This section attempts to demystify Google AdWorks and explain how it can benefit your company.
Google AdWords is the world's largest and most popular pay-per-click platform, and essential to the successful marketing of your company. But is it for you? Here's a summary of which businesses work well with Adwords:
Run a search network campaign if:
You're working with a limited budget
You sell an "emergency" product (products people search for on a when-needed basis)
Run a display network campaign if:
You want to familiarize people with your brand
You have a lengthy sales process
You have an appealing/luxury product
If your company could benefit from both, run a dual-network campaign!
But what exactly is Google AdWords, and how does it work? Watch this next video for a great visual introduction.
What is Google AdWords AND How Exactly Does it Work?
Essentially, it all begins with a search, and businesses place bids to get their ads in the results for relevant keyword searches. The highest-quality, most engaging ads earn high Quality Scores, which enables them to rank higher even with lower bids, incentivizing advertisers to create great, user-friendly ads.
Now you're starting to understand the gist of it! If you've got the time, this next video is a more in depth explanation of the mechanics of Google AdWords, and is super interesting. Hal Varian, Google's chief economist, explains how the AdWords auction works.
Insights on the AdWords Auction
Before we delve any further, it's important to familiarize yourself with some important commonly used terms in online advertising.
Bid = The maximum amount you are willing to spend per click for ad groups or individual keywords.
Campaign = A set of ad groups (ads, keywords, and bids) that share a budget, location targeting, and other settings. Campaigns are often used to organize categories of products or services that you offer
CPP = Cost-per-click is a type of bidding wherein you pay for each click on your ads. You specify your CPC bids depending on how much you are willing to pay for each click your ad receives
CTR = Clickthrough rate is calculated by dividing an ad’s impressions by the number of clicks your ad receives
Conversion = Action that's counted when someone interacts with your ad (for example, clicks a text ad or views a video ad) and then takes an action that you’ve defined as valuable to your business, such as an online purchase or a call to your business from a mobile phone.
Impression = The number of times your ad is shown. An impression is counted every time your ad is shown on a SERP or other Google Network site
Campaign types determines where your ads can appear to customers, and in what format they can be in (like text, or video). Your ads can show on one or both of Google's advertising networks, depending on which campaign you use.
1. Search Network with Display Select = largest possible audience, least amount of set-up. Best for someone new to AdWords.
2. Search Network only = Helps you reach new customers right when they're searching for certain keywords related to your product/service. Best for someone more experienced with AdWords.
3. Display Network only = Helps show ads to audience who would be interested in your product/service, but not when they are actively looking for it. The ads reach customers wherever they are online, whether that's browsing websites, watching Youtube, etc.
Campaign subtypes allow you to determine how many settings you want to choose from for your campaign. The most commonly used subtypes are Standard and All Features. Standard is best for someone new to AdWords or who has to set up a campaign quickly, without many additional options. All Features is best for daily AdWords users who utilize many features to customize their campaigns.
Here's a visual summary of the differences between the Google Search Network and the Google Display Network.
Google Search Network
Google Display Network
Now that you've got down the basics of Google AdWords, let's move on to discussing how you can use it to your advantage. Neil Patel is an entrepreneur who gives great tips on how you can accomplish this. This next video details how you can use AdWords to increase your company's profitability.
5 Ways to Make Google AdWords More Profitable (Improve Your CTR!)
The higher your Google AdWords quality score, the cheaper you're going to be paying per click.
Neil's tips to help you improve your quality score:
1. Target very specific keywords (don't broad match, add negative words)
2. Group your PCC words (group the similar words)
3. Optimize your ad text
4. Optimize your landing page (put keywords on landing page, run Crazy Egg)
Next, Neil explains how to increase your Quality Score. This is important because the higher your score, the less you have to pay per click.