How Google Adwords Works

How Google Adwords Works: You’ve probably heard the word AdWords. It is related to Google. Actually what AdWords is really about, are you be able to answer the question? If your answer is no, reading this article will help you to know about Adwords.

If you’ve search for anything via Google’s website, then you have already know Adwords. These are the text advertisements advertisers bid to appear on the results page of your Google search.

For ex, you’re looking up information on affiliate marketing. You would very likely then type in the words “affiliate” and “marketing” into the Google search box.

Those words are called keywords and Google uses those keywords to look for information on the Web.

Google find the results publishes to you. This results a list of webpages Google suggests you visit to know more about your keywords (in this case affiliate marketing).

On the google results page there are text ads. One is about an affiliate marketing courses to join, while another is affiliate marketing services.

Now you may think that the ads that appear on the results page have something to do with your topic of interest which you searched for particular keyword.

when you searched for particular keywords, google planned on purpose to show text ads – and this is how AdWords works. By typing your related keywords into the search box, you can find what kind of advertisers will appear on your results page.

To get a idea how this works, assume yourself as an owner of a business (in this case, a camera sales and repair shop) with a website. As a business owner, you may thing to grow your business by let people know about your business and that means you need to advertise in the form of text ads.

Before AdWords, for advertising you need spend a huge amount of money on print, radio, TV ads. For smaller businesses making flyers and posters to be distributed in your area to advertise. But it takes time and money.

With print, radio, TV, Flyers, banners there is no way of knowing that the people who’ll be seeing your ad are actually interested in seeing it, much less on your actual product or service.

With AdWords, not only are you showing your ad to people who are interested in your product, you also spend a significantly less amount of time and money.

How Google Adwords Works?

This is because of 2 reasons:

  1. Keywords that matters.
    In placing your ad with Google AdWords, you no need to spend lot of money. All you need is to know how your customer thinks.

As in the previous example, when a person types in “camera” on Google’s search box, it means he is looking for information about his interested topic to know more.

Google allows you to show the user your advertisement for your camera. The user is already interested about your business and therefore chances are good that he will read your text ad.

Knowing what keywords people are using to look up information allows to show your ad to a more specific target.

  1. Pay only when they click.
    The great thing about Google AdWords is cost of advertising is brought down to very manageable levels. Compare to conventional advertisements where you have to pay FIRST before your ad is shown to particualr user, Google charges you only when a user clicks on your ad to visit your website.

How much is charged for every click? there are particular limits depends on keyword and bidding.

Google has a bidding system to “sell” keywords where advertisers, just like you, will say how much a cost-per-click (CPC) on an ad will be.

The general principle is: the more popular the keyword is, the more expensive it can become.

For example, the CPC on a results page using the (more popular) keywords “affiliate marketing” may cost 50 cents to 1$ depends on keyword while the CPC on an ad appearing on the results page for the (not so popular) keywords “affiliate marketing consultant” may just be 20 cents.

However, don’t be misled with low cost.

Agreeing to pay 50 cents per click may not seem much, but if 300 people click on your ad every day, you’re looking at $4000 per month. Even for a medium-level business, that is still something to consider.

This is where smarter advertisers will spend less in advertising and they increase their revenue by converting more normal visitors to actual customers.

By using more specific keywords you can show your ad to a person who are more interests to what your business is offering.

Therefore, when he clicks on your text ad to visit your website, it is no longer to convince him he needs your product or service.

With this setup, it is easy to run nationwide ad campaign for your business at a dollar a day AND see encouraging results.

In the end however, you can write ad or run campaign depend on knowing your customer and how they think. Once you’ve got this,

AdWords then becomes a much more powerful and profitable tool that can increase your online business’ potential to make profit.

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