What do you need to know about google Adwords?

Google AdWords. Sounds fancy! Where do I start? What can I do with it? How do I use it to attract customers and generate more business? These questions can be pretty daunting.Image result for google adwords hd images Worry not!This article will break Google AdWords into bite size pieces and in a language, anyone can understand. My hope is that, before you read the end of this article, you will be willing to try your hands out with this amazing advertising service created by google.

What is google AdWords?

This ad service by google allows you to place ads on its platform, helping you to be seen by customers who searching for the product or service you offer. If a customer is interested in the ad that you have placed and your customer clicks on it to visit your website, you pay! Not otherwise.

It all begins with a question!

When you search for something on google, you will find ads with a small yellow text on the left side of the text. Those are paid ads. Except for the yellow text, it pretty much looks like regular search results.

Why should I use google AdWords?

The benefits are plenty. Organic search is the most sustainable form of growth for any business. However, that takes time. Businesses do not have the time to sit around and wait for their website to show up in the search. Instead, they want to drive traffic to their website or to generate warm leads as soon as someone makes a query.

Image result for Why should I use google AdWords?With AdWords, you can,

  • Reach customers who are looking for your product/service.
  • Drive traffic to your website, generate leads and convert sales.
  • Measure the effectiveness of your campaign.
  • Make changes to better your campaign from past learnings.
  • Get easy, understandable reports to help you plan your marketing strategy.
  • Reach your customers at the right place and right time.

And more….

How does Adwords work?

The appearance of your ad is based on quality score. Like the name suggests, quality score gives a score for the quality of the ad you place on a scale of 1 – 10. There are three factors that determine your quality score.

Expected Click Through Rate  – The number of times your ad is expected to be clicked when shown to a customer who is searching for your product/service.

The relevance of your ad – This is the keyword status that ascertains how well your keyword is related to your ads. This status describes how well your keyword matches the message in your ads.Related image

Landing Page Experience – So a customer searches using a specific keyword you are bidding for. He sees your ad and clicks it. Now what? He is lead to your website landing page. Adwords measures the relevance of your keywords to the content of the landing page.

A high-quality score means google thinks that your ad, along with its keywords and the landing page is actually useful for someone looking for your product or service.

Ad Rank – Your ad is shown for a specific search based on the user’s context. Let me explain with an example. When you search for Gucci shoes online, this is what you see.


Net-a-porter has ‘gucci shoes’ as its keyword and when a user clicks, he lands onto a page that shows Gucci shoes. This is a good example of quality ad rank.


If you want your ad to perform well, you need to create high-quality ads targeting specific ad groups with a strong call to action. Ads are placed in the order of their ad rank. The highest Ad Rank gets the first position and so on.

Understanding cost of Adwords

Like I mentioned earlier, google only charges when someone clicks on your ad. You pay the cost for the click also referred as CPC. While creating your ads, you can tell google how much you are willing to pay for a click. This is called as bidding. The amount you bid will be the highest amount you would pay when someone clicks on your ad. You can also set up a daily spending budget and monitor your ads performance. Let us say that Net-a-porter set $4 as its CPC and ShoesGalore set $2 as its CPC for the above ad group of Gucci shoes. Which ad do you see first? Net-a-porter’s of course!

Image result for How does Adwords workAd rank = CPC Bid X Quality score

How do I pay lesser than the CPC amount I set up in AdWords?

This is fairly simple to understand. You set your bid at a certain price for a specific keyword. When a user passes a query, google will look at your keyword, relevance etc (basically quality score) along with the same details of your competition who is also bidding for that specific keyword.

Your price =  Ad rank of competitor below you / Quality score + $0.01

Image result for How does Adwords workThat means the price you bid for, not necessarily brings your ad up in the top search result. It is heavily dependent on your quality score and ad rank.

What are CPM and CPA?

These are other bidding models available in google Adwords. CPM is the cost per thousand impressions of your ad. Google charges you based on the no of times the ad is displayed. Not on the number of times someone clicks on your ad.

If you want to tightly control the amount you spend, choose the CPA option. Instead of paying Google every time someone clicks on your ad, CPA bidding actually requires you to pay for each conversion, a metric that you can define when you set up each campaign.

How to optimise my google AdWords campaign?

If you are still reading this article, you have understood keywords, quality score, Ad Rank, CPC, CPM, CPA and landing page, most of these elements that need to come together to create your ad.        Image result for optimise my google AdWords campaign                                      In order for your campaign to succeed, you need to

  • Create a good set of keywords
  • Create highly targeted ad groups with at least two variations.
  • Use up to 5 keywords in each ad group
  • Do A/B testing
  • Pause keywords/ads when click-through rate (CTR) is < 1%
  • Increase CPC if quality factor is <4

If you need help from experts to run your AdWords campaign, get in touch with us. Webmastersmelbourne.com.au