How Google Adwords works
AdWords is the Google pay-per-click platform whose text ads appear both above and below the results. It generates approximately 20% of all clicks in any search and is a customer acquisition channel used by millions of companies, both large and small, offering all kinds of services and/or products. On another page, we go into detail to see how to create the best AdWords campaign structure.
Adwords is considered the channel par excellence of the so-called inbound marketing
Inbound marketing is when the user is looking for our product or service. The other type of marketing, outbound marketing is when we show the service or product that our company offers without the user having asked to see it – such as sending postcards, letters, or showing ads on social networks to those who meet a certain profile. In the vast majority of cases , inbound marketing (when they are looking for us) has a lower cost per acquisition than outbound marketing (when we are looking for us).
In another article, called ‘ How to advertise on Google’We discussed in detail why AdWords is the best channel to advertise the products and services of an SME. In this article we will discuss what Google AdWords is and how it works.
It starts with … the user looking for something
Someone searches for something on Google … anything
AdWords has a central element – the so-called keywords. The keywords, or terms, are those that the advertiser is willing to pay when the Google user writes them and clicks on the ad. The user can write anything in Google – from buying shoes, to addresses to a restaurant or a video from La Macarena. Advertisers create word lists that indicate purchase intent for their product or service and when the user types the term and clicks on the ad, the advertiser pays.
The terms in which you bet are those that indicate intention to buy and usually start with words liketo buy.
For a shoe store, for example, a typical term on which to bet would bebuy fashion shoes.
The advertiser creates a list of terms. When someone writes one of them, the ad appears and if you click, it generates a cost for the advertiser.
Google matches the terms present in the search with the keywords present in the campaigns of Google AdWords advertisers. If you find that there is a keyword that matches the terms of the search, the Google algorithm will then evaluate two factors of the keyword present in the advertiser’s AdWords account – the bet and the quality score.
As there is only space for up to 6 ads , 4 above the results and 2 below, the algorithm will choose those 6 keywords whose combination of bet plus quality score is higher and will present their corresponding announcements.
Now the user has an option – or rather, has 17 options, 17 results on the first page for the search performed (19 if it is a search with local intent). 4 text ads above all, followed by 3 local results in case Google deems that search has local intent, followed by ten organic results and up to three additional ads below all of the page.
Due to the high degree of competitiveness that exists to be able to appear in the ten organic results, Google AdWords – the top 4 results of all – is an ideal source of traffic for large or small companies, regardless of the service or product they offer.
The better the ad is and the better you write it, the more clicks it will receive, which translates into a lower cost per click in the medium term.
When the user clicks on the ad, it now becomes a potential customer who can buy the product or service offered by the advertiser. If the price paid for the clicks, due to the amount generated by them, is higher than the sales margin of the advertiser, Google AdWords is a channel with a positive return and thus becomes an indispensable channel for the marketing strategy of any company. Optimizing campaigns is essential so that they have the greatest possible restoring. Wrotter offers one of the most powerful automatic optimization engines and is the only one that offers a free plan.
To summarize, Google AdWords is undoubtedly a great channel for the acquisition of customers, and due to its high profitability for the vast majority of industries and companies, it is an indispensable web traffic account.
Google AdWords is the best channel to be found when you search for your product because more than 90% of your customers do this search on Google.
With Wrotter , SMBs earn more with AdWords and pay less to AdWords. The Wrotter AdWords optimization engine allows the SMB to always maintain control at the same time that Wrotter automatically optimizes their AdWords account. Ahead!