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How Google Ads (Formerly AdWords) Works

It had probably happened to you that you found links that stood out in the search result when you did a Google search. You’ve probably also entered a blog and found a banner ad somewhere on the page. Even when watching a video on YouTube, some ads appeared before or during the videos. The three ad examples above are different: the first is on a search, the other on a website and the last on YouTube. 

However, they have something in common: they can all be created or managed through Google Ads (AdWords) campaigns. We will shortly explain how Google Ads works, how to create an account, your first ad, and we will also recommend some useful tricks when creating ads that generate accurate results for your business.

What Are Google Ads?

Google Ads, formerly known as Google Adwords, is Google’s advertising platform and primary source of income. Its first version was launched on October 23, 2000, and has been the market leader ever since. Google AdWords earnings were approximately $ 79 billion.

The second position is a bit far. Let’s talk about advertising on Facebook, with 26 billion dollars. Since 2001, AdWords revenue growth has been remarkable, but what makes Google Ads such a fascinating advertising platform? In general, through this service, companies can pay Google to make them stand out on the Internet. But it’s not that simple either.

The Most Significant Advantage Of Google Ads Is That The Ads Can Be Presented To A Super Targeted Audience

That is, it’s not simply paying to appear multiple times. You are investing in a qualified audience related to your business. After all, for example, for vegan food e-commerce, the most important thing is to show your campaign to 10,000 people regardless of their diet, or to 500 people who declare themselves vegan? This is the central premise of AdWords. Advertisers can determine when their ads will appear based on cookies and keywords.

Google Ads Campaigns

With this platform, you can choose the type of Adwords campaign you want to develop:

  1. Search Network
  2. Display
  3. Google Shopping
  4. Video
  5. Universal campaign for apps

Ads On The Search Network

These are the ads that appear in the search results for specific keywords. These will be positioned as featured results at the beginning and end of the SERP (Search Engine Results Page) and with a bit of notice saying “Ad,” indicating that this is a sponsored link. It is a handy format for reaching people looking for specific products, services, or solutions. 

For the same reason, it is the most competitive type of campaign since it allows you to display text ads directly in the most used search engine for users looking for precisely what the company has to offer. The significant advantage here is that the advertiser only pays when the person clicks the result link to access the website. In other words, these ads can be very cost-effective for your business.

Ads On The Display Network

This campaign-style can be found on various websites, news pages, and blogs. They all make up the so-called Google Ads Display Network, reaching 90% of Internet users worldwide.

In absolute numbers, Google’s display ads appear on more than two million websites and in more than 650,000 applications. Display ads have unique targeting options: keywords, geographic information, and remarketing. You can get customers to see your brand, consider your offers, and take action with them. There are several ways to use display advertising:

  1. Banners: these are graphic ads that can be images, interactive elements, animations, custom layouts, among others;
  2. Text: it is similar to the flag but has a “text box” format, consisting of a title, a description, the company name, and a URL;
  3. Gmail: These are personalized ads in Gmail that can appear directly in the user’s inbox.
  4. Apps: These are ads that occur specifically in mobile applications.

YouTube Ads

If you are a YouTube user, you must have already seen some videos containing advertisements before starting or even during the video. Therefore, you can also create video-linked campaigns on this platform. With over a billion users, you can select the target audience based on age, gender, location, interest, and more. Important detail: According to YouTube, you will only pay when people are interested in your campaign. If the ad is skipped before 30 seconds (or before the end), you will not pay anything.

Ads By app

Here, the ads mainly focus on those who have applications and want to increase their reach with this Google platform. You can promote your business or even your application for iOS or Android users. After a short setup, your ad will be qualified to reach over one million people on the Google Network, including Google Search, Google Play, YouTube, and millions of websites and mobile apps.

Google Ads: How Does It Work?

Does this all mean that I have to pay and will magically appear to everyone in my market? Again, it’s not that simple. Google Ads works like an auction, meaning advertisers offer money in exchange for clicks. The advantage is that in AdWords, the highest bid doesn’t always win. Google combines a few quality factors to rank ad positions based on their Ad Rank. In short, it is not enough to give the best offer. The announcement must be perfect.

What Is Google Ads Ad Rank Made Up Of?

In summary, Ad Rank is made up of: P1 = (Q1 x B2) / Q1. Q indicates quality B bidding, which is the maximum monetary value of the auction. Even if your competitors’ bids are higher than yours, your ad can stand out if your quality rating is more elevated.

How Is The Quality Index Calculated?

The quality index is an evaluation made by Google, which gives a score ranging from 1 to 10. This note, plus the bid, will determine the position of your ad for the keyword and the defined segmentation. The components of the quality index are:

  1. CTR;
  2. Relevance;
  3. Landing page.

How To Create An Account In Google AdWords (Ads)

Creating an account in Google Ads is very simple. To get started, go to the service page. Click “Start Now.” Then, write the Google email you want to link to your Ads account and website. By clicking “Continue,” Google will run a setup wizard, providing you with all the details you need to create your Ads account. In the steps to follow, you will need to enter some data and set up a trial campaign (only if you wish) to start using ads.

How To Create An Ad In Google Ads?

So far, we have talked about what AdWords is and how relevant it is on the Internet today. If you understand that Google Ads can be a great customer acquisition channel for your business, it’s time to start creating ads:

The Ad Structure In Google Ads

The ad in Google AdWords is divided into four parts :

  1. Final URL: This is the landing page to which the user will be directed after clicking on the link. This address does not appear in the advertisement;
  2. Title: it is the first line of the announcement. However, its registration takes place in 2 lines of 30 characters, which a hyphen will separate in the title;
  3. Path: a “fictional” address, but short, shown in green. Automatically includes the registered website in the final URL and allows the inclusion of two sub-categories, with 15 characters each;
  4. Description: the lines of text below, with a maximum size of 80 characters. In the items below, we will give you some tips on how to write each of these lines.

Tips For Producing Google AdWords Ads

  1. The best way to succeed with your ad is to tell whoever they are looking for that the ad is “made for them.”
  2. Placing the same search keyword in the title, for example, tends to generate excellent results, mainly because the terms used by the user in the search, if present in the ad, are highlighted in bold and stand out.
  3. Another option is to mention some specific features of the ad. Since in the CPC model, you only pay Google for clicks, this is to eliminate those clicks that your company is not interested in.
  4. For example, someone who is not a student will likely not click on your ad if you clearly state “for students only.”
  5. Including pricing and payment methods also works as a filter and positively affects your ad’s conversion rate.
  6. When viewing an ad without price information, it is necessary to enter the website and evaluate this information, generating a click and, consequently, a collection.
  7. If the price is already present in the ad, the price research phase has already moved into the search, making the potential visitor much more qualified and inclined to conversion.
  8. Some studies also show that capitalizing all words grabs attention and draws more clicks (Google itself recommends doing so).
  9. There are also some specific suggestions for each part of the ad.


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