The marketing world has changed in recent years. A lot of organizations have changed their marketing pattern. They have moved to digital marketing from traditional marketing. Digital marketing has several benefits over traditional marketing.
Digital marketing is the promotion of products and services by using various electronic media forms. Digital marketing is a marketing strategy which can be used by all kind of organizations. It doesn’t matter that your organization is small or big if you want to promote your business, digital marketing is the platform for you.
There are various methods to promote a business in digital marketing and Google Ads (AdWords) is one of them.
What is Google Ads?
Google Ads is a paid online advertising service offered by Google that allows businesses to run their ads on googles’ search engine. It is one of the most effective online paid ads. These ads look as similar as organic search results in (SERP). The only difference between organic search results and paid ads is the small word “Ad” in left with black color.
In the above images, the first image with the green box is an example of Google Ads (paid Ads) and the second image with the red box is the example organic search result.
How does Google Ads work?
When a user searches for a query or keyword, the google search engine shows the user relevant ads based on the keyword used in google search. These results are based on several factors. A lot of advertisers and marketers have a misconception that bidding high for the ad is enough to get a place in Google’s search engine result page. Thousands of advertisers apply for their ad, but not all the ads are shown on search results. Google uses a combination of three primary factors to determine which ad is to show on the result page.
- Ad rank
- Quality score
Ad rank is a matric that is used by Google to determine the order in which paid search ads are displayed on the search engine result page. The ad with the highest ad rank gets a place in the top position on the result page.
Let’s take an example of how the ad rank defines the position of ads in the search engine result page.
If the ad rank for the ad of 1st advertiser is 18 and 14 and 10 for 2nd and 3rd advertiser’s ads respectively, then the ad of the 1st advertiser will get 1st position, ad of 2nd advertiser will get 2nd position and the ad of 3rd advertiser will get 3rd position in SERP.
How google decide Ad rank of ads? Google decides the Ad rank by using the following formula;
Max. bidding * Quality score = Ad rank
For example, if you are willing to pay $2.00 for your ad and the quality score of your ad is 9, then the Ad Rank of your ad will be 18.
Max. bidding * Quality score = Ad rank
2*9 = 18
This is how Google decides Ad rank of ad.
Bid is the amount that advertiser is willing to pay for a click of the ad. The amount advertiser is willing to pay for each click is called CPC (Cost-per-click). There is one more option for advertiser set bidding amount, that is CPM (Cost per impression). In CPM, the advertiser pays for per 1,000 views of his ad in SERP.
The advertisers, who want their ads to show on the search engine result page, bid on a keyword that they believe users will use when looking for the product or service they offer. For example, a Digital marketing institute located in Mumbai might bid on the keywords “Digital marketing training institute in Mumbai”, “Digital marketing course in Mumbai”, “Digital marketing course”.
Quality score is a rating of google for the quality and relevancy between keyword and ad. Your ad needs to be relevant to the search being made to show on the search engine result page. Quality score is a very important factor in google ads.
Quality score depends on some factors like,
Quality and ad relevancy
Your ad needs to be relevant to the search being made in google to show to the search engine result page. If someone search for a “Digital marketing course” and google shows an ad for “Commerce class”, it’s not called ad relevancy. The ad relevancy is when someone searches for a “Digital marketing course” and google shows an ad for the same course in SERP.
Landing page experience
When someone clicks on your ad, the landing page that they are sent to must have similar content as the ad itself and the keywords used in a search. If you offer a digital marketing course and are advertising for SEO courses, you’ll need to link directly to the page that has more information about the SEO course instead of the home page or Google ads page.