What is Google AdWords?
What is AdWords? Google AdWords is Google's advertising system in which advertisers bid on certain keywords in order for their clickable ads to appear in Google's search results. Since advertisers have to pay for these clicks, this is how Google makes money from search. This infographic will help you understand how AdWords works, detailing the AdWords auction, bidding process and explaining important factors like Quality Score and cost-per-click. If you're asking "How does AdWords Work?" this infographic is for you!
Does AdWords work?
Does Google AdWords work? Depending on the competitiveness of the keywords you're bidding for and the relevancy of that keyword to real conversions for your company, AdWords may or may not work for your business. For the most part, we've found that Google AdWords is extremely effective for many kinds of businesses, as long as they don't waste their money on the wrong keywords, or write weak, low CTR ads.
How does AdWords bidding work?
The actual position of your ad is determined by your ad rank (Maximum Bid times Quality Score). The highest ad rank gets the 1st ad position. Your actual CPC will be determined by the ad rank of the next highest ad below you divided by your Quality Score. The only exception of this rule is when you are the only bidder or the lowest bid in the AdWords auction; then you pay your maximum bid per click! AdWords bidding heavily penalizes advertisers who bid with low quality scores. Conversely, those with high Quality Scores get higher ad ranks and lower CPC.
What is CPC?
CPC, or cost per click, is the amount an advertiser pays each time someone clicks on their AdWords ad.
How does CPC work?
Your CPC is determined by the competitiveness of your keywords, your maximum bids, and your Quality Scores. Learn the most expensive keywords in Google AdWords.
What is the average cost per click on AdWords?
The average cost per click on AdWords varies by keyword and industry, but is roughly $2.32 on the search network and $0.58 on the display network. Get more average AdWords metrics here.
Many More Concepts of Google Ad Words
- What is Google Quality Score?
- How does Google determine what you pay?
- What is Google ad rank?
- Ad rank vs. Quality Score
- What is ad position in AdWords?
- What is Actual CPC?
- How does AdWords calculate Actual CPC?
- What are alternative bidding methods?
- What is CPM bidding?
- CPC vs. CPM
- What are AdWords keywords?
- How does the Google display network work?
- What is an ad group in Google AdWords? How do ad groups work?
- What is ad relevance in AdWords?