{"id":8685,"date":"2014-02-03T04:17:25","date_gmt":"2014-02-03T04:17:25","guid":{"rendered":"https:\/\/www.kinexmedia.ca\/?p=8685"},"modified":"2024-09-17T07:42:10","modified_gmt":"2024-09-17T11:42:10","slug":"what-is-google-ads-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/www.kinexmedia.com\/blog\/what-is-google-ads-and-how-does-it-work\/","title":{"rendered":"What Is Google Ads and How Does It Work in 2024"},"content":{"rendered":"
Your online business becomes profitable only when your brand is visible to your target audiences. Don\u2019t you agree? This is one of the most challenging tasks for website owners to accomplish. However, there happens to be a quick fix to this very problem, which is known as paid Ads.<\/p>\n
Among the various paid Ad options available in the market, Google Ads truly stands outs from its competitors. This statement can be further validated by research conducted by Webfx, which concludes that 80% of global businesses use Google Ads for their marketing campaign.<\/p>\n
This blog will help you understand all the basic questions regarding Google Ads. Whether it is to know which type of Google Ads you should target or how much it will cost you.<\/p>\n
Let\u2019s get straight to the information,<\/p>\n
Google Ads was formerly known as Google Adwords until 24 July 2018, when it changed.<\/em><\/p>\n You can understand Google Ads as an online platform that helps companies around the world advertise their brand on Google and its partner websites. It works on a bidding system where a group of businesses bids for the exact keywords to feature their offerings on top of Google\u2019s SERP.<\/p>\n Google Ads provides you with various ad format options, some of which are as follows:<\/p>\n Google Ads provides numerous types of ad formats to help businesses reach their target audience and achieve their marketing goals. Some of the most common types of Google Ad campaigns are explained below:<\/p>\n 1. Search Ads:<\/strong><\/p>\n These are text-based ads that appear at the top of the Google search engine result pages<\/a>. Type \u201cSEO services<\/a>\u201d on the Google search bar, and you will be able to see ads labeled as sponsored.<\/p>\n 2. Display Ads:<\/strong><\/p>\n These are visual ads that may contain images, texts, or videos. They get featured on various websites and apps within Google\u2019s display network.<\/p>\n 3. Video Ads:<\/strong><\/p>\n Video ads are featured on YouTube and across the Google display network<\/a>. They can be in-stream ads that play before, during, or after YouTube videos. These ads can also be displayed on YouTube search result pages or display networks.<\/p>\n 4. Shopping Ads:<\/strong><\/p>\n These ads are especially for e-commerce stores and display product information such as image, name, price and store name. They typically appear on Google shopping results and can also appear on Google search results.<\/p>\n 5. Discovery Ads:<\/strong><\/p>\n These ads appear in digital places like Google Discovery feed, your mobile\u2019s YouTube home page or Gmail promotions. They are visually engaging and aspire to hold the users’ attention as they browse online.<\/p>\n Google Ads provides ample benefits to its beneficiaries, some of which are discussed below.<\/p>\n 1. Super fast results:<\/strong><\/p>\n When you compare Google Ads with other marketing channels, such as SEO, the obvious difference lies in the speed of results.<\/p>\n SEO takes a significant amount of time to place your brand on top of search results, while Google Ads can help you climb to the top much faster.<\/p>\n 2. Measurable results:<\/strong><\/p>\n Google Ads allows you to measure the performance of your ad campaign in a real-time. This data can help you decide which ad works fine and which requires tuning for better results.<\/p>\n 3. High profits:<\/strong><\/p>\n Google Ads is regarded as one of the best marketing tools<\/a> when it comes to the return you get on your investment. Did you know Businesses earn around $8 for every $1 spent on Google Ads?<\/p>\n 4. Cost control:<\/strong><\/p>\n With Google Ads, you have total control over the money you will spend on your campaign. You can set a daily or monthly budget and only pay when someone clicks on your ad.<\/p>\n Does your website have the potential for success? Find out with our free assistance!:<\/strong><\/p>\n {Get in Touch With Our Profesionals}<\/a><\/p>\n<\/div>\n Google Ads works on a concept known as the Cost-Per-Click Model. In this model, you pay a certain amount to Google when someone clicks on the ad to visit your website or complete any defined action. In addition to this, Google Ads allows you to set the following bidding options.<\/p>\n The cost of bidding depends on many factors, such as the number of entities bidding for the same keywords, search volume, time of the year, etc. When you bid for a specific keyword, you determine the maximum bid you are willing to pay for a click. If your maximum bid is lower than what Google estimates, your ad will not show up. <\/span><\/p>\n So, how is the cost of a bid determined by Google?<\/strong><\/em> This is calculated on the basis of 3 main metrics intertwined in a formula.<\/p>\n The Metrics<\/p>\n The Formula<\/span><\/i><\/p>\n Your Bid price<\/strong> = The Ad rank of the bidder below you \u00f7 Your quality score + $0.01.<\/p>\n It might look complex at first, but it is really easy to understand. You just have to understand the metrics before coming to the formula. The concept of a maximum bid is already covered above. The remaining metrics, which we will discuss in a bit, are ad ranks and Quality scores. Let\u2019s start.<\/p>\n 1. Quality score:<\/strong><\/p>\n Quality score is a metric by which Google calculates the order in which the keywords should be ranked. It is a numerical ranking on a scale of 1 to 10. The higher the quality score of an ad campaign, the higher its chances of ranking above others. It determines the cost and ranking of your ads on Google\u2019s SERP. It is further divided into 3 subcategories, which are as follows:<\/p>\n 2. Ad rank:<\/strong><\/p>\n Ad rank is another critical metric that decides the position on which your ad will feature. It is calculated by multiplying the max bid with the quality score. For example, if the max bid is $5 and the quality score is 5, then the ad rank will be 25. If the value of your ad rank is greater, it will be more likely to sit at the top of other ads. <\/span><\/p>\n Now that we have understood the metrics, we will be taking an example to calculate the price of the bidding. See the table below for clarity.<\/span><\/p>\n\n
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What are the various types of Google Ads?<\/h2>\n
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Why you should consider Google Ads?<\/h2>\n
How Does Google Ads Work?<\/h2>\n
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Bidding Cost<\/h2>\n
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