Google AdWords is Google’s online advertising service where the advertisers can bid on particular keywords so that their ads appear on search engine results page (SERP). You can advertise your products and services through Google AdWords by creating online ads to reach your target audience. Advertisers pay when the users divert their browsing to gain more information about the services they are looking for. There are different tools within Google Adwords that can boost your results.

Here are few basic principles to keep in mind regarding Google Adwords:

Advertise on Google
You can advertise on Google with AdWords by signing up an AdWords account at the official Google AdWords page which is free. Within each Adwords account, there are campaigns. Single or multiple campaigns can be run simultaneously. Each campaign further includes various ad groups which inturn contains unique keywords, ad text, and accompanying landing pages.

How does Google Adwords work?
Bidding on relevant keywords can lead to an increase in real conversions for your company. Google AdWords is extremely effective for many kinds of businesses, as long as you don’t waste your money on the negative keywords.

Cost of Google AdWords
Average cost-per-click (avg. CPC) is the average amount that you are charged for a click on your ad. This is calculated by dividing the total cost of your clicks by the total number of clicks. Average CPC is different from Maximum CPC which is the highest amount that you’re willing to pay for a click. Your CPC is determined by the competitiveness of your keywords, your maximum bids, and your Quality Scores. The 1-10 Quality Score reported for each keyword in your account is an estimate of the quality of your ads and landing pages triggered by them. Those with high Quality Scores get higher ad ranks and lower CPC.

Alternate bidding methods
CPM (Cost per thousand impressions) is used to measure the cost of online advertising campaigns, where each impression is an appearance of an ad on a web page.CPA (Cost per Acquisition) is a metric that measures how much your business pays in order to attain a conversion.

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. You pay the maximum bid per click when you the only bidder or the lowest bid in the auction.

Google auction
You have a feature known as auction insights in Google AdWords to compare your competitors‘ and your own campaign, ad group and keyword performance. It displays an extract of available impressions in the search network for the defined time range.

Ad relevance in AdWords
Ad relevance describes how well your keyword matches the message in your ads and landing pages. Higher ad and keyword relevance can improve your click-through rates and Quality Scores.

Conversion Optimizer
Conversion Optimizer  is a tool that helps acquire the most conversions possible at a defined target cost. Conversion optimizer automatically adjusts bids so conversions are generated within a defined cost boundary instead of manually manipulating bids and generating conversions at any cost.

Digital advertising agencies combine their creative and research expertise with the input of the client to develop a campaign that appeals to customers.

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