What is google ads, and how it works?

Google Ads is a platform for online advertising developed by google. But what does that mean? The simple and short answer is; the Google ads platform allows you to build ads that appear on search engine result pages, YouTube, and other websites that are part of the Google network. This straightforward explanation, though, can lead to more questions. For instance, how do ads appear on search results? Is it random, or is there any rule or something? How can you pay and run a google ads campaign? How does Google find out about your products or services to show potential customers relevant ads? And so on. If you are searching for the answer to these questions, You’ve hit the jackpot of information. In this article, we will break down google ads for you so you can catch all of them.

What are google ads?

Technically, Google Ads works based on a pay-per-click (PPC) model that allows businesses to reach their target audiences around the world, those who probably look for their products or services. Because Google dominates the online search market with over 84 percent market share, Using Google ads is a unique opportunity for companies to expand their business. To do that, companies usually run a campaign on google ads y the help of experts. These Campaigns can target audiences based on factors such as their location, language, device, search history, and even their place in the demographic pyramid. As a result, using Google Ads can be a powerful tool for businesses to increase their online presence and generate leads and sales. With the help of google ads’ sophisticated tools and facilities, campaigners can ensure that the most relevant audience sees their ads based on factors that were said before.

Do you really need google ads?

Like every other decision, it is up to you to use it or not, but this information may help you to sort out your mind. As said, google is one of the oldest and, of course, biggest search engines, with over 8.5 billion searches conducted daily on Google. With this massive user base, google plays a vital role in buying goods or services. This is where Google Ads comes in as a powerful advertising tool. In fact, studies show that businesses make an average of $2 in revenue for every $1 they spend on Google Ads with carefully planned and manage campaigns.

But, the possible return on investment is only part of it. Your competitors are probably already using Google ads to reach your target market. In reality, Google Ads is one of the world’s most widely used advertising platforms, with more than 7 million advertisers. You run the danger of falling behind in a crowded market if you don’t use Google ads. Now is the time to learn what google ads is?

Some basic terms

Before diving deeper into what Google Ads is and how it works, let’s review some basic terms. Knowing them helps you to have a better understanding of how this useful tool works. Some of these are specific to google ads, while others are general terms related to online advertising.

AdRank

Ad Rank is a measure that determines an ad’s position on a search engine results page in Google ads. It is determined using the advertiser’s maximum bid and the ad’s quality score, which considers elements like relevancy and landing page quality. Although other criteria also come into play, a higher Ad Rank corresponds to a higher position on the search results page.

Biding

On Google ads, advertisers compete for ad placement by placing bids. The keywords or locations that advertisers want to target are bid on, and Google utilizes an auction method to choose which ads show. Advertisers can select between manual and automated bidding processes to enhance their ROI and modify bids based on ad performance.

Keywords

You probably heard of Keywords and wondered what their relation to advertising is. This is the tool that google ads provides to make ads more specific and targeted. Keywords are chosen based on what people search on google to show related ads to those who look for products or services related to certain ad. By using those keywords and setting bids on them; advertisers can control where their ads will appear in search results. So, selecting the right keywords is essential for effective ad targeting.

Campaign Type

Campaign Type is about the goal that campaigners pursue when using google ads. Every campaign type has its settings, features, and objectives designed to let advertisers achieve their goals. Search campaigns, Display campaigns, Video campaigns, Shopping campaigns, and App campaigns are different types of ads that google offers. Since every campaign has a different setting and design technique, choosing the type closest to their marketing objectives is crucial for success.

PPC model

The PPC model is designed so Google only charges advertisers if anyone clicks on their ads. This model lets advertisers target particular words or phrases and bid maximum for every click. It is a cost-effective method; you only pay for visitors directed to your website from your ad.

Conversion rate

The conversion rate is the percentage of those who are directed to your website from your ad and end up doing your desired action. The most desired actions are purchasing or submitting a lead form or visiting a certain page. It is calculated by dividing the total number of ad clicks by the proportion of users carrying out the targeted action.

Click-Through Rate (CTR)

It is a useful and simple metric that lets you know the percentage of people that clicks on your ad after seeing it. It’s a critical indicator for assessing the success of campaigns. Various factors influence the CTR, including keywords, location, targeted audiences, the ad itself, and … .  A high CTR shows that your ad is appealing and relevant to the audience. In contrast, a low CTR means it could not connect with them.

How do google ads work?

Now that we have learned what Google Ads is and its terms, it’s time to understand how it works. Google Ads uses a complex auction system and Google’s online network to display ads. When you search for a product or service, you are using certain words or phrases, then Google’s algorithm selects the most relevant ad to those words or phrases with the highest bid to show in the search results. Besides relevancy, past success, and the advertiser’s bid are some factors that determine where the ad will appear. To achieve the maximum result from your money, you can set daily budgets, modify your bid, and target specific audiences based on demographics, interests, and behaviors.

Besides these, google ads offer various facilities that allow you to see your campaign’s success and optimize it if necessary. The Metrics such as click-through rate (CTR), conversion rate, and cost-per-click (CPC) that we explained before are among those facilities.

Remember that for the maximum return on investment (ROI), you need to know how Google Ads operates, which requires expertise in bidding techniques, ad targeting, and campaign optimization.

Can I learn and run a google ads campaign?

Although Google Ads is designed to be user-friendly, running a successful campaign requires extensive knowledge and significant effort. Here are some tips to help you get started: To create your account, follow the instructions on the Google Ads website. Then provide basic information about your business and payment details. After that, you must choose your advertising objectives, design your ad, research and select your keywords(that is not easy), and set your budget and bidding strategy.

However, taking all these steps is not that easy, and if you’re new to Google Ads and the success of your business depends on it, it’s not worth the risk. So you better seek expert help to ensure you are using money effectively. For a consultation, please reach out to us. As a Google Premier Partner, our highly experienced account managers at Afrakads agency can assist you.