How does Google Ads work?

With billions of people using Google every single day (a whopping 3.5 billion to be exact), Google offers endless opportunities to find new customers online. 

Advertising on Google allows businesses to attract a new audience, potentially on a global scale, and in turn, boosts their profits. So, how do Google ads work?

What is Google Ads?

To put it simply, Google Ads allows you to advertise your products or services, whenever a user searches for your chosen keywords (specific words or phrases related to your business).

When done correctly, it can boost both your leads and your sales, exposing your business to a brand new mix of potential customers. Here’s how…

How does Google Ads work?

When we’re looking to find a product or service, what do we usually do? With the internet so widely accessible nowadays, we tend to turn to Google. With just a few quick clicks, you can enter exactly what you’re looking for into the search bar and thousands of relevant results will pop up.

So, how does Google know which results to show the user? 

  • The results page ranks the websites that will be most helpful and relevant to the user, based on the keywords they type into the search bar. 

  • Those results can include a paid advertisement targeting one of those keywords. 

  • These adverts are usually featured right at the top of the results page - and the first results tend to be the ones users are most likely to click. 

However, it’s important to note that buying advertising space on Google doesn’t necessarily mean you’ll be awarded that much-desired top spot. 

In most cases, there will be several businesses competing for that same position and exact keyword. Because of this, Google ranks each result, based on a pay-per-click model…

Never heard of pay-per-click? Don’t worry, we’ll break it down for you. 

What is a Pay-per-click Model?

Google Ads operates on a pay-per-click (PPC) basis. Similar to an auction, PPC is when marketers bid on specific keywords relevant to their business, competing with competitor companies targeting the same word. But how, exactly? 

Each company will submit a ‘maximum bid’ (the maximum you’re willing to pay to feature as an advert). Google will then compare your bid to your cost-per-click, and determine whether your website is ‘worthy’ of ad placement. 

Alternatively, you can set a maximum daily budget for an advert - meaning you’ll never spend over a certain amount each day. This can give you a better understanding of how much you should be spending on your digital advertising campaign to reach those top spots.

To calculate where your advert will sit on its results pages, Google performs a simple equation…

Google takes your bid and compares it to your website’s Quality Score - this is a score out of ten, based on the quality of your company’s:

  • Adverts

  • Keywords

  • Landing pages

It then takes this score and adds it to your bid amount, leaving you with your ‘Ad rank’. This dictates exactly where your advert will rank on the results pages.

Once your ad is up and ready to go, you pay a small fee every time a user clicks on your site… hence the name, pay-per-click.

Ready to create your own Google Ads, but not sure where to start?

You’re in the right place. At the Underdog Agency, we offer a data-driven Digital Performance Audit to help you give your Digital marketing strategy a boost. 

We can help you understand:

  • How your website is currently performing

  • Where you are ranking within Google

  • How you’re performing compared to your competitors

  • What you can do to leverage social media to your advantage. 

Our audits will provide you with the technical information you need to improve your website and its ranking on Google, in a simple, easy-to-understand format. 

We will also offer you a detailed breakdown of your target keywords - and if you choose the premium package, a breakdown of your competitor’s keywords. This means that you can establish any weak spots within your competitor’s coverage and identify potential opportunities for your own digital campaigns.

To check out both our Basic and Premium packages, you can visit our website here. If you have any questions, get in touch by filling in a short form or dropping us an email at hello@theunderdogagency.co.uk. We’ll be there to walk you through the next steps of your digital marketing journey.

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