What is Google Adwords and how its work

What is Google Adword

Google AdWord is one of the advertising service which will suits you best if you want to advertise your product online. If you are running an online business and you have products to market then you can apply for google adsense service to help you out with the hassle of electronic marketing.

Adword is keyword based program that helps businesses to estimate a budget for advertising and pay for it only when a person clicks on it.

All the companies and other business who are using AdWords can create their desired keywords based ad for the search engines. When the keyword is triggered the ad will display on google search page. The most common position for google ad is on the top of all search results or in the right sidebar of the page. If your ad is clicked that user will be redirected to your website.

As we have already discussed above the ad of your website or web product is based on keywords so when choosing any keywords you select from different matching options offered by google. By keyword matching you can refine and control how precise a user search phrase must be to trigger your ad.

Basically there are 4 types of keywords matching :

1. Broad Match,

2. Phrase Match,

3. Exact Match

4. Negative Match

1. Broad Match

Broad match reaches to the most users by displaying your ad whenever variation of your keyword is used in the search. Variation like if your keyword is 'coffee beans' it will show your ad like 'beans for coffee' or maybe coffee roasted beans.

2. Phrase Match

Phrase Match will narrow your search reach by matching the searched keyword with the keywords phrase. For example if your keyword phrase is 'almond coffee cake', the ads will be displayed for almond coffee cake price or best almond coffee cake recipe. But not if you alter the keywords like coffee almond cake recipe'.

3. Exact Match

Exact Match narrows your search even more than phrase and broad match by only displaying your ads with the search term or keyword matches exactly with your keyword. For Example, your ad will show only on searches for 'chocolate cake'. You choose this option by putting brackets around your keyword; for example, [chocolate cake]

4. Negative Match

Negative Match will prevents your ad from displaying when a phrase or word you specify is part of the search term. For example if you specify a word 'cheap'

then your ad will not show for search term 'cheap chocolate cakes'.

Where your Ads will be seen

If you are using laptop, desktop or any other high resolution device your ads will be seen on the top of other searches. Adword limits to ads by display maximum 3 ads on top search area. Also you may see ads on the on the right side bar or the page. The below image will give you the idea of ads position.

And if you are a mobile user the ads will be only on the top of other search results, because there are no sidebar for mobile versions.

Adword costing CPC (Cost-Per-Click)

When we talk about google adword the keyword helps us determine the cost of the advertising that how much we want to spend on ads. Each keyword will have bid amount on them some of them are cheap while other are expensive. The bid will tells you the maximum amount you are paying per ad click.

How CPC (Cost-Per-Click) bidding works

As we discussed above for cpc bidding you have to set the maximum costs per click bid or you can say it max CPC. Let's understand this with a simple example below.

If you think it's worth US$.15 to have someone visit your website, you can set $0.15 as your max CPC. So You'll pay a maximum of $0.15 when a person click your add and reads it, and you don't have to pay if no one clicks it.

Now let's say you create a text ad and set a max CPC bid of US$0.15. If 500 people see the ad, and 40 of them click to learn more, you pay only for those 40 clicks. Your max CPC bid was $0.15, so you'll pay no more than 40 clicks x $0.15, or $6.

How to decide what CPC amount to set

Well its simple, You can figure it out based on what product you are selling on the site. For example if you are selling Furniture worth $2000 you could bid more then you are selling pack of chips for $99.99. It all depends on what type of users you want to select for your ad.

In the above snap shot you can see which keyword have high competition and how many times they have been searched.

Global monthly searches are number of times the keyword is searched from all over the world.

Local Monthly searches are your, the times the keyword is searched from your local region.

3 point to remember while bidding on keyword

Google AdWords determines which ads should show with fast ad auction or which takes place every time someone searches something on Google or visits any site that shows AdWords ads.

There are 3 main factors that determine which ads appear, and also in what order:

Your bid:

- When you set your bid, you're telling AdWords the maximum amount you're willing to pay for a click on your ad, thats we have already discussed above, and you can change your bid if you want to at any time.

The quality of your ads:

- Google AdWords also looks how relevant and useful your ad and your website is and then links to the person who'll see it. Every ad you create consist of a Quality score which you can moniter in your adword account.

Impact of ad extensions, ad formats on target audience:

- When you are creating your ad, there are options to add additional information to your ad, information like your phone number, or more links to specific pages on your site etc.

These additional informations are called ad extensions. AdWords estimates your ad's performance by these ad extensions. So even if your competitor has higher bids than yours, you can still win a higher ad position at a lower price, by using highly relevant keywords, ads, and extensions.

Together, these 3 factors determine when and if your ad will appear to potential customers. You have to do some experiment with the combination of keyword to get expected results.

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