You’ve finally decided to add pay per click (PPC) advertising to your marketing campaign. You’ve chosen Google Adwords, but you’re still unsure of how to proceed.

So, how does Google AdWords work?

The Google AdWords system is complicated. It’s not all about spending the most money to fuel your campaigns. The bottom line is that it can help you get traffic, especially if you have a new site.

In this post, we’re going to help you understand how this advertising system works.

Read on . . . and Learn More!


Understanding Paid Search

If you’re new to digital marketing, it is important to view AdWords as a Paid Search System. 

This term simply means showing your Ads within the search engine result pages (SERP). The Ads can show at the top, the bottom or to the side of a SERP.

When you look closely you will notice a green “Ad” label near the listings. When people search for a service or product, the ads related to the “search term” are displayed together with the results.

So, how do you pay for this “paid service?” 

With paid search, you can pay per click (PPC), cost per click (CPC), or cost per impression (CPM). 

PPC means that you pay for every single click on your Ad. CPM allows you to pay for every 1,000 times your ad is displayed on the page.

CPC is great for boosting your sales while CPM is ideal if you want to boost your brand awareness.

They can be used separately or together depending on your online marketing strategy.

The Principles of AdWords

When starting with AdWords, it helps to know why you should invest time in keyword research. Understanding why it’s important can make a positive difference in your campaigns. 

Keywords are necessary to create ads that will appear on SERPs. But keep in mind that your competitors will be using the same keywords.

Similar companies often bid for the same keywords. You’ll notice that different ads populate the ad section on a SERP, and from similar companies. 

A mature marketing agency can help you make you stand out from the herd by the “way” they write your Ads.

It is common for them to bid against each other on how much they’re willing to pay. Knowing when, where, and how much to bid, comes with experience.

The Bottom Line is:

Google AdWords makes it’s money every time an ad gets clicked.

In general, the more you pay per click, the higher chances your ad has to appear in the search results. 

But that’s not all. There are other factors. Google uses a combination of scores to determine where your Ad is shown. And paying more doesn’t guarantee your ads will get priority. 

Let’s look at what Google AdWords calls a “quality score.”

So, What’s Quality Score?

When covering the question “How does Google AdWords work?” quality score is an important thing to know.

Quality score is typically how relevant your ads are to the search terms that people are using. The likelihood of visitors clicking on your ads is also an important consideration.

AdWords uses:

  • Ad relevance
  • Landing page experience
  • Expected click-through rate (CTR), and
  • Quality score history

To determine your current overall quality score. The score gives you a general view of the quality of your ads. 

This score is usually determined on the simple scale of 1 to 10, where 1 is the lowest and 10 is perfect.

Google AdWords uses the past performance data to score your keywords. The data on past ad auctions is critical in achieving this. 

Typically, when you start your campaign, you can get a null quality score. This happens because your ad’s keywords don’t have enough performance data yet. Eventually, there will be enough data to give you a score.

One thing you must note is that your quality score is different from your Ad Rank. Quality score is calculated based on the average past performance. On the other hand, Ad Rank is based on your keywords.

How Does Bidding Work?

With cost-per-click (CPC), it is true that you pay AdWords every time your ad gets a click. But, you have the control on the amount you want to spend. The program allows you to pick the maximum amount for your bid.

Alternatively, you can choose automatic billing. With this option, you set the budget for your ads. Then, Google determines the amount for your bids based on your budget. Here the goal is to give you the most clicks within your particular budget.

The whole process is done automatically, and it takes about 0.26 seconds. Google AdWords looks at all advertisers, ad quality scores and maximum bidding amounts. This allows it to determine if there will be an auction or not.

How to Optimize Your AdWords Account

When building your AdWords account, it’s important to determine its structure. How you want your ads to be triggered and when and where you want them to appear is important to your campaign.

A properly structured account will ensure that the searches triggering your ads are from your target audience. 

You can also attain a better quality score. Doing so will lower your CPC and give you better results. A structured account will also allow for easier optimization and organization.

The critical components that make up your account structure include: 

  • Campaigns
  • Ad groups
  • Keywords
  • Negative keywords, and
  • Ad text

Your account may have several campaigns. But unless you have a large operation keep them few. This will help you keep them manageable.

Each campaign will have several ad groups, which contain your keywords.

Keywords are important in controlling the triggering of your Ads. 

When a user searches on Google, the phrase they use is matched to your text keywords, and this triggers your ads.

You can use a performance grader to see how your AdWords account measures up to your competition. Using this kind of tool will help you understand the best way to optimize your account.

Why Should Use Google AdWords?

Advertising systems help small, medium, and large business to tap into the huge numbers of people who search for services and products online every single day.

With Google AdWords, you have the potential of reaching thousands of customers 24/7 every day of the year. 

If your campaigns are set up correctly, you can get qualified leads to your website, landing page or other online property.

It’s such a flexible advertising system that any type or size of business can use it. 

AdWords gives you a variety of ad options. These include search, call-only, dynamic, and mobile app Ads to help your business reach your target audience.

There are many online marketing funnel platforms that are compatible with Google AdWords. 

Customized systems seem to have the best results and should include:

  • Landing Page
  • Sales page
  • Call to Action or Opt-in or Offer page

You can customize your campaigns to target specific demographics, areas, locales or zip-codes. Budgets can also be set according to what you’re willing to spend.

How Can Google AdWords Work for You?

To understand how Google AdWords can help, start with a look at where your business marketing is now. What goals do you have, and what advertising and sales are working for you today.

A proper lead generation system using AdWords, walks your prospective customer down the path: from reader to lead to customer.

Feel free to get in touch with our team. We’ll get a view of where your business is today and see what strategy will work best for you!

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About Gregory Falicia

I’m a writer, instructor, and a technically savvy marketer…
I focus on what I am good at:

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