Google is a multinational company that provides beyond a search engine that millions of users access and utilize 24/7. They have expanded and grown their services through the years, including cloud computing, computer software, e-commerce, and artificial technology. Everyone knows Google and if you’re an entrepreneur or someone who’s dabbled in online campaigns, then you most probably know about Google ads, yet another one of their many services.

What do Google Ads do?

Google ads is a platform where advertisers are given the space where they can display their advertisements to their target audience. The advertisement is displayed on places such as YouTube, and product listings. Some are simply displayed when you type in some keywords when searching for something in Google. Search Engine Optimization (SEO) isn’t the only process for getting traffic to a website. Some entrepreneurs use Google Ads alongside SEO to make sure that their websites appear when someone searches for the services or products that they offer.

Google’s algorithm determines which ads appear based on the nature of the ads and the nature of the web pages. Take this as an example: An ad promotes women’s running shoes. Then websites that feature women’s running shoes appear higher in the search results. This includes information on said product. As a result, high-quality ads are displayed together with websites that are relevant to the ads. This results in effective targeting options for advertisers.

This is why Google Ads is such a popular platform for online businesses. It makes it easy for business owners to place their websites front and center, where new potential buyers can discover them. Not just discover them but also learn more about their products or services, and then turn them into buying customers. It’s a win-win situation.

The basics of Google Ads

How do Google ads work, exactly? Google Ads uses the bidding system. Advertisers get to choose and bid on which search terms or keywords they’d like their ad to appear. Then they set the price on how much they’ll pay every time someone clicks on their ad. This is called “maximum bids”, the maximum price advertisers are willing to pay. The price the advertiser had set influences where their ad is placed by Google. The higher the bid or price, then the more easily visible their ad is. Advertisers can be billed by the following:

  1. CPC or Cost-Per-Click — amount to be paid every time a user clicks on their ad
  2. CPM or Cost-Per-Mille — amount to be paid for every 1000 impressions on the ad
  3. CPE or Cost-Per-Engagement — the amount to be paid every time a user takes action on the ad (i.e. watch a video, sign up for a newsletter, buy something, etc.)

The cost of Google Ads

How much do Google ads cost, though? The ballpark figure is somewhere between $1 and $2 in the United States, but it shouldn’t be the same for everyone. There are other factors to consider, such as the bidding amount and website quality. Yes, Google factors in the website’s quality and ranking. It just isn’t about the bidding amount. Simply put: The above is an estimation and each ad will be different from the other, which affects the price. However, one thing is for sure: Google ads generate more revenue and offer more consumer benefits. These benefits include more personalized advertising, an algorithm that targets relevant web pages, and high search volume. If you’ve browsed the internet, you’ve used Google! Now think of all the potential customers a single ad can reach just by maximizing one Google ad. 

Using Google Ads is definitely advantageous, especially if you know what you’re doing and not blindly bidding on keywords. 

The takeaway

There are so many interesting things to learn about Google ads that can help advertisers maximize their chosen keywords and have them displayed to the right target audience. When the ad for a product or service is displayed to the right target audience, advertisers can definitely see results versus relying solely on SEO on their websites and waiting for organic traffic to bring them their potential customers.

Without a doubt, Google ads are clearly effective. Consumers’ interest in the advertised product or service increases as advertisers gain more exposure. This makes Google ads a great choice for promoting products and services to targeted audiences. A wider reach means more possibility of bringing in more potential customers.

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