How to Understand Google Adwords

how to understand google adwords

How to understand Google AdWords is a critical element to the success of your online business and the success behind converting website visitors to paying customers. So if you don’t understand how Google Adwords works, then please read on.

Do you know everyday people turn to Google to look up an answer to a question, find a new place to visit, look for solutions to the problem and look for places to buy new products and services?

Google define these as I want to know, I want to go, I want to do and I want to buy search terms. And this is where you need to have your website right in front of those customers who are looking to Google for the answers.

So what is Google Adwords? It’s Google’s online advertising platform and it’s designed to put you, your website and business in front of a potential customer at the right time with the right message when they’re in the right mindset. The concept behind Google AdWords is pretty simple, you identify words that are relevant to your products or services and then AdWords shows your ad on Google when someone searches for relevant or related keywords.

AdWords can help get your business to appear on Google in front of many potential customers and it’s not just any customer, it’s the right customer. But, you need to know how to understand Google Adwords before you start any online advertising campaign and spending your marketing budget.

There are many benefits to using Google Adwords to manage your online advertising. Adwords allows you to reach a larger target audience, which is precise targeting. Google also has tools to help you improve your marketing. And we know that Google is the place people go to search and to find what they are looking for online.

Benefits of Google Adwords

  1. First is the ability to target your ads. Targeting lets you show your ads to people with specific interests in your products and services.
  2. Keywords, these are words or phrases people use to find your business online. Adwords will show your ads relevant to those keywords you use in your campaigns.
  3. Ad locations, this allows your ads to show on search engines and commercial sites.
  4. Demographic options, which focus on age, location, and language.
  5. Advertising to desktop and mobile devices.

Google Adwords is a pay-per-click model. Once you understand how the model works, you will have a better understanding before you embark on creating ads within the Google Adwords infrastructure.

This is all about conversions for your business, you not only need good ads, you need a landing page that is going to convert visitors into paying customers. 

Adwords Structure

Before you begin creating any campaigns, it’s important to learn how AdWords is structured. A well-organized account will be essential in creating effective campaigns that target the right audience and ultimately help you reach more of your advertising goals. AdWords is organized into several tiers: Account, Campaigns, Ad Groups, Keywords and the advertisements themselves.

An account has to have one campaign and one ad group, but a well-structured account will have multiple campaigns and ad groups. Think about campaigns as your broad objectives. A campaign will have its own budget and settings that determine when your ad appears. Big picture choices happen at the campaign level. When you’re just starting out, it’s easiest to think of campaigns much like the structure of your website.

If you have an e-commerce store, for example, you might create a campaign for each product type or service that you want to sell, a campaign for kettles, another for dinner sets, one for kitchen knives and one for kitchen gadgets and so onCampaigns set up this way give you flexibility.  Within your campaign, you’ll have ad groups and an ad group contains a set of similar ads and keywords that will trigger select ads you have set up.

Ad groups work best when they’re focused on a particular theme. So if your campaign was a kitchen kettle, your ad group might be for brands of kettles, or brand and color. You can be broader if you want with your keyword choices.  Ad groups are used to point towards specific ads. They’ll contain keywords that indicate when the actual advertisement displays.

You may be testing a variety of advertisements as they relate to your ad group. If you’re using the search network, these ads will have two headlines. The ability to add two path fields to your display URL and then a description.

Quality Score and Auction Bidding

Google is popular because they’re good at getting it right. When you go to search for something on Google, you typically find what you’re looking for right away. Google is obsessed with making sure everything they display is relevant, and that extends beyond organic results, to paid listings as well. Fortunately, this makes for a great opportunity. Users want relevant information, and advertisers want to show relevant answers, so those listings get clicked on. If Google shows the best ads, users come back to Google, and Google profits.

But how does Google decide the order that these ads appear in? Fundamentally, Google AdWords is an auction-based platform. And, by that logic, the person with the highest bid would appear at the top of the page, or, in what we call, position number one. So you would expect the first business which is prepared to pay the most for position one would be on top, right?

But that’s not the case. Google factors in a lot of other signals to determine which ads are most useful to a customers search query. So it will be the most useful ads which go into a higher position. So, at this point, you’re probably thinking, “Well, what are those other factors?” Well, first is your expected click-through rate. Google’s going to make an educated guess on how often people are going to click on your advertisement. Next, you have your landing page experience. Your advertisement is only useful if your visitor can find what they expect, once they click over to your site.

The key factors are relevancy, easy to navigate, transparent to the nature of the business, and transparent to how you collect, and use, customer data, that would be your privacy policy, and terms and conditions. Next, they determine your ad relevancy by analyzing the language in your ad as it relates to the query. This prevents people from simply buying your way into unrelated keywords. So if the ad was about a Breville kettle, and the query or the keyword searched included Breville kettle, Google’s going to go, “Great, that’s relevant.”

Google also has extensions that you can add to your ads, such as a phone number to call, page extensions of your website and customer reviews. You can leverage these extensions, which may increase your quality score. So, Google takes all of these factors, along with your bid, and turns it into your ad rank.

This is just the start of how to understand Google Adwords, in coming posts we are going to look at what you need to do before you start your Google Adwords account and campaigns. Stay posted 🙂

how to understand google adwords


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Kim Matheson
I love the creativity and diversity of the Internet. I am passionate to share my experiences through my site Biz Lab Online has been developed to provide training in all areas of the Internet to help beginners and intermediates learn the fundamentals about starting an Internet Business and Career.
Kim Matheson

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