Google Ads (AdWords) explained

Google Ads, previously known as Google AdWords, is an online advertising platform that allows advertisers to display ads across various channels, including Google search results, websites, YouTube and mobile apps.

Google Ads enables businesses to reach potential customers precisely when they are searching for products or services relevant to their offerings.

The ads can be managed via an easy to navigate admin console.

The platform is based on a pay-per-click (PPC) model, meaning advertisers pay only when someone clicks on their ad.

Google Ads operates on an live auction based system where advertisers bid for keywords. The ‘ad rank’ is determined by a calculation of the bid amount, ad quality and expected impact.

Google Ads operates primarily through two networks

Google Search Network: Displays ads to users searching for specific keywords that match the advertisers ad configuration.

Google Display Network: Shows ads on a vast network of websites that partner with Google.

Ad Formats

Search Ads: Ads appear at the top or bottom of Google Search Engine Results Pages (SERPs) when users search for specific keywords.

Shopping Ads: A Product-focused ads that display directly in search results, showcasing product images, prices and links to the seller's site. Advertisers can set up automated product feeds from their ecommerce store directly into Google Merchant Center to advertise their products.

Performance Max Campaigns: A Utilises automation and machine learning to optimise ad placements across all Google properties. This can also include shopping ads.

Smart Campaigns: A Smart campaigns have AI-powered features to help advertisers manage their ads with minimal effort. Only a small component can be optimised manually.

Display Ads: A Visual ads appear across Google's vast Display Network, which includes websites, apps and YouTube.

Video Ads: A Video-based ads run on YouTube and other video partner sites.

App Ads: A Promotes mobile apps through ads that appear on Google Play, search results, YouTube and within other apps.

Auction System

Google Ads function on a pay-per-click (PPC) model, meaning advertisers bid on keywords relevant to their business. The cost is based on user interactions with the ads, such as clicks or views. Advertisers set a maximum bid they are willing to pay for each click, actual costs can vary based on competition and other factors. Advertisers can also set a daily budget they are willing to spend.

Highly competitive keywords with many advertisers bidding for them tend to have higher cost per clicks than niche or less competitive keywords / phrases which usually cost less.

Quality Score

The Quality Score is a metric (1 to 10) that reflects the relevance and quality of your ad. It’s based on:

CTR (Click-Through Rate): How often people click your ad after seeing it.

Ad Relevance: How well your ad matches the user’s search query.

Landing Page Experience: The quality and relevance of the page users land on after clicking your ad.

Targeting Options

Keyword Targeting: Advertisers choose keywords related to their business. When users search for these keywords, the ads may appear.

Demographic, Targeting: Additionally, ads can be tailored to specific demographics (eg: age, gender, household income), locations, devices, user behaviors (previous website visits) and more.

Retargeting

Google Ads retargeting, also known as remarketing, is a powerful advertising technique that allows businesses to re-engage users who have previously interacted with their website or mobile app.

For example dynamic remarketing (personalisation) can show ads featuring specific products or services that users previously viewed on a website.

Performance Measurement

The Google Ads platform provides advanced tools for tracking ad performance and conversions, allowing businesses to analyse the effectiveness of their campaigns and optimise them for better results. Advertisers can adjust their strategies based on real-time data of user engagement and conversion rates.

Measuring and optimising campaigns on an ongoing basis is important to ensure a positive return on investment.

Conclusion

Google Ads is a comprehensive advertising solution that leverages Google's extensive reach to help businesses connect with potential customers effectively through targeted advertising across multiple formats and platforms.

If you’re interested in running Google Ads or reviewing and optimising your existing ads, feel free to reach out to one of our experts.