Understanding Google AdWords

Many business owners rely on Google Adwords in order to advertise their businesses online and to try and get more traffic to their sites. The unfortunate thing about this, however, is that many people who are using Google Adwords are not using it correctly or at least as effectively as they should be, which means that their pages may show up lower in the search engine rankings than they would like…or that they might not show up at all. In order to make the most of Google AdWords, it is imperative that business owners understand how this process works and what they can do to improve their rankings and overall performance and success with Google AdWords.

The Auction System

The first thing that users of Google AdWords needs to understand is that Google uses what is known as an “auction system” to rank the ads that businesses submit to it. Through this system, Google determines where each submitted ad appears and how much each ad will cost per click.

While a business owner’s first thought may be that the more they bid, the more likely it is that their ad will take the “top position,” this actually isn’t the case with Google AdWords, which differs from standard auctions in that ranking is not all about who has the highest bid. Yes, the bid amount does play a role, but so do many other factors.

See, Google’s main pejorative isn’t to make money. Sure, it, like any other site or business wants to make money, but that isn’t its main priority; Google already has plenty of money as it is. Its main priority is to stay “number one” in terms of search engines by offering relevant content to people who search the site and getting relevant clicks for advertisers so they won’t waste money on ads that don’t relate to the people who click on them. In other words, they want to provide a good, valuable experience to both common, everyday users and business clients.

As such, Google considers several unique factors, explored below, when determining where an ad places:

  • Click-Through Rate: To start off with, Google analyzes how likely it is that your ad will be “clicked through,” or, in other words, clicked on, whenever it is shown. It bases its determination of your expected click-through rate on user feedback and how Google users respond to your ad when it is shown. Users essentially vote with their clicks, which helps Google AdWords to determine which ads go best with which search queries and which ads are deserving of higher rankings with certain search criteria. Thus, a business owner with highly targeted and highly relevant ads and related search terms is likely to perform better, something which Look to the Right can assist with and help any business to perfect since it’s simply a matter of predicting which search terms and phrases your most likely potential customers are going to use and then including those in your ads. CTR is calculated Clicks/Impressions.
  • Landing Page Quality: The landing page is, quite literally, the page that searchers land or end up on when they click on an ad, and, in general, they know relatively quickly whether they have clicked on the right ad or not. Google AdPages uses your landing page, in addition to your aforementioned “click through rate” to determine where and how to place your ad. That means that, if your page is full of relevant, high quality, original, and easy to access and interact with content- all of which we can help you with- then you are likely to have success, and, if not, then you may not find your ad featured.
  • Ad Relevance: Finally, Google AdWords analyzes the content of each and every ad to determine how relevant and original it is and how well it fits with relevant search queries. If your ad is relevant and accessible, across modern devices, to the majority of searchers who come across it, then you have a fair chance of reaching higher ranking status, and, if not, then you may not find your ad featured at all.

How Bids Factor In

Given all of this information, you may wonder how your initial bid factors in or if it even factors in at all. It does, to some degree.

See, the way that Google AdWords works is that it considers ALL of the above factors to determine the quality of your bid. Then, based on these factors, it ranks ads according to relevance and quality. The highest ranking ad then has to pay only the maximum amount of the bidder below it, and so on, which means that, ultimately, everybody wins, though those with the better all around ads do come out on top.

If you want your ad to be the best, not just in terms of bid but in terms of quality, which is what it takes to make it to the top of Google, then contact us at Look to the Right. We understand all of the factors considered by Google AdWords and can make your ad suitable to all of its requirements so that it can shine and earn your business the attention it deserves. Trust us to take you to the top every time, and you won’t be sorry.

We Highly Recommend Watching An Official Video To Understand AdRank:

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