Google ads

What it is, what it is for and how it works

Table of contents

Introduction

Google Ads generated more than $209 billion (statistician) in 2021, achieving record advertising revenues. It is one of the most widely used online advertising platforms today.

Using Google Ads to generate sales is a fundamental strategy in the marketing plan of any company or local business, but using it is not enough, managing and optimizing campaigns immediately to get a return on investment is an essential part of improving ROI.

Advertisers can target their ads to appear on Google search and other Google properties, as well as on millions of websites across the web, through the Google Display network. Online ads allow advertisers to set a budget for their ad campaigns and thus only pay per click or view on their ads.

We will learn about the services that Google Ads offers, how Google ads works and the different types of advertising campaigns that allow us to reach our target audience according to our marketing objectives

What is google ads

Google Ads is a Google advertising service that allows advertisers to create ads that appear on Google’s search results page (SERP) and other networks, such as YouTube, among others.

Google Ads is one of the main forms of online advertising for businesses looking to drive qualified traffic to their websites. Google Ads can appear on any device that has access to the internet, be it a computer, smartphone or tablet.
Players can control when and where their ads are shown, as well as the budget they are willing to spend. Google ads are extremely effective if they are supported by a strategy, proper account setup and targeting.

How Google Adwords Works

Do you want your business to appear on Google? Advertising on Google is one of the ways to drive traffic to your website and increase sales. But how does Google Ads work?

Google Ads works through an auction system. When a user performs a search on Google, an auction is held among all the companies that want their ads to appear in Google’s search results and/or partner for that particular query.

The auction is conducted on the basis of three factors: the price you are willing to pay per click on your ad (CPC), the quality and the relevance of the ad to the user’s query.

Price of advertisements

It is the price they are willing to pay for the keyword that triggers the ad. The price is determined by the market and advertisers (supply and demand), through the bidding system. Advertisers can set a maximum CPC limit for each of their campaigns, which means that Google will not charge them more than this limit for each click on their ad.

Quality of the advertisement

Many advertisers face a major challenge in ensuring that their ads are sufficiently relevant to the users who are searching on Google. If the ads are not relevant, users may click on them, but will not be interested in what the advertiser has to offer.

This can lead to a high bounce rate and ultimately to a lower ad quality or quality score. Ad quality therefore refers to whether the ad is useful and responds to the user’s search intent. Ads must meet certain quality requirements to be considered in the Google Ads auction system.

Relevance

Ads must be relevant and of high quality to be considered in the Google Ads auction system. Relevance refers to whether the ad is relevant and matches the search term the user has entered.

Advertisers must ensure that their ads are relevant and of high quality. If ads do not meet these requirements, they may not be considered in the Google Ads auction system.

Quality score

To get an idea of the quality level of your ads and campaigns, Google Ads offers a diagnostic tool that allows you to assess the relevance and quality of your ads and landing pages compared to those of other advertisers.

Quality is measured on a scale of 1 to 10, with 10 being the highest score. A higher quality score means that your ad and landing page are more relevant and useful to users searching for your keyword. The quality score diagnostic tool allows you to identify where you should improve your ads, landing pages or keyword selection.

Quality score is not a metric, but it is used to diagnose how ads influence the user experience. It is a diagnostic tool that identifies how ads displayed with certain keywords influence the user experience.

It is calculated on the basis of the combined performance of three components:

Benefits of using Google ads

When it comes to online advertising, there is no doubt that Google is the dominant platform. Google Ads is the largest advertising network, with more than 7 million advertisers worldwide (according to klientboost study). Online advertising is the way to reach people interested in your products and services, and you can measure the reach and results of your campaigns.

These are some of the advantages of using Google Ads:



With online ads you can target ads to a specific audience. This means you can make sure that ads are seen by the people most likely to be interested in the product or service. You can target ads by location, demographics, interests and even behavior.

Advertising on Google can help increase your business opportunities in several ways. Firstly, by reaching more potential customers. And secondly, by improving conversion rate metrics, a metric that measures the number of people who take an action after seeing the ad (such as making a purchase or subscribing to a newsletter, making a call).

You can increase or decrease your campaign budget at any time, depending on your needs. You can set a daily budget limit to ensure you don’t spend more than you can afford. This control allows for an affordable investment, within the reach of any business, so you can start with a small budget.

As mentioned above, Google Ads is a pay-per-click advertising platform, which means that you only pay when someone clicks on your ad. You can get great exposure for your business by controlling costs and profit to improve the ROI of each advertising campaign.

By running campaigns on Google ads, you can easily track and measure the results. This way, you can see how your ads are performing, make the necessary changes and optimisations to improve your results.

As you get more data from your campaigns, you can adjust your ads to get better results.

Types of Google Ads campaigns

Within Google Ads you can carry out different types of campaigns to promote your business. Depending on your objectives and needs it is more advisable to use one or another type of campaign.

 

1. Search campaigns

Search campaigns are based on the keywords that the user enters to consult content on Google. These are text ads, which are shown in Google search results or in other media partners of the Google network, depending on your objectives, you can configure for both or one of them

2.Display Campaigns

These campaigns are based on banners and other graphical ads that are displayed on Google affiliated websites. You can select the ad type and format, as well as where the ad will be displayed. These ads appear on other websites that are related to your products or services and therefore attract your target audience.

 

3. Video campaigns

These campaigns are based on video ads that are displayed on Google affiliated websites, as well as on YouTube and other video platforms. You can select the ad format and placement, as well as the budget you are willing to spend.

 

Depending on your business and advertising objectives, you can carry out both brand awareness and conversion campaigns.

 

4. Shopping Campaigns

These campaigns are based on the products you sell through your online or physical shop. Shopping campaign ads are displayed both in Google search results and in the shopping section

5. App campaigns

These campaigns are based on the promotion of mobile applications through websites affiliated to the Google network. You can select the ad format and placement, as well as the budget you are willing to spend.

 

App campaigns have a high potential, being able to appear on google play, search, discover youtube.

 

6. Local Campaigns

These campaigns are based on the promotion of local businesses through the Google map function and other Google tools such as search results, display or youtube. You can select the ad format and placement, as well as the budget you are willing to spend.

7. Remarketing campaigns

These campaigns are based on advertising to users who have already visited your website or interacted with the brand in some way. To do so, you must have data in your advertising campaigns and configure it in the manager to be able to deliver ads based on user behaviour within your website and ads.

8. Discovery campaigns

These campaigns are based on the promotion of your business, products or services from the same campaign through graphic ads to appear on Google discover, gmail or youtube.

 

The difference in these campaigns is that the users to whom your ads may appear have shown high intent behaviour for the products for which they are shown.

In conclusion:

According to statista, Google is the default search engine in most parts of the world, achieving a market share of around 90% in a wide range of digital markets.

It is therefore an intermediary between potential customers and your brand. If potential customers are using Google tools to a greater or lesser extent, our marketing efforts cannot be oblivious to this ecosystem.



Creating and managing online advertising campaigns with Google ads should be part of our online marketing strategy, as long as it brings value and positive impact to the business.

Therefore, the challenge for advertisers is to optimize and manage campaigns in a way that allows for customer generation and an efficient return on investment. Analyzing and measuring the performance of advertising campaigns must be at the core of our marketing actions.

Frequently Asked Questions

Google ads is a platform that allows advertisers to run online ads on Google and its network of partners. Learn how to create ads and improve advertising results with this article.

There is no way to do Google Ads for free. All Google Ads campaigns require you to pay for the clicks you receive. But for a small fee you can access the world’s largest advertising network and reach your potential customers.

The cost of Google Ads is determined by the bidding of the keywords used by the user when searching. The price also varies according to the quality and relevance of your ads. Find out what Google Ads is and how it works in this article.

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