What is Google AdWords and How It Works

Advertisements are crucial in marketing for generating awareness and targeting consumers, all helping to drive more sales. Projections estimate that by 2024, revenue in digital advertising will top 460 billion. In a society that is dominated by advertisements daily, it might seem like competition is growing left and right. Google, the most used search engine with 40,000 searches per second, houses its very own advertising program that virtually any business can join to get a leg up on the competitors and bring in sales. 


What is Google AdWords?

Google AdWords is the former name of one of the most popular digital advertising platforms, now known simply as Google Ads. It is a pay-per-click marketplace where advertisers bid to have their website reach the top of the search results page based on pre-determined keywords. 


How does it work?

In Google Ads, marketers target specific keywords and make a maximum bid – the maximum amount they’re willing to pay for an advertisement. Depending on the amount of money a company and its competitors are ready to spend, the quality of the ad, along with the relevancy of the landing page, all influences the likelihood of a bid winning. These ads will appear at the top of a search results page, denoted by a bold “Ad” symbol, above organic search results when a user performs a search query. 

There are five types of ads that can be run on Google Ads – shopping campaigns, search campaigns, video campaigns, app campaigns, and Display Network Campaigns. The Display Network uses Google’s partners such as YouTube and Gmail, ultimately reaching more than 90% of Internet users


How much does it cost?

With each user click, companies are charged the amount they have bid for that keyword, which will not cost more than the maximum amount that was pre-determined. Depending on competition, the type of ad, and a company’s budget, the cost for Google Ads varies but it typically ranges from $1-$2 in the United States for each click. Also, the network takes about 14% of each dollar spent by an advertiser.


Are Google Ads worth it?

If your company is looking for fast results, the ability to control ad spend, view insightful analytics to track ad performance as well as having the potential to target various markets, this platform may be the right choice to leverage for a smart PPC campaign. By nature, PPC advertising has often been regarded as a cost-effective option for businesses, and Google’s immersive online presence packs so many features into this platform that make it a great investment for both small and large businesses alike. 


Are you interested in getting started with Google Ads?


Contact us today to discuss how your brand can successfully integrate Google Ads to help meet your marketing goals!

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