how google ads works with examples

 

Google Ads operates under a pay-per-click (PPC) model. Means that advertisers target specific keywords on Google, bid on the keywords and compete with other marketers.


The bids you place will be "maximum bids" -- or the highest amount you're willing to pay for an advertisement.


For instance, if the maximum you can bid for is $4, and Google determines that the Cost per Click is only $2 you'll get the ad! If they find that the bid is higher than $4, you will not receive the ad.


Alternately, you can establish an amount for each day that you will spend on your advertisement. It is not possible to spend more than the amount specified for that ad each day, helping you gain a better understanding of the amount you'll need to allocate for your digital ad campaign.

Marketers have three choices for their offers:

  1. Cost-per-click (CPC). What you pay for each time the user clicks on your advertisement.
  2. Cost per mille (CPM). How much you'll pay per 1,000 impressions.
  3. Cost-per-engagement (CPE). How you'll be charged when the user completes a particular action in your ad (signs up to a mailing list or watch a video or etc.).

Google analyzes the amount of your bid and combines it with an evaluation of your advertisement, referred to as a Quality Score. According to Google:

"Quality Score" is a measure on the level of quality you can expect from your advertisements as well as your keywords and landing pages. Quality ads may be a good way to get lower prices and higher ad placement."

The score ranges from 1-10which is the top score. Higher your score, the better your score will be and the less money you'll need to convert.

Your Quality Score and the amount you bid will determine the Ad Rank -- the location where your ad will be on the results page of search.

When a person comes across the ad and clicks it, the advertiser takes a small cut for the mouse click (thus the pay-per-click).

The theory is that , the higher the number people are able to click on an advertisement by a marketer the greater the likelihood that they'll achieve the goal of the advertisement (e.g. turn into a lead or make an purchase).

If you're aware of the way Google ads function and how they work, let's take a look at the various types of Google ads that you can choose to run your campaign.

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