Introduction to Google Adwords

If you are starting a new business, then it is hard to beat others who have an organic reputation. Get the high rank from the first day is out of the question. Google gives you an opportunity to cross over in rank the people who settled from the years in the industry. By paying some amount of money, Google places you on top of the search results above your competitors, when you do it right.

This tutorial is written to explain the concept of Google Adwords and its related keywords. There are lots of articles available on the internet for Google Adwords, but they are so complicated. I tried to make this tutorial for beginners and easy to understand.

What is Google Adword?

If you are an internet user, then it is not a new thing for you. You have already seen and interacted with these ads for a long time, and you don’t think of them as ads. Google promoted companies for their marketing on account of the monitory cost. Google Adwords is a marketplace where companies pay for getting traffic that their website ranked high with the top search results. This search result is based on keywords. A keyword is a word or phrase that is searched by the user.

We can also say it is an online advertising service developed by Google. It helps marketers reach their customers instantly. When someone searches for a particular keyword like ‘JAVA,’ Google would throw a list of searches for you.

But if you pay attention to your search page, you will notice that the top and the bottom results are generally ads. As you can see in the following screenshot, I did a search for online courses for Java and Google shows me the top results of its advertisements.

How it works

To understand the working process of Google that how do Google know which ads are supposed to display to you. Google uses some keyword like-

  • Impression
  • Click
  • Cost per click (CPC)
  • Bidding

Impression

  1. An impression is counted as the number of time your ad is shown on the search result page or Google network’s other site.
  2. It counted as one if your ad appeared for the one time on Google or Google network.
  3. Sometimes, only a section of your ad may be shown like it may show only your business name and location.
  4. However, when someone searches by Google assistant, an impression can be counted for the following activity-
  • User starts to type then click anywhere on the page.
  • User clicks the search button or selects a predicted query from the drop-down menu.
  • The user stops typing and the results displayed at least three second
  1. Sometimes, you see the abbreviation ‘impr’ in your account. It shows the number of impression for your ads.

Click:

When someone clicks your ad, Google count that as a click. It appears as the blue headline of a text ad.

  • Sometimes a person doesn’t reach your website, but this is counted as one click because it is temporarily available. This results in a difference between the number of clicks and the number of visits for your site.
  • Clicks can help to understand how relevant your ad is to people who see it.
  • You will see the click-through rate (CTR) in your account statistics, which shows the ratio between clicks and impressions that means how many people see your ad and end up clicking on it. This metric helps you to gauge how attractive add is. It also gauges how closely it matches with keywords and other targeting settings.
  • A good CTR is relative to looks of advertisement. For increasing your clicks and CTR start by creating unique ad text and strong keywords.

Cost per click (CPC)

Each time a user clicks on your ad; your account is deducted by some amount. This amount is known as cost per click (CPC). The advertiser determines CPC. It is not a fixed amount. Some advertisers may be willing to pay more than others depending on the type of advertisement.                                                                          

Bidding-

Advertisers bid on some keywords. They identify the keywords they want to bid on how much they want to spend. They create a group of keywords that they want to pair with advertise. Since, it’s a close biding, so one advertiser doesn’t have any idea about other advertisers thus closed bidding maximize Google’s profit.  Google enters the keyword from advertisers account and searches for the maximum amount of bid and shows them in top of its search results.

Determination of Advertises

Google looks for two key factors to determine which ad is shown where. These two factors are-

  • Maximum Bid
  • Quality score

Using these two factors, Google determines Ad rank.

Ad Rank = cpc bid * Quality Score

The best AD RANK gets the best position. CPC bid is the minimum bid you specify your keyword.  Quality score is the metric to determine how relevant and useful your ad is to the user.
Ad Rank adword

MAX BID QUALITY SCORE AD RANK
ADVERTISER1 $4.00 10 40
ADVERTISER2 $5.00 5 25
ADVERTISER3 $6.00 3 18
ADVERTISER4 $7.00 2 14

In the above table, ADVERTISER4 has the highest CPC. Google’s auction gets run billions of time each month.

CPC is counted as

YOUR PRICE = THE AD RANK BELOW YOU / YOUR QUALITY SCORE + $0.01

 

Top 20 Keywords Categories

KEYWORDS CPC(IN $)
INSURANCE 54.91
LOANS 44.28
MORTGAGE 47.12
ATTORNEY 47.07
CREDIT 36.06
LAWYER 42.51
DONATE 42.02
DEGREE 40.61
HOSTING 31.91
CLAIM 45.51
CONFERENCE CALL 42.05
TRADING 33.19
SOFTWARE 35.29
RECOVERY 42.03
TRANSFER 29.86
GAS/ELECTRICITY 54.62
CLASSES 35.04
REHAB 33.59
TREATMENT 37.18
CORD BLOOD 27.80

Advantages of Google ads

  1. Adwords faster than SEO

SEO and Google AdWords both are used search engine marketing strategies for generating more traffic and lead. But, Google AdWords is well optimized than SEO so AdWords campaign can work much faster than SEO.

Here are some reasons-

  • One can focus multiple keywords at a time
  • We can turn the campaign on/off whenever we want
  • Ads which appear on the top get immediate visibility.
  • With AdWords, there is a better chance of driving more traffic instantly. It is more transparent, easy ads tracker.
  1. Increase brand awareness-

It is an efficient way to increase the awareness of a brand. Google in the partnership with Ipsos run a study across 12 verticals, right from automobiles to retail, it was discovered that search advertisement lifts the top of mind awareness.

  1. Reach more customers through their Gmail inbox-

Email marketing is one of the most used marketing strategies in every business so the Gmail ads can be helpful as well.

  1. Measure your performance consistently-

It is tough to measure the performance of offline marketing like newspaper, radio, television, etc. Google is also cheaper than these.  On the other hand, adword would tell you exactly about your advertisement campaign. You would know who clicked on your ad, how much traffic you have got from AdWords to your website, which keyword generated more traffic, etc.

  1. Target audience-

With the adword, you can target your audience who are interested in that field. . Most youths surf internet and spend a good time on it.

  1. ROI (Return of Invest)-

This is also one major advantage of adword that we get some return to invest by Google. Google paid us back for the traffic we get on our website.

Disadvantages of Adwords

Not any major disadvantages.

  • Daily budget- supposes you have the daily budget for advertisement is $10000.00. Your CPC for advertisement is $50.00, and your advertisement got hit by 2000 times then it will have cost for 50*2000=$100000.00 so this may misbalance your budget. For this Google provides daily budget limit but after limit exceeded your ad will disappear.

Types of ads

This table helps you to understand different types of ads in descriptive view. I covered ad type, type of biding, where the ad will appear and targeting in this table.

Different type of ads. Ad type biding where targeting
SEARCH NETWORK TEXT AD CPC SERP/GSP/WEBSITE PLACE/KEYWORD
DISPLAY NETWORK BANNER CPM/CPC/CPA GDPW/YOUTUBE/MAP PLACE/KEYWORD
VIDEO NETWORK VIDEO CPV YOUTUBE/GDPW PLACE/DEMOGRAPHIC
SHOPPING ADS TEXT/IMAGE CPA SERP PLACE/KEYWORD
MOBILE APP TEXT/IMAGE/VIDEO CPI SERP/GDPW/YOUTUBE/PS PLACE/KEYWORD

Structure Of Adwords

Following diagram will help you to understand the structure of AdWords.

Adwords Campaign

Suppose, I have an AdWords account named ‘TTAE,’ I want to advertise in two cities like Noida and Delhi, so my ad campaign will run in Noida and Delhi only. For Noida, my ad group is SEO and for Delhi is DMARKETING.  Now, I have to set a keyword that peoples search more and more. I can set a keyword for SEO group like “SEO training in Noida” or “SEO course in Noida” the same as for the DMARKETING.

Your first campaign

  • Go to google.com for signup to open an account. You have an account then login to your account.
  • Click create your first campaign
  • +campaign button
  • From the drop-down menu, select the campaign type. “Search network with display select” is mostly chosen.
  • Give a campaign name to your campaign in campaign setting option.
  • Choose given option in setting
  1. Location
  2. Language
  3. Bid strategy
  4. Budget
  5. Ad extensions
  • Click on save and continue
  • You can edit your campaign at any time.

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