What is Google Ads & How Does it Work?

January 6, 2020

In this short and to-the-point episode, Andy Patel gives us the basic ins and outs of Google Ads. While Apple makes money from software and electronics, and Amazon is a marketplace, Google earns primarily and overwhelmingly through the ads paid for by companies vying to be at the top of the most well-known search engine in the world.

“Google Ads,” according to Andy, “is an auction and bidding war coupled with ethical marketing.”

Does Google Ads Work?
“Google Ads does work and can work; but it has to be done correctly,” says Andy. Internet marketing has quickly become saturated by virtue of being an intangible service. Unfortunately, a lot of this includes spam. Google Ads is an invaluable tool for any company who understands how to use it in the context of today’s marketplace.

Google Ads In Action
When typing in a common search phrase such as “pest control near me”, the topmost results that appear is the “Google Guarantee”. The Google Guarantee is a service called “Google Service Ads”—a Pay Per Lead program similar to HomeAdvisor, save for the fact that it is a unique lead as opposed to being a shared lead.

Below the Google Guarantee are the paid ads themselves, which are indicated by the boxed word “Ad” preceding each link. Under the paid ads is a map featuring local listings, and, finally, below this are organic or SEO listings.

How to Achieve a High Ad Rank
Many business owners hesitate to use Google Ads for fear of not being able to compete with larger companies in their area. But Andy says it is not about how deep your pockets are, but how creative your copy is.

Your ad positioning is based off of an Ad Rank, which is a score determined by Google. Your Ad Rank is calculated by your Max Bid multiplied by your Quality Score. Basically, if your competitor is number one and you are number two, their Ad Rank is higher than yours.

Paid-for keywords determine Ad Rank. In other words, how much you are willing to pay for, say, “Bed bug removal” (Max Bid) multiplied by how related your combined keywords, ads, and landing page (Quality Score) are, determines your spot on the search results.

For example, if your keyphrase is “bed bug removal”, your ad says, “Pest control services. Give us a call today,” but your homepage barely has anything about bed bug removal, you will have a low-quality score. You will have a higher Quality Score when there is consistency between these three factors: keywords, ads, and landing page.

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