What Are Google Ads & How Do They Work?

Author : Hardeep Singh
December 24, 2024

Every second, 63,000 searches are made on Google, translating to 5.6 billion searches per day and approximately 2 trillion global searches per year and the majority of search results pages include Google advertisements. Paid by businesses, Google advertising may be a very effective way of sending crucial, qualified traffic to your site precisely when people are seeking the types of products or services your business offers.

This post will explain what Google Ads are, how they function, and why you should run your own Google Ads.

What is Google Ads (formerly known as AdWords)?

Google offers sponsored notifications that appear in list items on google.com via Google Ads or advertisements that appear on many sites via the Display Network and Google’s AdSense programme.

The image below depicts a Google web search tool results page (SERP). An “Advertisement” mark denotes the supported results or promotions. There are two sections of paid Google advertisements: one above the “natural” or organic outcomes and one below the results page.

Google Ads at the top of the SERP:

Credits: www.wordstream.com

Google Ads at the bottom of the SERP:

Credits: www.wordstream.com

Google also provides Display Ads, which appear on the Google Display Network. The Display Network is a diverse collection of third-party websites that have collaborated with Google and agreed to run Google advertisements. Google Display Network adverts can be in text, image, video, or rich media design, and can be targeted in an unexpected way, this includes remarketing advertisement.

How Do Google Ads Appear?

The Google Ads auction revolves around catchphrases – advertisers select a list of keywords to concentrate on that are vital to their company contributions, the terms that individuals are likely to use while seeking their item. They then bid on these keywords, combining each offer with the price they will pay for a Google customer to tap on their campaign. This bid, together with a Quality Score assigned by Google based on the nature of your proposed campaign, determines which Google promotions appear on the SERP. When customers click on the advertisements, the promoter pays a certain fee (the cost per click, or CPC).

This is when the term Pay-Per-Click (PPC) comes into play.

The Google Ads Auction

Google Ads utilises an auction structure, which occurs each time a customer conducts a keyword search.

To “win” the Google Ads auctions and have your Google advertising appear for an important keyword, you must raise your Quality Score and offer a sum. The greater your Quality Score in relation to your bid amount, the higher your promotion’s positioning. Your Quality Score is influenced by the following criteria, among others:

  • The relevance of your Google campaign to the search query.
  • The significance of a Google keyword in your advertising campaign.
  • The significance of your promotion’s presentation page.
  • The campaign’s and its click-through rate (CTR).
  • Verifiable account performance in general.

There are also other advantages to obtaining a high score:

  • Lower costs: Google rewards sponsors with high Scores by lowering their cost per click (CPC), hence increasing ROI.
  • Higher exposure: When you have high Scores, your ads will appear more frequently and in better positions on the SERP – the top vs the bottom of the page. This allows you to acquire more clicks and conversions without increasing your offers.

Google Ads Costs

The cost of Google Ads varies depending on a variety of factors, including the severity of your keywords and industry, your geographic location, the nature of your marketing activities, and so on.

Conclusion

That’s all! Google Ads finally made sense.

To maximise the impact of your Google Ads and missions, you must first determine which missions are effective for your company and where improvements can be made.

So, next time, you wish to run a Google Ads for your business, please feel free to get in touch with us anytime. Our team can help you to accelerate your business growth by outsourcing all your IT requirements to us.