What Is
Google AdWords
What
is AdWords? Google AdWords is Google's advertising system in which advertisers
bid on certain keywords in order for their clickable ads to appear in Google's
search results. This infographic will help you understand how AdWords works,
detailing the AdWords auction, bidding process and explaining important factors
like Quality Score and cost-per-click. If you're asking "How does AdWords
Work?" this infographic is for you!
Does
AdWords Work?
Does
Google AdWords work? Depending on
the competitiveness of the keywords you're bidding for and the relevancy of
that keyword to real conversions for your company, AdWords may or may not work
for your business. For the most part, we've found that Google AdWords is
extremely effective for any business, as long as they don't waste their money
on the wrong keywords, or write bad ads. For examples of how Google AdWords can
fail, there are plenty of bad
eBay ads online.
How To
Advertise With Google AdWords
Businesses
can advertise on Google by registering their company with a Google AdWords account with the objective of gaining more
clientele.
What Is
Google AdWords Auction?
A
Google AdWords auction is a tool that Google uses to determine the cost per
click(CPC) amount that is required of an advertiser to pay when users click
their ads.
How
Does AdWords Bidding Work?
When
bidding for a keyword, your cost per click and ad position is relative to the
quality score and maximum bid of competing bidders. The actual position of your
ad is determined by your ad rank (Maximum bid times quality score) as the highest
ad rank gets the 1st ad position. Your actual CPC will be determined by the ad
rank of the next highest ad below you divided by your quality score. The only
exception of this rule is when you are the only bidder or the lowest bid in the
AdWords auction - you pay your maximum bid per click! AdWords bidding heavily
penalizes advertisers who bid with low quality scores.
How
Many Times Does A Google Auction Run?
The
auction gets run billions of times each month. The results are such that users
find ads that are relevant to what they're looking for, advertisers connect
with potential customers at lowest possible prices and Google rakes in billions
of dollars in revenue.
How
Does A Google Auction Work?
Once
a query is made on Google, the search engine processes the request and runs the
auction which will then determine the ad's
position, where it will appear and the CPC.
How Do
You Enter A Google Auction?
To
enter the auction there is a bid requirement based on your keyword each time it is entered into an
auction.
How Can
Advertisers Bid On Google Auction?
Advertisers
can bid in an auction based on keyword's
ad positioning, with a higher positioning rate the better the keyword will
perform in the auction and will build better eligibility.
What
Gets Entered Into A Google Auction?
Once
advertisers identity keywords they want to bid on, Google then enters the
keyword from your account that it deems most relevant into the auction with the maximum bid you've specified as well
as the associated ad.
What Is
Average Cost Per Click?
The
average amount you spend each time a searcher click on your advertisement.
What Is CPC?
Is
the amount an advertiser pays based on the number of clicks their advertisement
gets when it appears on a search engine page.
How
Does CPC Work?
Is
the cost paid by the advertiser after their advertisement is placed on a search
engine page. This price is determined by the number of clicks that the
advertisement receives.
What Is
A CPC Bid?
Brings
you the highest amount of clicks based on the budget of the advertising
company.
How
Does CPC Bidding Work?
CPC
bidding works based on the advertisements ad rank- as result of the maximum bid
you specify for your keyword times the relevance and usefulness of your ad to
its' user.
What Is
A CPC Bid Limit On Google AdWords?
Yes.
You can only have one entry into any query auction from your account.
How
Many Times Can You Bid On Google Auctions?
There
can only be one bid placed for each advertisement but the keywords will still
be picked up for search engines based on the relevance of the keyword in
relation to the user's search.
How
Does CPC Advertising Work?
CPC
advertising is a form of advertising used by companies to increase the exposure
of their products.
What Is
A Google Auction Quality Score?
This
is a metric to determine how relevant and useful your ad is to the user
(components are CTR, relevance, and landing page). The higher your quality score, the better.
How
Does Google Determine What You Pay?
The
price paid by the advertiser is determined by the amount of clicks that the
company's advertisement receives.
What Is
Google Ad Rank?
Google
ad rank is the position of the
company's advertisement on the search engine page based on a combination of the
company's maximum bid and quality score.
Ad Rank
Vs. Quality Score
The
ad rank is more significant to an advertiser because it determines the how high
on the page the advertisement will be displayed. Quality score on the other
hand is determined by the relevance and usefulness to the searcher and is only a
portion of the advertisement positioning process.As of 2013, Google's Quality score has become more and more valuable as
the average quality score has changed from a 7 to 5.
Quality
Score Vs. CPC
Quality
score and CPC are important because they collective determine the positioning
of the advertisement on the search engine results page.
What Is
Ad Position In AdWords?
Ad
position is the position on the search engine page results where the advertisement
appears in relation to all of the other advertisements.
How To
Check Google Ad Ranking
It
is best utilize Google analytics to check your company's ad ranking or for a
live report you can type in a general search for your product on Google.
CPC Vs.
Actual CPC
CPC
is the advertiser's general cost per click depends on the maximum bid in
regards to how many clicks the advertisement receives day to day. Actual CPC is
different because it is determined by the actual rate per click which is
usually less than CPC.
What Is
Actual CPC?
Actual
CPC is the amount an advertiser pays each time a searcher clicks on their
advertisement, this number is always lower than the maximum bidding price.
How
Does AdWords Calculate Actual CPC
Actual
CPC is determined by dividing the ad rank of the competitor below them (ad rank
to hit) by quality score plus $.01.
What Is
Google's Display Network?
Google's
display network features sponsored advertisements along with the general search
engine results and provides demographic targeting.
What
Ads Are On A Google Display Network?
Sponsored
ads along with free advertisements appear on the Google display network although sponsored ads have more of a
dominant presence. Google display networks also fully support all ad formats.
What
Are Alternative Bidding Methods?
Alternative
bidding methods include CPM and CPA.
What Is
CPM Bidding?
CPM
bidding is based on impressions and can be used alongside CPC bidding.
CPC Vs.
CPM
CPC
is the cost for an advertisement based on how many clicks it receives whereas
CPM is the cost for an advertisement based on how many impressions it picks up.
Both methods can be used simultaneously.
What Is
Cost-Per-Acquisition Bidding?
CPA
is more specific for advertisers because it is the cost dependent on how many
searchers purchase, subscribe etc to their product or service based on the
online advertisement.
How
Does CPA Work?
Once
a user has clicked on your company's online advertisement the cost can then
only be registered based on the user's action on the site. If the user
purchases a product or subscribes to a series of services then the cost is
applied to the advertisement.
How
Does CPA Marketing Work?
CPA
marketing is marketing to a
specific target group that is known to act on the advertisements presented to
them.
CPC Vs.
CPA
When
you use conversion optimizer and bid to a CPA, Google is determining your max
CPC bids for you based on historical conversion data, and is attempting to hit
either the average or max CPC you've set.
CPM Vs.
CPA
CPM
and CPA go hand in hand because they are both based on impressions, only one is
more specific than the other. With CPM impressions the user browses the site
and clicks on links within the site, with CPA rather, the user then takes that
next step and subscribes to the product. Both methods are used to fine tune the
target group.
What
Are Keywords?
Keywords
are a general concept or purpose complied into a few words that are specific to
a particular company. These keywords are then used by companies to target
groups that would be interested in their products.
How Do
Keywords Work?
When
a searcher is looking for a product typically the general search is for
‘running shoes' instead of ‘Nike Women's Air Max,' since this is the case
search engine are given preset keywords by the advertiser and the search engine
then uses these words to decipher whether or not to display your advertisement
based on relevance.
How
Does A Keyword Search Work?
In
a keyword search the search engine separates
advertisements and will rank particular advertisements based on how accurately
it applies to the searcher. The algorithm is programmed to process requests to
searchers based on keywords.
How
Does Google Determine Search Results?
Google
determines search results based on keywords used by advertisers as well their
CPC and ad ranking in relation to the requested search by the user.
How To
Get Your Google Ranking Up?
To increase Google ranking it is vital that your company make
advertisements and content that is search engine friendly. Search engines pick
up sites based on specific words or phrases- the best way to stay on the search
engine radar is through search engine optimization.
What Is
Search Engine Optimization?
Search
engine optimization is the act of
improving the visibility of your site or page within a search engine results
page through natural searches. This can be done by honing in on keywords within
the context of your content so that a search engine can find and display your
site faster and with more accuracy.
How
Does SEO Work?
SEO
tactics hone in on keywords
within the context of your content so that a search engine can find and display
your site faster and with more accuracy.
Google
Display Network Vs. Google Auction?
The
ad auction works very similarly, but is triggered by "placements" or
pages on Google AdSense where publishers made advertising
space available.
What Is
An Ad Group In Google AdWords?
An ad group is a series of keywords, ads, and bids
that are an essential part of how a Google AdWords account is organized.
How Do
Ad Groups Work?
An ad group consists of one or a few
advertisements, keywords, placements, or other methods used by advertisers to
target their product market. It is beneficial to create individual ad groups
for individual products.
What Is
Ad Relevance In AdWords?
Ad
relevance is a keyword status that measures how related your used keyword is to
your advertisements as well as how such keywords match the message of your ads.
What Is
A Conversion Optimizer In AdWords?
Guarantees
that your advertisements are displayed more frequently in situations where you
are likely to gain more conversions.
How
Does A Conversion Optimizer Work?
The
objective of a conversion
optimizer is to get you the most
conversions per product therefore the conversion optimizer uses algorithms to
anticipate which clicks will most likely benefit you- all in real time.
How
Does Conversion Optimizer Determine CPC?
A
conversion optimizer determines a higher CPC bid for more valuable clicks and a
lower CPC for clicks with little traffic. This information is abstracted from
data recorded in previous ad conversions or your ad's history.
Benefits
of Google AdWords
- No minimum buy
- Easy and fast creation
- Almost immediate implementation
- Pay only for clicks
- Bid for placement
- Set maximum cost per day
- Stop or pause campaign at any time
No minimum buy - Before options like AdWords and Overture
existed, buying a highly targeted ad or a keyword buy could cost thousands of
dollars. AdWords allows you spend whatever amount you want--no minimum. You can
run or test a campaign for $10 a day or less.
Easy and fast creation - Once you set up an account at Google, you
can begin to create ads whenever you want. Simply log in, name your campaign, and
enter the headline, short body copy, and destination link. Finally, you can
pick your keywords and phrases. Google's keyword selection tools help you to
identify alternate words and phrases and provide you with some data on how
frequently certain phases are searched.
Almost immediate
implementation - To give you a sense of how fast and easy
this can be done, I just paused in writing this newsletter and set up a key
phrase ad using the phrase "agency alliance." It took me less than 10 minutes to
set up. If you go to Google and search for "agency alliance" you will
see our ad in the right hand column. It began appearing within 20 minutes of
having set it up.
Pay only for clicks - When you view our ad, we pay nothing. If
you click our ad we pay for the click. Now don't get any crazy ideas like going
there and depleting our checking account by clicking all day. Google's system
protects against multiple clicks from the same user. It also sets a maximum
amount of cost per day.
Bid for placement - How much does a click cost? That depends on
what you're willing to bid and on how much you might have to bid based on the
key phrase popularity. If you list an obscure phrase such as "agency
alliance," you don't have to bid very much. A popular keyword like
"travel" can cost as much as $55 per click to bid for top placement!
When you bid on a term or phrase, you are telling Google the maximum you're
willing to pay for the click against others who have bid on that term. If the
next highest bidder is much less than your maximum bid, you will only pay
slightly more than the lower bid for top placement.
Set maximum cost per day - Additionally, you can cap your AdWords
campaign spending at a predefined amount per day. If you get a lot of activity,
you can tell Google not to display your ad after a certain amount has been
spent. Once this threshold has been reached, your ad will not display until the
following day.
Stop or pause campaign at
any time - If you want to make adjustments, you can
edit your ad at any time. You can also pause or stop a campaign at any time.
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