Google AdWords 101

Google AdWords 101

If you have questions or are curious about Google AdWords, this blog is for you! Google AdWords is Google’s advertising system in which advertisers bid on certain keywords in order for their clickable ads to appear in Google’s search results.

One of the benefits of using AdWords is that you have control over who sees your ads, so you can target the customers you want to advertise to. It also eliminates the need for your new site to organically work it’s way up the rankings. By using AdWords you can see immediate results.

It’s important to remember that Google AdWords may not work for every business. If the keywords you are bidding on happen to be popular AdWords, the conversion might not justify the cost. 97% of Google’s revenue comes from PPC, so you can imagine there are some hefty price tags on popular search words like insurance,  mortgage, attorney, etc. If you want to your ad to show up you have to bid against other marketers on how much you’re willing to pay every time a searcher clicks on your ad. Obviously, the more you are willing to pay, the more likely your ad will appear in the search results but unlike other real-time bidding models, it’s not just the highest bid that Google takes into account. Also, when using the PPC model, you are only charged when someone actually clicks your ad, not just when it shows up.

Of course there is no guarantee that a click will translate into a conversion, but just getting a potential customer to your site can be a struggle for many businesses. You can also narrow in on your keywords, making them more specific so that your ad might not appear nearly as often, but the chances of someone clicking it increase while the price you pay for a click decreases. You can also choose to pay just for impressions (your ad showing up), although this strategy does not guarantee your ad is clicked.

One drawback of Google AdWords is that the algorithms and bidding can be pretty complex for beginners. Most companies that find success using AdWords either have an in-house expert, or hire an AdWord expert elsewhere. It’s a skill that requires constant learning and refining.

Let’s recap some vocabulary:
Google AdWords: an advertising service by Google for businesses wanting to display ads on Google and its advertising network.

CPC: Cost-Per-Click, what you pay Google every time someone clicks your ad

CPM: Cost-Per-Impression, what you pay Google every 1,000 times your ad appears

If you’re still kind of confused about AdWords, consider this take-away:
You set a budget for a key word related to your business, Someone searches that word on Google, Your ad appears, They click your ad, You pay for that click.

Still not sure if AdWords is for you? We’re happy to answer any questions, and can even do an analysis of your business and competitors to recommend an appropriate AdWord campaign!

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