What Is Google AdWords and How to Use It?

What Is Google AdWords and How to Use It


An advertising service offered by search engine giant- Google, Google AdWords permits businesses to show their ads on Google and its advertising network. Herein, advertisers recommend specific keywords serial for his or her clickable ads to be displayed in Google’s search results. It’s once the advertisers pay money for the clicks, Google earns cash from these searches.

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Frequently used Terms:

1.    Campaign – a collection of ad groups (ads, keywords, and bids) that share a budget, location targeting, and different settings. Campaigns are usually wont to organize classes of product or services that you just provide.

2.    Ad Groups – an advertisement cluster contains one or a lot of ads that target a shared set of keywords.

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3.    Bidding Strategy – It defines, however, an advertiser sets the bid type to get viewer interaction together with his ads.

4.    Impressions – an impression may be a measure of how many times your ad is shown.

5.    Quality Score – a high-quality score is Google’s rating of the standard and relevance of each your keywords and PPC ads. It’s wont to confirm your Cost Per Click (CPC), increased by your maximum bid to work out your Ad Rank within the Ad Auction process.

6.    Ad Rank – Ad Rank is that the price that’s used to confirm an advertiser’s ad position (where ads are shown on a page relative to different ads) and whether or not the ads can show at all.

7.    Click Through Rate (CTR) – Click Through Rate is that the measure of how many those who have seen an advertiser’s ad clicked through to the destination link.

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8.    Landing Page – it’s clearly outlined because the page on the web site on that the advertiser attracts traffic from the ad.

9.    CPC – Cost-Per-Click (CPC) is that the actual value an advertiser pays for every click within the PPC campaign. It’s the most common bid type on Google AdWords.

CPC = Total cost / number of clicks

10.    PPC – just like CPC, Pay Per Click (PPC) is an internet advertising model whereby an advertiser pays a publisher i.e. Google AdWords, every time somebody clicks on their ad.

11.    Keyword – A word or phrase searched during a search engine that reflects matching and relevant results. A lot of internet sites provide to advertise targeted by keywords, such an ad can only show once a particular keyword is searched upon.

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12.    Keyword Match Types – Google defined keyword match types as ‘parameters which will be set on your keywords to manage that searches trigger your ads to seem. Ideally, there exist four different types of Keyword Match types in Google AdWords, they are-

•    Broad Match

•    Broad Match Modifier

•    Phrase Match

•    Exact Match

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13.    Conversion – consistent with Google Support’s definition; ‘An action that’s counted when somebody interacts together with your ad (for example, clicks a text ad or views a video ad) and so takes an action that you’ve defined as valuable to your business, like an internet purchase or a decision to your business from a portable.

14.    Cost per Conversion – it’s essentially the whole cost paid for promotion in relevancy the success in achieving the goal of that advertisement.

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15.    Conversion Rate – Conversion Rate is the metric that measures & determines how many prospective customers perform the specified step of action. : fill the query form, subscribe to the newsletter, drop feedback, etc.

Types of Google Ads:

1. Search Ads

The ad seems on top of the organic search results on Google.

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2. Display Ads

With text and banner ads across Gmail and a network of over 2 million websites and apps, your ad will show up wherever your customers are.

3. Video Ads

Your business involves life once interfaced with new customers on YouTube. It’s a unique way to share your story.

4. App Ads

Promote your app by running ads across the complete Google network — no style is required.

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5. Shopping Ads

Shopping ads talk to the kind of ad that options detailed info regarding the specific product that you just sell.

Features of Google AdWords:

Access History of Quality Score

Earlier, Google didn’t grant access to look at previous days’ quality score of a keyword. However, the search engine big recently showed graciousness by enabling advertisers to look at the historical QS information along with its individual factors i.e. expected CTR, and relevance, and landing page expertise. The historical report may be accessed by:

               Keywords tab > Columns > Modify Columns > Quality Score

Advanced GeoTargeted Advertisements

This feature comes together with the fundamental needs of any vendor. With bountiful choices to focus on, determine the areas/locations wherever the positive results may be enlarged therefore lowering the smallest amount activity regions specified it impacts the overall come back on Investment (ROI).

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Automatic Bid Adjustment Feature

Another interesting value noticing the feature of Google AdWords is ‘Automatic Bid Adjustment’. It promptly allows the advertisers to trace the search impression loss metric and keep unsteady the budget along with bids. You’ll do that by adhering to the following steps:

     Campaign/Ad Group/Keyword/Ad Tab > automate > change max CPC bids when

Aforementioned are quite a few options of Google AdWords however upon practicing an equivalent, an advertiser will explore additional options.

How Does Google Adwords Work?

The working mechanism of Google AdWords majorly depends upon a key factor that is — the aggressiveness of the keywords that advertisers are suggesting. To boot, the relevance of the keywords to real-conversions is equally crucial for the effectiveness of the business operations. Given below is that the structure of a Google AdWords account:

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The image clearly defines the hierarchy basis that the AdWords perform. Let’s understand however Google AdWords really works?

Whenever a user makes a Google search, Google AdWords was taken into thought all the advertisers who have created the bidding on its keyword and accordingly, calculates the Ad Rank for the keyword. Herein, Quality Score that is that the measuring from Google supported factors such as the relevancy of a commercial headline, description, keywords and destination URL; plays an important role

Thus, Ad Rank is calculated as follows:

Ad Rank = Quality Score of the keyword x Bid

Thus, the ads that are on top of the Ad Rank are chosen within the search result. Hence, it’s the Ad Rank that decides the position of the ads; whereby, the ad with the highest Ad Rank grabs the first position whereas the one with the lowest Ad Rank scores the last position.

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The following table representation exemplifies it well:

Position  Quality Score (QS)    Bid ($)    Ad Rank    Actual CPC
1 7 20 140 19.1
2 9 15 135 13.1
3 6 30 120 27.1
4 4 18 108 18

 Actual CPC = (Ad Rank of the advertiser below you / Your Quality Score) + $0.01

On careful observation, you’ll infer that each advertiser is paying but the particular bid amount, except for the last advertiser). This can be indicative that lower the ad rank of your rival and better the quality Score, the lower amount you pay to AdWords.

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So, you’re all able to begin bidding and become a Google AdWords personnel. Go start bidding!

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If you have any queries feel free to achieve us or comment below.


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