How Google Ads Works? | What are the Benefits of Google Ads

So you might have the question how do Google ads actually work how does it process all of these different advertisements every time someone goes into Google and search a keyword.

So I'm gonna go through this today so you can really understand how it works so when you're setting up your campaigns it helps you to really understand some of the things that Google is looking for when they do process searches and display advertisements. So let's get into this right now and we'll get started here.

How Google Ads works

There are three basic parties when it comes to Google Ads there's the customer the person searching you can call them whatever you want to but it's the person that goes to Google that types in a keyword there are advertisers so advertisers are bidding on those keywords now there are other ways to target your ads.

But just to keep this a little bit more simple the main way that people do target their advertisements in Google Ads is by targeting keywords and then there's Google so Google has to process the keywords that were typed in and the advertisers that will be eligible to show their advertisements through the Google ads auction so we're gonna get started here. 

So, you start with the customer in the searcher so the customer searches keywords in Google so they come to Google they type in a keyword here so the example is let's just say someone goes to Google.

They want to find new farmhouse shelves for their homes so they come on Google they search farmhouse shelves and they click on Google search so next what happens is advertisers bid on keywords in Google ads so once you set up your campaigns they're always running in Google ads until you pause them or if you run out of your budget.

So when you're running your campaigns if you're an advertiser you select some keyword to bid on so farmhouse shelves the brackets around the outside indicate that this is an exact match keyword. 

So there are some different keyword match types and what advertisers do is they set bids for their advertisements so let's just say an example bid here is $1.00 so an advertiser is willing to spend $1 per click on their advertisement so next what happens is Google is going to start showing ads in the search results based on ad rank so some of the different ads that might show.

You're gonna see some shopping ad examples here so for anything related to products any type of search that can return an e-commerce type shopping product you're gonna see these shopping ads or product listing ads usually listed at the top of search results and these are all advertisements so Etsy, Flipkart, Amazon, Myntra, etc. 

All of them are displaying different types of farmhouse shelves now these are targeted a little bit differently these are actually targeted using a product feed a little bit more advanced feature of Google ads but the ones down here so cherish calm and you're gonna see vintage farmhouse wall shelf and from overstock farmhouse shelves so these are companies that are actually bidding on keywords related to farmhouse shelves.

So when I type that keyword in or when someone comes in they type in farmhouse shelves these advertisers have a bid set for a keyword like this farmhouse shelves and now their advertisements are displaying. 

So they're trying to drive traffic to their website to a landing page on their website so hopefully, someone does purchase from them that's ultimately the goal of Google ads.

Now one thing to keep in mind is Google shows ads in the search results based on ad rank so if you're not familiar with ad rank here's a quick explanation. So ad rank is a combination of an advertiser keyword Quality Score and their bid so Google takes into account keyword quality score which is based on three major factors.

  • ad relevance so how relevant the actual advertisement is to the keyword that is searched.
  • Expected click-through rate so looking at an advertiser's history and what their expected click-through rate is for that keyword.
  • And When someone types in a specific search into Google and landing page experience. So on someone's driving traffic to their website what the actual experience is on the landing page for that website.

So those are the three main factors that make up ad rank and what happens is in there's a Google Ads auction so every time there's a search in Google if you go to Google right now and you type in any search that's gonna display advertisements.

It's gonna quickly process this Google Ads auction which takes into account each advertisers bid and their quality score to determine where ads will show in the search results so this is just a quick little example of what Google is gonna do is determine ad rank for all these different advertisers that are bidding on the same keyword.

So let's just say you have five different advertisers bidding on the same keyword you can have anywhere from 10, 15, 20 different advertisers that are trying to show for the same keywords especially in really competitive industries. 

So 1 advertiser right here is gonna get the first position in the results of the ad because they have the highest quality score and the best bid for that individual keyword. And the last one was gonna get the last position because usually, that means you're either bidding way too low or your quality score is too low.

Now Quality Score is a huge factor so advertisers that have really high-quality scores can actually bid less and still get the first position here so you can have a better ad rank if you have a better quality score Google will give an advantage to advertisers. 

If we come back here real quick that have really relevant advertisements that have really high click-through rates for the keywords that they're targeting and then have great landing pages for every keyword that they're targeting so if you see in picture five total advertisers are trying to get this top position here.

But what's gonna end up happening is some of these different advertisers are gonna end up in a second position the third position the fourth position and the fifth position just based on their ad rank.

Make sure that When people do click on my ads I want to make sure that I send them to a page specifically based on what they search for what they clicked my advertisement for so creating that seamless experience is really the best way to get the most out of your Google Ads campaign.

So you want to make sure that your keywords are really grouped by theme in an ad group that your ads are sending people to the best possible landing page and they really match the keywords that people are typing in and that's how you can achieve the best possible results in Google ads.

And then you just want to continue to improve the advertisements you want to make sure that the keywords that you're targeting are the best keywords for your business and make sure that your landing pages are really user friendly so when people do visit your website they're more likely to convert and become either a sale or a lead or whatever your goals are for your campaign.

So, guys, I meet you with my next blog and you have any suggestions for me to tell in the comment section.

Thank you very much for giving me your important time 


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