Understanding Google AdWords to Boost Advertising Performance

Small and medium businesses that struggle in the marketplace on a limited advertising budget need to take a second look at Google AdWords and learn how this cost-effective online advertising platform can drive up sales and business growth. How is this so, you may ask? If we look back in 2010, thousands of businesses worldwide spent $28 billion in paid search advertising on Google AdWords. An aggregate expenditure in advertising of this magnitude in these hard economic times should make an interesting matter for you to investigate and consider for your business. Here’s a step-by-step explanation to help you understand the basics of Google’s paid search advertising.

Maximizing your reach to potential customers online

Google AdWords are keyword-driven, paid search ads or pay-per-click advertising by Google in several modes such as cost-per-click, cost-per-thousand impressions, site-targeted ad for text, banner and new media ads. The paid search advertising doesn’t knock off the importance of organic search, which is based on search engine optimized content. And yet, while both paid search and organic search rely on keyword popularity; they target and attract different audiences and thus extend a broader reach to your potential customers. Moreover, Adwords helps you measure what keywords work best and which ad campaign brings in the most traffic for conversion.

The key components in Adword’s ad concepts:

• Keywords – are selected terms and phrases that prompt your ads to appear on search page and other websites under ‘sponsored links.’ People who search for “ERP software programs” or a similar term will see your ad along the top, right-hand side or below the results of their search. Your ad can appear high on the list of sponsored links depending on factors such as your bid or Ad Rank. Your ad will also show on Google and partner sites called Display networks that are related to the term

ERP software programs.

• Placements – Placement-targeted advertising are posted on non-search websites. A search for keywords prompts your text-only advertisement to show the search results on Google. At the same instant, your ad will also display on websites that offer content related to your keywords on Google’s properties and other content network sites (such as YouTube, NYTimes.com, etc.), AdSense. You can opt for specific placements by setting bids on the size of your ad (an entire site or just part of a site), language(s) and geographical reach.

• Ad Rank – is how Google determines which ads appear in which position or rank, and make you pay for the lowest amount possible. Your Ad Rank is influenced by factors such as your bid, targeting and Quality Score. Ad Rank works automatically where several advertisers use the identical keywords to prompt their ads and jockeying for positions on the same websites.

• Bid – sets the amount you’re willing to spend on your keyword-targeted ad campaign, such as your maximum cost-per-click bid for each click on your ad. Irrespective of your bid amount, you’ll pay just the minimum rate to beat other advertisers under you, and stay ahead with Quality Score. Bidding also applies to placement-targeted ads in Google’s content network through cost-per-thousand impressions (CPM) bidding.

• Quality Score – is a measurement of ad quality, keywords and landing page. For keyword-targeted ads, your excellent score is based on relevance of keywords, the quality of landing page, click through rate (CTR) and other factors. For placement-targeted ads, Quality Score is merely determined by the quality of your landing page.

If Google Adwords makes good business sense for your advertising, follow our next article on Tips to make an optimized Adwords ad campaign.

 

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