In today’s lesson we’re talking about AdWords. What is Google AdWords and how does Google AdWords work?
Google Search for Plumber
In this example, we’re going to type in the search term “plumber”. Here are the results that show up.
In this top portion, we have what are called Google service listings.
In the next section here, we have what are called Google AdWords (or Google Ads). These are identified by the small green boxes that say ad.
Google Adwords Listings
And as you can see, these are also all listings for local plumbers.
This ad right now is free for this business to be here until you click one of these ads. Now, once you click one of these ads, you are taken to that business’ website where they will talk more about their services and their contact information.
What Does Google Adwords Cost?
What do these ads cost to have here? It varies greatly depending on the service and the competition in the area. Clicking on one of these ads might cost this business $2, $3, $4, $5, or even $10 for a click.
However, if I’m on Google and I’m searching for a plumber that means I have intent. That means I’m looking for a plumber at that time and I have questions about hiring a plumber.
These businesses are just paying to have their ad in front of me right now.
How Are Adwords Picked?
How are these Google Ads picked to be in these spots? It’s called the auction system and just because you pay the most does not mean that you will have the top spot. In fact, Google will take into account what search term the person typed in. They will take into account what your ad says and how it says it. And they will also take into account the page that people are sent to.
If I type in the search term “plumber” and I click on an ad, and I’m taken to a website page about carpentry, Google is going to know that and they’re gonna take that into account and charge that business more for that click.
And to have an ad in one of these top 3 positions, if it was taking me to a carpentry page, would cost this company a lot more.
Google will also take into account the past performance of this particular ad. Meaning if this ad has performed very, very well, and people are finding what they’re looking for and staying on that page or filling out forms, Google will consider that a success and charge them less per click.
Does Google Really Want You To Find What You’re Looking For?
Because regardless of what you think/believe, Google WANTS you to find what you’re looking for. They want you to get a result that you’re interested in.
The better results you receive, the more likely you’ll go back to Google when you need to find something.
Also, if you find what you’re looking for by clicking on an ad, that’s great for the business as well and Google LOVES that.
The better their ads perform for businesses, the more Google makes because businesses will continue to use Google Adwords. Back to the ads…
Now, just because a person has the top ad, does not mean they’re necessarily paying more than the person in the second or third position.
Top 3 Ad Positions
In fact, when done correctly, a lot of the time, businesses in the top couple of positions are probably paying less than some of the businesses below them.
If you scroll down to the bottom of the page, you will also see up to three more Adwords listings at the bottom.
And that’s our video on “What is Google AdWords?”
Hope that helps. Thanks so much.
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-Mike