If you’re running a business, then you know that generating quality traffic to your website is essential. And one of the best ways to do this is through Google AdWords. AdWords is a form of online advertising that allows you to place ads on Google.com and millions of other websites across the web. When people search for keywords related to your business, your ad will appear in the sponsored results section of the search results page. And if they click on your ad, you’ll pay Google a small fee for the referral.
Creating a Google Adwords account is simple and only takes a few minutes. But before you get started, there are a few things you need to know. In this guide, we’ll give you an overview of how AdWords works and what you need to do to get started.
How AdWords Works
AdWords is an auction-based system, which means that advertisers compete against each other for ad space on Google.com and other websites in the Google Display Network. When someone searches for a keyword that’s related to your business, Google will hold an auction to determine which ads should appear in the sponsored results section of the search results page. The following factors are used to determine which ads appear:
Bid amount: The amount you’re willing to pay per click on your ad. Quality Score: A measure of how relevant and useful your ad is to the person who sees it. Relevance is determined by the keyword you’re bidding on, the match type selected, and the landing page on your website that people are taken to when they click on your ad. Usefulness is determined by factors like click-through rate (CTR), relevance of your ad text, and landing page experience. Expected click-through rate (CTR): This measures how often people who see your ad are expected to click on it. Landing page experience: How well your website meets the needs of people who click on your ad – for example, whether it’s easy to navigate and has relevant information. Ads with strong landing page experiences tend to have higher Quality Scores and perform better in general than those with weaker experiences.
Google uses these factors to determine which ads should appear in the auction and where they should be placed – meaning that higher bidders don’t always win the auction, and sometimes lower bidders can appear above higher bidders if their ads are more relevant and useful.
How much you pay per click (CPC) depends on two things: your bid amount and your Quality Score. CPC = Bid amount ÷ Quality Score For example, if you have a $1 bid and a Quality Score of 10, then your CPC would be $0.10 ($1 ÷ 10). If someone else has a $0
