We often talk about natural referencing (SEO), a little less about paid referencing (SEA) and therefore Google AdWords. AdWords is the advertising program on Google’s search engine. It allows you to create advertising campaigns with simple and effective ads on the Internet. Visit instaon.io/ and learn further more information about Google Ads.
What is Google AdWords?
The operating principle of Google AdWords is based on a keyword auction system. It encourages advertisers to raise the bidding to appear among the first search results thanks to the keywords chosen for their campaigns.
In short, if several advertisers want to appear on the same keyword, it is the one who will put the most money on the table that will be best displayed. Google AdWords ads have changed a lot in recent years, and blend into natural results. In addition, Google is displaying more and more of them. That’s why Google AdWords has become so interesting for advertisers.
As you can see, by typing “SEA Consultant”, the user only sees the 3 AdWords ads which allow to put much more text than before. In addition, these ads are very discreet: a simple little glass “Announcement” button to the left of the URL. For the average Internet user it is very tempting.
The Google AdWords platform also manages Google Shopping ads, display ads on the AdSense network and the distribution of different formats on YouTube.
AdWords, auctions and CPCs
When you launch your AdWords campaign, you define your maximum CPC (maximum cost per click), which means that you will not exceed this value for one click. AdWords works with auctions that you define to determine the highest amount you are willing to pay for a click on your ad.
Be careful, this is the CPC Max, most of the time your cost per click is lower, and we call it the real CPC.
You can configure your AdWords campaign with 2 types of auctions:
- Manual auctions: system in which you define the maximum bid amount yourself, you keep control over your expenses.
- Automatic auctions: system in which you define a maximum daily budget and AdWords then automatically adjusts your bids to the maximum CPC for you. This is a little more dangerous since Google will certainly try to help you, but it will also consume your entire AdWords budget.
The daily budget on AdWords
For each AdWords advertising campaign, you must define a daily budget, for example 30€. AdWords will broadcast your ads as much as possible until your daily budget is exhausted. Generally, when the budget is exhausted, the broadcasting of your ads stops for the day.
It is possible that you may be billed beyond your daily budget for a day, for example. However, over a one-month period (30 days), your budget will not have exceeded 30.4 times your daily budget. To be clear, if you define a daily budget of 10€, at the end of the month you will be charged a maximum of 304€.
AdWords: better than natural referencing?
I have a lot of customers who come to me for SEO, and when I talk to them about AdWords, I often get the same type of answer. “It’s expensive”, “It’s not profitable”, “it’s a gas plant”.
That’s not untrue, AdWords is quite complicated to handle, we can even call the user interface a gas factory. Obviously it is a profession in its own right, which can be learned through training and above all through experience. There are many free training courses and tutorials on the internet. Then it is enough to make tests, like any Marketing action you can’t predict in advance your ROI.
However, if used properly, AdWords can be very profitable, especially for an ecommerce site. It is possible to track AdWords sales and therefore calculate your ROI.