Google ppc how does it work




















The Campaign Itself - At the top of the hierarchy is the campaign itself. You might, for example, have an advertising campaign that's based on a holiday theme. The Ad Group - An ad group is a group of ads related to a campaign. For example, you might have one ad group related to gag gifts for a holiday party. You might have another group related to Christmas cards. Keywords - Your keywords should be relevant to your ad group. Google will use keyword relevance in determining ad placement more on this in a bit.

Ad Text - You'll want to run some catchy text in your ad that tempts people to click on it. It's usually best to enlist the aid of a professional copywriter when creating ad text. Landing Page - The landing page is where people "land" when they click on your ad. It should also be relevant to your keywords. Ad networks typically allow people to bid on a keywords in an open auction.

But don't think that you know everything there is to know about bidding on keywords just because you've visited eBay a few times. That's because your ad placement is determined, in part, by your bid. The other factor that goes into ad placement is the quality of the ad itself. Google determines the quality of your by evaluating its relevance to your keywords, your landing page relevance, and the ad's click-through rate. To determine your overall ad rank, you just multiply your bid by your quality score.

If that number is higher than the ad rank of other advertisers bidding on the same keyword, then your ad will appear on top. That's because Google calculates your payment as follows: it divides your quality score by the ad rank of the next highest bidder and then adds a penny. These keywords should only be used once you have significant data in your account.

This way only the most qualified traffic are seeing and clicking on your ad. When it comes to keyword targeting, a good rule of thumb is to keep things as specific as possible. We generally advise clients to only put keywords into these lists that appear within their ads and within their landing pages. My mantra? Relevancy, relevancy, relevancy.

Your quality score is the single most important metric to keep an eye on within your campaign. Google calculates your quality score based on:. Bottom line: The more relevant a keyword in an ad group is to the ad copy and landing page copy, the better your campaign will perform and the cheaper it will be.

These guys help connect construction workers and companies together with laid out career paths. Each one of those green boxes is a campaign, and the yellow ones are ad groups. Each ad group has its own list of specific keywords for which we want to display ads. One of the great things about Google Adwords is that the tools are designed to be easy to navigate and use, with clear tutorials and default settings for most options.

Just make your ads, choose your targets, and set your budget. Your account is going to need some fine-tuning in order to work as efficiently as possible and get the most out of your budget.

For instance, Google wants you to make full use of everything they offer in their network. This includes AOL, Ask.

This uses machine learning to automatically adjust your maximum bids based on location, time of day, and audience. My advice? There are other things to keep an eye on while running your campaign besides your quality score.

Here are a few we like to track:. It bears repeating. Keep your keywords, ad copy, and landing page content-relevant. There needs to be a clear and obvious connection between them all, or else your ad results will suffer.

Besides relevancy, your landing page needs to be optimized for conversions. The best ad strategy in the world will fail if it sends users to a poor quality landing page.

And with mobile-first indexing, make sure the page is optimized for all devices! Keep in mind that you will be bidding against your competitors. The higher the demand for a keyword, the more it is going to cost. And if your competitor has a bigger budget or a higher quality score, their ad is going to show.

When used effectively, PPC advertising can be an incredibly effective way to reach new audiences and bring in new customers. With that being said, there is really no way to predict the success of your specific campaigns without trying them out first and gathering your own data. They also say that for every ad click a business receives, they get 5 more organic clicks. Now before you pull the plug on Google Ads or fire the guy managing your account for not getting an 8x return on ad spend, this can vary drastically based on the location, industry, and age of your company.

This is also an average taken over the long term of company ad campaigns. Free Inbound Marketing Playbook. Free Guide: Take your inbound strategy to the next level Master the 7 principles of highly effective inbound marketing Dramatically improve your inbound sales Get more buy-in at your company. Read it now. Google Analytics. Easier said than done, right?

However, for the sake of time, we are going to stick with PPC for this article. When implemented alone, however, PPC advertising can become expensive and inefficient. Asking how PPC works is like asking how the economy works. The cost per click is determined by a variety of factors.

The biggest contributors being the volume and competition on whatever the given keyword is. Search Ads Search ads are the most common, most visible, and most utilized form of PPC by companies globally. These ads appear above or beside organic results, based on whatever the user queries. Local Search Ads Local, or location-specific ads, are a subset of standard search ads.

YouTube Ads Ads that appear on YouTube are actually managed on the Google Ads platform and are served before during or after the videos you stream. Move Over Competitors Sometimes the little guys need help establishing themselves as a serious contender amongst big, national brands. How to Get the Most Out of PPC Google Ads make it easy to get up and running, but not taking the time to strategize can lead to a lot of wasted budget.

Create Goals So many teams go into Google Ads without knowing what they are trying to accomplish. Before you set up your ads, ask yourself the following questions: Who is Your Audience? What Does Success Look Like? First off, you need to decide on a structure for your campaign. Keep things simple, but keep them specific to the goals you established above.

An ad group is a set of ads and a set of keywords you want to serve those ads for. When it comes to keywords, there are 3 main types that you can use within your ad groups: Broad Match - Broad Match keywords is the default match type to which all of your keywords are assigned.

Google calculates your quality score based on: Your click-through rate CTR. The relevance of each keyword to its ad group. Landing page quality and relevance. The relevance of your ad text. Your historical AdWords account performance.

Check out this sample campaign structure from our friends at Ground Up Construction: These guys help connect construction workers and companies together with laid out career paths. Not so much. Want better results? Spend your budget on Google.

The main structure of search ads sees an account split up into 'campaigns' and 'ad groups. You need to have a good grasp on both of these concepts, as they form the foundations of your account; it is really simple and straightforward. Unless you are setting up a large account, you will usually only have a small number of campaigns in your account.

A campaign contains multiple ad groups which, in turn, contain ads and keywords. As an example, let's say you are a car dealership. You might set up different campaigns for 'used cars' and 'new cars' so that you can keep budgets, targeting, and other adjustments separate. You set a bid, or price, to be used when an ad group's keywords trigger an ad to appear.

The number of ad groups that you will have within a campaign really depends upon your business and the number of keyword groups that you will be bidding on. You can include multiple keywords and match types within an ad group.

Some PPC specialists like to use a structure known as SKAGs single keyword ad groups that includes just one keyword per ad group, to allow for maximum control over targeting and bidding. When a user runs a search for a query, the keywords used in an ad account are matched against the query to show ads.

There are different match types that can be used for keywords, and these control whether variations of a keyword trigger an ad to show, or not. Match types allow you to control which search terms will trigger your ads and how wide the variants are.

Source: Google. Quite simply, negative keywords allow you to prevent an ad from showing for searches that include that term. This provides a great level of control when combined with insights from the search terms report, meaning that you can stop your ads from showing for terms that may be similar, but aren't relevant, or wouldn't convert.

Using negative keywords is an effective way to prevent wasted budget and traffic that isn't deemed to be relevant. Ads are what show on the search engine results when you successfully win a bid auction and are what encourages a user to click.

You can have multiple ads within an ad group and choose how they are rotated. You need to be sure to write engaging ads that clearly communicate your message and USP. Writing engaging ad copy takes skill and consideration on your sales messaging, and we highly recommend that you take a look at this Weekly Wisdom with Joel Bondorowsky on the strategy behind effective PPC ad and sales copy.

You can use our Ad Builder tool to create and build out your PPC campaign, using your competitor's ads as a template and customize to your own business and export these so you can import to Google ads.

You can either increase or decrease the maximum CPC for a campaign for different devices, times of the day, or specific audiences.

Adjusting bids in this way means that you can adjust bids based on the likelihood of a user converting, and other factors. Let's say you have a lower conversion rate on mobile devices.

You could add a negative bid adjustment to reduce the max CPC that you are willing to pay for clicks from mobile devices to compensate for the lower conversion rate. If you are a local business and only serve customers in a specific geographical area, you can use location targeting to control who sees your ad. You can target multiple locations with different bid adjustments within an ad group, either by choosing a city or region or setting a radius target.

We think you will love this guide to geo-targeting and local PPC tips from Daria Voronina to learn more about using this option effectively. Does your data show that your website visitors are more likely to convert at certain times of the day? Ad scheduling allows you to adjust bids or stop bidding all together based on the time of the day and create a custom ad schedule to not waste money on clicks that aren't converting.

One thing to be aware of here is the fact that Google Ads can, and will, overspend by up to two times your daily budget, but never by more than you spend in a month. Ad extensions let you add more information to your ads and occupy more screen real estate. They allow you to enhance a standard search ad to encourage a user to click and stand out and help showcase that your result is the most relevant to a query.

You may have noticed that some ads on the SERPs are enhanced with site links, callout text, phone numbers, and reviews — these are all ad extensions.

If you run an ecommerce store, the most effective PPC ad format is likely going to be shopping ads, as these allow you to serve your products straight onto the SERPs with both images and prices clearly displayed. While the main principles of how shopping ads work are the same as with search ads, there are a few subtle differences that you need to know about.

The main one being that you cannot specify your own keywords for this type of campaign but you can control visibility with negative keywords. Shopping ads are triggered by terms relating to your product name, description, and landing page copy. To run Google Shopping Ads as well as take advantage of free product listings , you need to set up a Merchant Center account to get your products into Google.

You will need to add products manually, or via a product feed from your website recommended to run a shopping campaign. While this is not the only way to load products into Merchant Center, you will most commonly want to use a product feed that includes data about each item, including the product name, description, image, price, unique identifiers, product category, and more.



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