What Adwords is

What is it, advantages and how it works

What Google Adwords or Google Ads is

Google Adwords (now Google Ads) is the advertising platform developed by Google, where advertisers pay to appear in sponsored results on its search engine or on Google’s network of partner sites.

For 18 years Google Adwords was Google’s advertiser platform, recently replaced by Google Ads

Advantages of using the Google Ad Platform

Google Ads has great advantages for advertisers.
The main advantage is that it allows you to appear in user queries relevant to your business and acquire qualified web traffic immediately.
It allows you to identify which target keywords work best among your audience and check the profitability of your products and services without having to wait.
And also, it is very useful to be featured in the most profitable and competitive searches in your industry.

How Google Adwords Works

Google Adwords is based on a real-time bidding or auction system per keyword or group of keywords.

In such a way that:
Each advertiser can choose the terms for which they want to appear, specifying the maximum price they want to pay for each click made by users.

This is what is known as a CPC (cost per click) or PPC (pay per click) system.

But…
Where will my ad be seen??

What Ad Rank is and How it Works

Depending on the competition and the price offered by the advertisers, your ads will get one position or another.
To determine the position of your ad, Google uses what is known as Ad Rank.
This algorithm is comprised of two factors:
While the maximum bid is what determines the maximum amount to pay when a user clicks on your ad, the Quality Score assesses the relevance of your ad to search engine users.
The goal of the Quality Score is to allow Google to satisfy users’ search intent.
And to show only ads that are relevant to the searches launched by its users.
Therefore, it rewards Adwords campaigns with good performance (high CTR) and relevant advertisers with discounts on the cost per click and higher positions in their sponsored results.
In this way, it may be the case that the advertiser in the first position pays less per click than the second or third if its ad is very relevant to users.

But... What is Quality Score?

This is a metric that Google uses to determine the relevance and usefulness of your ad to the user.
This algorithm takes into account:
The higher your Quality Score, the better, since the higher the ad will be displayed in the search engine results and the lower your Cost per Click will be.
Therefore, we strongly recommend you to design campaigns that are relevant to users.

Google Ads ad types

Google Ads has a wide variety of campaign types for advertisers.
Each of them is specific to a certain type of business or to appeal to the different stages of a potential customer’s purchase.
Below, we summarize each type of campaign:

1. Search campaigns

The original and genuine ones. These are the text ad campaigns that appear on Google’s results pages.

2. Google Display Network

These ads are those shown by Google in its network of affiliated sites, allowing the display of text, images, and video. Within this typology are also framed the famous remarketing campaigns. Those that show ads only to users who have previously visited your website.

3. Video campaigns

They are designed for the audiovisual format and to be presented to users who browse youtube channels. They also extend the coverage of your campaigns as well as the notoriety and consideration of the brand among your target audience.

4. Google Shopping

Specific for product carousels of e-commerce or online stores. They are perfect for prominently displaying a store’s products and for searches related to the purchase of specific items.

5. Application Campaigns

These types of ads are perfect for app-based businesses to improve the number of app downloads on Google Play.

6. Local Campaigns

The type of local ads are shown on Google maps, normal searches, displays, and youtube and are perfect for businesses looking to increase visits to their establishment: restaurants, pharmacies, gyms, clothing stores or any other type of physical establishment are the ones that can benefit the most from them.

7. Smart Campaigns

These ad campaigns are designed for small businesses with little time to monitor their own campaigns. It allows you to set up campaigns and put them in automatic mode leaving all the management responsibility in the hands of Google.

In conclusion:

Google Adwords is a great tool to quickly access a relevant audience for your products and services.
It will allow you to test search terms and capture sales and customers in the short term.
In the short term, it is one of the most effective ways to test new market niches, product verticals or to monetize your online presence.
Links and recommended readings
The higher your Quality Score, the better, since the higher the ad will appear in the search engine results and the lower Cost per Click you will obtain.
So we strongly advise you to design relevant campaigns for users.

Frequently Asked Questions

We explain what is Google Adwords or Google Ads, Google’s new ad platform, is so you can learn how it works and how you can take advantage of it.

The cost of a Google Ads campaign or ad is determined by the Ad Rank score of your immediate competitor divided by your Quality rate plus 1 cent.

First of all, you need to activate your Google Ads account by entering your data and company name, as well as your credit card. If you need help in the management and optimization of your Google Adwords campaigns, take a look at our SEM service