- 1 What are Google Ads?
- 2 How effective are Google Ads?
- 3 Why advertise on Google?
- 4 What are the factors on which Google ads works?
What are Google Ads?
Google ads is an online platform where people advertise their products, videos, websites, and other services offered to users.
Google can display ads at two places-
- On the SERP (search engine result page).
- Inside websites, videos, mobile apps, etc.
So, Google Ads is a paid advertising platform where advertisers pay-per-click (PPC) or pays-per-impression (PPM). As Google is used by almost 90% of people, it is the best platform that helps to drive traffic to your website as potential customers are in search of related products.
Google Ads offer many ways to drive traffic to you for example, let’s understand with forumessage
- It brings customers to your website
- It can bring traffic through lead generation by submitting forms by users.
- It can drive traffic directly to your store.
Google ad allows you to design an ad by yourself and share it according to your audience either by mobile or desktop or by both. This means that your business will be delivered to the right customer when they visit SERP.
Your ads are not limited to just SERP, they can spin on other platforms also like videos and apps. And over time Google analyses your ad and provides a wide insight to you through which you can improve your customer reach.
It also adjusts according to your budget, no matter what size of your budget. It provides many options through which you can control your budget and distribute it throughout your campaign effectively. You can even pause and stop your campaign when needed.
How effective are Google Ads?
- Google ads have a CTR (click-through rate) of around 8%.
- Display ads can produce around 180 million impressions each month.
- Around 65% of people click and buy through Google ads.
- 43% of people are buying things after seeing ads on YouTube.
Why advertise on Google?
Around 90% of people use the Google search engine and over 5 billion queries are searched in a single day. And also, Google ads were the First platform to be used for advertising and is around 2 decades old which adds a plus point to its popularity.
Anything people want is searched on Google first. People get their answers either through organic or paid ways i.e., through ads.
According to Google itself, people who spend $1 on ads, make $8 in return. So, it’s simple people are getting high benefits from ads.
Even your competitors are using Google ads to rank among the first 3 top results. If you are ranking first organically on a keyword even then you are pushed down by your competitors because they are using Google ads. So, if you want to grow, Google ads should be a part of your strategies.
Also read: Best SEO Tools for small business
What are the factors on which Google ads works?
- Ad Rank
- Campaign Type
- Click-Through Rate
- Conversion Rate
- Display Network
- Ad Extensions
- Quality Score
1. Ad Rank
Ad Rank tells, about the position of your ad on SERP (Search Engine Result Page). Ad Rank depends on two factors
- Your Bid (the amount you are ready to pay for your campaign)
- Quality Score (Landing Page visibility, Loading Speed, click-through rate, ad relevance, page experience, etc.)
- Ad Rank thresholds
- Competitiveness of an auction
- Context of the person’s search (for example, the person’s location, device, time of the search, the other ads, and search results on SERP)
- Impact of extensions used
Your Ad Rank is calculated every time your page is eligible for SERP after which your Ad position fluctuates on SERP.
Bidding is the amount you are ready to pay to Google for your ads. Google provides many options for bidding depending on your ads strategies, depending on what response you want (clicks, impressions, conversions, or views)
If you are running a cafe, you want people to visit your cafe. If you are a real estate businessman you want people to sign up and call you. If you are running a newspaper agency you want people to subscribe to your newsletter.
You can get different things like clicks, impressions, conversions, views, and engagement depending on what you want in return.
–Clicks (for search and display ads)
If you want people to visit your store, clicks are the best thing to start with. You can opt for cost-per-click (CPC) bidding through which you will pay only when people click and visit your website.
If you want people to be aware of your brand or you want to run brand visibility for your business, then consider the Target Impression Share option. Google will automatically set your bids according to impression.
For example – if you choose an impression share target of 70% then Google will show your ads on the top of SERP when it appears 70% in the search results.
You can also opt for Display Network in which you pay to Google only when you are visible instead of paying on clicks. This is called Cost Per Thousand (CPM). For example this option is best suited if you want people to remember your logo and brand names.
–Conversion (for search and display)
In conversion, you are ready to pay Google for conversion or Cost-Per-Action (CPA). a conversion is a particular action that wants to happen on your website. It can be email signup or any other action. Google Ads will automatically assign a bid to get the maximum conversion possible as per the CPA you assigned.
–Views (for video only)
This option is best suited if you want to know how engaging your viewer is with your video content then you will use Cost-Per-View (CPV). You will pay for video views and clicks, for better results you should bid at the maximum bid for better evaluation but you can also adjust your bid.
3. Campaign types
There are 5 types of the campaign in Google ads, you can choose these according to your need.
- Display Network
- Search Network
- Display Expansion on Search
- Smart Shopping
- Local campaigns
These campaigns are used for different marketing objectives:
- App campaigns
- Performance Max
- Smart Display campaigns
4. Click-Through Rate (CTR)
It is the ratio of how often people click on your ads after seeing them. CTR shows how well your keywords are performing in your campaign.
Formulae of CTR
CTR = (Clicks/Impressions)*100%
If clicks = 10 and impressions = 100
Then, CTR = (10/100) *100% = 10%
CTR can be high or low depending on how well your campaign is designed. A high CTR indicates that your campaign is useful and relevant to users, which in turn helps in increasing Ad Rank.
5. Conversion Rate
Conversion means after clicking on your ads how often users are ready to purchase your products, or conversion happens according to your plan.
Formulae of Conversion
Number of conversion/total ad interactions*100%
Let conversions = 100 and interactions = 1,000
Then, conversion rate = 100/1000*100% = 10%
6. Display Network
Display networks are platforms it can be videos, websites, and apps where your ads can appear.
According to data, 90% of Internet users can be reached by using Display Network.
- Reach millions of people in multiple places at the same time
- Easy to use
- Runs around your goals
7. Ad Extensions
It is extra features or Information shown for a better user experience. Users can use this information at ease.
- Sitelink Extensions
- Call Extensions
- Call Out Extensions
- Structured Snippet Extensions
- Location Extension
- Price Extension
- App Extension
Keywords are the words or phrases which we use for the identification of our products or services, which helps to determine our products. Keywords should be chosen very wisely as it is the keyword that is going to appear on google after a user, searches for them.
High-quality keywords should be used as they can reduce the cost of the campaign.
PPC means Pay-Per-Click, you will pay the charge to google each time the user clicks on your ad. There are different types of PPC-
- Paid search marketing
- Display advertising
- Social media advertising
- Retargeting PP advertising
- Affiliate marketing
10. Quality Score
Quality Score tells everything about your campaign. It tells how best your campaign is designed. A score of 1-10 is given to show a quality score. Quality score depends on various factors like the Landing page, keyword selection, your ads, etc. If a campaign has a high-quality score, then your chances of ranking above your competitor increase with low.
It is measured on the basis of 3 factors-
- Expected CTR
- Ad relevance
- Landing page quality
Also read: Best Hosting for WordPress
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