How Are Google Ads Used ?

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Google Ads, which used to be called Google Adwords, is a paid form of advertising with Google. In today’s day and age, it is considered perhaps the most beneficial method of reaching out to new customers and eventually growing your business. However, if you’re looking to branch into this advertising module, then you need to know everything about Google Ads so that you get the maximum return on the amount you spend, capitalise to the highest degree, and don’t make any rookie mistakes.

What are Google Ads?

If you are using Google Ads, there are two primary methods via which you can target customers: the Search Network and the Display Network.

The Search Network includes the popular “pay-per-click advertising”, wherein you will have to bid, along with your competitors, on certain keywords. These keywords are resonant of your business, its products and services. If you win the bid, Google will show advertisements for you firm when users enter these keywords into Google while searching for a query. This form is also commonly referred to as “paid search”.

The Display Network will give you the option of placing banners which advertise your business on certain websites which are a part of this network. The important thing to note is that this network reaches a whopping 90% of the total online users- which is more than enough to guarantee a large audience which can potentially become converted customers.

How much does it cost?

In the USA, the average cost per click for a Google Ad in almost all industries is between 1-2 dollars. However, certain keywords can even cost up to $50! In India, however, the average cost is much lower.

There are various facets which affect the cost of a Google ad: which country you’re operating from, how effective your advertising content is, and most importantly, how competitive and in demand that particular keyword is in your industry.

A Few Terms To Keep In Mind

  • AdRank: This determines where your ad will be placed. You should strive to get the highest AdRank possible, because the higher the value, the more apparent your ad will. If it’s placed higher up, more people will see it, and thus there is a higher probability of people clicking on it and you getting a higher conversion rate. Your AdRank is a result of your maximum bid multiplied by your Quality Score.
  • CPC: Cost-per-click is value of money you pay for each click on your ad.
  • CPM: Cost-per-mile is the amount of money you pay for when your ad is shown to a thousand people.
  • CPE: Cost-per-engagement is the amount of money you pay for a customer to take a guaranteed engagement with your ad.
  • CTR: Click-through Rate is the fraction of actual clicks you get on your ad in comparison to the total number of views your ad gets.
  • CVR: Conversion Rate measures how many people actually convert to buying your product compared to how many visited your website.
  • Quality Score: The Quality Score of your ad is determined by factors such as your CTR, the quality of your website and landing page, and the relevance of your keywords. The QS is a determinant of your AdRank.

If you’re looking into how to spend your advertising budget, and are especially interested in digital marketing, then Google Ads are the first stop you need to make. Google has over 246 million users and engaged with 3.5 billion daily interactions. Most importantly, Google Ads are estimated to provide a 700% return on investment! If you’re going to spend on advertising, then this is the safest and most sure-shot way of getting conversions.

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