What is Google Ads, Pay Per Click

By February 15, 2019 No Comments

What is Google Ads, Pay Per Click

If you’re like most business owners you have probably heard about Google Ads, Pay Per Click and other various forms of online ad buying or advertising. But what exactly are these things, and why do you need it? Today CS Design Studios will explain the in’s and outs of what it means to purchase advertisement space on Google.

What is Google Ads?

Google Ads, formerly known as Google AdWords is a pay-per-click (PPC) advertising platform that is owned by Alphabet Inc. Unlike other pay per click platforms like Facebook, Instagram or Snapchat, Google Ads offers a more direct approach to reach your audiences. Those ways are:

  1. The Google Display Network
  2. The Google Search Network

While both of these tools are incredibly different, they both use the pay per click model where creators pay a bidding amount to have their ads shown. Knowing this does beg the question however, which network is better?

What is the Google Display Network

The Google Display network is the network of websites that have signed up with Google to be advertisers for your campaigns. Essentially, when a webmaster wants to earn extra revenue for a website they can add spaces to their website that display ads you have created in their available spaces. Every-time someone clicks this ad, you are charged your current bid amount for it and the website that houses the ad makes a percentage of it.

Below, you can see a Google advertisement at the top of The New York times that Circket Wireless has paid for.

What is the Google Search Network

The Google Search Network on the other hand is the network that is used when you preform a google search from www.google.com.

When you run campaigns through Google Ads and elect to use the Google Search Network, you will appear in the SERP (search engine results page) results. Every-time someone clicks your contextual or display ad you’re billed the bid amount synonymously to using the Google Display Network.

Below, you can see an advertisement in Google’s results page. These ads will appear above the page fold or to the side of the search results content depending on what type of device you are searching from (Mobile, Desktop, Tablet, etc), and usually have an “Ad” icon to the left of them.

Which Google Network is Better? Display vs. Search

Like anything in digital marketing, there is no definitive answer to this question. When deciding which network to use in your Google Ads campaign, the deciding factor will be what your goal is.

For instance, if your goal is simply brand awareness and you don’t expect that many people know what or who you are, you may opt for the display network. This will allow you to utilize Google’s network of websites to begin getting what you offer or sell into the eyes of thousands of people.

On the other hand, you may be more concerned with the ROI (Return on Investment) of your campaigns, and less concerned with pure brand awareness. This means that you would gain more benefit in your pay per click strategy by only using the Google’s search network.

Note: There is two types of advertisement: active and passive. Passive advertisement is what you experience with Google’s Display Network or other various pay per click platforms like Facebook. It is a passive ad that people see when searching the internet, but not may not necessarily be something they are actively looking for. On the other hand active advertisement is when someone is actively seeking your services or products. They may preform a search directly for it or things relating to it.

The Google Ads Auction

Up until this point in the information above you have heard us talk about and discuss google Ads bidding. But what exactly is bidding and more so how does Google’s auction system work for advertisements. Allow us to explain.

Google A’s works on an auction based bidding system between you and your competitors. Every Keyword that you bid on to display results on a search page for your advertisement has a CPC, or cost per click. This amount is determined by an algorithm Google uses to decide how much a keyword is worth, based around who is bidding on it, how long it’s been bid on, and other various metrics like popularity, search density and so forth.

To “win” the Google Ads auction and to see your advertisement appear for keywords, you will need to optimize your ads quality score, landing page, ad verbiage and bidding amount. As your quality score increases, you will win the bid more consistently.

What affects your advertisement quality score:

  • Relevance of your Google ad to the search query preformed
  • The relevance of your Keyword to your ad group
  • The relevance of how your ad is written in conjunction with the keywords
  • The relevance of your keyword, your ad group and your ad verbiage to your landing page
  • The historical click through rate (also known as CTR)
  • Overall historical account performance

How much does a Google Ads Keyword Cost

As we mentioned above the way Google prices the minimum bidding amount on a keyword or key-phrase is dependent of many factors. There is no way to determine how much it will cost you to bid on a Keyword until you have the historical data to extrapolate information from in connection to your own account, your website or landing page and other factors.

Because of this, most Google Ads campaigns require a high level of attention and the ability to read graphical data over time. In most instances, there is a discovery phase to acquire this data and to apply changes that positively affect the account.

How does Google Ads bill?

Google Ads bills you every-time your threshold is reached. After applying a form of payment to the account, Google will assign a threshold to your account and bill your form of payment anytime that payment threshold is reached.

For example, if your payment threshold is 100.00/mo, Google will bill you anytime the amount of clicks you have has reached $100.

In out experience, it is always best to allot a certain monthly amount to your Google Ads budget and to understand that Google can remove this amount at any point in time.

Google Ads In Conclusion

Google Ad campaigns are a great way to generate brand awareness or to try and generate leads to your business. While this article covers the basic topics of how pay per click and Google Ads work, we recommend always using a Google Ads verified expert to manage your campaigns if you do not have a history in ad or PPC buying.

If you need help strategizing a Google Ads campaign, contact us today and find out how we can help.

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