How does Google Search Ads work?

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Up until this point in the Google search advertising series, we understood what Google advertising is and why you really need to take it seriously. Now it’s time to get into the world of Google search advertising. That is, let’s see how it works and how its gear rotates.

The main purpose of Google is to show the best and most relevant ads to the most targeted users. but how?

Everything revolves around keywords

First of all, we need to know how the keywords of Google search advertising work. Words that are valuable to us as business owners.

The words we choose, based on personal experience, with the help of keyword analysis tools and sometimes consulting with those who are skilled in the job, are then used to show our ad.

How does my ad rank?

Each time a user searches for something on Google, they can see up to eight different ads on the Google results page (so-called SERP or Search Engine Result Page).

Now the question is how Google will determine the position of each ad. Which ad is shown at the top of the page and which ad at the bottom of the page? Which ad will rank first and which ad will rank second?

Well, the fact is that Google needs to determine which ad is better. Because Google’s goal is to show users the most relevant ad so they can best respond to their needs.

Naturally, Google Ads does not act on its own taste for ranking ads. Rather, it uses a variety of principles and rules to make its own decisions. Google has set criteria to rank ads for websites they intend to advertise. That is, determine which ad is more appropriate and can rank higher.

But how does this system work? Google defines 2 key criteria and uses them to determine the rank and the display position of each ad. To know how Google Ads works, just know these two indicators:

First indicator: Pay for what you’re willing to pay!

Well, let’s assume we have 4 advertisers named Milad, Mary, Dawn and Bob. These dear friends, who, for example, all have a mobile store, want to increase their sales by using Google Ads. So probably one of their most important goals is to have Google advertise their website if a user searches for the word “mobile internet shopping.” Now Google should be able to rank these friends’ websites 1 to 4.

It should be noted that the cost is per click on Google. This means you pay Google when a user enters your website after clicking the ad. Well, the benchmark that helps Google rank advertising is the cost these 4 people are willing to pay to Google per click.

To better understand this, let’s suppose that Milad, who is in good financial shape, suggests to Google that: If a user searched for the word “phone purchase” and clicked on my ad, I will pay $4 for that click. Mary also offers Google $3. Dawn offers $2, and Bob, who is not very well-financed, $1 per click.

what will happen? Google puts Milad in first, Mary in second, Dawn in third, and Bob in fourth.

In fact, there is an auction between these four dear friends and there is one winner who offers the best price and the winner means that their website is placed higher than their competitors.

But even more so! Google’s bidding system is Second Bid Auction. That is, every advertiser only pays enough to have a higher ranking than their bottom one.

This means that the first person, instead of $4, only has to pay $3.0 per click. Milad only pays $0.01 (the smallest possible amount) more than his lower competitor, Mary, to maintain his first rank. Similarly, other people pay as much as their inferior. Mary $2.01, Dawn $1.01 but Bob’s cost is as much as he said, which is $1.

So far, you have probably been pessimistic about Google and have wondered that this system is only to benefit the rich. But, it is better not to judge early. Not everything is money! Google knows this too, and it’s not for anyone who has more money to give Google.

Google is not just about monetization, it is always trying to get higher quality advertising to satisfy its users (which is very important for them).

Second indicator: Quality Score you get from Google

In one sentence, Google Ads gives your ad a quality rating of 10 and uses it to rank your website and ad. The higher the score, the better it would be! That is, in addition to lowering your costs, Google puts your ad higher and higher.

If your quality of work is higher, Google will also appreciate you. Because you’ve got user satisfaction, and Google is willing to put your ad higher, at a lower cost. Again, this is a 3 win game! Customers, advertisers and Google are all three winners!

The opposite is true as well! This means you may get a low rating and Google is reluctant to display your ad, and if it does, it will cost you a lot!

But how does quality affect rank? As a result of your ad cost and quality score, Google figures out the final score for your ad. This final score is called the ad rank. To put it simply, your ad rank is obtained by multiplying quality by price.

Now let’s assume the quality ratings of Dawn is 9, Mary is 6, Bob is 10 (although Bob’s financial status was not great, he was smart and had high-quality work!), and Milad is 2. Google interferes with these ratings and finally:

Surprise for Milad! Although you have a lot of money, because of the very low quality of advertising, you won’t even have a chance to show it, let alone rank first!

Google interferes with each advertiser’s rating directly by their advertising rankings and payment costs. Here, the high score that Dawn made, caused to go first place at a good price. So the higher your ad quality, the more likely Google is to show your ad in a higher position and at a lower cost.

And let’s not forget the second bidding type of Google. That is, once the ad rank is determined, each person pays enough to maintain their position relative to the lower one.

Bob received a full rating of 10 out of 10 and the cost offered is $1 per click. But how much does it cost per entry? Only 0.09 dirhams! Because Bob has to spend 0.09 dirhams just to be higher than Dawn.

Now, suppose Milad realizes his bad publicity and decides to go to Bob and discover the secret of his success. Bob also tells him that there is no mystery and that it is enough to read this series of articles to the end so that he can get a good result and concludes that without suffering there is no treasure! (Yes Bob is such an honest person and has such mystical literature).

After reading this series of articles, Milad understands how he can get a high score (you’ll soon learn as well). As a result of day-to-day efforts, Milad manages to increase his ad rating from 2 to 8. What happens now? Milad, who offers both good money and high scores, is listed in link 1!

With the example above, we wanted to emphasize that nothing is fixed, and it can change, so you need to always monitor and watch out!

In other words, your ad may rank # 1 and a few seconds later rank 4. So your ad rank is not a fixed number and can change at any time. Because your market is changing, new people are entering the market, some may stop their promotion, some will raise or lower their prices, change their ratings, and so on.

Of course, there are other variables that influence your ad rank, which we will discuss below. But overall, your ad rank is the cost you are willing to pay per click and the amount of money you get from Google.

Note that you can bid on Google Ads for every single different keyword. Google also gives you a separate rating for each keyword. (We examine the types of Google Adwords keywords in a separate article).

So you may have different costs on your keywords. The quality of your keywords may also vary. So if you saw one keyword score 2 out of 10 and another keyword score 9 out of 10, don’t be surprised!

Other indicators that influence ad rank

As we discussed in detail in the preceding section, the total cost you are willing to pay per click, as well as the quality points you get from Google Ads, determines the position of your ad. But in addition to these two key criteria, there are other factors that influence the final rankings of your ad. The following are the most important of these factors.

Search Context

Another important indicator of your ad rank is the user search context. The search field consists of the following items:

  • The place where the user searches.
  • The device through which it searches (mobile, tablet, and desktop).
  • When the user searches.
  • Other variables sent from the user side (like search history &…)

The field of user search is a very important issue and it has created a lot of trouble for us as a marketing agency. We usually spend a lot of time explaining to customers why their ad is shown on one device and not on another.

It is not at all unlikely that we will have a stroke at the end! Because the results you see as an ad may vary from user to user and device to device. Of course, it is the customer’s right to be concerned, and it is our duty to explain everything in a clear and transparent manner. Whether your ad is displayed on one device and is not displayed on another person’s system at the same time, or that it is for you in Link 1 and for another in Link 4, it is quite natural!

When Google Ads wants to show you an ad, it also includes your search history (stored in your browser), time, location, language, a display device, and other variables to ultimately show you the most targeted ad.

So don’t be surprised if you find your ad doesn’t have a fixed location or sometimes doesn’t show up (unless it has a reason to run out of funds or block the ad). With Google given all the variables we mentioned, decides sometimes not to show you the ad or to show it in a certain position.

You don’t have to search Google to find out where your ad is. Just use the Google ad preview and diagnosis tool. This tool tells you exactly which word your ad will appear on. Of course, to use this tool you need to have access to the Google Ads Panel.

Add-ons and Ad Extensions

Another factor that greatly impacts your ad position is the use of Google Add-ons. Generally, your ad text is divided into two parts:

  • The main text has a fixed layout and consists of 3 sections: title, link and description.
  • Extensions that you can use to provide users with more information, but are not permanent.

The more you use these extensions, the better your ad will be. In other words, the more productive and transparent your ads are, the more relevant Google is to you. Because it realizes that you’ve tried to give the user more information and satisfaction.

So with the use of ad extensions, Google gives more priority to your ad display and wants to show your ad more. It is natural to cut your costs as well. In a separate article, however, we will examine in detail the different areas of advertising, and in particular the types of extensions.

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