Google Adwords And How They Work

Google Adwords seems like a new concept but it was released 18 years ago. This is an application used for online advertising and was developed by in the year 2000. Initially, it did not gain recognization but as digital marketing started getting more and more popular Google Adwords started gaining more and more importance in the world of digital marketing. 

Adwords | Image Resource : freepik.com

In Google Adwords, there is a sort of auction for the keywords where the advertisers come and bit for the keywords that they use in their advertisements and create groupings for the advertisements that are paired with the auctioned keywords. Once you enter an auction of the Google Adwords you are tested on two things, the quality score and the maximum bid that you have obtained. The rank of your advertisement will be totally dependant on that. In other words, maximum bid and your quality score will determine where your advertisement stand and hence you will get to know your positions. 

Google Adwords has gotten more and more popular recently looking at how many times the auction is being held. In a span of just one month, the auction is held for a million times which helps the advertisers get the exact desired results as they want. The users find advertisements that are similar to what they are looking for and hence it gets very easy for the user to get an advertisement on Google Adwords making it even more popular. There is an auction held, hence, advertisers can get the potential customers at the lowest possible rates helping both the customer and the advertiser. Google Adwords takes in billions of dollars of revenue from this application that google created. Out of the total revenue that Google earns, 97% of the revenue is contributed by Google Adwords making the application very important for Google. The annual turnover for Google by Google Adwords is 32.3 billion dollars. The Google Adword application helps you to turn site visitors into conversions, helps you to get online advertisements on Facebook, helps you with the Google Adwords campaign, helps you to manage advertisements on Google Adwords, Facebook and binge, helps you build, scale and establish your agency and also helps you manage all of your advertisements on Google Adwords. In Google Adwords, Relevance of an advertisement is determined by placement rather than query and the auction is set at the advertisement group level, not at the keyword level. 


Using the Google Adwords application is very easy and user-friendly, all you have to do is download the application, fill in the necessary details, give your google email address and an alternate email address and then enter your password. Then you are all set up to use all the benefits that Google Adwords provide you with. Based on the network, a Google Adwords costs per click average is one dollar to two dollars. A lot of Google AdWords marketing services provider can easily be found on the web, who are professionals experts in generating the required leads for the business.

Pay per click | Image Resource : dreamhost.com

The average CPC on the display network is below one dollar. The most expensive keywords on the Google Adwords or on the binge advertisement cost fifty dollars or more per click. In this way, Google Adwords get their revenue. In Google Adwords, only the keyword “google” is free. Otherwise, each time someone clicks on your advertisement, you have to pay for that, it is based on the pay per click or the PPC concept. When you open your account, it is necessary to enter the billing information, if you fail to do so your account will not be considered as active even if you have redeemed a coupon. So Google Adwords is not free for use, Google makes 97% of its revenue from Google Adwords, if they make this free then all of their profits will be lost in no time. But inside Google Adwords there are things that are free, for example, you can search a keyword for free, create a campaign for free, make an account for free, but when it comes to promoting your advertisement you have to pay for it, but you will also receive payment for the number of times your advertisement is clicked on making the pay per click or PPC work. 

Google Adwords is a safe option for the upcoming businesses and those who want to sell a product online. When you create an advertisement on Google Adwords you pay for it only if a person clicks on the link. If no one clicks on your advertisement you do not have to pay for that. For Google Adwords to be worth it, you obviously have to earn more money from the advertisement than you pay for it, hence make sure that whoever clicks on your advertisement has all the services on his doorstep as mentioned in the advertisement. If you go to see, in business not every advertisement is worth it. If you are spending 1 dollar on per click, make sure that you earn at least 1.1 dollars for that click. You pay per click must be lesser than your revenue per click and only that matters. If there is profit in your business then every penny that you spend on your advertisement is fetching you consumers and the consumers are fetching you money that in turn will make you your profit. It does not matter if you buy an extremely expensive keyword like car insurance for fifty dollars, if you are earning 50.1 dollars of every click you get, it is worth it. Or if you buy an extremely cheap keyword like ice cream for 0.56 dollars, if you are earning 0.57 dollars for it, it is worth it. Hence, in the end, I would say that yes, Google Adwords is worth it if you are sure to get profit out of it. Sometimes people get upset that some keywords are very expensive than the others, this is because that is the cost for that particular keyword in the market right now. This is the same as asking why does an iPhone cost 60,000 rupees and why does a Samsung phone cost  30,000 rupees. It all has to do with the brand name in the market. This is the reason there are variations in the cost of the keywords.

Comments

  1. johan3226 September 2019 at 03:29

    In addition to improving your business credibility, the internet marketing methods are really valuable to improve your sales chart. Some of the internet marketing techniques work super efficiently in least amount of time. For my cooking site, I am getting absolute results with the help of Adwords Management and facebook ads management services.

    ReplyDelete

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