A Primer on Google AdWords—What it is and Why it Works

When you Google something, you know those ads that appear down the right hand side of the page? Do you ever wonder how they got there, and why they always happen to relate to whatever search term you’ve entered? That is the magic of Google AdWords.

Technically Speaking

Google AdWords defines itself as, “an automated auction.” Basically, Google AdWords works by linking keywords used in search terms to keywords used in ads you create. This means your ad can appear next to the results when someone performs a search containing your specific keyword. To get a bit more technical, Google AdWords is a CPC (cost per click) advertising platform. This means you pay each time someone clicks on your ad.

Getting Started

The Google AdWords website has several tools to help you get started, including a comprehensive beginner’s guide as well as a 19-step checklist to help make sure you are getting the most out of Google AdWords.

Once you have created an account, the next step is creating a campaign. Creating a campaign has three aspects – campaign settings, the ad itself, and keywords:

• Campaign settings. These settings allow you to choose the language your ad will be in as well as the location your ad will be targeting. You can also choose whether your ad will run in Google’s search results or in Google partner sites as well. Additionally, the campaign settings are where you are able to decide on a daily budget for your campaign as well as your maximum CPC bid – the maximum amount you pay when someone clicks on your ad.
• Ads. Google AdWords formats ads with a headline, two lines of descriptive text, and a display URL. This URL determines where your potential customer will land when your ad is clicked on.
• Keywords. Keywords are the crux of your ad. They are the words and phrases someone would use to search Google for your particular product or service. Your keywords will determine which searches cause your ad to appear, so choosing the right keywords is crucial.

Quality and Cost

Google AdWords allows you to control your budget. You can either set a daily budget, or you can choose the CPC bidding option. With a daily budget, you can choose how much you are willing to spend on your campaign each day. However, the smaller your budget, the fewer times your ad will appear. With the CPC option, your bid helps determine your ad’s position on the page. Usually the higher your bid, the higher your ad’s position will be.

The quality and relevance – usefulness – of your ad, its keywords, and the website your URL leads to is critical. Ads are given a Quality Score, which is a measure of relevance of your ad, keywords, and website. In addition to your bid, your ad’s Quality Score plays a part in determining your ad’s position on the page. Generally, the higher the Quality Score, the less you will pay for a higher position.

Need Help?

While it is certainly possible for a business owner to successfully utilize Google AdWords, the service works best when you’ve got a significant amount of time to invest using and fine tuning it. That’s where a Certified Google AdWords Provider comes in. If you have any questions or need help with setting up or maintaining a Google AdWords account, please contact us in the comments section below.