AdWords Advertising Networks

Google AdWords Study GuideAdWords Advertising networks are online advertising platform to reach your customers.

How is online advertising benefited from Adwords?

Here are some of the benefits of advertising through Adwords –
1. It helps in targeting your ads to reach potential customers based on keywords, ad location, age, language, days, times, frequency and devices.
2. It allows you to choose the cost as there is no minimum limit and you can pay per month, per day, per ad and only needs to pay that cost when someone clicks your ad.
3. You can measure all the activities like when someone clicks your ad. You can get valuable data that like costing on an average, ads that lead to purchase or calls by your customer.
4. It allows you to manage your campaigns by my client center if you have multiple accounts or offline by AdWords Editor.

AdWords Advertising Networks of Google

Campaign type determines the type of network on which your ads will appear

There are 2 types of Adwords advertising networks
1. Search Network
2. Display Network

Search Network

It shows ads in Google search results, other Google sites such as maps, shopping and hundreds of non-Google search partner websites that show Adwords ads matched to search results.

It includes text ads next to Google search results and reaching customers who are actively searching for products and services.

Display Network

It shows ads to the collection of Google websites like Google finance, Gmail, Blogger, Youtube, partner sites, mobile sites and apps that matches the content while showing ads.

It helps in reaching the broader audience, build awareness and engagement.

How your Ads appear on AdWords Advertising Networks

Your ads will be shown according to your keywords and max CPC you are willing to pay when someone clicks your ad.

Search Ad formats

Made up of Headline text, a description and display URL, ad extension

Display Ad formats

It appears on websites, blogs, video sites, mobile apps. You can also choose the targeting method. It has following formats
1. Text Ads
2. Image ads
3. Rich media Ads
4. Video ads

Text Ads appear on all the mobile phones while display ads appear only on high-end mobile devices.

How to check the AdWords Ad Quality Score?

Ads are shown according to Ad Rank which is calculated on the basis of following factors-
1. Landing page optimization
2. CTR or click through rate
3. Ad relevance and format of the ad.

Ad Rank not only depends on the bid but the overall quality of the Ads based on the above factors.

Each ad gets a quality score of 1 – 10 with 1 being minimum and 10 being the highest.
It doesn’t take into account the auction factors, type of services, language preferences, location, time periods.

Landing page optimization is based on the factors such as good navigation, transparency, and quick loading time.

It is not true that Ad with the highest bid will always be at the top position.

Impact of Quality Score on Max CPC

Let’s understand this with an example.

Ads Bid Quality Score Ad Rank(Bid*QS) Position as per Ad Rank
A 4$ 2 8 3
B 3$ 3 9 2
C 2$ 6 12 1
D 1$ 2 2 Not shown

Now arranging Ads according to the position

Ads Bid Quality Score Ad Rank(Bid*QS) Position as per Ad Rank
C 2$ 6 12 1
B 3$ 3 9 2
A 4$ 2 8 3

 

So, you can see even A bidding highest but its position is lowest. Max CPC is calculated on the basis of amount that an advertiser need to pay ad shown below it and calculated as following = Ad Rank of previous ad/ Quality Score of Ad

Let’s calculate for the above Ads

Ads Bid Quality Score Ad Rank(Bid*QS) Position as per Ad Rank Max CPC
C 2$ 6 12 1 1.5$
B 3$ 3 9 2 2.67$
A 4$ 2 8 3 Min

 

Now suppose B improves his QS to 5 then it’s Ad Rank becomes 15 so then above positions becomes

Ads Bid Quality Score Ad Rank(Bid*QS) Position as per Ad Rank Max CPC
B 3$ 5 15 1 2.4$
C 2$ 6 12 2 1.6$
A 4$ 2 8 3 Min

 

Now he only pays 2.4$ instead of 2.67$ after improving the quality of his ad so, when quality improves max CPC reduces. For more details check the video.

What you actually have to pay for your Ad?

Based on you business goal set the bid strategy as the following
1. CPC(Cost per Click) – If you want clicks then pay by CPC bidding
2. CPM( Cost per 1000 Impressions) – If you want impressions and needs to develop a brand awareness to set this option for bidding.
3. CPA(Cost per Acquisition) – if you want leads, sales, set this bidding strategy.

In CPC or CPM model, you won’t be charged more than the ad appearing immediately below you but for CPA, it may increase.
Ex: Peter decides to set CPM model and will to pay 2$ per but for the same ad other advertisers are paying 1.5 $ and 1.75$. So, Peter doesn’t have to pay more than 1.75$.

Check the next chapter for setting AdWords campaign.

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Freelance Blogger, Certified Content Marketer, Certified Digital Marketer and Solopreneur of Rank Digitally, a site based on Digital Marketing Tips & Techniques.

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