AdWords, How Does It Work?

Google Adwords

Paid referencing represents a significant lever for generating traffic on your website and acquiring new leads. Although Google AdWords is currently the largest paid search network online, ahead of Linkedin Ads or Facebook Ads. Millions of businesses and professionals have never used it, potentially leaving the advantage to their competitors.

Complementary to natural referencing and to all actions aimed at collecting qualified traffic. Google Adwords allows companies to acquire new leads very quickly. What exactly is Adwords? How does this tool work, why many brands can’t do branding without AdWords? Our responses!

Google Adwords: what are we talking about?

AdWords Launched in 2000, Google AdWords (also known as Google Ads ) is the vehicle that Google uses to monetize its very popular search engine. Currently, Google is the most popular website in the world. For companies wishing to gain visibility on certain keywords, Google AdWords thus seems to be the ideal showcase for them.

With a pay-per-click (or PPC) system, advertisers pay Google to serve their ads to users who are interested in their products or services. They do this by using unique filtering options that target users based on the keywords they are looking for, their country, and the type of device they are using.

Even if you’ve never used Google AdWords or conducted a paid search campaign in your life, there’s a good chance you’ve interacted with AdWords. Just type any popular keyword into Google and the search engine will show you a list of paid ads.

Here’s an example of what Google ads might look like in the search engine:

Ads Example

The black zone is indicating paid ads, and therefore from Google Adwords, which are displayed for the given keyword, such as, “sell car”. If you look closely you can see that these results are marked with an Ad symbol on the left.

When you start to scroll the page, the paid ads stop to make room for other search results known as organic search results. These are not chargeable and therefore do not have priority to be positioned at the top of the page. This is a concrete example of the difference between paid SEO and organic SEO.

Each keyword typed on Google can generate up to 7 paid ads. This number varies depending on the popularity of the keyword and the number of people making an offer to rank on the query. The fewer offers there are, the fewer ads there will be. Whereas, on the contrary, the most competitive terms will end up displayed on several pages of results.

By clicking on one of these advertisements, the Internet user is redirected to the advertiser’s website. Once this happens, Google AdWords has served its purpose by sending a visitor to the advertiser’s site. Google is thus remunerated for its services. Now the Internet user can browse the advertiser’s site for information and in the best case, make a purchase.

Google Ads Remarketing

Google Ads remarketing is a form of online advertising that enables sites to serve targeted ads to users who have already visited your site. Former visitors will see these ads while browsing the web, watching YouTube videos, or reading news sites, for example.

Remarketing, also known as “ retargeting ”, can dramatically increase your conversion rates and your return on investment. Because former site visitors who already know your brand are much more likely to become customers on your site.

Google Adwords: how does it work?

Now the distinction between natural referencing and paid referencing is clear to you. So it is interesting to know a little bit more about how Google Adwords works. 

While there are a lot of essential things to understand before being a paid SEO pro. One of the most important is the auction system. It is essential to understand this notion. Otherwise, you will not be able to estimate the cost of a campaign or the amount you will pay per click.

As mentioned, advertisers continuously bid against each other, in order to obtain the best place and visibility on Google. In general, for most keywords, there are 4 spots available at top of the page and 3 at the bottom.

Since 75% of users never venture past Google’s first page, these first-page ad spots are always in high demand from advertisers.

Put simply, for an almost similar ad, if advertiser A offers 50rs per click while advertiser B offers 45rs per click, assuming they are both the highest bidder, advertiser A will take first place while announcer B will take second place.

This difference in a position might seem trivial, but when you consider the average click-through rates based on paid ad positions, it becomes easier to understand why a 1 position is so valuable. The graph below illustrates the average percentage of clicks obtained by a paid result according to its position on Google.

Source: https://www.accuracast.com/articles/advertising/adwords-clickthrough/

As you can see, the top position receives an average of almost 8% of clicks for a given keyword. Compared to the second position, it is almost 3% more. Going back to the keyword example we looked at earlier, “sell car,” that keyword alone gets about 100 to 1000 searches per month.

Based on that volume of searches, here are the clicks the top 4 ads would receive:

  • Position 1 – 7.94%
  • Position 2 – 5%
  • Position 3 – 2.47%
  • Position 4 – 1.96%

Many SEO tools such as Ubersuggest and Ahrefs provide a rough estimate of the cost per click on a keyword.

By having an idea of ​​the average cost per click, you should be able to determine whether this keyword will give you a return on your investment or not.

Google Adwords: what advantages compared to natural referencing?

Fast results

With Google Adwords, you can launch your first campaign in a few days and start receiving traffic immediately: this is the major advantage of paid search.

With a large enough sample, it’s easy to tell if a campaign is successful or not. You can increase your ad spend or stop a campaign to consider adjustments.

Adwords serves your brand awareness

Even if prospects don’t click on your ad, they can still see it and remember your business name. In this regard, a study concludes that Google Ads campaigns increase brand awareness by 6.6% on average.

Keep in touch with previous visitors

With remarketing, you can retarget people who visit your website. But leave without making a purchase or filling out a lead generation form. Thus, you can strategically place ads in the path of these visitors when they browse other websites.

Easily measurable results

With Google Ads, it’s easier to set conversion goals with landing pages, as well as set up funnels and track every step, to include:

  • The number of impressions of the ads
  • The number of clicks
  • The number of leads generated
  • The number of visits obtained
  • Keyword conversions
  • Acquisition costs

If the results of an Adwords campaign are rapid, it is however recommended to combine paid referencing actions with natural referencing actions. To move forward, it is indeed imperative to know the most strategic requests in your sector and those on which your acquisition cost will be the most interesting. At OMT, paid referencing is part of a global strategy that aims to transform your website into a lead generation machine. Want to know more? Contact us!