What is Google AdWords and Why is it Useful?

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4 MIN
September 08, 2017

What is Google AdWords and Why is it Useful?

What is Google AdWords?

Google AdWords is an advertising service which allows anyone with an AdWords account to bid on keywords using a number of strategies. Successful bidding allows for visibility on several of Google’s partner sites or Google itself. Depending on the needs or your ad campaign, you may select either the Search Network, the Display Network, or both. Winning a bid depends on the amount of money spent as well as the quality of the ad behind your bid.

The Two Most Important AdWords Numbers

Google Search Network

There are two primary means of getting yourself in front of the right people. One is the Google Search Network, which is better if you merely want your ad to appear in front of a consumer in the middle of actually looking for a product like yours. If you select the Search Network, your ad will be embedded in a search engine result page. It will take the form of a text ad you can customize in terms of information you want immediately available.

Google Display Network

The other option is the Google Display Network, which includes over 2,000,000 websites sites such as YouTube and Google Finance––which are owned by Google. The Display Network also consists of many sites Google does not own––such as The New York Times and personal blogs––but which license Google to display its Ads. Your ad will be featured in concert with content selected for its relevance to your campaign. Rather than appear to consumers in the middle of a search, the Display Network enables you to draw a more substantive connection between the content a consumer is already consuming your product or service.

The Best of Both AdWords

While the Display Network allows for a higher amount of flexibility in the appearance of your ad, it isn’t quite as directly associated with the indication of a need as much as an interest. As a result, the best option is often a combination of the two. Rather than restricting you to a strength over another one, Google allows you to pick Search Network with Display Select. That way, you have the best of both of them.

Intro to Inner Workings

You get the simplicity of Search Network text ads in conjunction with image, video, and rich media ads in the Display Network. Both Networks feature on mobile platforms, which is increasingly critical as a majority of searches actually take place there. Until now, the article went into the options available if you decide the pursue online advertising with Google AdWords. Let’s get into how the system actually works.

Determining Your Budget

Once you determine which format you want your ad to take, you must set a budget. Your budget each day is an indication of how much you are willing to spend on your ad campaign(s). While there is no minimum, you stand a better chance of getting preferable placement if you outbid opposing ad campaigns. That said, attaining a desirable situation requires more than a high bid.

Cost-per-click and Cost-Per-Thousand Impressions

There are three central bidding strategies. The first is cost-per-click (CPC), which is ideal if you would like to amass the highest amount of traffic for your site. The next is cost-per-thousand impressions (CPM), which is only available on a Display Network ad campaign. It is geared towards increasing the exposure of your brand as much as possible by maximizing impressions. The final option is cost-per-acquisition (CPA), which reflects conversions.

Cost-per-acquisition and Bidding Logistics

Whatever you end up bidding, you’ll only expend the minimum needed to outbid the runner-up. Of course, CPA varies according to the variability of the market and the quality of your site. As indicated, there is more to a successful ad than the amount of money behind it. If your page is awful, you’ll never feature on Google––regardless of how much you spend, or, the amount you attempt to spend. Ultimately, the process hinges on useful and effective information.

Quality Score

The viability of your ad depends on its quality. Google has a couple of metrics for determining the way your ad is used. Quality Score is a measure of the efficacy of your ad and any landing pages connected to it. Quality Score includes expected clickthrough rate, ad relevance, and the experiential quotient of your landing page. The Score ranges from 1 to 10, with 10 being the highest possible number.

Ad Rank

Ad Rank is the value associated with the order in which your ad will appear in a search result as well as whether it will even appear at all. Ad Rank also accounts for issues arising in the heat of an auction, including the search terms a user employs, the device they use for the search, the language they search in, and when they do it. No amount of money will get you a high rank unless you use it for hiring someone to improve your Quality Score.

Clickthrough Rate (CTR)

Once you achieve a considerable Quality Score and Ad Rank, you’ll need a way of determining whether your efforts are paying off. One of these is Click-through Rate, which is a statistic indicating how many of those who are exposed to your ad actually click on it. The figure is calculated as clicks divided by impressions. A good CTR also increases expected CTR, which is an element of Quality Score.

Summary

Online advertising is useful because it allows you to put your business in front of the most relevant consumers. Rather than merely exposing yourself to as many as possible, you are actually able to tailor your visibility for efficiency. Whether you want to specify the time of day, the age of a user, or their location, AdWords ensures you end up in front of the audience you are aiming for regardless of when, where, and how. Once you select a useful keyword and a budget for its exposure, you can decide how you want to appear for an audience. You’ll also trace whether the keyword is doing well in terms of visibility and activity.

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