Google AdWords adheres benefit the main way in which Google earns revenue from visitors to its search sites. Businesses pay to have adverts placed near specific search results using criteria that they define at the start of an online advertising campaign. The AdWords program allows local, national, and international ad exposure. In Google help information about AdWords, it states:
“The following data always goes into showing relevant ads to you: Your location (based on your computer's IP address), your language, the time of day and which Google country domain you used (for example, Google.com or Google.co.uk).” – Source google.com
You can take some of these factors into account when choosing who should see your adverts and when they are displayed. You could restrict adverts so they only appear to people who are within driving distance of your store.
Adword adverts can be paid for when an user clicks on an advert. This is known as “pay-per-click”. Alternately, adverts can be paid for based on the number of times an advert is displayed. This is a “cost per thousand” impressions (abbreviated to CPM or “cost per mille”). The cost of an advert depends on several factors, including the expected frequency it will be presented to users – the more popular the search, the pricier the advert becomes. This is because of competition among advertisers. To appear in a paid ads section, advertisers enter an auction for space. If you do not offer to pay enough to be associated with particular searches, your advert is not placed very highly in the list of adverts, or may not even be displayed at all if enough advertisers offer more than you.
You can set the maximum amount per day you are prepared to spend on adverts, say $5.00, and a maximum price for each advert, say ten cents a click. You also set a time period for when the campaign runs.
Let’s take an advertising example. Imagine you sell motorsport photographs and you want to increase sales of your photos of racing drivers from the history. The first thing to consider is what words an user might type in to perform a Google search for drivers you happen to have in your photo library. Suppose the user types in “motorsport photos” and Google returns about 190 million results. How often do you think this search is conducted? Does their search suggests they are particularly interested in old-time racers? Do you want to pay for an advert next to the results of such a search?
Conversely, if you created adverts for each of several named drivers (such as Stirling Moss or Alan Jones) and then chose to have, say, a Stirling Moss advert posted next to a search for “Stirling Moss photos” (420,000 results) the advert will cost less per click-through. AND it will be very relevant to the user, encouraging him or her to want to click on your advert and so become a potential customer. You can have the multiple adverts in a campaign and set a daily cost limit, etc., across the whole campaign.
What sort of words should you use in an advert? There is not a lot of room to play with. Text adverts are short, and consist of a headline of 25 characters and two additional lines of 35 characters each. So brevity and pithiness are essential. Here is an example:
STIRLING MOSS PHOTOS – 20 characters
See amazing action pictures by a – 32 characters
true professional – Joe Bloggs MRPS – 35 characters
The text you write for the advert doesn’t have to include the URL of the website being advertised. That is set up as the link associated with the displayed text.
Google supplies advertisers with statistics on the success of adverts so you can see what works, and what doesn’t. You can then tune your campaign to improve the results.