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What is Google Ads (Formerly Known as Google AdWords)?

What is Google Ads? Google Ads, AKA Google AdWords, is Google"s advertising system in which advertisers bid on certain keywords in order for their clickable ads khổng lồ appear in Google"s search results. Since advertisers have to pay for these clicks, this is how Google makes money from search. This infographic will help you underst& how Google Ads works, detailing the Google Ads auction, bidding process & explaining important factors lượt thích Quality Score và cost-per-click. If you"re asking "How does AdWords Work?" this page is for you.

Does Google Ads work?

Does Google AdWords work? Depending on the competitiveness of the từ khoá you"re bidding for and the relevancy of that từ khoá khổng lồ real conversions for your company, AdWords may or may not work for your business. For the most part, we"ve found that Google AdWords is extremely effective sầu for many kinds of businesses, as long as they don"t waste their money on the wrong keyword, or write weak, low CTR ads.

How much does Google Ads cost?

Many factors can affect the costs of Google Ads advertising for your business. Learn all about these costs, how bidding works, & the average cost per clichồng for advertisers in our guide khổng lồ "How Much Does Google Ads Cost?"

How khổng lồ advertise with Google Ads

Businesses can advertise on Google by opening a Google Ads account. Learn more about how to lớn make the most of Google Ads here. Or follow the proven path to lớn Google Ads success in our "How to Use Google Ads" infographic.

How does Google Ads or AdWords bidding work?

The actual position of your ad is determined by your ad rank (Maximum Bid times Quality Score). The highest ad rank gets the 1st ad position. Your actual CPC will be determined by the ad rank of the next highest ad below you divided by your Quality Score. The only exception of this rule is when you are the only bidder or the lowest bid in the Google Ads auction; then you pay your maximum bid per click! AdWords bidding heavily penalizes advertisers who bid with low unique scores. Conversely, those with high Quality Scores get higher ad ranks & lower CPC.

How many times does a Google auction run?

The auction gets run billions of times each month. The results are such that users find ads that are relevant lớn what they"re looking for, advertisers connect with potential customers at the lowest possible prices & Google rakes in billions of dollars in revenue.

How does the Google auction work?

Once a query is made on Google, the tìm kiếm engine processes the request and runs the auction which will then determine the ad positions and each advertiser"s CPC.

How bởi vì you enter a Google auction?

Your Google ads are eligible khổng lồ be entered inkhổng lồ an auction whenever you"re bidding on keywords relevant to the user"s search query. Your bids, Quality Score, and relevance will come inkhổng lồ play in determining whether your ad qualifies lớn display on the SERPhường.

What gets entered into lớn a Google auction?

Once advertisers identity từ khóa they want to lớn bid on, Google then enters the keyword from your account that it deems most relevant inkhổng lồ the auction with the maximum bid you"ve specified as well as the associated ad.

What is CPC?

CPC, or cost per cliông chồng, is the amount an advertiser pays each time someone clicks on their Google Ads ad.

How does CPC work?

Your CPC is determined by the competitiveness of your từ khoá, your maximum bids, & your Quality Scores. Learn the most expensive sầu từ khoá in Google Ads.

What is the average cost per cliông chồng for Google Ads?

The average cost per cliông xã on Google Ads varies by từ khóa và industry, but is roughly $2.32 on the tìm kiếm network và $0.58 on the display network. Get more average Google Ads metrics here.

What is Google Quality Score?

This is a metric Google uses to lớn determine how relevant and useful your ad is to lớn the user, based primarily on your ad"s CTR, từ khoá relevance, & the quality of your trang đích. The higher your Quality Score, the better: high Quality Score keywords will save you money & earn you better ad rankings.

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How does Google determine what you pay?

Costs are determined by your maximum bid, your Quality Score, và the competitiveness of your keyword.

What is Google Ad Rank?

Google ad rank is the position of the company"s advertisement on the search engine page based on a combination of the company"s maximum bid and unique score.

Ad rank vs. Quality Score

The ad rank is how high on the page the advertisement will be displayed. Quality Score on the other hand is determined by the relevance and usefulness lớn the searcher và is only a portion of the advertisement positioning process. As of 2013, Google"s Quality score has become more and more valuable as the average chất lượng score has changed from a 7 lớn 5.

What is ad position in Google Ads?

Ad position is the position on the search engine page results where the advertisement appears in relation to lớn all of the other advertisements.

What is Actual CPC?

Actual CPC is the amount an advertiser pays each time a searcher clicks on their advertisement; this number varies depending on the other advertisers in the auction và is always lower than the maximum bidding price.

How does Google calculate Actual CPC?

Actual CPC is determined by dividing the ad rank of the competitor below them (ad rank to hit) by chất lượng score plus $.01.

What are alternative sầu bidding methods?

Alternative bidding methods include CPM & CPA.

What is CPM bidding?

CPM bidding is based on impressions and can be used alongside CPC bidding.


CPC is the cost for an advertisement based on how many clicks it receives whereas CPM is the cost for an advertisement based on how many impressions it picks up. Both methods can be used simultaneously.

What are Google Ads keywords?

Keywords in Google Ads are the words and phrases that advertisers bid on, in hopes that their advertisements will appear on the search engine results page (SERP) when people are searching for those products or services. For example, if you sell shoes online, you might bid on từ khoá like "Nike sneakers" & "penny loafers." Keyword retìm kiếm is the process of using tools và data to determine which từ khoá are most likely to lớn drive sầu relevant traffic lớn your ads và your site.

What is tìm kiếm engine optimization?

Search engine optimization is the act of improving the visibility of your site or page within a tìm kiếm engine results page through organic methods. This can be done by using search từ khóa within your content so that a tìm kiếm engine can find and display your site faster and with more accuracy. Site authority và your link profile also play a role in your search engine rankings.

How does the Google display network work?

The Google Display Network or GDoanh Nghiệp is a very large network of sites that allow Google khổng lồ place display advertisements, which reach over 90% of all Internet users! Advertisers generally find that Display Network clicks are less costly than those on the tìm kiếm network. And depending on your targeting methods, the CTR"s can be high and the CPA"s low. Try our entirely không tính phí, easy to use Smart Ads Creator if you"re looking to get up và running on the display network in a hurry. 

What is an ad group in Google Ads? How do ad groups work?

An ad group is a container for your Google Ads advertisements, keywords, & landing pages. Google tends lớn reward advertisers who create Google Ads campaigns with tightly structured ad groups. It"s important not lớn dump all your từ khóa inkhổng lồ the same ad group, but lớn organize your keywords inkhổng lồ themes.

What is ad relevance in Google Ads?

Ad relevance is a measure of how related the từ khoá you"re bidding on is khổng lồ your advertisements as well as how much your từ khóa match the message of your ads and landing pages. Higher ad và keyword relevance can improve your click-through rates & Quality Scores.

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How does Conversion Optimizer work?

Conversion Optimizer in Google Ads is a bid manipulation tool that manages bids at the keyword-màn chơi with the goal of trying to lớn drive sầu as many conversions at or below an advertiser-specified cost per conversion (also known as Cost per kích hoạt, or CPA).

I advertise on Google. How am I doing?

At, we"ve analyzed tens of thousands of Google Ads accounts from all over the world, in all sorts of industries. The easiest way lớn see how you"re doing at Google PPC is to lớn benchmark your PPC performance against similar advertisers in your industry & spkết thúc range. Thankfully,"s got a free tool for that. Clichồng below to lớn give our Google Ads Grader a không lấy phí run!

Chuyên mục: Digital Marketing