For anyone who is new to the world of search marketing, it can take some time to completely understand how everything works. This article will make it simple for people who want to get into the search marketing world, starting with an explanation of Google Ads.

What Are Google Ads?

Google Ads are an advertising service where you can pay to place search results for your own website on a search engine results page (SERP). This way, you will not have to wait for your newly created site to organically move up in ranking. Contrary to common belief, paid search is not hard to use and it is not as expensive as most people might think.

What Is Paid Search?

Paid search allows your ads to appear at the top or to the side of a SERP, appearing as though it is part of organic results. The one thing that sets paid search listings apart from organic listings is a small green “Ad” label. Apart from Google, you can also use paid search marketing on other search engines such as Bing as well.

How Google Ads Works

To use Google Ads, the first step is to think of some keywords that a searcher might use on Google. After that, you can make an advert that will show up on the SERP based on your chosen keywords. It should be mentioned that you are not the only company who thinks of these keywords. Your competitors who are selling similar products or services are most likely going to bid for the same search terms.

Hence, you will have to bid against your rivals on the amount that you are willing to pay Google Ads. In a nutshell, the more you pay per click (PPC), the higher the possibility of your ad appearing in the search results. That being said, it is important to highlight the fact that the highest bid is not the only determining factor. Another factor that will determine how high your ad is going to appear on the SERP or whether it will appear at all is an “Ad Rank.”

What Is Ad Rank?

Ad Rank is Google’s algorithm that can be used to dictate the order that paid search ads are shown on the SERP. In simple terms, the ad with the highest Ad Rank will be displayed in the top position while the ad that has the second-highest position in terms of Ad Rank gets to be displayed in the second position. There are many factors that are taken into account when calculating Ad Rank, one of which is your bid amount.

The other four factors include:

  • The quality of your ads and landing page, which can be seen from your Quality Score.
  • The Ad Rank thresholds that your ad is required to meet for it to be displayed, which can depend on things such as the topic and nature of a search, location, and the type of device.
  • Search context, which may include the query, the time, the other ads and search results on the page, user location, and the type of device.
  • Ad extensions and other ad formats, which are the pieces of extra information that you can incorporate, such as links to other pages on your website.

What Are Cost-Per-Click (CPC) and Cost Per Impression (CPM)?

The amount of money that you are willing to pay Google Ads each time that your ad is clicked is called cost-per-click (CPC). Your CPC will, of course, depend on your budget. You can either choose to pick the maximum bid amount for yourself or you can go for the automatic option, where you allow Google to choose the bid amount that is within your budget for you.

Another uncommon option is called cost per impression (CPM), which is where you pay for every one-thousand times that your ad is shown on the SERP. It will only take Google about 0.26 seconds to go through all the relevant advertisers bidding for a search term, make a decision whether to hold an auction, hold the auction, determine which ad offers the combination of highest maximum bid and quality score, and present the selected ad on the results page.

If you need help with your digital marketing, AO Marketing is your best option. Get in touch with us today to see how we can help.