How to Use Google AdWords

1.What is Google AdWords?

AdWords is Google’s advertising bid platform; it allows anyone to created advertising campaigns for them to appearing on the Google Network, i.e… Search Engine, partners, YouTube etc.

It is Google’s main sources of incoming, which generates 76% of revenue, which was about $90 billion in 2016.

Google AdWords
Google AdWords

The AdWords platform is dividing into two (2) networks where you can show your ads:

  • The first and best knowns are the Search Engine Network (research network).
  • You are bidding on keywords, and if a visitors search for that keyword on Google, your ad is shown to them.
  • You only paying if someone clicks on your ads. In the jargon, we speaking of SEM or Paid Search.
  • The second networks a little less use is the Display.
  • You target different criteria for choosing where your advertising will appear; you can be selected, for example, the criterion “demographic”.
  • It is also possible to directly specified web site names if they are parts of Google Networks.
  • For the display format, you must pay per click or cost per 1000 (CPM), that is, you set a price for 1000 views of your ad.
  • Display ads are usually banner ads and images.
  • We can also be talking about a third broadcast network: YouTube, where you can creating video ads. But from a purely technical point of views, you will do either search or display specific targeting YouTube.

2.The auction system, how does it work?

To uses the Google AdWords platform, you need a understand how the auction system works.

Google uses a Vickers auction-based system, which bears the name of William Vickers who has to demonstrate that these types of auction encourage bidders to bet on the real values they attribute to the lot.

In this system, all off bidders submit their proposal at the same time, without knowing the amounts of proposed by the others.The prizes go to the highest bidder,but he has to pay the price given by the second-highest bidder.

On Google, advertisers who are your competitors are indicated what they are willing to pay per click for displaying their advertising on Google, but you will never know how much they are paying exactly.

To choose the way ads will be displayed on a search, Google will be based on 5 elements:

  1. The maximum prices you are willing to pay on your bid for this keyword.
  2. Your quality score: it is a numerical value between 1 and 10 which allows defining if your advertisement is relevant for this keyword.
  3. The format of your advertising: Depending on the formats your advertising will be more or less relevant.
  4. Advertising extensions: They are additional elements that you can added to your advertisements (text, links) to make a advertisement more relevant to the search.
  5. Bid changes: These are additional targeting that will modify your bid, for example: target only Lyon residents.

Imagine that with more than 65,000 searches per second on Google, the algorithm must be selecting your ad in a few thousandths of a second and decide where to display it on the pages.

So obviously, if you are a beginner, you probably think: “With all the competition that exists today, if I want to appear first it will cost me dearly and you would be right, except that you do big goal errors.

Your goal with advertising on Google is not to have your ad displayed first, but to earn money through your ads! And for that, to arrive in 2, 3 or 4th position will be much more profitable for you!

Remember, for your advertising campaigns, only the ROI is important (return on investment: return on investment), the rest are just vanity metrics.

One of the greatest successes of Google AdWords is that you only pay if people click on your ad and you also have access to track your results on the platform!

The other great success is the abilities to choose your targeting very accurately and controling  in your budget perfectly.

3.The data

 What makes the power of Google AdWords is the data that is available in real-time to adjusts your campaigns. With your online business or for your customers if your agency,you probably have goals to achieved,and with the data and information that AdWords offers you, you can improving your results.

Example:

Suppose you are selling a product with a target of 10 € costs of acquisition.

You study your AdWords dashboard, and there you realized that in Ile de France it costs you € 20 per sale whereas in PACA you are € 7 per sale. So, you quickly adjust your bids, increasing the budgets available in PACA and limiting the max bid in Ile de France (see removing any budget for the IDF).

You can check the results over a specific period, the cost per click, the conversion rate and study the turnover brought by your conversions.

4.Account Structures and Campaigns

  • Each level gives you different control access for your ads.
  • At the highest level, you have the “Administrator Account”.
  • This types of account are only useful for agencies or very large companies.
  • It lets you manage multiple AdWords accounts, give access to different peoples, and also consolidate invoices.

For an agency, this allows you to manage the accounts of all your customers in the same place without having to changes accounts regularly. This gives you control over access by being able to easily name a member of your team as a manager on a particular account, learning more about Search Engine or Google Ad Wards by click on Microsofttop.com.

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