What is Google Adwords and what does it involve?
This article will reveal what you need to know about Google Adwords. Google Adwords may seem a bit confusing, but in a nutshell, it is Google's pay-per-click platform whose ads are displayed at the top and bottom of Google search results.
It generates approximately 20% of all clicks on a given search query (the percentage is an estimate and is not officially disclosed by Google) out of all results, both paid and organic.
AdWords is considered the most effective inbound marketing channel (inbound marketing).
Inbound marketing is when the user is searching for our product or service. Outbound marketing, on the other hand, is when we seek out the potential customer by sending letters, postcards, or advertising on social media channels.
Inbound marketing channels, in most cases, generate a higher return on investment than outbound marketing channels.
In Google AdWords, everything revolves around the search query. The Google user types what they are looking for – whether it's to buy something, find routes, countries, or blogs.
The advertiser creates a list of terms for which they are willing to display an ad copy and whose click will incur a cost – the so-called cost per click.
Most of the time, the search terms an advertiser targets signal purchase intent and start with the word “buy” and / or similar formulations.
The advertiser submits a list of terms. When someone types them into Google, the ad copy may be displayed and, when clicked, generates a cost.
Google matches the search query to keywords in the AdWords advertiser keyword pool. If a match is found, Google runs an algorithm designed to determine relevance and quality, also known as the keyword quality score, along with the bid placed by the advertiser.
As there is only space for up to four ads at the top of the search results and up to two below them, the algorithm will determine which 6 keywords have the highest Quality Score.
Google AdWords will place your corresponding text ads on the search results page accordingly.
Appearing first in Google searches
The user now has one option – or better yet, up to 17 options, 17 results on the first page for their search query. 4 ads at the top, followed by 10 organic results, followed by up to three additional text ads at the bottom of the search results page.
If Google considers the search query to have local intent, a map with up to three local results will be placed between the top ads and the ten organic results.
Although no official percentage has been disclosed, it is estimated that up to 20% of all Google users click on text ads, 35% on local results whenever present, and the remaining 45% click on one of the organic results.
Given the level of competitiveness in many industries, ranking among the ten organic results is often a time-consuming and intensive process. Google AdWords – the four text-based ads that appear alongside the results – provides an immediate solution, as the text ad can be ranked above them as soon as the campaigns are created.
The more you focus on writing a great ad text, the more clicks it will receive, which translates into a lower cost per click than expected.
When a user clicks on an ad, they are redirected to the advertiser's site and become a potential lead who may purchase the product or service the advertiser offers. When this happens, and if the cost of the clicks a user takes to make a purchase is lower than the product price minus the margin, the advertiser achieves a positive return on investment.
In other words, Google AdWords is an excellent channel for generating more traffic and attracting more users for all businesses, large and small. It is important to optimise Google AdWords campaigns to ensure a positive return on investment.
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