What is Google Ads and How Does it Work

With every few seconds, there are millions of Google searches being performed. It is no longer a secret or a surprise to hear that Google is one of the most significant search engines these days. Whenever you have a query in mind, the first instinct is to search it on Google, and most often, the results from Google happen to be paid advertisements for various businesses.

As a business owner, Google Ads can be a tie-breaker for your corporation and bring success and profit. They are a valuable source of advertisement and steer relevant customer traffic towards your business. However, many business owners are still not aware of the potential that Google Ads offers, and neither do they know how to use it to their advantage. The following mini-guide will walk you through the what and how of Google Ads so you can kick start the advertisements for your business in no time.

What are Google Ads All About?

Understanding this is important because once you comprehend this, you should tweak the campaigns according to your unique business needs. Google offers the option of paid-for-advertisements that appear in the search results on their website (Google.com). Usually, when viewing a SERP or search engine results page, you would be viewing two distinct sections of an advertisement on this page. One is placed above the organic links and the other at the bottom of the page. Google often tags the paid content with a green-colored ‘Ad’ label.

You also can opt for Google display ad offers which are advertisements that would be showcased on the Google Display Network. This is a network of several third-party websites that operate as Google’s partner websites and have agreed to display the Google ads on their sites. The ads would usually appear as images or text or in video format and have unique targeting options.

How do Google Ads Work?

Now that you know the basics of what google ads are, you should be ready to take in all the techy details about how they work. One of the critical components is the Google Ads auction revolving around the keywords you have selected as an advertiser. Often these Google e commerce ads have quite valuable content to offer and showcase the most relevant sites. However, that will only happen if the keywords are specially selected after thorough research to target a market segment carefully. The advertisers then have to set a bid amount that they may be willing to pay for these ads to Google.

Google operates and manages these advertisements through an intricate algorithm that works by combining the bid with a quality score (Google assigns that according to the overall quality of your ad). Once a user clicks on an ad, the advertiser or business owner must pay the price (CPC, cost-per-click).

How does Google’s Ad Auction Work?

If there is one famous auction globally, it has to be Google’s ad auction system that happens every time users perform a keyword search. For obvious reasons, if you intend to win at this auction system, you have to nail the bid and quality score combo. The better you get at this combination, the better would be the ad placement. Your ad quality score may be influenced by the relevance of the keyword (to ad-group), google ad (to the search query), and the ad (to the landing page). It would also be affected by the CTR or click-through rate history of your ad campaign and the related ad groups.

Having an optimized quality score also brings in other benefits, including an enhanced exposure and lowered costs. Google has a penchant for rewarding its users who come up with a good quality advertisement and reduces the CPC, improves the ROI, and positions them better on the SERP. You should, therefore, want to be on good terms with Google’s policy about advertisement if you intend to profit most from them.

The Cost Issue

For many, money or investments are a big issue to think about as a business because they are just starting. Even if you are a large corporation, you would be less inclined to spend everything just on Google advertisements, understandably. So, allocate a budget and avoid going over the board. You can also try to lower the cost of the Google ad campaign by focusing on factors such as keyword competitiveness, geographic location, quality of the campaign, and your industry.

The significance of Google ads for maximizing the overall impact of your business is hard to ignore. For you to harness the power of Google ads, you have to test and trial run campaigns until you figure out the one that works best for your business. Also, spend some quality time researching the keywords and avoiding ones that are way too competitive. With a Google ad that performs well, your business would surely be destined for growth.

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