What is Google Ads?
Google Ads is an online platform for advertisement on Google Networks. Google Networks are divided into two groups mainly Search Network and Display Network.
Search Network includes Search Engine, Maps, Shopping, and websites that partner with google to show ads.
Display Network includes YouTube, Blogger, Gmail, plus thousands of partnering websites across the internet.
Google Ads is a paid form of online advertisement.
Why Google Ads is Important?
- More than 8.5 billion search queries are received on Google search engine every day.
- As per Google, advertisers make $8 for every $1 spent on Google Ads.
- Google Ads can help in reaching audience who are interested in products and services that you offer.
- Google Ads creates awareness, increases traffic to your website, receive more phone calls and increase in-store visits.
It also helps in analyzing and improving the performance of your ads for achieving business goals.
Hence, Google ads is the best platform to reach people who matter for your business.
How Google Ads Work?
Google Ads is a paid form of advertisement that can be used to promote or sell your products and services on internet. It helps you in reaching your target audience with ease.
In order to know how Google Ads work, we need to be familiar with below terms –
Keywords are words or phrases that people search on internet to find what they want. Usually people search on search engines when there is an immediate requirement or when something is required in future.
In order to promote or sell your products or services you need to research on keywords and target keywords based on what people are searching for.
When someone clicks on your Google ad it represents a Click. More clicks on your ad mean more people landing on your website (traffic) or more purchases/downloads/contacts (conversions).
When someone views your ad on google ad network like Search Engine, YouTube et cetra it represents an impression.
Difference between impression and click is that when someone sees your ad its called impression while someone clicking on the ad would be considered as a click.
Average Cost Per Click (Avg. CPC) is the amount you spend for certain number of clicks.
Formula: Avg. CPC = Total Cost of your Clicks/Total Number of Clicks.
Example: Avg. CPC = $500 cost of your clicks /100 Number of clicks
Avg. CPC = $5
Amount you spend on an advertisement.
Conversions is the number of conversion you receive after ad engagement. For example a contact form submission or a call on your number can be considered as conversions.
Conversions help to identify if the ad has delivered as per your desired goals. It shows how visitors have converted to leads (form submissions) or have converted to customers (purchases on your website).
Cost per Conversion
Cost per Conversion is the total cost an advertiser incurs for acquiring a customer.
Formula: Cost per Conversion = Total cost on ad/Total number of conversions
Example: Cost per Conversion = $1000 spent on ad/ 20 number of conversions.
= $50 per conversion.
Conversion rate is the total number of conversion divided by total number of ad engagement.
Example: Conversion Rate = 80 number of conversion/1000 clicks on the ad
Conversion Rate = 8%.
Landing Page is the website page on which your visitors arrive after clicking your ad link. You have to make sure that the landing page is fast to load, user friendly and is relevant to your advertisement.
Landing page is considered to be the most important page for receiving a good quality score and a higher Ad Rank in ad placements.
Bid is the price you are ready to pay to Google for impressions or engagements with your audience.
Optimal bidding strategy in auctions can help advertiser to gain higher ad rank as compared to their competitors.
Click Through Rate (CTR)
CTR measures how often people click your ad after its shown to them.
If you have 10 clicks on your ad and 100 impressions (ad shown to people) this will give you a CTR of 10% i.e Clicks divided by Impressions 10/100 *100= 10%
Quality Score refers to how relevant your ads (Click Through Rate -CTR), keywords and landing pages are to the people who see it.
Higher the quality score lower the cost and better the ad positioning. Quality Score determines your AdRank.
Ad Rank is the multiple of your maximum bid to your Quality Score. It determines your ad placement. Higher the score better the placement.
Better ad placement will create visibility and conversion opportunities.
Type of Google Ads Campaigns?
There are 7 different types of Google Ads Campaigns mainly Search, Display, Video, Shopping, App, Local and Smart.
Search Campaigns are text based ads that are shown to audience who are searching for products and services that you offer. Text based ads help in driving Sales, Leads and Traffic to your website.
Display Campaigns are created by combination of text, images and urls into one ad for brand awareness, reach, and sales. These ads are displayed on YouTube, Apps, Gmail, Blogger and other partner websites.
Video Campaigns are video based ads that are run on YouTube and other partner websites. These ads help in awareness, reach and sales.
Shopping Campaigns are ads showing product images, prices and product features to audience on search results. These ad campaigns help in creating awareness about a product or service , local store and their inventory discounts, and generating sales and leads.
App Campaigns are App based ads shown on search, display, Play Store, YouTube and Partner websites. These ads are shown to increase awareness, drive installations and Increase sales through in app purchases.
Local Campaigns help in driving footfalls to your stores or venue and promote your products. These ads are shown on search, display, maps, and YouTube under one campaign.
Smart Campaign are easiest way to run a campaign on Google and associated networks. You need to enter your business information and create a few ads. Google automates these ads and finds the best targets to reach. These ads save time and money, generates leads and drives sales for the business.
You can select any campaign based on your business goals for promotion of your product and services on Google and associated networks.
So now we know What is Google Ads? Why Google Ads is important? How Google Ads work? and the Types of Google Ads Campaigns?
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