What Are AdWords

April 6, 2024

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When it comes to growing a business online, SEO is the go-to strategy. High-quality content and links can ensure that your website will rank high in Google search and get you qualified traffic from people that are truly interested in your products or services.

While SEO is one of the most profitable ways of growing a small business, it’s also a long-term strategy. In other words, it takes time to see a significant return on your investment.

So, what can you do when you need to scale your business quickly?

That’s where Google advertising comes into place, specifically Google AdWords.

The purpose of this article is to teach you everything you need to know about what Google AdWords is, how it works, and how you can use it to take your business to the next level.

Let’s jump right into it, shall we?

What Is Google AdWords?

Google AdWords is Google’s online advertising service that allows businesses to bid on certain keywords and get a chance at having their ads displayed to the right audience and at the right time.

One of the things that make AdWords ads stand out among other paid search tactics is that

Google ads are performance-based. Here’s what we mean by that.

Unlike banner ads or display advertisements, for example, where you have to pay per thousand impressions, with Google ads you’re only paying for results. AdWords is based on click advertising concepts, meaning that if no one clicks on your ads, then you don’t pay. It doesn’t matter if your ads appear on Google’s display network when someone searches for your keywords. No results equal no costs.

Another thing that makes AdWords one of the most profitable types of display ads is that it allows you to answer to a specific need. When you’re advertising on social media, for example, you are disrupting user’s experience. People don’t use Facebook or Instagram to look for specific products or services, but as a way to entertain themselves, get updates on the latest news, and stay connected with friends and family. When they go to Google, on the other hand, they have a clear intent and are looking for a specific product or information.

That’s the reason why AdWords campaigns have a huge return on investment (ROI.) On average, businesses make $2 for every dollar invested.

Now, the question you may be asking yourself is how you can make that happen.

Luckily, we have the answer!

How AdWords Works

So, you’ve decided that Google advertising is right for you and you want to give it a try. The first step is to create an AdWords account and get familiarised with the platform. Don’t dive too deep just yet, though. Google AdWords is extremely complex, and it’s easy to get lost and overcomplicate things. Stick with the basics for now and only after you’ve mastered them you can move onto the numerous ads variations that the platform allows.

The key to how AdWords works is understanding the Quality Score. Google uses a complicated system that considers how relevant an ad group, keywords, and landing page are to what a user is searching for to decide how likely he or she is to click on the ad. If your ad gets a high-Quality Score, then Google will show it high in search results.

Now, you won’t be the only business trying to rank high for specific keywords, so you will have to participate in an auction and bid against other competitors. Not only that, but your Ad Rank (calculated as your Quality Score times your Maximum Bid) will determine the actual position of your ads. Evidently, the advertisers with the highest ad rank will get the first position in Google search results.

 How to Use AdWords to Scale Your Small Business

You’re all set and eager to launch your first campaign. Here are some of the steps you need to take to ensure your AdWords ads will hit their target.

  • Set Your Budget

Overspending is one of the primary risks of running AdWords campaigns. If you don’t know what you’re doing, you can easily drain your marketing budget in just a few days. Luckily, you can calculate and set your AdWords budget using simple fourth-grade math.

To determine your maximum cost per click (CPC,), you need to multiply your profit with your conversion rate and the commission you must pay Google.

  • Pick Your Keywords

The key to creating a profitable AdWords campaign is understanding the demand for your products or services. That’s where a free tool such as Google Keyword Planner can come in handy. Use it to see what your target audience is looking for, how often, and from what locations.

Analyse not only the search volume but also the average CPC for each keyword so that you get an estimate of much you’ll need to invest. Look at your competition as well to see what keywords they’re using and how they are approaching paid search – you may find some valuable insights.

  • Pay Attention to Keyword Match Types

Consumers don’t search for the same products or services the same way. A keyword match type can ensure that they will see your add regardless of the terminology they’re using.

 Broad Match: This type of match tells Google that you want users to see your ads for any search query related to your keyword.

 Phrase Match: With this type of match, your ads will appear only when your keywords will

appear in a certain order (“women shoes”) accompanied by other terms (example: “women shoes on sale.”)

 Exact Match: You can determine the exact keywords you want your ads to be displayed against.

 Negative Keywords: This type of match allows you to specify the keywords that you don’t want your ads to appear for in search results. For example, if you are selling designer women shoes, then you won’t want your ads to appear for searches like “second-hand women shoes.”

  • Write Your Ads

You only have a few words to make a compelling case and persuade prospects to click on your ad, so you need to make the most of everything. Make sure to include your keyword in the headline and URL to let searchers know that they found what they are looking for. Don’t forget to include the benefits of choosing your products over your competitors and a CTA that persuades prospects to take action.

Over To You

AdWords is an excellent way to boost your sales quickly and increase your bottom line. But, it can also cost you a lot of money if you don’t know what you’re doing. Hopefully, this guide will give you the basics of how to setup and create profitable Google AdWords campaigns. If not, Australian Internet Advertising is here to help small businesses make the most of their AdWords efforts and scale to the next level.

Billy P.

About The Author

William Polson founded Australian Internet Advertising in 2013 and has over 12 years of experience immersed in Digital Marketing.

With an in-depth level of digital marketing knowledge, William has been sort after by and worked for, many large national brands including Subaru, Blooms The Chemist, and Nova 96.9.

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