What Is Google Ads? (And How Does It Work?)

Did you know that over 80% of companies use Google Ads for their pay-per-click (PPC) advertising campaigns?

Google Ads, formerly known as Google AdWords, is one of the most popular advertising platforms you can use to reach qualified leads as they’re searching for products or services related to your business.

But what is Google Ads?

Keep reading to get answers to question like:

• What is Google Ads?
• What types of Google Ads are there?
• Why should I use Google Ads?
• How does Google Ads work?
• How much does Google Ads cost?
• What are some tips for running Google ads?

Let’s dive in!

What is Google Ads?

Google Ads is an online advertising platform that enables you to promote your products or services on Google, its partner websites, and YouTube. These ads typically operate on a bidding system. You set a bid amount and Google determines your placement based on your bid and other factors, like AdRank.

Types of Google Ads

As we mentioned prior, Google Ads can appear in numerous places across the web.

Let’s look at the different types of Google Ads you can run:

Google search ads

Google search ads appear at the top of search engines when people conduct a relevant search.

They’re tagged with the word “sponsored,” so people know it’s paid content.

Google Display ads

These ads appear on websites within the Google Display Network, which means they appear across different sites online. Google Display ads tend to be more visual and usually include some text and an image or video.

Google Shopping ads

Google Shopping ads appear in search results when people look for specific products. They don’t require keyword targeting, but rather, focus on you providing a detailed overview of your products and Google matches them to search results based on that information.

YouTube ads

The last type of Google Ad you can run is a YouTube ad.

These ads can appear before, during, or after videos, as well as a banner within a video or on the sidebar.

Why should I use Google Ads?

So, what’s the benefit of using Google Ads for your PPC campaigns? Here are some reasons why you should use Google Ads to advertise your business:

Expansive reach

When people need to find products, services, or information, they’re turning to Google. There are over 84 billion monthly visits to Google.

Most people rely on this search engine to find what they need.

As a result, if you’re advertising through Google Ads, you’re more likely to reach people who want your products or services because they’re already searching for them on Google.

Precise targeting

So, not only do you have the ability to reach interested leads, but you can use precise targeting to put your ads in front of the most qualified ones. You can target your ads by keywords, but you can refine your targeting even further through demographics, location, and interests.

So if you’re looking to target millennial women who love dogs and live in Philadelphia, you can get that granular with your targeting.

Cost-effective

Google advertising is often deemed one of the best strategies because it’s cost-effective. The main pricing model for Google advertisements is a pay-per-click model, which means you only pay when someone clicks on your ad — you only pay for leads interested in what you offer.

Additionally, Google allows you to continually adjust your bid amount based on performance, so you can get more with your advertising budget.

Measurable results

When you run Google ads, you can track them as soon as you launch them.

The Google Ads platform enables you to track metrics like clicks, click-through rate (CTR), and conversions to see how your ads perform.

Since Google Ads are easy to measure and track, they’re a great strategy to use for beginner and expert advertisers alike.

Learn More: SEO vs Google Ads: Which Should I Use?

How does Google Ads work?

If you’re looking for a quick review of how Google Ads works, here’s a step-by-step breakdown of how the advertising process works:

1. An advertiser creates an ad campaign, ad group, and individual ads
2. The advertiser sets its targeting options, like keywords, location, and more
3. The advertiser places a bid — or how much they’re willing to pay for someone to click on the ad
4. Google Ads grades the advertiser’s ads and gives them an Ad Rank
5. The ad auction launches when triggered, like by a search that features a targeted keyword
6. Google uses the bids and Ad Rank of eligible ads to determine the winner
7. Google delivers the winning ad

How does the Google Ads auction work?

The Google Ads auction depends on three factors:

1. Your bid: Google Ads isn’t a pay-to-win platform. However, your bid does influence your performance in the ad auction. Depending on your bid, your company could win or lose.

   Place realistic bids, versus exorbitant ones, for the best performance and return on investment (ROI).

2. Your Quality Score: Your Quality Score (which ranges from 1-10) summarizes the value, relevance, and past performance of your ads, keywords, and landing pages. A high Quality Score can lead to lower ad costs, as well as better positions across ad networks. Keep in mind, your Quality Score is not the same as your Google Ads optimization score.
3. Your Ad Rank: Google Ad Rank is determined based on what ads are eligible to show and how they’re ranked among other eligible ads for the same keyword or query. This Ad Rank score is based on a number of factors, like your bid amount, quality of ad and landing page, context of the search, and more.
4. Your ad extensions: Using ad extensions can improve your ad’s performance, like by offering users a phone number for contacting your team. Adding value to your ad can improve your chances of winning the ad auction. You can add extensions when creating your ads.

How much does Google Ads cost?

What you pay for Google Ads depends on a lot of different factors. Here’s an overview of what average businesses pay:

• 61% of businesses pay $0.11 – $0.50 per click on their Google search ads
• 44% of businesses budget $100 – $10,000 per month for their Google ads
• 37% of businesses pay $0.11 – $0.50 per click on the Google Display Network

Every business is different, and factors like your industry, product, and audience can influence how much you’ll invest into Google Ads each month.

5 quick tips for nailing your Google Ads

Now that you have answers to questions like “What is Google Ads?” and “How does Google Ads work,” you’re ready to launch your first campaign. Here are five quick tips to help you see success with your Google advertising campaigns:

1. Don’t limit yourself to one platform: You aren’t restricted to running Google Ads on the search engine. Try the different options Google has available, like YouTube and Shopping ads, to see what works best for your business.
2. Build the quality of your ads: Having high quality ads is key to winning auctions and earning clicks. Make sure your copy is informative, helpful, and relevant, and that any visuals you use are high-quality, clear, and eye-catching.
3. Refine your targeting: Whether you opt to target by keywords or demographics, don’t be afraid to refine your targeting if your ads aren’t driving the best results. You can always adjust the keywords, audience, or locations you target to improve your ad performance.
4.  Use negative keywords: As you run your search ads, take note of keywords your ads appearing for but that aren’t relevant. You can implement negative keywords to avoid your ads appearing for these queries and keep you from wasting your budget.
5. Customize your landing pages: Once people click on your ads, you want to keep them engaged. Creating a custom landing page tailored to your ad’s content will help you capture more qualified leads interested in what you offer.

Explore: 6 Google Ads Hacks to Optimize Your ROI

What is Google Ads? Your key to qualified leads

Are you ready to earn qualified leads that turn into revenue for your business? With Google Ads, you can put your advertisements in front of people most interested in what you offer.

If you’re feeling overwhelmed with trying to tackle Google Ads, you don’t have to do it on your own.

WebFX is a full-service digital marketing agency that offers PPC services to help you advertise your business. From creating your ad copy to your custom landing page design, we can handle it all for you.

All you’ll have to do is handle the new influx of customers.

Ready to start your revenue marketing journey? Contact us online or call us today at 888-601-5359 to speak with a strategist about our PPC services!