There are a billion people active on the internet today than five years ago. People who use smartphones are twice than before. Thus marketers need the most helpful and up to date campaign management tools available.
Whats why companies use Google Ads, also formerly known as Google Adwords. Well, Let’s talk about what is Google Ads?
An online ad platform, Google Ads offers proven advertising strategy for businesses across industries and locations. Its array of targeting options, flexible costs, and numerous ad types allow any company, from local to international, to reach its audience and keep its advertising costs within budget.
Keep reading to find out more about Google Ads, from what it is to how it works to which features to try!
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What is Google Ads?
Google Ads is also formerly known as Google Adwords. It's a top online advertising platform, Google Ads allows businesses to create unique ads for reaching new users. Their ads can display on the Google Search Network, like Google search results, and on the Google Display Network, like on third party sites. Google ads also offer diverse targeting, campaign management, and bidding options.
How does Google Ads (or Google Adwords) Work?
If you are looking for a quick review of how Google Ads works, Check out this fast summary:
- An advertiser creates an ad campaign, ad group, and individual ads
- The advertiser set its targeting options, such as keywords, locations, and more
- The advertiser places a bid- or how much they are willing to pay for a click on the ad
- Google Ads grades the advertiser’s ads and assigns them a Quality Score
- Thee ad auction launches when triggered by a search hat features a targeted keyword.
- Google ruses the bids and quality scores of eligible ads to determine the winner
- Google delivers the winning ad
If you are ready to learn more about how Google Ads works, Keep reading!
Google Ads (or Google Adwords) works around keywords, as well as other targeting options, like:
- User Behavior
- User Interests
In most cases, advertisers will use keywords in their google ad campaigns. These keywords serve as the basis for your ad campaign, influencing when your ad appears in search results on Google and how much your business bids.
Once you finish creating and setting up your campaigns,m Google can review and approve your ads.
After the approval, Google can begin showing your ads across the ad networks, like Google search network or the google display network. For your ads to show, however, they must win the ad auction.
The ad auction depends on three factors:
- Your Quality Score: Your quality score has a value from 1 to 10. Which depends on relevance, past performance of your ads, keywords and landing pages. A high-quality score can lead to lower ad costs, as well as better positions across ad networks.
- Your Bid: Google ads don’t let you play and win. How ever, your bid does influences your performance in the ad auction. Depending on your bid, your company could win or lose. Place realistic bids, ones that bring up the best performance and return on investment (ROI).
- Your Ad Extensions: using ad extensions can improve your ad’s performance, like by offering users a phone number for contacting your team. Adding value to your Ad can improve your chances of winning the ad auction. You can add extensions when creating your ads.
Using these three factors, Google forms the basis for your Ad Rank, which consists of five factors:
- Your bid
- Your quality score
- Your ad extensions
- The ad rank threshold, or minimum quality threshold
- The context of user’s search, such as time, location and past user behavior
With your Ad rank calculated, Google can run its ad auction.
When Google launches its ad auction. It also calculated the cost-per-click (CPC) using this formula:
Competitor Ad rank / Your Quality score + 0.1 = Actual CPC
The actual CPC is what your business pays if you win the auction- and if a user clicks on your ad. This formula is why most companies pay less than what they bid for a keyword. It's vital to know, however, that your business will never pay more than what you bid.
Following the ad auction, Google delivers the winning ads to users.
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