Google AdWords

Cost-per-impression (CPM) will charge you after your ad has appeared in the search engine 1000 times. When using CPM, it does not need to be clicked. It needs to be seen on a search engine when potential customers are searching. Payment will start with a maximum bid. This is the max amount you are willing to pay for your ad spot. You typically won’t have to pay this unless your ad is ranked the lowest. Generally, you will be paying less for your ad spot.

How does Google AdWords work?

Google Adwords is a bidding pay-per-click system, meaning a website owner would pay to have their website advertised through the Google Search Network or Google Display Network. The name, pay per click, suggests Google charges the advertiser a certain amount of money per click on the link.

Google’s Ad Auction to put a specified advertisement starts when a user searches for something in the Google Search Engine. Google then finds keywords in a user’s search query and then creates a list of potential advertisements that could be displayed. The list is ordered based on two main factors; maximum cost per click bid and a quality score. The maximum cost-per-click bid is how much you would be willing to pay for a customer to click on your website. A quality score is determined using a formula created by Google to determine how relevant that website would be to the user based on the content and metadata.

Ultimately an Ad Rank is created, and the websites at the top get displayed more often in Google’s Search Network.

How much does Google Adwords cost?

The price of a click varies based mainly on whether it’s on the Google Search Network or Google Display Network. The Google Search Network cost per click is much more expensive than Google Display Network. Generally, it is about 1 to 2 dollars per click. This price is much higher because the Google Search Network utilizes ads to increase a person’s likelihood of buying that product. The Google Display Network typically has less than one dollar per click because of the more passive advertising.

Google Search Network’s ad rank system allows a higher quality score to increase your ad rank. If you have content relevant to your keyword and a website that Google would deem helpful to the user, you would have to pay less to get a higher ad rank.

Many smaller businesses choose Google Search Network advertising because of its higher click-to-customer ratio. Small businesses often find that Google’s Display Network’s purpose is to spread brand awareness with flashy advertisement banners than directly attracting customers. Creating proper brand awareness requires massive amounts of money that small businesses can’t afford to produce.

Pricing and Demands of Keywords

Choosing the right ad words, setting an accurate location, and viewing your ads at the right time is all part of getting more customers. Overall, setting up an ad campaign is not all it takes. Google’s algorithms learn over time, and each ad word campaign will need to be tweaked. And over time, it can generate more traffic to any website. Carefully understanding the market demands, knowing the price of each Adword, and adjusting to each budget are also crucial when e creating online AdWords. 

While some companies or products are in higher demand, it leads google to price them differently. For example, there is a significant price difference between the ad word Insurance and Core blood. While one costs $54.91, the other is priced at $27.80. This is because more insurance companies are competing for customers. Another example is insurance ad words priced higher than other ads like “rehab,” with fewer demands and a lower competition rate. Following is a list of price comparisons from the workstream:

• Transfer – $29.86
• Gas/Electricity – $54.62
• Classes – $35.04
• Rehab – $33.59
• Treatment – $37.18
• Cord blood – $27.80

Google Adwords means bidding on correct ad words.

For business owners, it is essential to make sure they bid on the right ad words. Hence, choosing specific ad words and choosing the right balance of keywords will minimize the cost. For example, using expensive keywords like Insurance in every advertisement can be damaging and costly for any company’s financial position. Therefore it is suggested that a range of long-tail keywords be utilized.

The Benefit of a High-Quality Score

You want to aim for a high-quality score. Having a high-quality score will increase your ad rank and lower your cost. When you get a higher quality score, it will discount your bid prices. When it starts to decrease, you will have to start paying more.

Ad Rank

The ad rank you are given determines who will get the first position on the ad list. The higher your ad rank, the higher your ad will be placed. Your ad rank is calculated with the formula (maximum bid) X (quality score). You want to try and balance the quality of your ad to your maximum bid. Attempting to optimize like this will help increase your ad rank and keep your cost to a minimum.

Actual Cost-Per-Click

After the ad rank has been calculated, and all ads are placed, the CPC will be found. You will pay based on competing for ad ranks and your quality score. The formula is (ad rank of the company’s ad below) / (your quality score) + $.01 = actual CPC. This means the higher your quality score and the higher ranked you are, the less you must pay. You will spend your maximum bid if your ad is ranked the lowest.

Google Adwords – Lower CPC based on higher quality scores.

• Ad-Text: The ads you will run through Google AdWords will be text ads. The best way to organize these is into four short, simple lines. Google Adwords generally have the following structure:
• Headline: You want to say what you are offering in this line. It should not exceed 25 characters.
• URL: The URL line is just where you put your URL. It should be shorter than 35 characters.
• Description Line ½: These two lines should grab readers’ attention and convince them to click on your ad. Both of these should not exceed 35 characters.

Keywords

Keywords are words or phrases that will be search queries. Search queries are what users type to local small businesses, products, or any other service or content. Your keyword can be extracted from any search query containing your specified keyword. If your keyword is “shoes,” your ad will be triggered by “Nike shoes” or “Adidas shoes.” It will all get mapped back to your keyword.

Keyword Match Types

Google AdWords has five different match types to choose how broad your ad will reach.

1. Exact Match: Exact match keywords will only match AdWords with the user’s search queries when they match precisely. The ad will not get matched if there are other words in the search query. This match type has the most narrow reach.
2. Phrase Match: Phrase match keywords will match a search query when the word is in the same order. However, other words may be around the word phrase when in the search query, but this will not trigger if the adword in the search query is changed.
3. Modified Broad Match: The modified broad match keywords will match the AdWords and the search query in any order. Any words can appear within the search query between or next to the registered Adwords.
4. Broad Match: When general match keywords are used, they will match similar words. The search query does not need to contain the exact adword. It will trigger an ad when similar terms are in the search query. This match type will have the broadest reach.
5. Negative Match: Negative match keywords will stop your ad from being shown. When a negative match keyword appears in the search query, the ad will not be delivered to the user.

Grouping Keywords

When using Google AdWords, one of the best strategies is Keyword Grouping. By grouping keywords, you can create higher-quality ads. To start grouping keywords, you should grab the broadest keyword. From there, you should begin branching them out too much more narrow categories. This starts to create a tree with branches that help organize the keywords.

Once your keywords are grouped, you will have them grouped by theme. You will run multiple ad campaigns that will better fit the different keywords.

By grouping ads, you can create much more relevant advertisements. These groups will also help you create landing pages pertinent to who you advertise. Improving both of these will improve your quality score, bringing significant benefits.

Dynamic Keyword Insertion

Dynamic Keyword Insertion(DKI) is a tool within Google AdWords to make your ads more relevant to users’ searches. This is an essential tool to learn how to use and can be beneficial. However, it would help if you were careful when using it because it can create big problems.

DKI will make your ads more relevant based on user searches. This occurs by DKI inserts words from the user’s search query into the ad. The words would replace the keyword in the ad to make it look more specific to what the user is looking for. So if your keyword is “Shoes,” and the headline of your ad is “Great Prices on Shoes.” If the user searches for “Nike Shoes,” that will replace “Shoes in the headline. Your new headline will say, “Great Prices on Nike Shoes.” This will make the ad more relevant to the user and reach further.

Advantages of Dynamic Keyword Insertion

Using DKI makes your ad more specific to the user. When ads are more related to users’ needs, they are more likely to click on them. This will increase your click-through rate and thus raise your quality score. Google AdWords will bold words used in your ad if they are also used in a search query. So when the user’s search query is placed into the ad, it will make it pop. Making it pop will draw the user’s attention and make them more likely to click on it.

Disadvantages and Dangers of Dynamic Keyword Insertion

A disadvantage of DKI is that many inserted words will be longer than the original keyword. This could cause the line to go over the character limit. When this happens, it will just use your base keyword. Another problem that DKI can cause is that it could cause lousy wording or grammar in the ad. If someone searches “Shoe,” your ad would say “Great Prices on Shoe.” This could cause people to click on the ad because they find it funny. They will not go there looking to buy anything. This could cause your click-through rate to be high and your conversion rate to be low. The conversion rate is how people who click through use the service.

The most significant danger that comes from using DKI is it is possible to get trademark violations. This can happen when a competitor’s brand name is used in the ad. You can bid on that keyword, but if their name appears in your headline, you could get in legal trouble.

Is Google AdWords Worth Using?

Google AdWords has a significant learning curve but can become very effective if you can learn how to pick out the keywords that are best fit for you. Then you make an ad that can get a high-quality score relevant to your chosen keywords. It can bring in many more customers if you know how to use it. Using other tools like DKI will make you more prominent on Google. Of course, there is organic search optimization too!