adwords agency

How Do Google Ads Work?

Google holds 90% of the global search engine market share. By contrast, Yahoo and Bing only hold around 3% each. If you’re not leveraging the power of Google to get qualified leads onto your product pages and website, you’re missing out on increased revenue and brand awareness.

Google Ads are an excellent and effective marketing technique you’ll want to add to your marketing toolbox. More than 90% of online consumers are using Google to research products and make online purchases. If you’re not showing up where most of your customers are, how can you ever hope to build up a sizable base of loyal customers? The truth is, you can’t.

It’s incredibly difficult to rank on the search engines through organic efforts alone. And while SEO is still a useful marketing technique, it takes months to see results. With Google AdWords, you can see a difference in your reach within a few days after launching a campaign. Below, we’ll explore how Google Ads work and how they can benefit your business.

What is a Google AdWords campaign?

Google AdWords is the search engine’s pay per click advertising platform. There are two main ways you can get your product ads to place on Google.

  • Search Ads
  • Display Ads

Google has partnered with over 2 million websites. They also have established what’s called the GDN, or Google Display Network. Youtube, Google, and Gmail are the GDN. Depending on how your AdWords campaign is designed, you can show up on the GDN, and the 2 million partnered websites.

Furthermore, there are numerous ad formats you can take advantage of:

  • Text-only ads
  • Image Ads
  • Responsive
  • Video Ads
  • App promotion ads
  • Product shopping ads
  • Showcase shopping ads
  • Call only ads


There are two places your AdWords ads can show up on the SERPs. The first place is above the organic links on the results page, and also at the bottom of the results page. Also, Google gives you the option to place ads on the GDN. Ads displayed across the GDN can be retargeted to attract your previous website visitors.

Retargeting is an excellent strategy for further nurturing leads. Your Google ads are unobtrusive, and give viewers the ability to familiarize themselves with your brand. Almost two-thirds of website visitors aren’t ready to buy a product or service on their first visit. By leveraging Google AdWords remarketing techniques, you can stay at the forefront of a previous website visitors mind. They’ll continue to see your products as they browse the web, watch videos on Youtube, and check their Gmail inbox.

How does AdWords PPC management work?

Google AdWords appear based on an auctioning system that revolves around keywords and keyword phrases. What you do is choose a list of targeted, highly relevant keywords for your ads. Then, you bid on the keywords. Depending on how much you bid, when someone enters a search query that matches or is closely related to your keywords, your ad will display to them. Also, you can choose negative keywords, which means your ad won’t show for specific words and phrases.

How does the bidding work?

Several factors will determine the price you pay per click on your ad. Your bid amount is only one factor. You can set a maximum bid price so you can stay within your marketing budget. Once you place a maximum bid price, you won’t be charged any more than that for a click.

Your quality score also determines the total price you pay. The quality score is a system Google uses to determine the cost per click on your ad.

What are the components of a quality score?

  • The relevance of your ad to the search query
  • The significance of your ad to the corresponding landing page
  • The relevance of your keywords to the ad group
  • Your historical click-through-rate and the ad group
  • Your account’s historical performance


When you know the price you pay per click, you’ll be able to determine your ROI. Even better, Google AdWords gives you the ability to track your conversion rates. You’ll know what each click costs, and if the click converted. Then you can figure out your costs per conversion.

Keep in mind, that the higher your quality score along, the better your ads positioning will be.

With a high-quality score, you’ll get:

  • Lower costs. A higher quality score means you pay less per click.
  • More exposure. Ads with better quality scores lead to more frequent displays on the SERPs. Therefore, you get more clicks and conversions without adjusting your bids.

How much does AdWords cost?

There are many factors which determine the costs of an AdWords campaign. The competitiveness of your keywords and niche, where you are located, and the quality of your advertising campaigns all converge to determine the cost.

The average CPC rate for Google search ads across industries is $2.32. But, the most companies who invest in a Google AdWords campaign will see an average ROI of 200%.

Why should you invest in a digital marketing AdWords agency to manage your campaigns?

AdWords campaigns, though highly effective, are complicated. They require advanced digital marketing techniques and expertise to manage correctly and effectively. With AdWords, you need an understanding of how Google search engines work, how to bid on keywords, and how to keep your keywords relevant to your customer’s search queries. Also, you need to understand how to leverage PPC bidding and how to auction to keep costs low and get the best ROI for your investment.

If you want to bring in more traffic to your landing pages and increase your conversions, invest in an AdWords campaign today with one of the leading digital marketing agencies, Australian Internet Advertising. Our experts are highly trained and qualified to manage Google AdWords and PPC marketing campaigns. Contact us today and see how we can move the needle forward for your business.