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How does Google AdWords Work?

Google AdWords is commonly referred to as “pay-per-click” advertising (PPC). Basically, you set a monthly budget for ad clicks in your Google Adwords accounts and provide a list of keywords for which an for your business website to appear on the Google Search Results page. When someone types in a search term that matches one you provided, Google will display your ad – which is called an “impression.” Your ad can get 10s of 1000s of impressions without a charge.

How Many Ads does Google Display on a SERP?

6 ads are displayed for searches with a full set of ads: 3 ads above the organic results list and 3 after the organic search list. However, for “highly commercial searches,” Google may display 4 at the top for a total of 7 ads. This is down from 11 when Google displayed ads along the rght side of the Search Engine Result Page (SERP). This is subject to change over time as Google adjusts the SERP layout for various reasons.

How Much does Google Adwords Cost?

Whatever you wish! You tell Google how much you are willing to spend in a month and Google will display your ad as much as it can and does it’s best to not go over your set budget. Google uses it’s ad display algorithm to optimize your ads so they display evenly while the budget is spent on clicks.

What Factors Most Affect my Google Adwords Cost-per-click (CPC)?

1) Lots of Advertisers
The more crowded the ad space, the higher your Cost-per-click will be.

2) Ad Position
The position of your ad among competitive ads is important. The higher your position, the more the Cost-per-click will be. You are essentially “bidding” for higher ad placement at the time you create the ad.

How do I Calculate my Google Adwords Cost-per-click (CPC)?

To calculate your Cost-per-click (CPC), divide the amount of Ad Budget spent in a month by the number of clicks your ad received in that same month. The number of clicks are reported in your Google Adwords Dashboard in any month. For example, if you spend $2,200 with Google Adwords in month and your ad(s) garner 100 clicks, then your CPC is $22.00 ($2200/100 clicks).

How Many Clicks Will My Google Adwords Ad Get?

Good question…first let’s illustrate quickly how many you won’t get. As of this writing, 94% of all clicks on the 1st page of Google Search Results Page (SERP) go to organic search results. You heard that right: the multi-billion dollar, multi-national juggernaut called Google, is built on (in part) to just 6% of SERP clicks.

Sidenote: Google enjoys 33 cents for every online ad dollar spent worldwide.
(2016 – 2019 Worldwide Digital Ad Data from Statista)

A user will have to ignore the organic results, see your ad and click it – taking them to a destination on your website (a page that your specify).

Cha-CHING!

Google just got paid! So you cross your fingers and hope that the user will love your site, read your copy, match their need, decide they want your product or service, and buy your stuff. THEN – you make money. Let’s hope that the user paid more to you than you paid Google. Of course, that comparison is both logical and juvenile – you must take into account your Conversion Rate to get a real picture of the affect of your ad spend – sometimes referred to as your Rate of Return.

What is the Google Adwords Conversion Rate?

The Google Adwords Conversion Rate is the percentage of users that click your ad that also “convert” to a customer. For example, if 1 of every 10 users who click your ad become a paying customer, you have a 10% Conversion Rate. Monetarily speaking, you will pay for, on average, 10 clicks to get 1 customer.

So Google “cha-chings” 10x more often than you do…which is not a bad thing – it’s just a “math thing.” Make sure you do that math every month and that Return on Investment is to your liking.

What Google Adwords Isn’t

Simple. I mean that: the concept is napkin-sketch easy to layout, but it’s anything but SIMPLE!

When and How Google Adwords Should be Used

It’s not because we can’t. We just don’t think it’s the best use of your money or your marketing potential. Here’s the thing about Google AdWords: as soon as you stop paying for it, it’s gone. That kind of advertising is fleeting, and only delivers short-term results. You deserve a marketing strategy that gives you the long-lasting success you need to thrive.

Google Adwords (Right) Place in Digital Marketing

Here’s the thing: we don’t always recommend Google AdWords in all cases. That’s because our organic Search Engine Optimization (SEO) techniques are a more effective strategy – in terms of traffic, value and staying power. We feel that Google Adwords should be one tool in your digital marketing bag of tricks, but not the only strategy in place. In the intermediate and long-term, organic SEO will provide the most value for your marketing dollars.

We focus on expanding the breadth of your reach with content marketing. We rely on content marketing because it’s the most effective use of your marketing budget. Every time you create a new piece of content, whether it’s a blog article or a page of service content, it’s there to stay forever. Evergreen, organic marketing years is always increasing the possibility of someone finding you…even years after the fact.

Why so Many Companies offer Google Adwords Services for Every Client

Contact Unravel to discover how we can put the unlimited potential of content marketing to work for you!

 

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