How Do Google Ads Work? (and How Do I Know if I'm Running them Correctly?)

Author

Chris Young

How Do Google Ads Work? (and How Do I Know if I'm Running them Correctly?)

If you’ve never executed a Google Ads campaign before, getting your feet wet can seem a little daunting.

There are a number of things riding on the success of a campaign–revenue, lost ad spend, poor brand image–that can affect the company and future viability of one of the most profitable marketing strategies. In short, getting things done right the first time is extremely important, and there are a number of different mistakes that can be made unwittingly. To avoid the worst pitfalls, marketers must understand how Google Ads works as well as best practices to maximize Google Ads ROI. 

Understanding the Basics of Google Ads

Google Ads' significance in PPC advertising stems from its vast reach, precision targeting, and flexibility in budgeting and ad formats. It's instrumental for driving website traffic, increasing sales, or building brand awareness, offering a scalable solution for businesses of any size. Its capability to connect advertisers with potential customers precisely when they're searching for related products or services makes it an indispensable tool for digital marketers. Understanding the basics of Google Ads is crucial for leveraging PPC advertising effectively, with its comprehensive targeting options, versatile ad formats, and detailed performance analytics.

How Google Ads Work

Google Ads operates through a sophisticated yet accessible system that hinges on three core mechanics: bidding, ad ranks, and quality scores. At its heart, Google Ads is an auction-based platform. Advertisers place bids on keywords they believe their target audience will use when searching for products or services. This bidding can be based on a CPC model, where you pay for each click on your ad, or a CPM model, where you pay per thousand impressions.

Ad rank is a crucial factor in determining the placement of an ad and is determined in part by considering the relevance and quality of the ad. This is where the Quality Score comes into play. The Quality Score is a metric that evaluates the relevance of your keywords, the quality of your ad copy, and the landing page experience for users. A higher Quality Score can lead to better ad positions at lower costs, as Google rewards ads that provide a good user experience.

Types of Google Ads

Google Ads offers a variety of ad types, each serving distinct purposes and use-cases, making it a versatile tool for different marketing strategies.

Search Ads

Search Ads are perhaps the most common type of Google Ads. These are text-based ads that appear on Google's search results pages. When a user searches for a keyword that matches an advertiser's keyword list, these ads may appear above or below the organic search results. Search ads are highly effective for capturing the attention of users at the moment they are searching for specific products or services, making them ideal for direct response campaigns aimed at driving immediate sales or leads.

Display Ads

Display Ads are visual-based ads that appear on websites within the Google Display Network. This network includes millions of websites, news pages, blogs, and Google sites like Gmail and YouTube. Display ads can include text, images, and video, and are excellent for building brand awareness and retargeting. They allow advertisers to reach a broader audience across different online destinations and engage users with appealing visual content.

Video Ads

Video Ads are shown on YouTube and across the Google Display Network. These ads can range from short bumper ads that play before a video to longer, skippable ads. Video ads are a powerful tool for storytelling and brand promotion, as they can capture the viewer's attention with engaging audio-visual content. They're particularly effective for campaigns aiming to increase brand awareness, product consideration, or to tell a brand's story.

Each of these ad types utilizes Google's vast targeting capabilities, including demographic, geographic, and behavioral targeting, allowing advertisers to reach their ideal audience effectively. The choice of ad type largely depends on the specific goals of the campaign, whether it's driving immediate sales, generating leads, increasing brand awareness, or engaging with customers in a more interactive and visual manner.

Setting Up Your Google Ads Campaign

Setting up a Google Ads campaign can be a straightforward process, especially if you follow some practical steps designed for beginners. Here's how you can get started:

1. Define Clear Campaign Goals

Before diving into the technical aspects, it's crucial to have a clear understanding of what you want to achieve with your campaign. Goals could range from increasing website traffic, generating sales, collecting leads, to building brand awareness. Having well-defined objectives will guide your campaign structure, keyword selection, and targeting options.

2. Create Your Google Ads Account

If you don't already have one, create a Google Ads account. This is a simple process that involves following the prompts on the Google Ads website.

3. Choose the Campaign Type

Based on your goals, choose the type of campaign you want to run – Search, Display, Video, Shopping, or App. Each type serves different purposes, so select the one that aligns best with your objectives.

4. Structure Your Campaign

A well-structured campaign is easier to manage and optimize. Consider organizing your campaign into relevant ad groups based on themes or products. For example, if you're a retailer selling sports goods, you might have separate ad groups for "running shoes", "sports apparel", and "gym equipment".

5. Conduct Keyword Research

For Search campaigns, keywords are vital. Use tools like Google Keyword Planner to find keywords relevant to your products or services. Focus on keywords that your target audience is likely to use when searching for what you offer. Remember to consider the search volume and competition level of each keyword.

6. Set Up Targeting and Bidding

Decide who you want to see your ads (targeting) and how much you're willing to pay (bidding). You can target based on location, demographics, interests, and more. For bidding, you can opt for manual bidding, where you set your own bids, or automated bidding, where Google sets bids for you to maximize results based on your budget.

7. Create Compelling Ad Copy and Visuals

For your ads to be effective, they need to be engaging. Write clear, compelling ad copy, and for Display and Video campaigns, use high-quality visuals. Your ads should clearly communicate the value proposition and include a strong call-to-action.

8. Landing Page Relevance

Ensure your ads lead to landing pages that are relevant to the ad content. The landing page should provide a seamless user experience with clear, concise information, and an easy path to conversion, whether it’s a purchase, sign-up, or download.

9. Set a Budget

Define your daily or campaign budget. Start with a budget you're comfortable with, and remember, you can always adjust it later based on the campaign's performance.

10. Launch and Monitor Your Campaign

Once everything is set up, launch your campaign. Regularly monitor its performance and make adjustments as needed. Pay close attention to metrics like click-through rates, conversion rates, and cost per conversion to understand how well your campaign is performing against your goals.

The key is to start with clear goals, structure your campaign for easy management, carefully select keywords and targeting options, create compelling ads, and continuously monitor and tweak the campaign for optimal results.

Optimizing Your Google Ads Campaign

Optimizing your Google Ads campaign is essential for maximizing ROI. The process starts with refining your keyword strategy, where you continually integrate relevant keywords and weed out underperformers. Implementing negative keywords further sharpens your targeting and cuts down on extraneous spending. The power of your campaign also lies in the resonance of your ad copy and creatives. Experimentation is key to finding the right mix of headlines, descriptions, and high-quality visuals for display and video ads. Clear and compelling value propositions, alongside effective CTAs, are also vital. Moreover, ad extensions such as call, location, and sitelink extensions, amplify your ad's visibility and effectiveness, especially important with the increasing emphasis on mobile responsiveness and loading speed.

Beyond the creative aspects, tailoring your ads to specific audience segments and employing strategies like remarketing are crucial for personalization and re-engaging past visitors. A vigilant approach to bid management, based on the performance of your keywords, ensures optimal visibility and budget utilization. This is complemented by a thorough analysis of key metrics like CTR and conversion rate, guiding informed adjustments and improvements. Staying abreast of the latest Google Ads features and best practices is also imperative, ensuring your campaign not only achieves but also sustains success.

Measuring and Analyzing Campaign Performance

Measuring and analyzing the performance of your Google Ads campaign is crucial for ensuring its effectiveness and alignment with your marketing goals. Key performance metrics like CTR and Conversion Rate provide insights into how well your ads resonate with your audience and their effectiveness in driving conversions. CTR assesses the frequency of ad clicks in relation to impressions, serving as a gauge for ad relevance and appeal. Conversion Rate, on the other hand, measures the proportion of clicks that lead to a desired action, such as a purchase or sign-up. These metrics help create a full picture of the impact of your ads on your target audience.

In addition to these metrics, CPA is essential, especially for campaigns focused on sales or leads, as it reveals how much each conversion event costs. This metric is key to understanding the return on your ad spend and ensuring cost-effectiveness. Integrating Google Analytics 4 with your Google Ads account offers more comprehensive insights into user behavior post-click, like site engagement and conversion paths. This integration is also instrumental in tracking the entire customer journey, offering a holistic view of your campaign's effectiveness. Regularly analyzing these metrics and using the insights to optimize your campaign—in terms of ad copy, targeting, and bidding strategies—is good practice for making data-driven decisions that enhance campaign effectiveness and ROI.

Troubleshooting Common Google Ads Issues

Troubleshooting common issues in Google Ads is crucial for advertisers aiming to enhance their campaign performance. One frequent issue is low ad performance, often indicated by poor CTRs or low conversion rates. This usually occurs when ads fail to resonate with the target audience. Addressing this involves revising ad copy and creatives to ensure they are both compelling and relevant, and experimenting with different messages, visuals, and calls-to-action. Additionally, a reevaluation of your keyword strategy is necessary to ensure that your ads target the most effective and appropriate keywords.

Another common challenge is aligning your ads with your landing pages. A mismatch here can lead to a high bounce rate when users don't find what they expect after clicking on an ad. It's important that your landing pages are user-friendly and closely aligned with your ad's message. Navigating to a page with a promise in the ad only to be delivered something different is frustrating for users and may actually lead to alienating someone who would have otherwise been a conversion.

Finally, effective budget management is key so be sure to set and adjust your budget to reflect your marketing goals and expected returns. If you're not seeing desired results despite hitting your daily budget, consider reallocating funds to more effective areas or expanding your keyword list to capture potential traffic and conversions. Bid adjustments based on keyword or demographic performance can significantly improve visibility or save budget on underperforming areas. Utilizing Google Ads' bid adjustment features for location, device, and time can optimize bids effectively. 

Final Thoughts

While diving into a Google Ads campaign can be daunting for newcomers, understanding its mechanics and best practices is key to unlocking one of the most profitable marketing strategies. However, each campaign is unique, and what works for one may not work for another. This is where the expertise of a specialized agency can be invaluable. For businesses looking to fast-track their success and avoid common pitfalls, seeking professional guidance with a digital marketing agency like Be More Digital can be a wise option. 

By partnering with experts who have a deep understanding of Google Ads, businesses can not only optimize their current campaigns but also gain insights that will inform future strategies. Whether it's through crafting compelling ad copy, refining targeting strategies, or analyzing performance data, get in touch with the experts at Be More Digital today for a free proposal. 

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