Google Ads is the online advertising platform developed by Google that enables businesses to present their adverts to millions of potential customers. As a key component of search engine advertising (SEA), Google Ads allows you to place paid adverts in Google’s search results, as well as on other partner websites within 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.
How it works 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 within milliseconds to determine which adverts appear and in what order. Advertisers bid on relevant keywords – that is, search terms that potential customers might use. Ad rank, which determines the position of the advert, is not determined solely by the highest bid. It is made up of the advertiser’s bid, the ad quality (quality score), the relevance of the ad to the search query, and the expected impact of ad extensions and other ad formats.
Advertisers can choose from a range of bidding strategies designed to meet different objectives:
- Cost per click (CPC): You are charged for each click on the advert.
- Cost per mille (CPM): Billing is based on every thousand impressions (views of the advert).
- Cost per acquisition (CPA): Optimisation for conversions, whereby a target CPA is set.
- Maximising conversions: Automatic bidding to achieve as many conversions as possible within your budget.
A high Quality Score, based on the relevance of keywords, adverts and landing pages, is crucial for achieving better ad positions at a lower cost.
A wide 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 various user segments:
- Search Network campaigns: Text adverts that appear in Google search results when users search for specific keywords.
- Display Network campaigns: Image, text and rich media adverts that appear on millions of websites, apps and YouTube channels across the Google Display Network. These are ideal for branding and remarketing.
- Shopping campaigns: Product adverts featuring an image, price and shop name, which appear directly in search results or on the Google Shopping tab. Ideal for e-commerce retailers.
- Video campaigns: Video adverts that are shown before, during or after YouTube videos, as well as on partner sites within the Display Network.
- App campaigns: Adverts designed to drive app installs and in-app actions across the entire Google network.
Through precise targeting – based on geographical characteristics, demographic data, interests and user behaviour – advertisers can ensure that their message reaches the most relevant target audience. Campaign performance can be continuously monitored and optimised using detailed reports to maximise return on investment (ROI).
