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What is Google Ads?
October 17, 2022
What is Google Ads and How Does It Work?
Driving traffic to your website is critical if you’re operating an online business — whether it’s a blog, e-commerce site, or professional website representing your business in the digital space. Even if you don’t offer services directly online, you’ll have a higher likelihood of gaining new real-life customers if you have a prominent online presence. So, how can you do that? Google Ads is an online marketing tool that allows you to directly target your intended audiences. Google Ads provides data and analytics that should be used to make continuous adjustments, so many businesses tend to hire a Google Ads services agency to provide comprehensive digital marketing services.
How do Google Ads Work?
If you’ve ever searched on Google, you’ve come across Google Ads. These are the first search results that appear when you conduct a Google search. Here’s what they look like:
Essentially, companies reach out to agencies who offer Google Adwords services to create platform-specific advertisements. Web FX found that 76% of the search engine market belongs to Google, so digital marketing advertising companies focus on this space because it brings value to businesses who advertise there. In fact, Google delivers an 8:1 return on investment — meaning companies will make $8 for every $1 spent.
Here’s how it works: Google Ads are based on keywords relevant to your organization. Google prides itself on providing relevant advertisements to users who utilize the search engine. In the photo above, you can see that Google Ads gave the user exactly what they were looking for.
While Google Ads run off bids (we’ll get more into that later), there’s the potential to save money by using suitable keywords. The algorithm will often put a business that utilized highly relevant keywords in a higher spot on the search results, even if another competitor bids more.
Do People Click on Paid Ads?
Paid advertisements are convenient for users — they’re likely to click on them because they’re most convenient and relevant to their search. While many companies focus on perfecting SEO in an effort to rank higher in organic search results on Google, paid advertisements actually perform better on the search engine. Google Ads convert 50% better than organic search results.
So, why do people click on paid ads? According to Clutch, successful Google Ads that see a significant ROI do one of the following things: answer a question (33%), mention a familiar brand (26%), are listed before other results (20%), or because they have a compelling title, description, or image (19%).
A strategic digital marketing company can help your organization create unique Google ads that are successful because of one of the reasons listed above.
Why Google Ads?
There are undoubtedly other search engines that people use online, but Google is the most widely used. Internet users are four times more likely to click on a paid search ad on Google (63%) than on any other search engine — Amazon (15%), YouTube (9%), and Bing (6%).
Google is the most popular search engine, so businesses and marketers gravitate towards Google Ads because it promises the most profitability. The Google Display Network reaches 90% of online consumers. If you’re going to pay for an online advertising campaign, you should logically place the ad in front of the most eyes possible.
Google Ads Auction
When a user types something into the search bar on Google, they will incorporate keywords that marketers have already bid on. Google Ads marketers must determine how much to bid on specific keywords, according to each organization’s advertising budget. Google Ads operates on a pay-per-click model, so companies only need to pay if they get the primetime advertisement spot at the top of the search results.
Google Ads does an excellent job of ensuring that the placement of ads (or the few ads that are chosen to be placed on someone’s Google search results) is not solely based on the cost-per-click bid. While the CPC bid is an important aspect, Google also heavily considers the quality of the keywords chosen. Your ‘quality score’ and your ‘CPC bid’ are the main components that are factored into the ‘ad rank’ that your company will receive. According to Hanapin Marketing, 79% of marketers call pay-per-click advertising a “vital” part of their business.
Do Google Ads Work for Small Businesses?
If you’re on the fence about creating Google Ads for your small business, you should consider reaching out to a Google Ad services agency. One of the most significant benefits of Google Ads is that it allows you to target based on geography. Google Ads offers incredible customization options that are perfect for small businesses that run a brick-and-mortar shop or online storefront.
Google Ads could undoubtedly bring more business to your storefront, but you should seek professional marketing help to make the most of your ad dollars. Google Ads has a bit of a learning curve and requires regular attention to ensure that the advertisement is successful on the search engine results. Google Ads can work for small businesses that understand the ins and outs of search engine optimization and the value of excellent keywords.
If you’re wondering what the true value of incorporating Google Ads would be for your business, check out the photo below that describes the average conversion rate of various industries. While some industries see a higher conversion rate than others, it’s essential to remember that the success of a Google Ads campaign relies heavily on it being done strategically.
Do Google Ads Work for Every Industry?
Google Ads for eCommerce companies are of the utmost importance because the algorithm positions ‘winning’ websites at the top of the search results on Google — shuffling traffic straight to the site. There are limitless amounts of e-commerce companies online, but yours can stand out if you utilize Google’s pay-per-click services. According to Tech Jury, paid ads have a 200% return on investment. If your competitor isn’t incorporating Google Ads, you have the competitive advantage of funneling your shared target audience(s) straight to your website.
Google Ads work for every industry, but the average click-through rate (by industry) can be viewed below. Marketers who run Google Ads are responsible for managing a company’s advertising budget, finding relevant keywords, making bids, and shifting keywords around. Businesses in every industry could thrive through Google Ads if the correct tools are used to make the service as effective as possible.
Should You Hire an Agency or Do It Yourself?
If you’re considering managing Google Ads yourself, we encourage you to do thorough research on search engine optimization and the complex inner workings of Google Ads. It may seem more cost-effective to manage Google Ads on your own, but you’ll realize after a while that hiring a Google Ads service agency will save you money. People who don’t thoroughly understand how to form long-tail keywords or manage the back-end of Google Ads will find that they spend far too much time, energy, and money attempting to find the right formula.
Marketers should plan to spend an average of 30 minutes per week adjusting campaigns, keywords, and strategies against results. Since Google operates on a pay-per-click model, you may find that your company pays a lot less in advertising if the proper methods are used. The ultimate goal is to ensure your ROI is high — so every dollar spent is completely worth it.
The Biggest Takeaways
Google Ads is an effective marketing tool that has the potential to bring much more business to your organization. Not only will you likely make more profit when utilizing Google Ads, but you will increase your brand awareness by up to 80%.
Digital marketing dominates the online marketplace — where endless amounts of businesses attempt to thrive. If you want to rank higher than your competitors on the world’s most popular search engine, we recommend that you hire experts who know how to adjust the tools accordingly.
Here are six primary takeaways of Google Ads:
1. You can reach people looking for what you offer
2. The ability to target based on geography
3. You can target multiple audiences who use the same product
4. Track results easily
5. Quick results
The revenue made from Google Ads is growing at a substantial rate. The world has begun to realize the value of the digital space due to the global pandemic, so Google’s advertising revenue promises to continue its growth.
If you’re looking for a digital marketing agency specializing in Google Ads, take a look at our services. We offer Google Ads expertise that will help you create a more prominent and profitable brand. Google Ads will grow your business if you use it right, so it’s essential to find the right people to manage your Google Ads right.