Google ads (formerly known as Google adwords) is the most profitable decision for your online business. There must be many questions in your mind regarding this, what is google ads? How does it work? So let’s understand all this.

What is Google ads?

Google ad is a paid online advertising platform which is provided by Google. When a user searches for a keyword they get their results of their query on the search engine result page. And those resulted pages can include paid advertisements to target that keyword. To know more about what is Google ads are,  click here .

How Google ads work?

Google ads work under a pay per click module. This means marketers target a specific keyword on Google and then make bids on that specific keyword, competing with others as well as target the keyword. The bids you make for an advertisement are “maximum bids” or maximum you are willing to pay for an advertisement.

You can set a maximum budget for your advertisement so that you’ll never spend more than a specific amount for your ad. In this way you will be able to know also how much you should budget for your digital ad campaign. 

Marketers have three options for their bids:

  1. Cost-per-click (CPC) : How much you will pay when a user clicks on your ad.
  2. Cost-per-mille (CPM) : how much you will pay per 1000 ads impressions.
  3. Cost-per-engagement (CPE) : How much you will pay when a user performs a specific action on your ad (watch a video, sign up, etc.)

Google then takes the bid amount and pairs it with an assessment of your ad called a quality score. According to Google:

“Quality Score is an estimate of the quality of your ads, keywords, and landing pages. Higher quality ads can lead to lower prices and better ad positions.”

The score number is between 1 to 10 – with 10 being the best score. The higher your score is the higher you will rank on Google and the less you have to spend on converting. 

Your quality score combined with your bid amount creates your Ad Rank on Google means the position your ad will appear on Google.

When a user sees the ad and clicks on it, marketers have to pay a small fee for that which is known as pay-per-click. The idea behind Google ads is the more users click on marketers advertisements the more likely they will accomplish advertisements goals.  
These are some ways how does Google ads work. Know more about Google ads, Google analytics feel free to contact Atomic Technologies. They have the best team which provides you the best service in all over Delhi NCR.