What is Google Ads and How Does Google AdWords Bidding Work?

If you’re looking to advertise products and services in Google’s search results, you need to generate a digital marketing strategy around Google Ads. Previously known as Google AdWords, this incredible pay-per-click (PPC) service generates leads and sales for countless companies.

Google Ads sees advertisers bid on keywords used by their target market when they conduct a Google search. This approach ensures brands display ads to people with a proven interest in what they have to say.

However, to experience success, you need to develop a robust understanding of Google’s auction and bidding systems. To help you get up to speed, we’ve explained the basics to ensure you benefit from a successful Google Ads campaign.

Why Use Google Ads?

Google Ads

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Google AdWords has become one of the core ways companies can generate leads directly for their website. Considering how so much business is now completed online, this key to attracting the ideal target market is crucial for your success.

Forming a precise marketing strategy around Google Ads also gives brands incredible flexibility. With a razor-sharp approach, you can plan and execute a campaign that achieves your business goals.

In addition, Google AdWords consistently delivers an outstanding return on investment for businesses that adopt a personalised approach. Supported by professional Google AdWords management, you can achieve your objectives and rise above the competition.

Drive Success with Google AdWords

Although millions of businesses have used Google AdWords to their advantage, designing and implementing an effective campaign requires close consideration. As most of your rivals are also using PPC services to increase sales, you need to outperform them. 

So, how can you achieve this? You need to develop a clear marketing strategy that targets the ideal keywords, appeals to your audience and resonates with Google’s guidelines. To give you a head start, we’ve broken down the major areas so you fully understand the process.

Identify Relevant Keywords

Keywords are imperative to bidding on Google Ads. By developing a thorough understanding of the words and phrases your audience use when they search for products and services like yours, you can bid on these terms to capture their attention.

However, it’s essential to know that bidding on hugely popular keywords will cost more than others. This means brands working to a strict budget must research long-tail keywords that aren’t so commonly used, but attract a more exact target market.

Using Google’s Keyword Planner, you can quickly research the best terms for your campaign while also receiving bid estimates that help forecast your spending.

Understand Quality Score

To ensure people using the search engine only see ads relevant to their needs, Google developed the Quality Score. This insightful metric presents advertisers with a score ranging from 1 to 10 that reflects the quality of your ads, keywords and landing pages. 

With this score determining your cost-per-click and ad rank, you don’t want to overlook this figure. However, the good news is that it’s possible to increase this score through keyword research, keyword optimisation, landing page improvements and more.

Although we don’t know the exact algorithm that determines Quality Score, Google reveals that it’s calculated based on the combined performance of the following components.

Landing Page Experience

You have to link your individual advertisements to a landing page on your website when creating a Google Ads campaign. This page must deliver the ideal experience for customers to achieve the best Quality Score.

Google assumes that leads who don’t move past the landing page to the checkout aren’t interested in what you have to say. Provide a better experience by developing a compelling, relevant message that convinces people to take action after viewing your ads.

Ad Relevance

Your ads must remain highly relevant to your customers to achieve a top Quality Score. In effect, this means using keywords that support the message in your ads and appear prominently on your landing pages.

By filtering your chosen keywords into specific ad groups, you can focus your attention on an individual product or service. Meanwhile, strive to include short and long-tail keywords in your ad copy without compromising readability.

Expected CTR

Expected CTR, or clickthrough rate, is Google’s own assessment of how likely a user will click on your ad. It’s measured by how well your chosen keywords have performed in the past while determining how closely they match the search terms.

If Google gives your Expected CTR a ‘below average’ rating, rework your ad copy to make it more relevant to your customers’ needs. Meanwhile, consider focusing on different keywords that closely capture their intent.

How Google Ad Auctions Work

The first stage of the auction process, which occurs almost instantly for every search, involves businesses placing bids on keywords. By telling Google the maximum amount you’d like to pay for specific terms, you’re entered into the advertiser pool. 

When someone uses Google to conduct a search related to your keyword, Google’s algorithm will assess the advertiser pool to find candidates for the auction. The system then chooses a winner based on several criteria – not just the highest bid.

This is where your Quality Score becomes particularly influential. However, Google will also calculate Ad Rank (Quality Score x maximum bid) to determine the business that gets the best placements in the search results.

How Ad Bidding Works

Ad Bidding Works

Getting your bidding strategy right is crucial to achieving a stellar ROI from your Google AdWords campaign. Primarily, you must select the maximum bid (Max CPC) that you’re comfortable paying for each auction. 

While you can set this number for each keyword, you can also select a maximum bid for your ad groups. Throughout this process, Google will provide helpful advice about typical bids placed on keywords that you’re targeting.

You can also choose between manual and automated keyword bidding. The latter sees an algorithm decide how to use your budget to achieve your goals. However, manual bidding lets you intricately control your campaign, ensuring you never miss an opportunity.

Take Charge of Google AdWords

Now that you know the basics of Google AdWords, setting up an effective digital marketing campaign that achieves your objectives should be much easier. 

However, partnering with an expert Google AdWords management team that delivers profitable campaigns day in and day out will undoubtedly level up your results. With our talented PPC specialists working alongside big and small brands alike, First Page Digital has the skills to reach and convert your ideal target market.

Ready to get started? Simply get in touch with our in-house experts to discover how our PPC services will help your business smash the competition.

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