How well does Google AdWords really work?

 

Google AdWords generated so much revenue for Google that it is arguably the key to Google’s success today. Google makes more than $100 million per day through AdWords.

Getting to Know Google AdWords

Google AdWords displays advertisements with keywords relevant to the search queries that a user feeds into the engine. The advertiser pays Google for every click on the advertisement link.

Many neglect the ads in our search pages. But Google’s AdWords revenue proves that the ads do get clicks and a lot of them. But does AdWords really work for the advertiser? If so, how do they get converted into sales?

 

How does AdWords work?

AdWords is structured as a live auction of keywords, as a seller, you can bid on a set of keywords or search string. Your aim is that every time these keywords are searched on Google, an advertisement for your website must appear along with the search results. To decide which advertiser gets the space on the results page, Google calculates an ad-rank.

Ad Rank = Maximum Cost per Click bid x Quality Score

Google assigns a quality score between 0 and 10 to every set of keywords that you bid on based on factors like click-through rate, ad copy, geographical considerations, landing page quality, etc. The higher your ad-rank, the better chances of your ad being displayed on the search results.

How to use AdWords?

AdWords success is purely in a higher bid and a better keyword to bid on. Meaning it’s easier to get a high ad-rank and be displayed top-of-the-list on AdWords. Bidding an exorbitant amount on a bad keyword is pointless. The aim is to identify great keywords, achieve a high-quality score and then bid on it.

 

What happens after the click?

Until now, you and your competitors are fighting for advertising space. After a long struggle, you win the space. But if you display an uninteresting advertisement that fails to convert into sales, all your time and money is wasted. So, make sure that the landing page to your advertisement has potential to convert leads to sales and bid carefully.

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