How Google Adwords Works to Grow Your Business Online

How Google Adwords Works
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When it comes to pay-per-click (PPC) advertising, the dominant platform belongs to Google and its Adwords program. Google earns over $40 billion USD annually from PPC and its variants (cost per click (CPC) advertising, cost per 1,000 impressions (CPM) advertising, targeted website advertising for text, banner, and rich-media ads, re-targeting etc.), and  has the marketing omnipresence to satisfy entrepreneurs from all niches and all levels of expertise.

On the surface, Adwords looks simple: one headline of 25 characters, two additional text lines of 35 characters each, and a display URL of 35 characters. However, it's a special skill to get things just right. When you do, however, it can mean increased targeted traffic, better lead generation for your offers, and eventually more sales revenue.

It is instructive to follow the important ways Google Adwords works for Internet marketers, especially if you are new to PPC advertising:

1. Top Level Visibility in Front of Your Prospects and Customers

The Google search engine is by the most popular in the world, and Adwords gives you great visibility in front of people looking for products and services. When optimized for serious business purposes, Google Adwords can: 

  • Attract more prospects, subscribers and customers.
  • Let you advertise for either a local or global audience (or both).
  • Target the right people, and get their attention at the right time.
  • Give you the tools to set up campaigns yourself, and offer you access customer assistance when necessary.
  • Offer device independence (desktop, laptop, tablet and mobile).

See Also: 4 Ways to Get Free Traffic from the Search Engines

2. Only Pay When People Click to Visit Your Website

One of the biggest fears and misconceptions about PPC in general and Google Adwords in particular is that the program burns through advertising budgets like a hot knife through butter.

Honestly, this has happened to some people in the past. However, it occurred mostly because of a lack of self-discipline and understanding of the fundamentals (keyword selection, bidding process, analytics, testing, etc.). Google Adwords tries to make its procedures clear so that you don't lose your shirt, and that marketers only pay for results. This means two (2) things in particular:

  1. No visits from legitimate outside sources means that you don't pay for anything. Adwords only works when people click on your ad to go to your web pages.
  2. Budgeting flexibility means that you fix your advertising cost based on your goals. Start small (e.g. $100 monthly).

3. Use Google Analytics to Reduce Risk from Your Marketing Campaigns

Google Adwords offers the type of statistics that you need without going overboard. In each campaign, you will be able to monitor the total number of clicks, the click-through rate (CTR), the average cost per click and other metrics. Clicks and costs can also be analyzed by Ad Groups you create, and enabled keywords. These tracking tools are essential for informing you what portion of your online sales are directly attributable to your Google ads.

Google sends you a monthly performance summary, but chances are that you'll want to log into your Google Adwords account to check out the progress on your own time.

Fortunately, you can tweak your ads at will, and even stop your campaigns temporarily and re-start them when you want for free.

Final Words on Google Adwords

Google Adwords at its best is a cost-effective marketing solution that allows you to compete on pretty much an even playing field with bigger players in your niche. Sign-up is free and both Google and third party suppliers offer cutting edge advice and courses that can quickly turn you into an expert. As you gain experience and refine your elevator pitch in real life, use some of these conversation buzzwords as keywords or phrases when building your Adwords headlines and descriptions.