How Do Google Ads Work?

How Do Google Ads Work?

The first question would be – do Google Ads Work well enough for businesses to allocate a substantial amount of advertising dollars to this space. The answer is an emphatic yes. But let us get back to how Google works.

Online Advertising

At any given day in an area in Australia, there are companies that want to sell goods and/or services to their customers. Because online search has become so accurate and dominant, it is the best place for small businesses to advertise.

The bulk of advertising goes through Google Search Ads. A group of advertisers target certain keywords through auction bidding relating to keywords/phrases that potential customers may type into browsers. The keywords are connected to Google Advertisements (written by the advertiser), which may be shown if your Ad Rank is deemed to be high enough. Below is an example of top four ads for a “pest control Sydney” search.

First page Ad positions on Google searches are crucial. In a competitive keyword auction you may find seven advertisements on page one. Ad one to four at the top and five to seven at the bottom of the page.

Ad Rank Factors

Ad Rank = Maximum Auction Bid x Keyword Quality Score

The maximum bid is set by advertisers, who may have hundreds or thousands of keywords and search phrase combinations that they target. The targeting takes place in the context of having a set daily budget for all keywords.

Keyword quality score is determined by three factors:

  1. Ad Relevance – the keyword search trigger (what a potential customer typed in) may be
    “wool carpet cleaning professional”. The ad created by the advertiser must match the
    keyword search in the ad heading to get an Above Average rating.
  2. Landing Page Experience – relevance to the ad and keyword is crucial. If the landing page is a homepage with little or no reference to “wool carpet cleaning”, bounce rates may be higher, unresponsive browsing experiences are detected, you may get a Below Average rating.
  3. CTR – Click Through Rates is the relationship between the number of visitors that looked at a page that you advertise on, and the number of visitors that clicked on your advert. Well-positioned ads with compelling content will tend to receive an Above Average rating.

If you are able to achieve Above Average ratings in all three factors, a 10/10 Quality score is the result.

TOP QUALITY KEYWORD SCORES MAKE YOUR DAILY BUDGET GO MUCH FURTHER.

Let’s have a look at an example:

Company 1

  • Max Keyword Bid
  • $3.00
  • Quality Score 10
  • Ad Rank 30
  • Ad Position 1

Company 2

  • Max Keyword Bid
  • $4.00
  • Quality Score 7
  • Ad Rank 28
  • Ad Position 2

Company 3

  • Max Keyword Bid
  • $5.00
  • Quality Score 5
  • Ad Rank 25
  • Ad Position 3

Company 4

  • Max Keyword Bid
  • $6.00
  • Quality Score 3
  • Ad Rank 18
  • Ad Position 4

Even though Company 1 bids less, they had a couple of secret weapons up their sleeve. Superior AdWords Management and a great mobile optimised interactive website will save you money for the duration of your Google Ad campaign. Not only is Company 1 bidding less, but they also outrank the competition. Their limited budget will also stretch further.

Tradie Clicks builds premium Google Ad campaigns with the objective to obtain a consistent High-Quality Score across a very wide number of keyword searches. This focus quite often makes our campaigns perform better at a lower overall cost to our advertisers.

Online References:
https://www.wordstream.com/articles/what-is-google-adwords
https://ads.google.com/intl/en_au/home/how-it-works/

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