6 Important Things You Need To Know About Google AdWords

The age of internet marketing is an exciting time for contemporary businesses but a
nightmare for many who don’t understand what half the marketing terms mean. The good
news is that you don’t have to be lost because the internet has a user manual.
In essence, you can find information on virtually everything on the internet. Take for
instance Google AdWords; you’ve probably heard praise about Google AdWords, and how
it helps direct traffic to our site, however, many people don’t understand what it is or how it
works.

What is Google AdWords?

Google AdWords is an advertising system where businesses can place bids on keywords.
This is to help ads appear on Google’s search results. Google Adwords is Google’s way of
making money from search and your way of getting your business on Google’s search
results.

How it works

Essentially, AdWords help increases the per click traffic on your clickable ads. This is
through the use of popular keywords that audiences are likely to key in on google search
bar. The position of your ad is crucial because people often go for the highest ranking.
Your rank is your quality score and the maximum number of bids. With AdWords, you incur
CPC which depends on your closest competitors rank divided by your quality score. If you
have excellent quality scores, then your CPC rates will be lower and get a higher ranking
ad.

Google AdWords success is dependent on the keywords you bid on. If there is no
competition, then the keywords aren’t useful. Moreover, you need to bid on relevant
keywords that will increase the conversion rates for your firm. Therefore, don’t bid on weak
keywords and create captivating ads.
Now that you have a basic understanding of what Google Adwords is, here are six things
you need to know about it.

6 Important things you need to know about Google AdWords

1. Understand AdWords bidding strategies

Depending on what you aim to achieve and your budget, you need to choose the strategy
that best works for you. These bidding strategies include CPC, CPM, and CPA.

a) CPC (Cost-per-click)

This strategy means that you’re leaning towards getting people to click on your ad. It is
effective and also helps bring traffic to your website where you can captivate audiences
into browsing through the site.

b) CPA (Cost-per-action or Cost-per-acquisition)

Target CPA is a strategy that helps you improve customer conversion rate. Ideally, this
strategy is best suited for promotion and purchases. Therefore, if you’ve not established
yourself first, this strategy might not work for your business. The number of conversions
peak at the target CPA you put down.

c) CPM (Cost-per-impression)

Cost per impression is the best AdWords strategy for brand building. This strategy helps
you show your ad more times to enhance visibility and memorability.

2. Ad rank

As earlier mentioned, your ad rank is critical since speaks to your quality score. Ranking
highest on google search results gives you visibility and prominence. Your rank will depend
on your bid and your quality score.
Remember, ranking highest is the easy part, you need to uphold ad relevance by bidding on
the right keywords for your ads. Also, what you pay for your ads placement is calculated in
terms of the ad below yours divided by your quality score then add $0.01. This payment is
called the discounter.

3. Charges apply to every click

As an advertiser, you will have to pay for every click so that audiences can visit your
website. While this creates web traffic, there is no guarantee of conversion. Therefore, you
need to come up with an operational budget when considering AdWords.

4. Know your quality score

The quality score of your ad plays a significant role in is its placement. Quality score is
basically the relevance and quality of your ad. How useful is your ad to the customers? A
high-quality score puts your business in a better position to place highest on search results.
In other words, even if your bid is lower, your quality score can help you rank higher. Quality
score depends on ad relevance and Click through rate.

5. Google AdWords can boost ROI

Using AdWords is a great way to get a return on investment. To illustrate, you pay per click
or per action which means when someone shows interest in your ad and interest implies
business potential. Adwords will help you increase traffic and create your image. To convert
these visitors into customers, bid on proper keywords, build your quality score and invest in
on-site optimization.

6. AdWords is instant gratification

AdWords popularity in the digital marketing community is primarily as a result of its
effectiveness. However, the amount of time it takes to show you results is also a key factor.
With SEO, you have to exercise patience and allow time for the optimization to take shape;
however, AdWords show results almost instantly. Your ad can get clicks within seconds of
placement.

This also means that AdWords allows you to test keyword efficiency and work with
keywords that build impressions for your business.

To summarize

Statistics show that AdWords is a fast-growing phenomenon that has businesses
scrambling to build their quality score and optimize their ads. If you look at your ad history,
before and after using Google AdWords, you’ll find a massive leap in terms of traffic and
conversions