The actual position of your Google Ads is determined by your ad rank (Maximum Bid times Quality Score). The highest ad rank gets the 1st ad position. Your actual CPC will be determined by the ad rank of the next highest ad below you divided by your Quality Score.
However, the only exception of this rule is when you are the only bidder or the lowest bid in the Google Ads auction. Then you’ll pay your maximum bid per click! AdWords bidding heavily penalizes advertisers who bid with low-quality scores. Conversely, those with high-Quality Scores get higher ad ranks and lower CPC.
The auction gets run billions of times each month. The results are such that users find ads that are relevant to what they’re looking for. Advertisers connect with potential customers at the lowest possible prices and Google rakes in billions of dollars in revenue.
Why wait for more? Grow your business with Google Ads and get in front of your customers. Whenever they’re searching for businesses like yours on Google Search and Maps. And only pay for results, like clicks to your website or calls to your business.
What are Google Ads?
Since advertisers have to pay for these clicks, this is how Google makes money from search results. This infographic will help you understand how Google Ads works. By detailing the Google Ads auction, bidding process and explaining important factors. Like Quality Score and Cost Per Click.
So, if you’re asking “How does AdWords Work?” this page is for you. And depending on the competitiveness of the keywords you’re bidding for and the relevancy of that keyword to real conversions for your company, AdWords may or may not work for your business.
For the most part, I’ve found that Google AdWords is extremely effective for many kinds of businesses. As long as they don’t waste their money on the wrong keywords, or write weak, low CTR ads.
Once a query is made on Google, the search engine processes the request and runs the auction. Eventually, which will then determine the ad positions and each advertiser’s CPC.
What is Google Ad rank?
Google Ad Rank is the position of the company’s advertisement on the search engine page. Based on a combination of the company’s maximum bid and quality score.
The average cost per click on AdWords varies by keyword and industry. But, it’s roughly $2.32 on the search network and $0.58 on the display network. In that case, you can read and learn how to get more average AdWords metrics.
Basically, this is a metric Google uses to determine how relevant and useful your ad is to the user. Based primarily on your ad’s CTR, keyword relevance, and the quality of your landing page. The higher your Quality Score, the better. Not forgetting, high-Quality Score keywords will save you money and earn you better ad rankings.
In other words, the Ad rank is how high on the page the advertisement will be displayed. Quality Score, on the other hand, is determined by the relevance and usefulness to the searcher. And is only a portion of the advertisement positioning process.
As of 2013, Google’s Quality score has become more and more valuable as the average quality score has changed from 7 to 5.
What is the Actual CPC?
In the first place, Ad position is the position on the search engine page results where the advertisement appears in relation to all of the other advertisements.
While Actual CPC is the amount an advertiser pays each time a searcher clicks on their advertisement. However, this number varies depending on the other advertisers in the auction and is always lower than the maximum bidding price.
Secondly, the Actual CPC is determined by dividing the ad rank of the competitor below them (ad rank to hit) by quality score plus $.01. Alternative bidding methods include CPM and CPA. CPM bidding is based on impressions and can be used alongside CPC bidding.
CPC is the cost of an advertisement based on how many clicks it receives. Whereas, CPM is the cost of an advertisement based on how many impressions it picks up. Although, both methods can be used simultaneously.
What are Google Ads keywords?
Keywords in AdWords are the words and phrases that advertisers bid on. In hopes that their advertisements will appear on the Search Engine Results Page (SERP) when people are searching for those products or services.
For example, if you sell shoes online, you might bid on keywords like “Nike Sneakers” and “Penny Loafers.” Keyword Research is the process of using tools and data to determine which keywords are most likely to drive relevant traffic to your ads and your site.
By the same token Search Engine Optimization (SEO) is the act of improving the visibility of your site or page within a search engine results page through organic methods. After all, this can be done by using search keywords within your content. So that a search engine can find and display your site faster and with more accuracy.
It is important to realize, site authority and your link profile also play a role in your search engine rankings.
How does Google Display Network work?
The Google Display Network (GDN) is a very large network of sites that allow Google to place display advertisements, which reach over 90% of all Internet users!
Generally, Advertisers find that Display Network clicks are less costly than those on the search network. And depending on your targeting methods, the CTR’s can be high and the CPA’s low. Try this entirely free, easy to use Smart Ads Creator if you’re looking to get up and running on the display network in a hurry.
Equally important, an ad group is a container for your AdWords advertisements, keywords, and landing pages. Google tends to reward advertisers who create AdWords campaigns with tightly structured ad groups.
Therefore, it’s important not to dump all your keywords into the same ad group, but to organize your keywords into themes. Read and learn more about How to Use Google Adwords to Promote Your Content.
What is Ad Relevance in AdWords?
Ad relevance is a measure of how related the keyword you’re bidding on is to your advertisements. As well as how much your keywords match the message of your ads and landing pages. Higher ad and keyword relevance can improve your click-through rates and Quality Scores.
Conversion Optimizer in Google AdWords is a bid manipulation tool that manages bids at the keyword-level. With the goal of trying to drive as many conversions at or below an advertiser-specified cost per conversion. Also known as Cost Per Action, or in short CPA.
The easiest way to see how you’re doing at Google PPC is to benchmark your PPC performance against similar advertisers in your industry and spend range.
What are the Drawbacks of using Google Ads?
Google is always rolling out new features and improvements to its products. So something that appears to be a major issue or oversight on Google’s part will often be fixed further down the line. Even though sometimes only after several years have passed.
For example, in 2013 Google rolled out Enhanced Campaigns, which allowed advertisers to target people based on time of day, location and device. However, with this update came an end to advertisers’ ability to target tablet users separately from mobile and desktop users.
Google argued that as many users were swapping out their home PCs for tablets, the behavior being exhibited was similar enough to group both device types into the same category. And so desktop and tablet users were treated as one and the same.
Google Ads users complained bitterly, and finally, in 2016, Google announced increased control over device-level bidding in Enhanced Campaigns. Above all, which included the return of tablet bidding.
If you’re used to advertising on Facebook, Google’s audience targeting will also seem much less finely-honed. Google allows targeting by age, gender, location, and device type. Luckily, which gives you several options to be going on with. But, it doesn’t come close to Facebook’s level of granularity.
Of course, the nature of search advertising (where the user shows intent and is more likely to be in the market to buy) is also different from Facebook’s social advertising. And so the results you’ll see from the two platforms will always differ.
However, don’t approach Google Ads expecting to directly reproduce Facebook’s granular targeting.
Many factors can affect the costs of AdWords advertising for your business. Learn all about these costs, how bidding works, and the average cost per click for advertisers in our guide to “How Much Does AdWords Cost?”
Businesses can advertise on Google by opening a Google AdWords account. Be that as it may, learn more about how to make the most of Google AdWords. Or follow the proven path to AdWords success via the infographic on “How to Use Google AdWords.”
Your Google Ads are eligible to be entered into an auction whenever you’re bidding on keywords relevant to the user’s search query. At the same time, your bids, Quality Score, and relevance will come into play in determining whether your ad qualifies to display on the SERP.
Once advertisers identity keywords they want to bid on, Google then enters the keyword from your account that it deems most relevant into the auction. By using the maximum bid you’ve specified as well as the associated ad.
I hope the above guide was useful in your preparation for your brand, business or even product marketing campaigns using Google Ads.
However, if you’ll have additional information, contributions or even suggestions that demands our attention, please Contact Us. And by the same token, you can share your thoughts in the comments box below this blog post.
Here are more related and useful topic links;
- eCPM | How to Earn more from the ‘effective cost per mille’
- Page CTR | How to Increase your AdSense Click Rates
- SERP | How do you Improve your Google Search Results?
- Page RPM | How to Increase your Ads Revenue by 40%
- Website Monetization Beginners Guide For Webmasters