What Is Google Adwords And How Does It Work?
Google Adwords is an advertising platform by Google in which digital marketers and businesses bid in an auction for placement at the top of Google search results pages.
By using paid search, you can see the immediate results, and it isn’t as difficult to use or expensive as you might think. Paid search is the term we use for advertising inside the listings of an internet search engine. These typically appear on top of the SERP or the side and increasingly look more like organic results. At that moment Google places a little yellow ad tag on them. Google isn’t the only internet search engine where one may do that, Bing also runs their very own advertising network, called the Bing Network.
“As a media company, paid search is the single most effective marketing strategy for my business,” says the CEO of Candlegrove Media Group, a digital media agency.
For the time being though, let us have a look at AdWords. Basically, you choose some relevant keywords that people are searching for on Google, then create an ad that will appear on the results page based on these keywords. You are probably not going to be the only company wanting to serve adverts to individuals who use these particular terms. Rival companies can bid for the same search term in an auction. If you would like your ad to appear at all, you’ve to bid against other marketers on how much you are willing to pay AdWords each time when the search engine clicks on your ad.
Clearly the more you pay per click, the more likely your ad will appear in the search results page. Nevertheless, however, as opposed to other real-time bidding models, it isn’t only the highest bid that’s taken into account. Google also uses something called a ‘quality score’. Google looks at how relevant and useful your ad is to the searcher and the search terms they have used. The price you are willing to pay for each click is called cost per click. You can select a maximum bid amount, and if you pick the automatic option, Google selects the amount of the auction for you in your spending budget, and theoretically brings you the most clicks possible in this budget.
There’s also another less common option called cost per impression. This is where you pay the search engine for every 1,000 times your ad appears on the results page. The user does not have to click through. You can choose between either method. The time it can take for AdWords to look at all the relevant advertisers bidding for a search term, decide whether there’ll be an auction or not, hold that auction, work out which ad offers a mixture of highest maximum bid and quality score and lastly serves that ad on the results page, is the time it can take for somebody to type a search term in Google and receive the results.
AdWords works so well that one study found that 40% of consumers are unaware that Adwords are adverts. Searchers might easily ignore organic search results page further down, depending upon the quality of their screen.