Google Ads is the advertising Google online advertising platform that enables companies to present their advertisements to millions of potential customers. As a central component of the Search engine marketing (SEA) Google Ads allows the placement of paid ads in the Search results from Google as well as on other partner websites in the Google Display Network and on YouTube. The aim is to increase the visibility of products, services or brands, drive qualified traffic to websites and achieve defined business objectives.
Functionality and bidding strategies
At the heart of Google Ads is an auction model. When a user enters a search query into Google, an auction takes place in milliseconds to decide which ads appear and in what order. Advertisers bid on relevant Keywords, i.e. search terms that potential customers could use. The ad rank, which determines the position of the ad, is not determined solely by the highest bid. It is made up of the advertiser's bid, the ad quality (Quality factor), the relevance of the ad in relation to the search query and the expected impact of ad extensions and other ad formats.
Advertisers have the choice between different bidding strategies aimed at different targets:
- Cost per click (CPC): Billing is per click on the ad.
- Cost per impression (CPM): Billing is based on one thousand impressions (views of the ad).
- Cost per acquisition (CPA): Optimization to Conversions, whereby a target CPA is defined.
- Maximization of conversions: Automatic bidding to achieve as many conversions as possible within the budget.
A high quality factor, based on the relevance of keywords, ads and Landing page, is crucial to achieve better ad positions at lower costs.
Variety of ad formats and reach
Google Ads offers a wide range of campaign types and ad formats to support different marketing objectives and target different user segments:
- Search network campaigns: Text ads that appear in Google search results when users search for specific keywords.
- Display network campaigns: Image, text and rich media ads that are placed on millions of websites, apps and YouTube channels in the Google Display Network. These are ideal for branding and Remarketing.
- Shopping campaigns: Product ads with image, price and store name that appear directly in the search results or on the Google Shopping tab. Ideal for E-commerce retailer.
- Video campaigns: Video ads that are played before, during or after YouTube videos and on partner sites in the display network.
- App campaigns: Ads to promote app installs and in-app promotions across the entire Google network.
Through precise targeting - based on geographic characteristics, demographics, interests and user behavior - advertisers can ensure that their message reaches the most relevant audience. Campaign performance can be continuously monitored and optimized via detailed reports to ensure the Return on investment (ROI) to maximize.
