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How does Google AdWords work?

Google AdWords is a valuable advertising tool for SMEs. At first, it can appear daunting or even confusing, but that’s why there are experts who set up and run AdWords accounts for local businesses. Whether you decide to do it yourself or get a specialist's help, here's a beginner’s guide about how Google AdWords 'clicks'.

Set up ads around your business goals

If you’re planning to direct some of your budget towards ad spend, you’ve got a goal in mind. It might be to drive potential customers to your website or get people to check out your latest vlog (video blog). You can add features into AdWords ads that fall in line with your business goals.

Decide where your ads will show up

AdWords ads appear at the top or bottom of the Google search results page, making them more visible to users. To differentiate these ads from organic search results, an ‘Ad’ label appears next to or above them.

Who sees your ads?

As Google Support says, “Ads are ranked primarily based on how relevant and useful they are to what the person searched for, your bid, and a few other factors”. The keywords or phrases you select for your AdWords campaign are very important because if you get these right, it will make it highly likely for browsers to be shown your ad.

Target relevant people

The best thing about AdWords is you can direct the ads to your target audience and potential customers and reach the people you want. This is done by using the right keywords to capture those searching for information and by showing your ads at certain times of the day to people in a specific location/demographic.

How to choose relevant keywords

To keep this simple, think about which words and phrases people would use on Google when looking for the products or services you offer. That said, the tricky bit comes in when you learn more about how keywords work. Think about how many other businesses, similar to yours are using your keywords. That's why there are things like bidding and ad quality. For more information about this, speak to one of our Digital Marketing Consultants.

Pay for what you get

Another advantage of AdWords is that you can structure it to pay only when someone clicks on your ad or interacts with it in other ways. This cost-per-click bidding strategy allows you to manage budget (you can set it to how much you want to spend each day) and pay for quality leads that hopefully will convert into paying customers.