Google Adwords has steadfastly become incorporated as an important component of online marketing, and is now the most popular form of pay-per-click advertising as well as being the biggest revenue-generating sector of the search engine giant's entire operation.
Adwords harnesses two types of advertising: pay-per-click (PPC) and cost-per-thousand (CPM). PPC works when a company advertises on a website and pays Google a certain amount for every click that the ad gets. Cost-per-thousand differs to pay-per-click in how the advertisement is paid for. Instead of paying the website for every click, the company will instead pay a certain amount for a specific number of ‘‘impressions’’ the ad makes, or in other words, how many times that ad appears on the website.
How does it work?
A company who utilises the services of Adwords can choose a set of keywords relevant to its business and industry. When a customer uses these keywords in Google, the company’s Adwords-generated advertisement will appear on the right hand side of the search results screen and sometimes above the organic search results.
One of the biggest advantages of using Adwords is that, due to the ad appearing next to search results generated from keywords relevant to your business, is being seen by a more industry-targeted group of people. Adwords also allows companies greater control of their advertisements, allowing them to edit their ads as they please or setting it up so that it targets a specific demographic or country.
There are two factors that contribute to the placement of an ad. A company has the freedom to choose how much it is willing to pay Adwords for every click their ad generates or how many impressions it makes. However, with highly competitive industries, a bidding usually commences for relevant keywords. Whilst smaller businesses will not be able to pay amounts high enough to overthrow the bids of their competitors, Adwords also calculates the ‘‘quality score’’ of the ad by checking the relevance of the landing page (the web page that the advertisement links to) to the ad’s content and keywords. This provides small-medium businesses the chance to secure a high placement on Adwords, even if their bids were not as high as their rivals, as long as relevance is maintained.
How can using Adwords help my business?
With the extreme rise of Google’s popularity, and the integration of online marketing tools such as Search Engine Optimisation (SEO) and Adwords, companies nowadays are beginning to realize the power it has to move their businesses forward and gain an edge over their competitors. Companies who use both SEO to achieve higher rankings in Google and have ads placed next to the search results, cover a wider network of browsers.
By making use of Adwords and SEO to direct more targeted traffic to their website, companies now have a more cost-effective means for online marketing. As online marketing is quickly surpassing more traditional methods of marketing in terms of success rate and time limits, with more people turning to the Internet to search for what they want, an investment in your company's website and the tools used to maximize the exposure of that website is vital to the growth of your company.
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