How does Google Adwords work?

[Rokeya]

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You may well ask 'How does Google Adwords work?', so I thought I would put together a simple guide to take you through the essentials.

Google Adwords is the advertising system from Google.

If you have a website you may well already be 'paying per click' for relevant traffic. But Adwords has come a long way in the past few years, and with the world going mobile there are increasingly awesome solutions for small businesses to connect with customers.

Introduction
Google Adwords enables an individual or a business to access their target audience through Google Search, YouTube, or through partner channels. In other words, people 'search', your advert appears as an option in the Search results.



And for those who are super up-to-date with what we think is coming next – think about your video ads appearing on Android TV.

If people find your advert to be appealing, then they click and find themselves at your website. This in turn costs you for their 'click'.

But how do you know the keywords for which people are searching? Well, this is where the Google Keyword Planner becomes an invaluable resource.

What is Google Keyword Planner?
As you will see in this video, the Google Keyword Planner Google Adwords allows you to access 'how many people' are searching for 'what' keywords, 'where' in the world and on 'what' devices as well. In turn, this will enable you to work out whether there is an audience already available for your keywords, or if you would be better off looking at alternatives.

https://www.youtube.com/watch?v=bxREkVhzEkw

You will also see the level of competition on each one as well – i.e. how many people are paying to advertise on a keyword. This leads us onto how Google Adwords operates as an auction for keywords i.e. you 'bid' on the ones you want.

But before we do that, you will need to set up a Google Adwords account, so here is where you can do that: Create a Google Adwords account and this will guide you through the first steps of choosing your country, creating ads, pricing etc.

But note that everything in this article can still be read/watched will help you understand it all a lot better.

Google Adwords bidding
This is the central feature to Google Adwords  – people 'bid' an amount on a keyword. This idea is generally known as 'pay-per-click' advertising, or PPC.



You may think that the highest bid wins e.g. and then they get the highest position in Google Search results, but it is not that simple. As Google is very much founded on the principle of the more relevant results being delivered to the person searching, you will find that 'click-through-rates' (CTR) and 'Quality Scores' will determine the bid price vs. the position you gain in Google Search.

As such, if your ads sit at the top of Google Search because you paid the most, but no one clicks them as they don't relate to the adverts you've written, you may find you don't stay there for long.

Here is a more thorough overview of how this all works together and some tips as well: How does Google Adwords work?

The concept of 'click-through-rate', or CTR, is one of the main ones you will want to grasp.

Putting it simply, if your advert is shown 1000 times, and 25 people click on your ad then you advert has a CTR of 2.5%. If you trial different adverts you may well find certain ones have a higher CTR, and in is possible your cost per click will be reduced.

You may like to think of it a little like a sales funnel...

How how would you like to pay for a new customer?
Here is a model I have used for almost 15 years that you may find useful.
Obvious to some, but still useful to so many people out there!

If you have your advert shown 1000 times, 25 people click on the advert displayed, then you have 25 visitors to your website.
(or 'calls' on your phone e.g. direct from mobile)

Note: using Google Adwords you can have different adverts pointing at different pages on your site.

But what do you want to happen when people visit your site, and in particular, that page on your site? Do you want people to phone you, fill in an enquiry form, sign up for a newsletter, or even purchase straight away? The answer to this question will be determined by the sales funnel you have in place for this part of your business.

As such, you may like to consider...

What is the outcome you are seeking from that action?
This is the first question I have in mind whenever I am chatting with anyone about business about marketing or business.

It clarifies the intention behind an action and can save a lot of effort going in the wrong direction.


Source: www.plusyourbusiness