Google Ads: What is Google Ads & How Do They Work?

Google Ads: What is Google Ads & How Do They Work?

Google Ads: What is Google Ads & How Do They Work?

Google Ads was previously known as Google Adwords. It is an online advertising platform which is developed by Google.In this advertisers pay to display their brief advertisement, service offerings, video content, product listing and increase the mobile app installs within the Google’s ad network to its users.

What is Quality Score?

  1. It is a ranking given to the ads by Google
  2. Ranking is given between the range is 1 to 10.
  3. Quality Score mainly depends on-Landing page experience, keyword relevancy, expected CTR.
  4. More quality score means better rank and less cost.

Basic Concepts used in Google Ads-

  • Cost Per Click(CPC)- Its also know as Pay Per Click(PPC). Its an Internet advertising model in which an advertiser pays a publisher (in this case is the website owner) when the ad is clicked.Social media platforms like Facebook, Instagram, Twitter etc have also introduced this advertising model. Formula for CPC=Advertising Cost/Ads Clicked.
  • Cost Per Thousand Impression(CPM)- Its also called Cost Per Mile. Its basically a marketing term which is used to denote the price of a 1000 advertisement impressions on a single webpage.For example- If a website publisher charges Rs5 CPM,this means that an advertiser must pay Rs5 for every 1000 impression of its ad. In CPM,the letter ‘M’ stands for “Mille” and its a Latin word which means “thousand”. Formula for CPM=Advertising Cost/Number of Impressions. Here the word “Impression” means the display of ad to a user while viewing a webpage.
  • Cost Per Acquisition (CPA)- Its also called as Cost Per Action, Pay Per Acquisition and Cost Per Conversion.It is an online advertising pricing model in which the advertisers have to pay when their target or goal of advertisement is achieved.For Example- In Affiliate Marketing, the advertisers only pay the affiliates when the customers purchases a product specifically through the link provided which results in sale.Formula for CPA= Cost/Number of acquisitions.
  • Click Through Rate (CTR)- This advertising model is used to measure the ratio of clicks to Impression of an online Ad or an email marketing campiagn. Higher the CTR generally means that the marketing campiagn has been more effective at driving online traffic to our website.Formula of CTR= Number of Click Thoughs/Number of Impressions*100.

Types of Keywords in Google Ads-

Broad Match- This is the default option. It is called “Broad” because is allows your advertisement to match the widest range of keyword searches that are releated to your keyword.For example – if your ad shows keywords “sports shoes” then your advertisement is eligible to show whenever a user type the keyword “sports” and “shoes” which can be in any order and possibly including other terms.Your ads could also show for synonyms, singular, plural, stemming etc.

Broad Match Modifier-Here ads will appear to people who use the exact keywords or their close variants.With broad match modifier you use a (+) sign in front of one or more keywords. The words preceeded by (+) sign must appear in the users keyword phrase.For Example- Your broad match phrase is Blue Bags, this phrase could prompt search results which includes paid and organic search results on relevant query variation like “blue purses” or colorful bags etc, but if your modified broad match was +Blue bags then the word Blue or some close variants would have to appear in keyword phrase.

Phrase Match- A Phrase Match is a type of keyword setting that allows your ad to show when users search phrase includes the exact search phrase of your keyword or its close variation. For example- the phrase match keyword “Tennis Shoes” can cause your ad to show if someone searches for “Tennis Shoes”, “buy tennis shoes” or “tennis shoes reviews”

Exact Match-Its a Googel keyword match type that allows you to show your ad when the user types the exact words or phrase that your bidding on.Exact Match keyword gives you more control over who over who sees your ad and can result ina higher Click Through Rate(CTR). Broad Match,Broad match modifier,Phrase Match and Exact Match- all these are very closely related ,where Broad Match is less restrictive giving your ad away to a range of search terms related to the keyword, Exact Match is more controlled when showing your ad for a searched term, Phrase Match is a little controlled than the Exact Match and Broad Match Modifier is a type of Broad Match but with more control over ads.

Negative Match- Its a type of keyword that prevents your ad to be shown when a certain keyword or phrase is entered,your ads are not shown to anyone who is searching for that phrase.For example- If you add “free” as a negative keyword to your campiagn,then Google ads wont be showing your ad for any search containing the term “free”.

*Will be posting soon about the types of Google Display Network.

Thanks for reading my post,hope you got a deeper insight about Google Ads.

Leave a Comment

Your email address will not be published. Required fields are marked *