A whopping 2.3 million Google searches are performed every second, and unsurprisingly enough, a large percentage of the results include Google ads. Google Ads are a highly efficacious way of attracting relevant traffic to a business’ website.
In this article, we discuss Google Ads (née Google AdWords) and how they work.
Google Ads: An Introduction
Google Ads, previously known as Google AdWords, is an advertising system launched by Google in 2000. It is where advertisers can bid on keywords to have their ads show up in Google’s search results. This is the most popular PPC (pay per click) worldwide and how Google earns most of its revenue.
According to the competitiveness of the keyword the advertiser is bidding for, as well as the keyword’s relevancy to the advertiser’s company, Google Ads may or may not end up being successful. Predominantly, Google’s Ads are very effective for numerous kinds of businesses – granted, they do not waste their funds on irrelevant keywords or write ineffective ads with low CTRs (Click Through Rates).
Google also provides display ads. These display ads are visible on the Google Display Network, which is a comprehensive group of third-party websites which have teamed up with Google and agreed to provide Google Ads. The Google Ads appearing on the Display Network can be in simple text, video, image, or rich media formats and can be targeted varyingly. This comprises banner and remarketing ads.
Google Ads and Keywords
The Google Ads auction emphasizes keywords. This is where advertisers select keywords relevant to their business offerings to target, ultimately, words that they assume people will most likely use for their products or service. After this process, they bid on these selected keywords, each bid predicated on how much they are ready to pay for a Google search engine user clicking on their ad.
This bid – coupled with a Quality Score that Google allocates based on the proposed ad’s quality – specifies which Google ads get to appear on the SERP (search engine results page). When the ads are clicked on, the advertiser has to pay a certain cost known as CPC (cost per click). The CPC is calculated via a formula that involves the Competitor AdRank being divided by the advertiser’s Quality Score and then added to .01.
Ad Relevance in Google Ads
Ad relevance is a measuring system of how relevant the keyword that the advertiser is bidding on is to their advertisement. It also defines how much an advertiser’s keywords match the context of their landing pages and ads. Higher ad relevance, as well as keyword relevance, improves an ad’s CTR and Quality Scores.
Google Ads Auctioning Process
Google Ads are determined through an auction system taking place each time a Google searcher searches up a keyword.
Advertisers are needed to optimize their bid amount along with their Quality Score for a chance to see their Google Ad appearing for related keywords. The higher a Quality Score goes in concurrence with the advertiser’s bid amount, the higher their ad positioning is. The Quality Score is usually affected by the below factors:
- The relevance of an ad is to its concurrent landing page.
- The relevance of an ad to the search input.
- The relevance of the keyword to the advertiser’s ad group.
- The overall CTR of the ad and the ad group it belongs in.
- The general historical account performance.
Google Ads: Quality Scores
As defined by Google itself, a Quality Score is an estimated grading of the quality of an advertiser’s ads, their landing pages, and relevant keywords.
Google assigns numerical values, starting at one and ending at 10, to each keyword, and that impacts how much the advertiser has to pay for each click they receive on their ads.
The higher the Quality Score ends up being, the lower the costs are, i.e., lower CPCs and improved ROI (return on investment). High-Quality Scores also cause the ads to appear more often, ranking better on the SERP. This leads to more clicks and conversions; advertisers, as a result, are not forced to raise their bids.
A Quality Score also determines the ranking of an ad, and that is essential for advertisers wanting their ad campaigns to run successfully. Without this score, advertisers using all kinds of irrelevant keywords could rank high in Google search results just by raising their CPCs. If Google were to allow such an occurrence, low-quality, spam-like ads could start appearing, adversely affecting how Google earns its money.
The Costs Associated with Google Ads
How much Google Ads cost depends on numerous factors, these include:
- The competitiveness of an advertiser’s keywords concerning their industry.
- Their geographic location.
- The overall quality of their advertising campaigns.
The average CPC for Google Ads within all industries is $2.32, but it is much lower in some countries.
Why is Aged Google Ad Accounts More Beneficial?
Right after setting up a Google Ads account, it is normal for its full potential to not instantly show, as obtaining a high PPC is a longer process than one might expect. The process of setting up a substantial structure, growing keyword lists, determining negatives, and assessing ads and their landing pages, is a long one.
The account might begin by having poor Quality Scores, which hurt the advertiser’s CPCs and their average position in the Google searches. The Quality Scores start to see improvements once the Google Ads Account appears more credible and proves that it exists to offer an overall positive user experience. This can usually take as long as four to six weeks in total.
For letting ads be shown, let alone ranking high in relevant searches, Google needs some historical data. That particular data is only found in older or aged Google Ads accounts. Furthermore, a newly made account takes time to be approved. Before that can take place, the account is considered unreliable. Aged Google Ads accounts are bound to have a much better reputation compared to completely new ones.