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How Google Ads Works - The Complete Guide

As we know that Google ads are the part of online digital marketing. Google Ads are a form of online advertising that allows businesses to create ads that display on Google's search engine results pages and other websites across the web. Companies can use Google Ads to reach potential customers searching for products or services like theirs.

Google Ads

1. How do they work?

When someone searches on Google, they type keywords related to what they're looking for, called a search query. Google then looks at all the ads in its system and chooses which ones to show the person based on several factors, including:

  • The relevancy of the advertisement to the person's search query(keywords)
  • The person's location
  • The time of day
  • What type of device they're using?
  • Age
  • Gender
  • What kind of network do they use?

And many more factors that to whom show the ads.

2. How much do they cost?

Google Ads are auction-based, meaning businesses set a maximum amount they're willing to pay per click on their ad (their "bid"). 

There are three kinds of bids you can do for running your ads on top search engine result pages.

  • The first bid you can do is for coming on the first search engine result pages. This bid is less costly than other bids.
  • The second is for coming on top of the page in SERP.
  • The third one is for coming on top of the first search engine result pages. This is the costliest bid of than other two bids.

To run google ads, you need to be eligible to run ads. After that, where you want to show your ads on search engine result pages, you can decide based on the number of bids you want to do. You can choose Pay per click or cost per thousand impressions.

If your ad is chosen, it will appear on the search engine results page. When will someone click on your ad, they reach your website or landing page? You'll then be charged based on your chosen pricing model:

-Cost-per-click (CPC): You're charged based on the number of clicks your ad receives.

-Cost-per-thousand impressions (CPM): You're charged based on the number of times your ad is shown, regardless of whether it's clicked on.

There are a few other pricing models, but CPC and CPM are the most common.

3. What are the benefits of using Google Ads?

Google Ads can be an effective way to reach potential customers and grow your business.

Some of the benefits include:

  • Reach people when they're actively searching for what you offer: People use Google to search for products and services daily. Google ads can help you reach them when they're looking for your offer.
  • Target your ads to specific locations: You can target your ads to people in particular countries, regions, or cities or within a set distance from your business or store.
  • Control your budget: You can set a daily budget for your campaign and never over it. Plus, you can choose to pay only when people click on your ad.

You can run your ads on different platforms like YouTube, applications and the website, as well as on other platforms.

4. What are the types of Google Ads?

Types of Google Ads:

-Text ads: These are the simplest and most common types of ads. They consist of a headline (max 30 characters), two descriptions (max 90 characters each), and a URL.

You can also run only calls ads if you want people directly to come to you.

-Image ads can include images, logos, or product photos. You can use image ads on the Google Display Network to reach people while they're browsing websites, watching videos on YouTube, using mobile apps, or reading Gmail. Image ads are known as product listing ads and e-commerce ads as well.

-Video ads: You can create video ads to promote your business on YouTube and across the web. Video ads can appear before, during, or after other videos on YouTube or on websites that partner with YouTube.

-Display ads: display advertising is used to attract the audience on websites, social media or digital mediums. Display ads can be in the form of images, videos or banners. Generally, you can see banner ads or image ads on news channels' websites or the display of other digital media.

-Search ads: Search advertising is used in Internet marketing to display online ads on web pages that show search engine query results. Advertisements on websites with other published material can also be put using the same search-engine advertising services.

5. Creating an ad campaign

Creating a Google Ads campaign is quick and easy. Now create a Google account and a website to start.

  1. Create a google ads account
  2. Choose an ad campaign
  3. Select an ad group
  4. Select your keywords and ads
  5. Measuring the results of your campaign

When you create google ads, you should take care of three things.

  1. Don't use more than ten or fifteen keywords related to your ad group
  2. Always select different keywords for ads. Don't repeat any keyword in an ad group.
  3. Make two ads in every ad group that you have chosen.

When you create an ad campaign, you'll need to set a budget and choose a pricing model. You can decide to cost per click or thousand impressions (CPM). CPC means that you'll pay every time someone clicks on your ad, while CPM means that you'll pay whenever your ad is shown, regardless of whether it's connected.

Once your campaign runs, you can measure the results to see how well it performs. You can see insights like how many people have seen your ad, how many people have clicked on the ad, and how much money you've spent. This information can help you to optimize your campaign for better results.

6. How to use Google Ads

Let's see how you can use google ads for your business or to reach maximum people.

Let's see behind the scene at google ads.

90% of the work is about analyzing your customer and what they are searching for in the Google search engine? What should you know before running any google ads camping?

Two essential things decide how your ad camping will work.

  1. Buyers' persona
  2. Searcher intent/searchers mind activity

Before running google ads, let's take a brief on buyers' persona and how important it is.

Buyers' persona:

You need to know first whom you are targeting, who will see your ads or the people who will see your ads are the audience you are looking for.

To know this, you must make one google sheet on buyers' persona. On that, collect information regarding your customer, what kind of your customer should look.

What includes in buyers' persona?

Ø Age: what age of the customer is for your product or service

Ø Gender: is your product made for males or females? Based on that, you can target your audience.

Ø Education: is he a school student or a college student? Is he pursuing or doing any higher studies?

Ø Profession: what kind of profession does your target audience have? Your product or service is for homemakers, students, professionals, business people etc.

Ø Location: what is the location of your store, or how far from your site do you provide your service? Do you offer it offline or online?

Ø Interest: in which your customer is interested? They are interested in your product, service, or similar product.

Ø Pian points: for what they are looking for in the market, what gap can you see and solve.

Ø Salary: who can afford your product or service.

Ø channels: where your customer will search you and are you there or not. If you sell any product, your customer will search for you on Google, and if you are there, they can come to you.

Ø Device: from which device your customer will search you, or your ads should be made for mobile, laptop/pc, or tablet.

Ø social media: in which social media they are active and how much time they spend on social media.

Ø Influencers follow: whom they follow on social media.

Ø Time in a day: You should show your ads when your target audience will come online etc.

1. searchers mind activity:

By performing this activity, you will get to know the person searching for your product or service or they are looking for something else. That help in understanding what exactly the search query is about to show them ads will be beneficial or be a waste of your money.

For this activity, you need to download all keywords related to your product or service from the keyword planner in google ads. Then make a sheet of that all data.

What do you need to identify from keywords?

  • What is an average monthly search of a particular keyword?
  • Three months change on that same keyword?
  • Is the competition on that keyword high, medium or low?
  • What type of keyword is it transactional, informational and navigational?
  • The audience temperature is hot, warm or cold. If the audience is hot, they are ready to get your product or service.
  • Classification of the audience's intent, you can get to know what they are looking for by that keyword. If they are looking for what you provide, then showing your ads to that kind of people could your conversion.
  • Which types of resources do you have, or what kind of tools you can use to reach out to your audience.
  • Define what your monthly budget is.

Or, I Need to see what is an average COST PER CLICK or also need to see what is the click-through rate (CTR) is for that particular keyword. You can check that on google ads by using GET SEARCH VOLUME AND FORECASTS.

By performing both activities, you will know your target audience and what they search for in search engines. You will reach the right people at the right time.

That both things will define how much you will succeed.

Now you know which keywords you should choose and what people are searching on google related to your product or services. After this activity, only one thing left is launching your google ads. Now we'll see how to launch your google ads.

Follow this step for creating google ads camping.

  1. Go to the Google Ads website and create an account.
  2. Choose your campaign type.
  3. Select your goals.
  4. Set up your account and billing information.
  5. Create your first ad.
  6. Monitor and adjust your campaign as needed.
  7. Measure your results.

1. Go to the google ads website and create an account to run a campaign.

2. Choose your campaign type. There are three main types of campaigns: search, display, and video. Each has advantages and disadvantages, so choose the one that best fits your goals.

3. Select your goals. What do you want to get from the campaign? Do you want to increase brand awareness, generate leads, or drive sales? Selecting clear goals will help you create more effective ads.

4. Set up your account and billing information. This includes creating a payment method and setting up a billing address.

5. Creating your first Google Ads gives you much control over the look and feel of your ads, so take some time to experiment.

6. Monitor and adjust your campaign as needed. Keep your eye on the campaign's performance and make changes if you don't see the desired results.

7. Measure your results. Once your campaign is over, look at the results and see how you did. This will help you improve your campaigns in the future.

Google Ads can be the best way to promote your business and reach new customers. Following these steps can set up a successful campaign that meets your goals.

How the Google ads look.

Now we look forward to the quality score, ad rank, what you need to do if your ad is not ranking, and what are the causes that can happen? What is the formula for ad rank and the actual CPC?

A quality score is given to the keyword, and the quality score depends on your landing page and your ad; if your quality score is not well, then your ad will not rank in the first position at the top of the page.

Google Ads

If the quality score is terrible (<6), your ad will not rank first by increasing your bid amount.

So, you need to increase your quality score, which is on your hand, and the big question is, how would you know what your quality score is? What is your current quality score of that particular ad? So, you can see it on google ads.

Now the question is how to increase your quality score so that you can work on your landing page, ad copy, or keyword; the information you give must be genuine or relevant to your ad copy, landing page, or keyword.

By increasing your quality score, you can improve your maximum CPC amount if your ad is still not ranking at the top of the page.

But be sure in your mind that if your quality score is not good, your ad rank will not increase by increasing the bid amount. You can increase your bid amount only after having a good quality score (>6).

There is a formula for ad rank. If you want to check your ad rank, you can use this formula.

Ad rank= (quality score*maximum CPC) +impact of extensions.

How much money you'll pay depends on your competitor's ad rank, which you can't see, so one thing you can do is increase your quality score, and if your ad rank is on top, then you need to improve your bid amount.

If your ad rank on top, then by increasing your bid amount, your CPC will not have that much effect. The reason to increase your bid after ranking on top is to win an auction because it tacks place so many times, so if your bid amount is maximum, then you can win the auction and your ad rank on top because your actual CPC depends on your competitor and the formula for actual CPC is.

Actual CPC = Ad rank of your next competitor/ Your quality scores + 0.01 (this one is just for your understanding)

There can be a few cases of not ranking on top

  1. Your quality score is not good
  2. If your quality score is good and still not on top, your bid amount might be low.
  3. If both things are well, then your competitor might be in the same position where you are.

If the third case happens, Google will decide which ad will rank on top. For the first case, if you increase your bid amount rather than your quality score, then if traffic comes to your website and it will not be engaging and informative, your bounce rate will increase, and Google will not show your ad on top.

Tips you should use in your ad copy for maximum clicks on your ad?

  • When you write your ad copy, your landing page, keyword, and ad copy should direct your customer similarly. It should not seem like your ad copy is about something else and your keyword or landing page is about another thing.
  • It would be best if you mentioned PPE (PROOF PREVIEW EVIDENCE). It means the information you are mentioning in your ad copy does it have any proof like if you are saying 100% job placement, then you can mention 5000+ students placed that's call (PPE).
  • Intention solution, are you full filing your customer's intention? What your customer is looking are you providing the same or not? That is important if you are filling the customer's preference, then only people will click on your ad.
  • Straight talk, whatever you are giving should be explicit. It should not seem like you are saying something else and providing something else.
  • Mention numbers; people like the information in numbers, not words, because numbers will explain your work or talk straight and let people trust you.
  • Provide incentive and appreciating words or use emergency factors like get up to 30% discount on the first 50 people or only a few registrations are left etc.
  • Use CTA (CALL TO ACTION) if your customer wants information about you or to know about your work so they can take action for the same. You can mention like—free demo, download broacher etc.
  • You can use the extension on your ad copy; there are a few names of extensions like Site link extension, Image extension, Call out, Location extension, and App extension.

Strategy for ad writing

  • Make an Intention sheet about what your customer can search about your business or what your customer is searching for; for example, if you have a digital marketing agency, what is your customer looking for that you need to find? Are they looking for lead generation or brand awareness? That kind of factor you should discover and mention in your ad copy.
  • You can find your customer's query using google reviews, Answer the public, Quora or Reddit.
  • Find your competitors and analyze their ad copy, landing page or on what keyword they are running ads? You can check your competitor's ad copy using SEMrush or spyfu tools.
  • You should also need to find your customer's love story and what your customer is saying about your service or product? You can check by using google reviews, Quora, and social media platforms.

So, it's all about the ad copy strategy or how to write money-generating ad copy for your business. Now we'll see types of ad structures in google ads.

Types of ads structure

1. Simple text ad: - in simple text ads, google provides 1 Headline and two description boxes of 35 words per box, a final URL of 1024 words, or a Display URL of 35 comments.

2. Expandable ads: - here, google has updated ad structure in expandable Headline 1 or 2 and 1 description box of 80 words, display URL or final URL.

3. Updated expandable ads: - Headline 1, Headline 2, or Headline 3, 2 description boxes of 90 words and path URL or final URL.

4. Responsive search ads: - now, in responsive search ads, Google has introduced Headline 1, Headline 2 to Headline 15, 4 description boxes of 90 words, path URL, or display URL.

In responsive search ads, you can fix which description or headline will appear in ad copy, or google will show the headline or description on its own.

Now there is only one type of ad that exists: responsive ads. All other types of ads are no more. You can only use responsive search ads.

Conclusion

We hope you enjoyed this blog post on Google Ads. Google Ads can provide an incredible source of value if you take the time to get to know them.

We have provided a helpful guide that will make it easier for you to understand how Google Ads works. It's up to you to determine what you think is the best for your business!

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