Google Ads guide for beginners
Google Ads, formerly known as Google AdWords, is an online advertising platform that allows businesses to promote their products and services across Google’s vast network.
With Google Ads, you can target specific audiences using keywords, location, demographics, and interests. Your ads can appear at the top of Google search results, on YouTube, in Gmail, and across millions of websites in the Google Display Network.
With Google Ads, you can bypass organic search rankings and gain immediate visibility to potential customers searching for relevant products or services.
How Google Ads Work?
Google Ads operates on an auction-based system that determines which ads appear and in what order. It works in four simple steps:
- 1)
Advertisers bid on keywords or audiences - You select keywords (for search ads) or target audiences (for display ads) and set a bid for how much you're willing to pay per click, impression, or conversion
- 2)
Users search or browse online - When someone searches for a targeted keyword or visits a relevant site, Google evaluates the ads.
- 3)
Google ranks ads - Ads are ranked by bid amount, quality, and expected user experience. The highest-ranked ads appear first.
- 4)
Users engage with ads - If a user clicks on your ad, they're directed to your website, landing page, or product page.
How Bidding Works
The cost of a bid can vary based on several factors, with the most important being:
Competition - How many advertisers are bidding for the same keyword.
Search Volume - The number of users searching for that keyword.
Audience Reach - The estimated size and relevance of your target audience.
Time of Day & Seasonality - Demand fluctuations based on user behavior and industry trends.
Ad Quality - Google assigns a quality score based on the ad's relevance, landing page quality, and expected CTR, which can lower or raise your bid price.
Device Type - Costs can vary based on whether the ad is shown on mobile devices, tablets, or desktops.
Geographic Location - The region where the user is located can impact costs, especially in competitive markets or high-demand areas.
Bid Strategy - The type of bid strategy you choose (e.g., manual, automated, target CPA) can influence costs.
Manual vs. Automated Bidding
Google Ads offers two primary bidding strategies: manual bidding and automated bidding, each with its own advantages depending on your goals.
Manual Bidding
With manual bidding, you set the maximum amount you're willing to pay per click, impression, or engagement. This gives you full control over your budget but requires ongoing adjustments to optimize performance.
Best for: Advertisers who want precise control over costs and performance.
Requires regular monitoring and manual bid adjustments.
Automated Bidding
With automated bidding, Google adjusts your bids in real time based on the likelihood of achieving your goal. This uses artificial intelligence (AI) to optimize results without manual intervention.
Best for: Businesses looking to maximize conversions, clicks, or impressions with minimal effort.
Less control over individual bid amounts but better for long-term optimization.
Types of Automated Bidding Strategies
Google Ads provides different automated bidding strategies based on campaign objectives:
Target CPA (Cost-Per-Acquisition) - Google automatically adjusts your bids to help you get as many conversions as possible at your target cost per acquisition (CPA).
Target ROAS (Return on Ad Spend) - Google automatically adjusts bids to help you achieve a specific return on ad spend (ROAS). You set a target return, and Google optimizes bids to reach that goal.
Maximize Conversions - Google automatically adjusts your bids to help you get the most conversions within your budget.
Maximize Clicks - Google automatically adjusts your bids to help you get the most clicks within your budget. This strategy focuses on driving traffic to your website.
Target Impression Share - Google automatically sets bids to help your ad appear in a specific portion of the auctions (e.g., top of the page or absolute top of the page).
Enhanced Cost-Per-Click (eCPC) - This is a semi-automated strategy. Google adjusts your manual bids to help you get more conversions while staying within your budget. It works in the background to optimize your bids.
Maximize Conversion Value - This is a semi-automated strategy. Google adjusts your manual bids to help you get more conversions while staying within your budget. It works in the background to optimize your bids.
Types of Manual Bidding Strategies
The options for manual bidding strategies are much more limited compared to the automated ones:
Cost-Per-Click (CPC) - This is a common bidding strategy where you pay when someone clicks on your ad.
Manual Cost-Per-1000 Impressions (CPM) - You set a manual bid for how much you're willing to pay for 1,000 impressions. This is mostly used for Display Network campaigns.
What Are Conversions?
In the context of Google Ads, conversions refer to specific actions that you want users to take after clicking on your ad. These actions could be anything that aligns with your business goals, such as:
Making a purchase - A user buys a product or service on your website.
Filling out a form - A user submits their contact information, subscribes to a newsletter, or requests a quote.
Signing up for an account - A user creates an account on your website or app.
Downloading an app or content - A user downloads your app, an eBook, or other content you offer.
Phone calls - A user clicks on a call button and contacts your business via phone.
Conversions help measure how effective your ads are at driving valuable actions. You can set up conversion tracking in Google Ads to track these actions and use that data to optimize campaigns, improve ROI, and better align your ads with your business objectives.
Choosing the Right Bidding Strategy
The following list provides general guidelines, but in most cases, manual adjustments and expert management tend to work better than purely automated strategies. Each business is different and updates and changes are required to keep your ads relevant and continue to perform good.
1. If Your Goal Is to Get More Website Visitors (Traffic):
Maximize Clicks (Automated) - Google adjusts bids to get the most clicks within your budget.
Manual CPC (Manual) - You set a maximum bid per click for full control.
2. If Your Goal Is to Generate Leads or Sales (Conversions):
Target CPA (Cost Per Acquisition) (Automated) - Google optimizes bids to get conversions at a set cost.
Maximize Conversions (Automated) - Adjusts bids to generate as many conversions as possible within your budget.
3. If Your Goal Is to Get the Best ROI (Revenue Growth):
Target ROAS (Return on Ad Spend) (Automated) - Google sets bids to maximize revenue based on your desired return on ad spend.
4. If Your Goal Is to Increase Brand Awareness:
Target Impression Share (Automated) - Adjusts bids to help your ad appear in a certain percentage of searches.
Cost-Per-Mille (CPM) (Automated) - You pay per 1,000 ad impressions, mainly for Display and Video Ads.
For expert tips on creating high-converting ads, check out our blog:
How to Write Ads That Sell