Categories / PPC Marketing
How Google Ads Works? Nov 17, 2021 06:11 PM
What Is Google Ads? How Does Google Ads Work?

How Google Ads Works?

You must be familiar with the ever-popular Google Ads. This article will share how Google Ads works, KeyWords, and which options are available to bid on the keywords. Google Ads is an affordable platform for digital marketing which helps brands in online advertisement and businesses by generating a better ROI (Return on Investment). It also helps to target potential customers if managed correctly. Even for small business owners, Google Ads have numerous benefits. Besides improving the digital marketing needs of small businesses, they see transparent and efficient results of campaigns in the least possible time. It is also an excellent source of getting high-quality traffic, which eventually leads to more business sales. Though it takes time to master Google Ads, it can also be kind of fun once you’ve reached the mastery level. Let’s discuss the workings of Google Ads and its operation in a bit more detail.

Google Ads Operation Under PPC

Google Ads works under a pay-per-click model (PPC). PPC is an internet model that advertisers use, and it is associated with paying a fee every time the audience clicks their ad. With this operation, the marketers set a keyword on Google and make bids on it. This method helps to compete with the rivals of a particular business by targeting a specific keyword. For making bids on the keywords, three options are usually available for the marketers. These are listed below:

  • Cost-per-click (CPC): The cost-per-click (CPC) is a method in which you pay whenever a user or client clicks on the ad that you have advertised.

  • Cost-per-mile (CPM): CPM, known as cost-per-mile, is an average cost of 1000 ad impressions

  • Cost-per-engagement (CPE): Cost-per-engagement (CPE) refers to a method you pay whenever the user performs any specific action like signing up for an account or watching a video of your advertisement, etc.

Google Ads works under a pay-per-click model (PPC). PPC is an internet model that advertisers use, and it is associated with paying a fee every time the audience clicks their ad.

Once this process is completed, Google assesses your ad and determines a quality score. The quality score estimates the worth of your ads, targeted keywords, and landing pages. The better the quality score, the lower is the price that you pay for your ads. This score ranges from 1 to 10. If you get a ten score, it means the quality of your ads is simply the best. You are ranked higher whenever this score is near 10. Your ad rank is a combination of two things, i.e., the quality score and your bid amount. If it is ranked well, you’ll get your rank seen in top Google search result pages. To be more influential to the customers, Google Ads has a lot to offer you. If you manage to get a quality score and better ad rank, you can have better ROI and achieve your goal congruence. According to many business experts, an ROI of around 7% or more is considered good. Achieving this rate will help you tackle the competition in a better way.

The Google Ads Auction

Google Ads also operates with the help of an auction system. This auction system is related to the keyword search made by the user. For this purpose, as mentioned earlier, you need to invest your time in getting a better-quality score and attaining the appropriate bid amount. A good quality score is somewhat challenging to achieve, but you can improve it if you know the factors that affect it. The factors affecting the quality score are listed below:

  • Keyword relevance to your ad.

  • Ad’s relevance to the search query.

  • Ad’s relevance to its landing pages.

  • The history account performance.

  • The click-through rate (CTR) of the ad and its respective group.

If you cannot achieve a high-quality score; then, do not forget to invest your time in the factors written above. Doing so will help you focus on the shortcomings that might be undermining the quality of your ad. Better-quality score will lead to the excellent functioning of your ad, and you’ll need to pay less for it. Moreover, your ad will gain a competitive advantage, and the landing page will become more relevant to the keyword searches. Ultimately, it will be helpful to achieve many business profits.

Benefits of High-Quality Score

The benefits of high-quality scores are numerous. For instance:

  • Higher exposure of your ad to the audience.

  • Lower pay-per-click costs.

  • Better ROI (Return on Investment).

  • No need to raise your bids.

Bottom Line

Google offers a variety of campaign types that businesses can utilize. Each campaign type has a unique working operation; however, all the types follow the same general working pattern to promote businesses. If you manage to get a strong ROI on Google Ads; then, you’ll have more in-market prospects for your brand, and it will grow your business with less time. If you haven’t signed up on the Google Ads platform till now, it is high time to do so. Happy account making and turning in more sales for your brand.

References:

What is Google Ads?

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