Pay Per Click Advertising

What is Google Adwords and How Does It Actually Work?

You might be asking yourself - What is Google Adwords? Well, that’s what we are going to cover and hopefully answer all of your questions in this article.

Anar Karimli

Author

10 min read

What is Google Adwords

Data is an integral part of our lives. Accessing information nowadays is quite easy thanks to the advancement in technology. Having an internet connection is all you need to search for anything on the internet. A favorite assistant in our search for different data is Google. Google is probably one of the few brands that most people on our planet have heard of. The reason behind it is simple. Google is the best and most popular search engine available on the internet. We can type anything on Google, and millions of search results will appear. Google’s features are not only limited to an organic search tool. There are many more characteristics of its features. One of them is Google adwords. You might be asking yourself - What is Google Adwords? Well, that’s what we are going to cover in this article.

It is an online advertising platform where people pay Google to advertise their products. It may sound simple, but there are a few complexities. In this article, we will discuss Google Adwords and strategic mistakes that can get you broke. After reading this article, you will certainly be able to use Google Adwords and avoid mistakes to get the most out of your ads. 

What is Google Adwords?

Google Adwords is an advertisement platform for users who want to advertise their products or services online. Since July of 2018, it has been renamed to Google Ads. The platform doesn’t hold an immense part in its users’ lives, it is also a key source of revenue for Google. Its major office is located in California, US. The secondary offices are in Dublin, New York, Hyderabad, Singapore, and Ann Arbor. The pricing model of Google Adwords is based on the cost-per-click system. It is also known as pay-per-click. Basically, every time a web user clicks on the advertisement of a product or service, the owner of that product or service pays Google. Cost-per-click is calculated by dividing the price paid for advertisement with the number of clicks.

The History of Google adwords

Google started Google Adwords in 2000 when it charged advertisers on a monthly basis. For those wanting to control their own advertising operation, Google initiated Jumpstart in 2005. It was a campaign management service. The same year, Google Advertising Professional was given to the use of people. The program’s purpose was to license companies and people finishing Google Adwords training and passing its exam. Google presented the Google Online Marketing challenge in 2008. It is an in-class academic assignment for third-year students. In 2008, the number of students who took part in the challenge was 8000. They were representing 47 countries. This number went up to 15000 in 2011, increasing the number of countries to 70. Google revealed “Showcase Shopping” ads in 2016. Thanks to this format, retailers may select to have pictures emerge in search result relevant to different keywords. In July of 2018, Google rebranded Google Adwords to Google Ads. From the same year, Google Adwords offers smart campaigns for small-sized businesses apart from the previous features. This features. This new campaign aimed at those who have time constraints to handle their digital marketing campaigns. 

How does Google Ads work?

Now that you have an answer to the question of what Google Adwords is, let’s talk about how it works. The technology of Google Ads is based on keywords and cookies defined by advertisers. Google utilizes these features to put the advertising on pages where they accept it to be related. Google receives payment every time a web user clicks on an advertisement. Websites involved in this advertising get some amount of income received by Google. By using Google Adwords, advertisers can share their products or services locally, nationally, or internationally. The text advertisement of Google are concise. They comprise a maximum of 30 characters with three headlines, 90 characters with two descriptions, and 15 characters with 2 URLs. This can give you an idea of an average search outcome in Google. The company reformatted ads calling the new format Expanded Text Ads. It was aimed at comforting advertisers and web users. This format enables 23 percent more text. It offers 30 characters in 2 headlines. 

Features of Google Adwords

What is Google Adwords

One of the foremost features of Google Ads is the Keyword Planner. This is a free instrument that supplies data around the search inquires occurring in Google. It also supplies data for forming an advertising campaign typical to Google Adwords. By providing ad ideas and keywords, keywords trend, and more, Keyword planner sets up Search Network campaigns. Google Ads editor is another tool by Google Adwords. It enables users to modify and edit advertisements offline. You can download Google Ads editor for free. It arrives with Google Ads without any extra cost. With the help of Google Ads editor, you can track advertisement performance, as well. AdWords Express, formerly known as Google Boost, is a feature to assist small-sized businesses. Precisely, its purpose is to help such businesses diminish the hardship of handling ad campaigns. 

Adwords Express implements it by automatically controlling the ad placement and keywords. Further, there is a feature called Google Ads Manager Accounts. With its previous name, My Client Center, the feature enables users to handle numerous accounts from a single login and dashboard. Moreover, an instrument called Reach Planner helps users to predict the extent and reach of video advertisements on Youtube. The tool enables users to select their audience and advises a combo of video ads which help users to achieve their goals. 

Strategic Google Ad mistakes that will make you broke

Just like you, there are thousands of people who have an understanding of Google Adwords, yet are unsuccessful with its use. To make sure that you do not make these mistakes, read this part of the article carefully. 

Not utilizing the correct keywords matches

Some of those knowing what Google Adwords is, also know that three types of keywords exist. These are the broad match, phrase match, and exact match. Most people usually make mistakes while choosing the type of keyword to advertise their products or services. Let’s get into details so that you have a better understanding of keywords. 

Broad Match

When you utilize broad match keywords, people will see your ads irrespective of the order of words. Let’s say your keyword is “trending Adidas shoes.” In this case, people who search for “Adidas shoes trending,” “Adidas trending shoes,” “buy Adidas trending shoes,” and more will come across your ad. The potential of broad match keywords is quite big. This because even if seekers of a keyword will see your ad even if they are not planning to buy your product. To use the broad match keyword, just enter the phrase. No need to use any type of punctuation marks. 

Phrase Match Keyword

In the phrase “match keywords”, your ads will show in results for searches of your keyword in the given order. For example, if you provide your keyword as “red winter gloves,” it will appear only with searches with keywords in this order. If a user types “red gloves for winter,” your ad will not appear. Nevertheless, your ad will also appear for searches where your phrase match is used in the search. For instance, for the results of “red winter gloves with discount,” your ad will emerge. To use a phrase match keyword, you have to use it in double quotation marks like this “red winter gloves.” 

Exact Match Keyword

Your ads will appear for the exact match keywords when users use the punctual keyword in search. It should be in the correct order and without any additional words. For instance, if your keyword is “latest Samsung tablets,” your Google ads will not appear as a result of “top latest Samsung tablets.” Studies show that exact match keywords are more effective in terms of conversion. However, the number of searches for this type of keyword is comparatively low. To utilize this keyword type, just type the keyword in squared brackets.

 In brief, it is very important to choose the correct keyword type while providing ads. An effective start would be beginning with an exact match keyword. Eventually, you should switch to phrase match keywords and broad match keywords. In case you do not obtain sufficient conversion and clicks with an exact match, then you can switch to phrase and broad matches. On the other hand, if broad match keywords do not produce desired returns, you can go back to the phrase and exact match keywords. The last useful tip for you is a combination of these three keyword types. This is a tip that most of the new advertisers are unaware of. What you have to do is to bid keywords utilizing cascading bids. Cascading bids is a system where you bid the lowest amount for broad match, the highest one for an exact match, and the middle one for the phrase match. For example, you bid $3 for an exact match, $2 for phrase match, and $1.5 for broad match. 

Not Utilizing Negative Keywords

Another common mistake by those who think they know it all is about negative keywords. To be more precise, not utilizing negative keywords. Negative keywords are keywords that people add to their ads to ensure their ads will not appear for those using these keywords. For instance, if your keyword is “online math courses,” and you add the word “free as a negative keyword. In this case, among the results of “free online math courses,” your ad will not appear. Today, the majority of advertisers refuse using negative keywords underestimating their power. However, they are unaware that negative keywords are indeed the easiest method to access the targeted customers, and decrease expenses. Most importantly, it helps to enhance the return on investment (ROI), which is the crucial side of all businesses. In addition, it assists you in bettering the quality score of your Google Ads. 

When you search for “free typing jobs” in Google, you will see some of the links require payments. It is not your fault. This is the fault of the people putting those ads. By doing this, such people lie to both themselves and users. The fundamental thing to do here would be removing the word free as a negative keyword. By this, irrelevant people would not have to see such links, and ads would reach the targeted people. We recommend some tips for you to use while choosing negative keywords. The first one is not overusing the negative keywords. This will result in very tough outcomes to track. Another tip is customizing the negative keywords. In other words, do not use the same keywords over and over again. The last one is tracking your keywords together with their related negative keywords. By using these tips, you will surely achieve better use of negative keywords. 

Not Bidding on the Brand Name

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Another very common mistake by people is not bidding on their brand name. This may seem strange to you, too. Yet, it is one of the most effective ways to raise conversions for one’s brand. Needless to say, you have to ensure your brand conveys an essential value to its customers. If it is not there, it is unlikely that people will search for your brand identity. Here are some signs of the significance of bidding on the brand name.

Two links > One link

It is fantastic to appear as the first link while people search for your brand name. But what will happen if you bid your brand name in this case? You will rank in Google in both the first and the second places. Is it bad? No, because the paid search is not going to cannibalize the keyword in your organic SEO link. 

Brand keywords are cheaper

Brand keywords are usually cheaper than normal keywords. Bidding on them will usually cost you less than bidding on normal keywords. So, you can decrease your advertising costs by using your brand name in Google Ads. 

Brand searches come after product searches

People will usually look for the product and service terms, such as shoes, caps, and so on. Once they finish it, they will move on to seeking brand words. By providing an ad, your link will come as the first link in the search. This will surely affect the buying behavior of your customers.

Excel your competitors

What will happen if your rivals purchase your brand term and appear above you? This is quite possible and will likely happen. Ensure you act first and win this advertising competition to appear above your rivals. 

Moreover, by bidding your own brand, you are promoting your brand. The people who do not bid their brands have strong reasons for themselves. They might say their brand appears as the first link in the search. Another reason may be their brand’s search volume is little. However, what matters is not the clicks. What matters is the profit, and you will truly achieve profit increase by bidding your brand. In general, if people search for your name in Google, it is a pretty positive sign. This means people know your brand, trust it, and are interested in using its products or services. According to Forbes, 80 percent of the profit of the majority of companies are generated from 20 percent of their customers. Just note that this 20 percent are the loyal customers of a business. So, the ones who look for your brand name in Google are your loyal customers who will generate a significant part of your profit. 

In this article, we covered what Google Adwords is and lethal mistakes made by most advertisers. Online advertising requires smart work rather than hard work. Many advertisers can tell you a bunch of things about what Google Adwords is and how to use it. Yet, most of them will still make at least one of the above mistakes. Considering the fact that this field is renewed frequently, make sure that you follow the news regarding Google Adwords. Just remember, you spend your money on Google Ads, which has high importance in the current capitalistic world. And you do it to get high returns on your investment. So, make sure that you approach Google Adwords smart and avoid the aforementioned mistakes for the best results.