What is Google Ads: A Step By Step Updated Guide [2020]

Are you thinking about starting your own business from scratch? Or, do you already have a business, but it is not doing well in the competitive market? There must have been moments when you must have decided to quit, but maybe, all you need is a small act of genius to turn the fortunes of your company around!

There is a high probability that the problem lies in the marketing strategy of your business. It is vital to understand that no matter how good your products or services are, you will not be able to succeed if you don’t know how to sell them. In recent times, there have been drastic changes in the world of marketing. This is due to the rapidly increasing use of the internet, which has now become the best medium for advertising your businesses.

One of the platforms which have taken part in this change is Google Ads. Are you unaware of these ads? Well, if that is the case, you were probably living under a rock till now! Do you think that this category of ads is just an expensive service that has no advantages? That’s not right as these ads are used by thousands of businesses worldwide, of different sizes, to advertise their services. You must be having tons of questions regarding this advertisement technique at this time! Today, this article will try and answer all your questions regarding these remarkable ads!

 

WHAT IS GOOGLE ADS?

Previously known as Google AdWords, itis an online advertising platform developed by Google. It offers paid advertisements. Through such ads, you can put ads not only on the Google search engine but, ads can also be displayed on mobile applications, etc. To use this service, you have to create a Google Ads account first.

 

How Does Google Ads Work?

This advertisement service is primarily based on the concept of ‘keywords.’ Keywords are words or phrases to describe your product or services. They play an essential role in determining whether your ad will appear or not. Keywords are the most common words or phrases a user would write when searching for a specific thing. When the specific keyword is searched, it immediately shows relevant ads. When the user clicks on your ad, they are automatically directed to your website.

However, this process is not as straightforward as it looks. There may be plenty of advertisers who choose to market their services using the same keywords. In this case, an auction is activated. Every advertiser places a bid on specific keywords. Google enters your maximum bid and the related keyword in the auction automatically to determine where your ad will appear.

 

How Does The Google Ads Auction Work?

The auction is based on two factors, the maximum bid, and the quality score. The quality score is also a metric system used to determine the relevance of your ad to the user. The quality score is decided on the following components:

 

1.     Click-Through Rate (CTR)

CTR is calculated by dividing the number of times your ad gets a click by the total amount of times it was shown. For example, if your ad was clicked 20 times and was shown 100 times. The CTR will be 0.2 or 20%.

 

2.     Relevance

This refers to your ad is relevant to its search query and landing page.

 

3.     Overall Account History

This refers to your previous advertisements through your account. After all of these factors are considered, the rank of your ad is determined. The ad rank is determined by multiplying the maximum bid and the quality score. The higher your ad rank, the higher it will be positioned on the web. Having a good quality score has other benefits as well. Google provides you with a lower Cost Per Click (CPC), making this a very reasonable way of marketing.

 

How Much Does Google Ads Cost?

As far as making the required account is concerned, it is free of cost. However, after creating the account, you have to provide your bank account details to advertise your business or company. The ad cost is not fixed. It depends on your quality score and the other advertisers.

Your ad cost is calculated through the following method:

  • First of all, your quality score is calculated (explained earlier).
  • The ad rank of the advertiser under you is noted.
  • The ad rank of the advertiser under you is divided by your quality score.
  • $0.01 is added to the final result.

The average cost per add is between $1 and $2. However, some keywords are expensive, and their prices start from $50.

 

What is Google Ads (adwords)

Why Should You Consider Google Ads?

These incredible ads have many advantages which are why they are one of the best advertising services available on the internet:

 

1.    INCREASE IN CUSTOMERS

If you set up your ads in the best way possible, there is no doubt that your sales will increase. By using these advertisements, you can target the customers who want exactly what you are selling. In this way, you get to interact with serious buyers only.

 

2.    FLEXIBILITY AND COMPATIBILITY

Another significant advantage is that it is open for all sorts and sizes of businesses. In addition to this, you can customize your ad campaigns in such a way that it targets a specific audience. Furthermore, such ads are compatible with other advertising and marketing platforms. This is why your ads can also be displayed on mobile applications and other platforms like YouTube etc. If you think you will overspend, there is good news for you. You can set your budget, and the amount will be spent on your ads accordingly by Google.

 

3.    HIGHER PROFITS ON INVESTMENT

You only have to pay for the ads people click on. In this way, your expenditure does not go to waste. This helps you understand your audience better, and you can invest in more ads for your specified customers.

 

4.    TRANSPARENCY AND QUICK RESULTS

After your ads are put online, you immediately get the results, and they are easy to understand as well. This way, you can analyze your campaigns effectively. All the information is readily available like the number of ads clicked and their cost etc.

 

5.    SCOPE OF GOOGLE ADS

Google is probably one of the largest companies in the world right now. Its search engines are used by millions of people worldwide. This increases the traffic on your website, and if you have the budget to pay for it, it can do wonders for your business. This traffic will ultimately result in more customers and hence, more profit.

 

6.    MARKET EXPOSURE

This is an excellent feature for fresh people in business who are unaware of their respective markets. With Google Ads marketing strategy, you can explore the needs of your customers and mold your business accordingly. This is also a great learning platform for young businesses to learn from the best in the business!

 

ADDITIONAL SERVICES

For young users, there are some additional features:

  • Keyword Planner

This feature provides you with historical trends and statistics related to keywords to enable you to choose a suitable keyword for your business.

  • Google Ads Editor

This feature allows you to edit and customize your ads offline. It is a downloadable feature.

  • Google Ads Manager Accounts

This service allows you to manage multiple accounts using a single login and dashboard.

 

CONCLUSION

It can be said that Google Ads is one of the best advertising platforms on the internet. It provides multiple features for young people who want to try their luck with running a business. It is also a great way to target a specific audience! Not only is it easy to use, but it is beneficial and will surely turn the odds in your business’s favor!

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