How Does Google Adwords Work?
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AdWords is Google’s internet advertising platform. This tool enables you to motivate people, who are interested in and searching for information, goods, ad/or services that you offer, to …

AdWords is Google’s internet advertising platform. This tool enables you to motivate people, who are interested in and searching for information, goods, ad/or services that you offer, to your website. With AdWords, you have all the control. There are a lot of aspects to Google AdWords, and it may seem overwhelming. This e-book will take you through several of the main aspects of an AdWords account. We will explain the basics of how Google AdWords works. The three main levels of AdWords will be explained, from the overarching account level to the focused ad group level. New users are often confused about where exactly their money is being spent; chapter three will explain the details of how your money is spent in AdWords. You will learn what campaigns and ad groups consist of and how they are created in chapter four. Chapter four will introduce a lot of terms and concepts, which will be explained in the chapters that follow. By the end of this e-book, you will have a good understanding of AdWords, and be able to run a profitable account.

How Does Google AdWords Work?

You want to advertise through AdWords, but in order to do so you have to know how it works. There are a few components of AdWords that you must understand. They are: keywords, placements, ad rank, bids, and quality score.
Keywords and their placement are closely related, and it is important to understand both. Keywords are words or short groups of words associated with your business; the goods and services that you offer. It is best to be more specific rather than general. The placement of your keywords is important. Your keywords work to show your ads on Google, sites Google owns (ex: YouTube), and sites Google is partnered with. They will lead customers to your website when they click on it. This will hopefully produce a conversion. Google will decide where your ads show by matching your individual keywords to sites within the display network. You can also choose the placement. You can choose to show ads only where you want, or if you know of sites where your desired customers spend time, then you can choose to show ads in those particular locations. You must remember that if you want your ads to show on popular sites, it will require a higher bid. Also, a higher bid might be necessary for new users.

Understanding Ad Rank

Understanding ad rank will really help you understand AdWords. Every time someone searches on Google an AdWords auction is created. The ad auction determines where your ads will appear in the search results. You, as an advertiser, will compete with other advertisers in the auction. How well you do in this competition is based on your ad rank. Google will list the ads in order from highest ranking to lowest ranking. Ad rank is needed, because there are similar businesses offering similar goods and services that have the same keywords. Google has to decide which businesses’ ads will show and the order in which they will show, and their decision is based on ad rank. What ad rank is specifically, and how it is calculated will be discussed more in depth in chapter four, but briefly, ad rank is a combination of your bid, quality score, and the anticipated power from your ad extensions.
Another component you should understand is bidding. For ads that are targeted by keywords your bid will be founded on your maximum cost-per-click bid. Remember, you may never actually spend this amount, because AdWords will charge you the minimum amount necessary up to your maximum bid.

Quality Score

Your quality score is the projected quality of the ads and keywords in your account, and your landing page. It is a combination of your probable click-through rate, ad relevance, and your landing page. Quality scores are ranked on a scale from 1-10, and are calculated each time someone’s search matches your keyword. If you want a higher quality score, which you definitely do, then you must have a good landing page and fitting ads.

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