What You Need to Know About How Google Adwords Works

digital marketing services

What You Need to Know About How Google Adwords Works

Are you new to using Google Adwords? Discover everything you need to know about how Google Adwords works so you can get the most out of it.

So, you’re looking to draw some attention to your website. With almost 2 billion websites live at the moment you’re reading this, that isn’t as easy as creating a great-looking site or posting to social media.

While those are effective marketing strategies, they don’t deliver fast results.

Instead, you may want to consider using Google AdWords — now known as Google Ads — to deliver new leads.

But if you’re new to the platform, the whole process can be quite confusing.

Not to worry! From uses to bidding and best practices, we’re walking you through how Google AdWords works.

What to Know About AdWords

Before you can harness the power of this awesome platform, you’ll first need to understand what makes it such a great choice for your campaign.

The biggest advantage an AdWords campaign has over an organic campaign is speed. It can take months for your organic SEO to have an effect! Comparatively, AdWords works almost in an almost instant fashion.

Furthermore, using AdWords guarantees your business a spot on Google’s homepage. And it doesn’t stop there, either. You can use the Google Display Network to advertise on sites your customers are already on.

Finally, AdWords is such a great platform because of how affordable it is. A business of any size with any budget can take advantage of AdWords — no matter how small your budget may be.

How AdWords Bidding Works

Ad placement and keyword strength are determined by a bidding process. While this may sound intimidating, it’s actually quite simple.

First, you’ll set a budget for the month. Note that you can adjust your budget at any time throughout your campaign.

Next, enter a keyword you’re interested in. Note that this can be a partial keyword or even a complete phrase.

Then, Google will present a list of options of both exact and similar options. Each keyword will have a price based on how popular it is.

Let’s say you’re advertising an Italian restaurant. ‘Italian restaurants’ could be of a lesser quality than ‘Italian restaurants Sunshine Coast’ and thus, would cost more.

Positioning is also influenced by ranking, which Google determines by multiplying your maximum bid and the quality score.

If that sounds complicated, don’t feel too bad. It can be tough to understand without trying it yourself. You’re encouraged to adjust around your budget and explore the bidding process to get a better feel for how the ranking process works.

Best Practices for Your AdWords Campaign

There are several things you can do to ensure your AdWords campaign goes well.

One of the best things about AdWords is that you only pay for results, so targeting specific engagement actions can influence your cost. You can select pay-per-acquisition, pay-per-phone call, pay-per-conversion, and more.

Once your campaign has started, be sure to check your analytics early and often.

Since AdWords allows you to adjust your campaign on the fly, increasing or decreasing your spending can influence the outcome.

How Google AdWords Works: Final Thoughts

Whether you’re looking to get digital or foot traffic, AdWords is a great platform for businesses of any size. Knowing how Google AdWords works can help you spend less while getting more results.

AdWords encourages experimentation, so don’t be afraid to test new strategies out.

Are you looking to boost your business’ digital presence? We can help! Get in touch today and let us know what you’re looking for.

Picture of Jane Cluff

Jane Cluff

Senior digital strategist

Google Rating
Based on 40 reviews
Need a new website?

You may be eligible for 2023 Instant Asset Write- Off Scheme.