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Understanding the basics of how Google Ad Words Works

There are more than 2.3 million searches performed on Google every second and most of these search results pages include Google ads. Google ads are an extremely effective way of driving qualified and relevant traffic to your website which are paid services by the businesses. This blog will give an overall idea of how Google ads work and why it is getting important to run them for online marketing strategies.


What is Google ads?

Google offer paid advertisements that appear on the top of the search result page with the use of Google ads that also appear on other websites with the Display Network and Google’s adsense program. The display network is an extensive collection of third party websites which partner with Google and agreed to serve these Google ads. They can be in the form of text, video, image, or rich media format and can be targeted as required. They are also useful in remarketing and banner ads.

Why Google ads appear

When the Google ads auction takes place, it focuses around the keyword. The advertisers choose a list of keywords that are targeted to their business offerings, that is the words which the people are most likely to use when searching for their products. Then they bid on these keywords. The bid is then combined with the quality score assigned by Google based on the quality of the proposed ad and determines which of these ads will appear on the SERP. It follows a formula such as –

Google Ads CPC Formula

How does Google adwords work?

When you have a Google adwords campaign management, they will take care of the entire online marketing strategies along with making your paid campaign strategy fruitful. Google ads have an auction system. When users type a search query, Google find all the ads that gives relevant match with the search. If more than one advertiser are bidding on a particular keyword which is relevant to the search query, then the auction gets triggered automatically. The position of your ad on SERP is determined with the ad rank and factors that contribute to this ranking include –

Bid amount – when you pick a bid for an ad, it is basically telling Google which is the maximum amount you are willing to shred for a click on your ad. Higher bidding definitely means higher ranking.

Quality score – this is an indicator of how relevant an ad group is. With higher quality score, it can produce better campaign results and automatically improve the ad position with increased CTR and reduce costs.

What controls the quality score?

  • Click through rate  – CTR estimates the probability of the ad being clicked by the users. When it is shown from a particular keyword it considers the past performance of the keywords. Based on the previous ad position, it can be average, above average or below average. With better average score, the quality score gets better.
  • Ad relevance – this helps to evaluate how closely the keywords are related to the ad copy. Here also, you need to have relevant statutes as expected CTR and with the help of these you can identify which keywords are relevant and which are not and make the changes accordingly.
  • Landing page experience – Google decides the experience based on how relevant is the landing page to the ad and how relevant it is to each user search query. It shows whether it has provided good experiences to the users after they landed on the page by clicking on the ad.

Ad extension – this is additional information which broadens your advertisement to make it useful for the audience. This includes information like additional links, phone number, location, information and more. With the experts of PPC management of Los Angeles, you can expect to get improved online marketing strategies for your brand. From specific actionable recommendations to intuitive visual reports, the experts of top IT marketing can make your brand reach higher goal. Visit to find out more.

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