So what is Google Adwords Exactly?
Google AdWords is Google’s auction-based online advertising service. Google AdWords is a cost-per-click (CPC) or pay-per-click (PPC) method of advertising in which you only pay when your advertising is working. There is no fee for displaying your ads on search results pages. You are charged only when someone clicks your ads to visit your website.
With Google AdWords, you can place your ads on Google or its partner websites. You can set your budget according to your comfort and evaluate the impact of your ad. You can start with a limited budget and stop or pause any time you want. There is no restriction on your spending commitment.
When people search for the keywords related to your products or services, your ads appear on the search results pages. It provides a marketplace to the online advertisers for positioning their ads on Google’s Search Engine Results Pages (SERPs). It helps you to reach new customers and expand your business.
It is a simple process to start advertising with Google AdWords. You can setup your account and initiate your advertising campaign. It is free to sign up on Google AdWords. Now, you can sign in to create your ad campaign by submitting billing information. You can also preview your ads to check statistics of your ad’s performance.
The working procedure of Google AdWords is based on some building blocks such as:
- Ad Rank
- Quality Score
Keywords are the words or phrases that people use to search for your products or services. Keywords trigger your ads to show on search results pages. Relevant keywords increase the probability that your ad is displaying to the potential visitors and enhance your ad’s performance.
You can control the placement of your ad on Google or other sites. You can bid for specific placement. The order of ads on search results pages is based on the rank of the ads. Ad rank can be determined by these factors:
Quality Score * Bid = Ad rank
Bid management is very important to increasing your ad rank. You can customize your bid according to your budget and relevancy of keywords. The quality score of any keyword describes the quality of your ad and relevancy of your landing page. A high quality score means low cost and high ad rank.
When a user searches for a query, Google processes the request and executes an auction for every keyword that determines which ads will display for that specific search and in which order. The auction runs many times, and users find relevant results. It helps advertisers to reach potential customers at the lowest possible price.
Goals and expectations
Before getting started with Adwords, there are a few questions that you need to ask:
Is Adwords right for my business?
Despite Adwords’ many advantages over other advertising mediums, it’s not the best way of acquiring customers for all businesses. Some common scenarios where Adwords tends to be less effective include when:
- You’re advertising a product or service that the target market is unaware of (and therefore isn’t searching for online).
- You’re advertising to a very, very targeted niche market where it isn’t possible to target this market exclusively based on keywords (you’ll likely end up blowing your budget on clicks from non-qualified prospects who are not your target customer). This is particularly common in unusual niche B2B markets. However for common niches like “how to make money online, forex trading, health and fitness, dieting, affiliate marketing, internet marketing, pets and animals” you will find plenty of opportunity.However if your market is too competitive (and therefore expensive). If you’re paying $10 every time someone clicks on one of your ads, you’re going to want to be selling a high-value, high-margin product or service and be very confident about your conversion rate. In some industries like web design, Adwords is just too expensive to be cost-effective for most businesses.
- You have a horrible website.Conversely Adwords can work exceptionally well when everything is right. I have worked with clients who have achieved a return on investment (ROI) of over 1000% using Adwords (for every dollar spent on advertising, $10 comes back to the business in revenue).
What are my goals?
It sounds simple, but so many businesses start advertising without taking the time beforehand to determine what their goals are. Once you’ve set clear, well-defined goals, you’ll be much better able to make decisions based on the performance of your advertising relative to these goals.
For an offline business, your goal might be to generate 50 new leads per month, at a cost of less than $500 ($10 cost per lead). For an ecommerce business, your goal might be to generate an additional $10,000 in revenue per month at an ROI of at least 350%.
Do I have a good website that has been designed to achieve these goals?
It doesn’t matter how well-managed your Adwords account is, if you’re sending visitors to a website that hasn’t been designed with your business goals in mind, your advertising is unlikely to be profitable.
Common problems with many businesses’ websites include the absence of a clear value proposition (an explanation of why a prospective customer should buy your product or service), the absence of a clear call to action (the desired next step that you would like a visitor on your website to take) or too many calls to action.
A good online advertising/marketing consultant will be able to tell you if your website has been well designed to achieve your business goals.
Can I commit to Adwords advertising?
One of the biggest advantages of Adwords as an advertising medium is that it allows you to get started very quickly and with very little initial investment. However, this often leads new advertisers to decide that “Adwords doesn’t work” after only a week of advertising because they’re not getting the results that they hoped for. Regardless of your budget (which we’ll be discussing later), you should commit to using Adwords for at least three months before deciding whether it’s right for your business.
The overall process of Google AdWords advertising helps you promote your business and improves your brand awareness. It maximizes your Return on Investment. It is measurable, accountable and flexible to use. You can reach the right people at the right time by using Google AdWords campaign. It provides you the highest targeted capabilities and maximum relevancy.