Setting up Google ads for your business might demonstrate to be the best decision you ever made, and this is not an overstatement.
Approximately 5.6 billion searches are committed every single day on the Google search engine. Every inquiry related to your product\service on Google offers opportunities for your brand to be visible in front of more potential audiences.
That’s where Google Ads enters.
Google Ads allows you to advertise and promote your product or services on the Google search engine platform whenever relevant inquiries are raised by users. When Google ads are arranged faultlessly, it has the potential to turbo-charge the return on investment(ROI) of your business.
Let’s take a glance at what Google Ads is and how it works.
What is Google Ads?
Google Ads is a paid online advertising platform officially announced by Google on the 23rd of October, 2000.
Formerly the platform was known as Google Adwords, the search engine organization rebranded the service as Google Ads in 2018 although the procedure remains almost identical.
Whenever a query is brought up to the Google search engine, it returns a search engine result page ( SERP) to the users with the findings of the inquiry. Those results by Google contain paid promotions that targeted that keyword.
For instance, here are the results for the term “personal trainer courses.”
As you can notice the SERP begins with all the advertisements that target the keyword “. Those advertisements look similar to the organic search results and can only be determined by the bolded “Ad” at the top of the post.
Achieving the first position on SERP through Google ads can prove to be a goldmine for advertisers, as the top results on the Google search engine result page naturally get the massive bulk of the traffic for search queries.
However, setting up advertisements on Google doesn’t always certainly confirm the booking of the top position on SERP, because there also exist other advertisers, who are competing for the exact keyword through the Google Ads platform.
To understand the Google ads rankings, let’s take a glimpse at how Google Ads operates.
How does Google Ads function?
Google advertising works on a pay-per-click (PPC) model. According to the PPC model bidding system, advertisers can target a particular keyword on Google and make a bid on that — competing with other advertisers who likewise expect the leading position on the same keyword.
The “maximum bids” you make represent the maximum amount you’re willing to spend for an advertisement that targets a certain keyword.
To clarify the Google ads bidding model lets assume an example — if the maximum bid you made is $5 and Google figured out that your cost per click is $3, then your advertisement will be placed, or else if your cost per click is determined more than $5 your ad campaign will be dismissed, as simple as that.
Alternatively, Google ads permit advertisers to set a maximum daily budget for their ads. A maximum daily budget is a percentage that will be spent every day to run the ads on Google. You’ll never be charged more than a specific amount you choose as the maximum bid for that ad per day.
Google offers three bidding options:-
Cost-per-click (CPC). The amount you pay when your ad gets a click.
Cost-per-mille (CPM). The amount you pay when your ad gets 1000 impressions.
Cost-per-engagement (CPE). The amount you pay when a user completes the desired activity on your ad (enroll for a list, likes or subscribe to a video, etc).