How Do Google Ads Work, Anyway?

Approximately 80 per cent of all retail ad money is spent on Google. If you have a product to sell, then you too need to have Google Ads.

So how do Google Ads work? How hard is it to create your first campaign. The answer is simple, it is easy to create an Adwords Campaign and if you read on, we will show you how.

How Do Google Ads Work?

When you need something you go to Google. You put in the specific keyword associated with that item hit enter. Google brings up a list of Ads. Companies that have paid to have their company listed. Then you have the big players in your industry listed.

For the large companies, their listing is often “organic” meaning it is the result of the brand and name recognition.

This is why Google AdWords is so powerful and why there isn't a better form of search engine marketing (SEM).

The Google AdWords Auction

Google AdWords is an auction-based marketplace where companies pay to have their website ranked. To get the highest ranking, it is not about price, but a combination of price and quality. You are paying for clicks (PFC) to your website.

Google AdWords is straightforward, but not easy. So, set aside a budget, keep your ads simple and don't start changing things every chance you get. Be patient, the process with google ads words, but it takes time.

Google Ad Words the Basics

It helps to start on the same page and understand some keywords. The first is the keyword, it is the word or phrase that a user puts into Google to see your results. Google counts the clicks and counts impressions. The next word, impressions is the number that tells you how often your ad has been shown when users use a specific keyword.

Your click-through-rate is the number of clicks divided by impressions. The click-through-rate tells you which ads are working and which ads are not.

Part of the google algorithm takes into account the quality, how much you bid and who else is bidding. There are cases where you will pay less than your maximum bid. Google wants its followers to see quality ads so make sure you focus on quality as well as price.

Your quality score is a metric that looks at how good your offer, or ad, is compared to others selling the same thing. Each keyword in our account has its own Quality Score.

Another term to know is relevancy. Your keywords and your ads must be the most relevant. For example look at these two keyword phrases, “snowboard rentals” versus “snowboard rentals in Tahoe”, the later is more relevant to searches.

Ad rank takes into account your account history and the speed and ease of use of your website and landing page. Ad Rank is simply your Quality Score times your maximum bid.

So Google AdWords will assess your max bid + Quality Scores + ad rank and compare those against your competitors — all in fractions of a second — in order to determine what you’re going to pay.

What Are Clicks?

Clicks through to your website are one piece of the Google Adword plan. Clicks can also be people signing up for your newsletter or entering their personal information. You should start by measuring conversions, or paying for consumers to perform the action you desire (click, newsletter, etc.)

Your First Campaign

Begin by going to Google AdWords and hit start now. Enter the email and your web address, this will link your email to your Ad Word accounts. You will be asked a bunch of questions, don't panic. The goal is to fill in as much information as possible knowing what you know.

Calculate Your AdWord Budget

This number is a combination of how much you can afford to spend. You should consider how much you make per sale versus how much it costs to get that sale. Google takes their percentage.

Here is an example if for every 1,000 views of the page, 10 people buy, that’s a one per cent conversion rate. If you think making $70 per sale is still okay, then it’s okay if you pay Google a 30 per cent commission for each successful conversion through AdWords. In this case, that would be $100 x 0.3 x one percent = $0.30 or $0.30 per click.

Pick a Keyword

Put yourself in your customer's shoes and pick some keywords. What would you use to search and find your company? This is when it would be best to know your customer.

You can use search engines to help you choose the right one, or we can also help you find the right keywords using one of our training programs.

Launch Your Campaign

Now all you have to do is launch your first campaign and monitor its results. Start small, you don't want to be running multiple different campaigns at once because it becomes hard to track which ones are successful. The goal, in the beginning, is to pick one and stick to it.

There is a lot of power in Google Adword Campaigns, and you don't have t spend a significant amount of money to be successful. You do, however, have to follow a simple formula and stick with it.

As retail buyers are changing, so is Google. If you can learn to master Google Analytics you have concurred half the battle.

Do You Need a Marketing Partner for Your Business?

We are experts in Infusionsoft strategy and implementation. We know Google Ads and we can help you create effective online marketing and engagement. There is no reason to avoid big dreams, we will help you get to create them.

Let our experts in cost-effective automated marketing help your business move to the next level. Our track record is second to none, working with businesses as they become household names. Contact us to schedule a free call and let us show you how we can help you.

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