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
many kinds of businesses, as long as they don't waste their money on the wrong
keywords, or write weak, low CTR ads.
How to advertise with Google AdWords
Businesses can advertise
on Google by opening a Google
AdWords account.
How does AdWords bidding work?
The actual position of your ad
is determined by your ad rank (Maximum Bid times Quality Score). 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; then you pay your maximum bid per click! AdWords bidding
heavily penalizes advertisers who bid with low quality scores. Conversely,
those with high Quality Scores get higher ad ranks and lower CPC.
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
the lowest possible prices and Google rakes in billions of dollars in revenue.
How does the 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 positions and
each advertiser's CPC.
How do you enter a Google auction?
Your ads are eligible to be
entered into an auction whenever you're bidding on keywords relevant to the
user's search query. Your bids, Quality Score, and relevance will come into
play in determining whether your ad qualifies to display on the SERP.
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 CPC?
CPC, or cost per click, is the
amount an advertiser pays each time someone clicks on their AdWords ad.
How does CPC work?
Your CPC is determined by the
competitiveness of your keywords, your maximum bids, and your Quality Scores.
Learn the most expensive keywords in Google AdWords.
What is average cost per click?
The average amount you spend
each time a searcher click on your advertisement.
What is Google Quality Score?
This is a metric Google uses
to determine how relevant and useful your ad is to the user, based primarily on
your ad's CTR, keyword relevance, and the quality of your landing page. The
higher your Quality Score, the better:
high Quality Score keywords will save you money and earn you better ad
rankings.
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.
What is Actual CPC?
Actual CPC is the amount an
advertiser pays each time a searcher clicks on their advertisement; this number
varies depending on the other advertisers in the auction and 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 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 are AdWords keywords?
Keywords in
AdWords are the words and phrases that advertisers
bid on, in hopes that their advertisements will appear on the search engine
results page (SERP) when people are searching for those products or services.
For example, if you sell shoes online, you might bid on keywords like
"Nike sneakers" and "penny loafers." Keyword research is
the process of using tools and data to determine which keywords are most likely
to drive relevant traffic to your ads and your site.
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 organic methods.
This can be done by using search keywords within your content so that a search
engine can find and display your site faster and with more accuracy. Site
authority and your link profile also play a role in your search engine
rankings.
How does the Google display network work?
The Google
Display Network or GDN is a very large network
of sites that allow Google to place display advertisements, which reach over
90% of all Internet users! Advertisers generally find that Display Network
clicks are less costly than those on the search network. And depending on your
targeting methods, the CTR's can be high and the CPA's low.
What is an ad group in Google AdWords? How do ad groups
work?
An ad
group is a container for your advertisements,
keywords, and landing pages. Google tends to reward advertisers who create
AdWords campaigns with tightly structured ad groups. It's important not to dump
all your keywords into the same ad group, but to organize your keywords into
themes.
What is ad relevance in AdWords?
Ad relevance is a measure of
how related the keyword you're bidding on is to your advertisements as well as
how much your keywords match the message of your ads and landing pages. Higher
ad and keyword relevance can improve your click-through rates and Quality
Scores.
How does Conversion Optimizer work?
Conversion
Optimizer in Google AdWords is a bid manipulation tool
that manages bids at the keyword-level with the goal of trying to drive as many
conversions at or below an advertiser-specified cost per conversion (also known
as Cost per Action, or CPA).
