How Google Ads work?

At any moment in the day, Australians are using Google’s search page over 200,000 times simultaneously. When you look globally, that number grows to 3.5 billion times a day. That’s because it is a resourceful search engine page that people have come to trust because of the quality of content it produces. Australians are not only searching for entertainment but they’re also looking for urgent news updates, products and/or services near them. Google has grown into a trusted suggestion platform for Australians that are looking for service providers. This is exactly why it’s the perfect platform to invest in for your advertising needs.

Google Ads is an online advertising platform offered by Google on its search engine page. It works by promoting your web page in the instance that someone searches for a phrase or keyword that is directly linked to the product/service you are offering. Google Ads usually appear at the very top of search results pages and you’ve probably spotted them yourself because a link is captioned with small, bold lettering that says “Ad”, right next to it. Customers using the search engine are likely to click these first because they show up as the first results for whatever keyword or phrase they were looking for. Google intentionally makes Ads blend in with other organic suggestions but always prioritizes paid content first. Catching customers on search engines is always about who is the quickest to the top because internet usage studies show that a large majority will click the first result that appears and that many more won’t go further than the first page.

The Cost-Per-Click model

As previously mentioned, Google Ads are based on keywords and that’s how the pricing model is arranged. Your company or marketing agency will target a specific keyword, one that usually is popular with other agencies and companies, and you have to compete for that keyword with a bidding. Your bid is the maximum rate you’re willing to pay for that key word. Google’s algorithm will have its own estimate about the rating and accept or decline your maximum bid. If you’re successful, you gain a placement in one of the Google Ad spots on search results pages. Now that your page is placed for customers to notice you, you’ll pay for every time they click on the advertised link. This cost-per-click amount also includes something Google charges you for, commonly explained as the quality of the ad, with a quality score. Quality is judged by Google’s specific criteria, explained here, but the higher the quality score, the less you’ll have to spend. Your maximum bid amount coupled with your quality score both equals to how much you’ll pay per click but also determines how high and where your ad will rank on the results page.

Where do the ads appear?

If you haven’t noticed already, Google will place different kinds of ads in different positions on its platform. Some appear as banners along the side of it and others appear as boxed images at the top. Google Ads will also appear on other pages outside of the results. Your ad could appear as a pop-up if someone watches a YouTube video using Google as a default browser.

What is the cost of Google Ads?

This is where the cost-per-click model (explained above) comes into play. The cost of using Google Ads is usually up to you but the principle is that the more you pay, the more prominence you receive. The average spend for small businesses in Australia is between $5 000- $15 000 per month. The company pays per click so that means the cost per click is between $7-$30. Your overall costs depends on the budget you’ve set aside and any additional fees that you may pay an agency to maintain those ads. Google Ads is a very successful and easily accessible pay-per-click (or cost-per-click) advertising platform. As soon as you’ve passed all the initial steps, your ads will already be displayed for free and you will only be charged as and when someone clicks on it on a Google search results page or otherwise. It is also important to consider that they keyword process is a live auction on the platform. Your bid, and other bids from other marketing/advertising companies, is dependant on how popular the keyword already is. The more popular it is the higher the cost. When you are discussing the budget for Google Ad words with one of our experts, here at Floodgate Digital, these are some of the factors you need to take into account:

  • Keyword prominence
  • Maximum bid ability and bid position for competitors
  • Your average monthly marketing budgets
  • The cost-per-click estimations or expectation total
  • The quality score of your ad/keyword

Will I see results? 

Google Ads are popular for many reasons but the most important are these: you are guaranteed to reach more customers because billions of people use google; and they’re a cost-effective way to have a marketing strategy even if you’re a small business trying to compete with large corporations in Australia. They also can be a very useful tool in attracting more customers because Google positions these ads to target the people looking specifically for them. If they’re searching for a word linked to what you offer, Google will make sure that they find you.

We know everything that goes into priming your landing page for success with Google Ads. Floodgate Digital has a strategy tailored for your business and in the specific local market you operate in. Call us now or click here to book a strategy session and we guarantee to turn your clicks into calls and then into cash!


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