show you ads on any website that show ads.

It is recommended for beginners to choose the search network because it shows your ads to the users that are searching for your bid keywords. 

Display networks ads are not query oriented. This network is good for retargeting, branding, and have a low CPC (Cost-Per-Click).

5. Choose Keywords

Keywords are search terms that users write into the Google search box. Adwords allows you to add around 15-20 keywords that may trigger your ad to show on SERP’s. 

It is a good idea to choose a few keywords that will definitely give you results, instead of choosing 20 that seem relevant.

As mentioned earlier, AdWords manages the bidding system. High search keywords are usually the most expensive to bid for. Choosing more keywords with higher search volume may cost a lot.

There are 4 types of keywords matching:

• • Broad Match

Your ad will show for searches on relevant and similar phrases including synonyms, singular and plural forms, variations, etc.

• • Broad Match Modifier

By adding “+” before a keyword, you can lock it into a place. Only when a keyword contains a word or phrase after “+”, your keyword will appear in the search results. 

• • Phrase Match 

When you select phrase match, your ad will appear in the search results for keywords that are in the same order as they are specified in AdWords.

• • Exact Match

This option ensures that your ad appears only when someone searches on the same search term as the keywords you select.

6. Set Bid

Adwords uses a bidding model. A bid is the specific amount of money that you willing to pay when every single user clicks on your ad. 

If you and your competitor are bidding on the same keyword and if you are paying more for a click, your ad will show higher than your competitor.

There are two bidding options. Either you can select Google to set your bid amount to maximize results or you can set bid manually. 

If you are a beginner then, you should choose automatic bidding until you get familiar with the Google Adwords system. 

7. Write Your Ad

Writing your ad is the most essential part of this process. Before writing your ad think about it, make it interesting. Your message should be clear about your offers or services. Here are few tips to start:

• • Keep it short: Keep your message short and to the point.

• • Headlines: You can write two headlines with 30 characters each. So, use this limited space wisely.

• • Description: 80-90 characters. Mention offers or discounts in the description. 

• • A clear call to action: Tell users what you want them to do with a clear call to action.

8. Create Your Ad

When you have finished writing your ad, click the “Save” button and continue with the final step in the process. In this section, Google will ask you about payment and business information. 

Summary

Google AdWords is an effective tool for gaining new customers for small businesses. However, if not used creatively, it can cost you more in advertising, without making a significant ROI.

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