Google Ads, How It Works: A Comprehensive Guide for Advertisers

Google Ads is a very efficient and effective advertisement tool according to me. It is the best one in fact for PPC and PPI. What are these if you may ask? Well, PPC stands for Pay Per Click and PPI stands for Pay Per Impressions. So, what is the exact use of these?

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See, let's be practical. With reactive marketing no one is going to know about your online shop or your website. They won’t know about your product or the course that you’re trying to offer.

The Importance of Google Ads

So, Google Ads becomes your middle man who with its sophisticated algorithm shows the ad to your target customers. When they are watching YouTube video of their favourite influencer, reading a blog of a topic that interests you most or when you visit a website, the ad is flashed to the target audience and they may just see it or even better which is the main purpose i.e to click and see what you are advertising. And this is mainly proactive marketing from your end. Where the target audience who are your leads may become a potential customer after going through your ad.

So, the YouTube Channel of the influencers, the blog of the bloggers, the website related to your genre become your platform or rather say billboard for showcasing your ad to the target audience. Google knows where to put the ads based on your input and they place it exactly where your target audience visit the most.

Let’s Understand How It Works: Creating Your Ad Campaign: -

1: Specify the details of your ad

Ad Content: Text, images, or videos to be displayed.
Target Keywords: Words or phrases related to your product or service.
Target Audience: Demographics, interests, geographic locations, etc.
Budget: How much you are willing to spend on the campaign.

2: Algorithm Matching

Google's Algorithms will Match your Ad to Relevant Content. For example, you are a travel agency, so Google will now determine the following 3 things to show your ad to people who are interested in traveling.

Keyword Analysis: Identifying keywords and phrases in a blog post related to travel.
Content Relevance: Determining the relevance of your ad to the content.
User Data: Using data such as user behaviour and demographics to match ads to your audience.

3: Ad Display Process:

Here’s how the ads are shown to your target audience. Google runs an auction to determine which ad to show.

Advertiser Bids: Advertisers place bids in real-time based on how much they are willing to pay for a click or impression. The best part is that the bidding is fully automated, So, that you don’t have to sit in front of your desktop.
Bid Request Sent: In the real time bidding the ad exchange sends a bid request to multiple advertisers, including details about the user and the webpage.
Automated Bidding: The bidding is done by automated system in milliseconds.
The evaluation: The Ad Sense evaluates all bids and selects the highest bid based on the bid amount and ad quality.
The Result: The ad with the highest Ad Rank to the webpage and displayed to the user instantly.

Platforms for Ad Display

Apart from web pages, Google Ads can display your ads in

Mobile Apps
YouTube Videos
Search Results
Gmail
Google Play
Third-Party Partner Sites

The Advantages of Using Google Ads

Knowing the fact that most of the users spend their time online these days, Google Ads is a very good and effective advertising partner. According to recent data, over 80% of internet users globally interact with Google products daily. A lot of people prefer using Google because of its products like Chrome, Google Play, Gmail, or YouTube. This makes it a very reliable partner, where your advertisement using this will help you grow your business.

Here's an example comparing the experiences of two individuals, one using Google Ads and the other using a random advertising partner:

Aspect	John (Using Google Ads)	Jane (Using Random Advertising Partner)
Ad Placement	Ads are strategically placed on relevant websites, YouTube videos, and apps.	Ads are placed randomly, often on low-traffic or irrelevant sites.
Targeting	Advanced targeting options including demographics, interests, and location.	Basic targeting with limited options.
Ad Performance	High click-through rates due to precise targeting and placement.	Low click-through rates due to poor targeting and irrelevant ads.
Cost Efficiency	Automated bidding ensures cost-effective ad spend.	Higher costs with less return on investment due to ineffective ads.
Analytics and Reporting	Detailed analytics and real-time reporting through Google Analytics.	Limited analytics with delayed and less detailed reporting.
User Engagement	High user engagement and interaction with ads.	Low user engagement, ads often ignored or seen as spam.
Revenue Generation	Higher revenue due to better ad placement and targeting.	Lower revenue due to ineffective ad campaigns and poor placement.
Ease of Use	User-friendly interface with comprehensive support and resources.	Complicated interface with minimal support and resources.
Ad Quality	High-quality ads tailored to user interests and behaviours.	Generic ads that may not align with user interests.
Trust and Reliability	High trust and reliability with Google's established reputation.	Lower trust and reliability due to unknown or lesser-known platform.

Cost Considerations: The Burnout Risk

The above table is giving you an idea how your advertisements can become inefficient if not using the reliable tool. PPC and PPI ads can burn a hole in your pocket if not managed properly. The average small business spends between $9,000 and $10,000 per month on PPC campaigns alone (WordStream). In Indian Rupees, this amounts to approximately ₹7,50,000 to ₹8,30,000 per month. Inefficient management can lead to significant financial losses. To ensure your advertising budget is used effectively, you should go to a renowned partner. And Google Ads it is!