Google Ads - Everything you need to know (2024)

If you are a business owner or advertiser who wants to use Google ads for online advertising, you need to know how this service works.
Google Ads is the most popular pay-per-click marketing method, based on certain principles.

Bidding strategies

Advertisers using Google ads must place their ads on "auctions" in order for Google to find ads that appear when someone searches on Google.
To place your ads, you must choose one of your bidding strategies, depending on your goal.

We have prepared some of the most common strategies for you:

• Cost-per-click - is a strategy in which you focus on getting clicks on your ads. This method is suitable for those who want to increase internet traffic to their site.
• Cost-per-impression - is a strategy in which you focus on the number of times your ad is shown.
• Cost per purchase - is a strategy related to the conversion rate of customers. It is suitable for those who are already well positioned and are now interested in promoting shopping.

Quality score

Quality Score is the relevance and quality of your ad that Google measures.

Question by Google?

Is your ad really useful to the customer and if they click it does it lead to the page they want to visit?

The higher the quality score, the better for your business. Why? We will explain with a concrete example.

Let's say you want to rank for the word " bookkeeping program " and your competition looks like this:

In order to fight for the first position, it is necessary to pay attention to the following factors: quality assessment, maximum price per click.

If your competitor's maximum bid (cost-per-click) is higher than yours, your ad will show above theirs, provided your Quality Score is better.

The higher the Quality Score, the better for your business, and even if your competitor's maximum bid is higher than yours, your ad will show above theirs as long as your Quality Score is better.

Factors on which this rating depends include account performance, ad relevance, clickthrough rate (CTR)

Quality assessment check

ach keyword has a score from 1 to 10, 1 is the lowest and 10 is the highest.

There are several ways to check Quality Score, and the easiest way to check Quality Score is to enable a keyword Quality Score column.

Ad Rank

As we have already mentioned in the text, the ranking of the ad is given to the ad based on its offer and its quality score.

The ad with the highest Ad Rank is in the top position, and the next ranks get the next positions.

Ad Rank Formula:

• Quality assessment * Offer

The amount an advertiser pays to run ads is the minimum amount needed to beat the ranking of a rival ad below them. This amount is known as Discounter and can be calculated by the following formula:

• = Winning Ad Rating / Quality Score + 0.01 EUR

Benefits of using Google advertising

Flexibility

One of the main benefits of using it is that it is an extremely flexible service that advertisers can customize to their needs.

The platform allows you to create an ad for a selected region, selected audience, flexibility of keywords, flexible bidding strategies, choice of ad display format (mobile format, desktop), the ability to manage several different marketing goals...

Data measurability

The method of internet marketing through Google ads is highly measurable unlike other channels. With this service you can measure the actual ROI, sales and brand awareness and thus constantly improve your business.

Speed

Google ads is becoming an increasingly popular way of marketing because it takes very little time to display results. Unlike SEO, which can take months to get profitable results. Google ads help you get instant clicks and impressions after your ads are placed.

Budget control

Another advantage of using Google ads is that you can set a budget for placing ads. You can reduce and increase this budget at any time. This means that small or local businesses can use this method flexibly and without having to invest much.

High relevance

Google ads not only show what customers are looking for, but are only for those looking for that type of service. Which makes Google advertising a great method to attract a highly relevant and targeted audience that has a better chance of conversion.

The main disadvantages of Google ads

Each click is charged

One of the main disadvantages is that each click on the ad is charged. This method of advertising can help you get more visitors, but it does not guarantee that those visitors will turn into customers. Therefore, for some advertisers, this method may prove to be very expensive.

It is difficult to compete with large companies

Larger brands can afford to invest thousands of dollars a month in an advertising campaign and can offer more. Therefore, if we remember the position calculation formula, we see that we have no chance against the giant regardless of the quality score.

Possibility to use our service

If you would like a professional advertising service on Google, please Contact Us.