When people search for relevant keywords, you can advertise and promote your services and products with Google Ads. When done right, it could increase leads and sales like crazy. Let’s look at what Google Ads are, what they work, and the exact steps you can take to set them up for your business.
What is Google Ads?
Google Ads is an online advertising service that costs money and is run by Google. The search engine company used to call this service Google Adwords. It still works beautifully in the same way. When people search for a keyword, they get their search results on a search engine results page (SERP).
One of these results could be a paid ad that used that keyword. You can see that the top of the SERP is filled with ads. Also, they look almost like organic search results, except that the word “Ad” is bold at the top of the post. This is good for the advertiser because most people click on the first result on Google when they search for something.
But buying ads on Google doesn’t always guarantee the number one spot. After all, you’ll probably compete with many other marketers on Google Ads for the same keyword. Look at how Google Ads works to determine what those rankings mean.
How does Google AdWords work
Pay-per-click (PPC) is the way Google Ads works. This means that marketers look for a keyword on Google and bid on it, competing with others who are also looking for the same keyword. You put in “maximum bids,” or the most you’re willing to pay for an ad. For example, if your highest bid is $4 and Google figures out your cost per click is $2, you receive that ad placement!
You don’t get the ad placement if it’s more than $4. You can also limit how much your ad will cost per day. You’ll never pay more than a certain daily amount for that ad, which will help you figure out how much you should set aside for your digital advertising campaign.
Marketers have three choices for their bids:
- Cost-per-click (CPC). How much do you have to pay each time someone clicks on your ad?
- Cost-per-mille (CPM). How much do you pay for every 1000 times your ad is seen?
- Cost-per-engagement (CPE). How much do you pay when someone clicks on your ad and does something specific (signs up for a list, watches a video, etc.)
Google then takes the amount you bid and pairs it with a Quality Score, which evaluates your ad. The Quality Score tells you how good your ads, keywords, and landing pages are. Ad prices can go down, and ad positions can improve if the ads are higher. Scores range from 1 to 10, with 10 being the best score.
The better you rank and spend less time converting the higher your score. Your Ad Rank, or where your ad will appear in the search results, is based on your Quality Score and how much you bid. When a user views the ad and clicks on it, the marketer has to pay a small fee (thus pay-per-click).
The idea is that a marketer will be more likely to reach their goals if more people click on their ads (e.g., become a lead or make a purchase). Now that you understand how Google ads work, let’s look at the different kinds of ads you can use in your campaign.
The Proper Way to Establish a Google Adwords Account
Step 1: Pick an Email address.
Click the Start Now button on the Google Ads site. Your email address will be asked for. If you have an existing email address linked to a Google account (like a Gmail address), use that one. Then click Next week and enter your password. If you don’t need a Google account email, click the Build Account link, choose the “Myself” option, and then follow the steps to set up and validate your new Google Account.
Step 2: Select Expert Mode
Then you’ll be questioned about what you want to achieve with your advertising. Forget these options and click this exact Switch to Expert Mode link at the bottom of the display.
Step 3: Skip creating a campaign
Now, it will ask you what kind of campaign you would like to make. Forget all the choices and click Create an account without a campaign at the bottom of the display.
Step 4: Check your regional settings
On the next screen, make sure the time zone and billing currency are correct, change them if you need to, and click Submit.
Step 5: Set up your Google Ads billing
Now, you’ll go to their new Google Ads account. From here, the last step is to click the Billing icon on the top menu bar, then Settings, and afterward enter your billing address and payment information. I suggest you choose post-pay billing instead of pre-pay billing and pay with a credit/debit card instead of direct debit. When your ads can’t run, it can take a few days for the second one to be approved.
How do you pay for Google AdWords?
Google AdWords charges advertisers different amounts based on what they try to sell. Even though Google AdWords is a pay-per-click ad network, your ads are shown for free, and you only pay when someone clicks on your ad on the Google search results page.
Also, the AdWords system is indeed a live auction, so click prices depend on how much competition and how much individuals are prepared to pay for a click. When used correctly, Google AdWords can bring high-quality visitors to a website at much lower costs than other types of advertising.
But if you don’t know how to handle the process well, costs can add up quickly, and you might get low-quality traffic. To run a successful AdWords campaign, you need to know what goes into figuring out how much each click costs.
- Keywords competition
- Maximal offer and bidding position
- Your typical monthly budgets
- Click-through rates
- Your keywords’ quality score
If you go after keywords that get a lot of searches every month, you might have to pay a lot for that traffic, anywhere from a few cents to more than ten dollars per click. Set a daily budget at the campaign level to keep track of your AdWords costs.
You can change this whenever you want to. Advertisers should start small and on a low budget. You can decide whether to increase your spending plan or stop a campaign depending on what you learn and how good the leads are.
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