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Home > SEO Resources > Paid Search > Google AdWords 101

Google AdWords 101

29 November 2011

This article looks at some frequently asked questions about Google AdWords and provides an introduction for website owners looking for more information about the AdWords programme.

What is Google AdWords?

Google AdWords is Google's paid advertising programme which allows advertisers to bid on keywords in order to drive targeted visitors to their websites. AdWords traffic is also known as pay-per-click or PPC traffic because advertisers pay a certain amount every time a visitor clicks an advert to arrive on their website or landing page.

Where do Ads appear?

Google ads normally appear in the search engine results pages above and alongside the organic search engine results. Google ads can also appear on pages throughout the Google Display Network. Advertisers can choose whether they want their ads to appear on either the search engine results pages or the display network or both. Advertisers can also choose whether their ads will appear on specific devices such as mobile phones. Targeting by location is another option which advertisers can employ to ensure that their ads only appear to visitors in a specific country, region or city.

What type of Ads are available?

Most advertisers still use text ads, but Google also offer image ads, display ads, video ads, mobile ads and more. Many ad types are only available on the Google Display Network.

How much does it cost?

AdWords costs can vary significantly depending on the competitiveness of your market and the profit potential of particular keywords. Cost-per-click (CPC) prices can range from around £0.05 for low competition keywords to £10.00 and more for highly competitive keywords. The cost of keywords is partly determined by the number of people bidding, but other factors such as the Google Quality Score are also important. Google rewards advertisers who are deemed to have a high quality score by lowering the cost of their bid. This means that advertisers with a good advert, high click-through-rate (CTR) and relevant landing page can pay less for a top position than a less well performing competitor.

Irrespective of the costs for specific keywords, advertisers can control how much they are willing to pay by setting a daily and monthly budget for their AdWords campaigns. In this way, advertisers can control their costs depending on how much they are willing or able to spend.

Costs for the Google Display Network may be calculated differently. Here, advertisers can choose to pay per 1000 page impressions (CPM) rather than for each click.

What are the main benefits of Google AdWords?

  1. Anyone can do it
    Anyone can set up an AdWords account and obtain a top search engine listing. Google provides a whole range of resources to help web site owners get to grips with the mechanics of AdWords, so you don't need any special skills or knowledge to get started.
  2. Instant traffic
    There is no faster way to drive visitors to your website. Unlike search engine optimisation which can take a long time to implements effectively, Google AdWords can start driving traffic immediately.
  3. Transparent ROI
    With AdWords you can easily track and assess your return on investment. The analytics provided with AdWords breaks everything down so you can see how much you are spending. You can also set up goals and tracking to determine how many visitors went on to buy your products or services. As a result, it's easy to see your return on investment, whether you are running a profitable campaign, and which keywords are making you the most money.
  4. Continuous improvement
    You can use AdWords to test out the effectiveness of different pages and to continuously improve your performance. You can split-test just about everything with AdWords including your keywords, adverts and landing pages. Used effectively split testing can help you to increase your quality score, lower your bid prices and increase your conversion rates.

What are the disadvantages of Google AdWords?

  1. High costs
    In some markets Google AdWords can be very expensive. Bigger players with deep pockets often dominate the scene. Unless you know that you can at least cover your costs you should be very careful when entering these markets. In general you should steer clear of highly competitive markets unless you know what you are doing.
  2. High learning curve
    We mentioned above that anyone can use AdWords and this is certainly true. However, it does take time to learn the ins-and-outs of the system and to set up your campaigns. If you wish to be consistently profitable with AdWords you must go beyond the basics and expand your knowledge. Things like keyword research, conversion optimisation and tracking are all essential if you want to succeed in the long term with AdWords.
  3. Nothing ever stays the same
    It's never a good thing to rely only on one source of traffic for your web business because there is no guarantee that what works today will still work tomorrow. Google is certainly not averse to changing the rules and this could leave you out in the cold. Stay up-to-date with the latest changes and make sure you comply with all the guidelines to avoid the Google Slap.

Related:

  • Google AdWords Help

If you would like to start a Google AdWords campaign but don't know where to begin contact us today to discuss your requirements. For more information call: 024 7655 1111 or email: info@currant.it

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