What is Google Ads (Formerly Known as Google AdWords)?

The maximum cost of any click on your ad.

When you reach the limit, the ad stops.

When you achieve your marketing targets, the ad stops.

In manufacturing, you build a prototype. You do all your learning on a small scale before setting up the factory and spending a substantial amount. You use the same approach with Google AdWords. You run a prototype of your marketing campaign and get some useful data without spending a fortune.  You take the information and use it to adjust your target keywords and your audience. You rerun it on a small scale or launch a more significant campaign, knowing it is going to work for you. The ability to fine-tune your campaign on a small scale and then go large is an attractive and useful feature.

Google analytics link to your google ad to collect information on what people do after they click on your ad. Do they stay on your website or bounce away, does that click result in a sale of a download? Knowing how people respond to your ad google words and then how they react to your site is valuable because it lets you know how to improve your website.

Your ad Google words get shown as the result of a bidding process – there isn’t an auctioneer, it all happens automatically.

Google Ads pricing depends on the ad rank of the person below you, divided by your quality score plus $0.01. There are other bidding formulas, but this approach is how Google Ads work out how much you pay per click.

The amount a business spends on marketing depends on the size and scale of the company. A giant like Amazon spends over $50 million a year – because they get a high rate of sales per click, it outweighs the advertising costs. Smaller businesses spend around $1,000 a month, and the average monthly spending, even for small businesses, comes in about $9,000. The exact amount any company spends depends on the return on investment. The ideal budget spends through Google ads management depends on the profit each new customer brings to the business or the maximum cost per acquisition (CPA). If you spend more than this, then you are paying to attract customers. Less than this amount and you are still increasing profits after marketing. In practice, different industries spend different amounts on Google Ads. If you are new to Google Ad management, you can set a test budget and acquire data on how useful this marketing tool is for you with a single campaign – but you need to spend enough to give you plenty of marketing data.

These Google tools let you place google ads in search results, maps, and display network websites on a PPC basis. The differences between them are that Google AdWords Express gives you automated management and access without the need for a website. These features are not available on Google Ads, but Google Ads lets you use videos and unlimited ads on related websites. AdWords Express is quicker and simpler to use than Google Ads and requires less involvement. It’s aimed at persuading new businesses to advertise with Google PPC ads in an accessible format.

Both networks have an immense reach and use their assets to sell advertising to businesses on a PPC basis. When someone goes on Facebook, they are looking to socialize and have fun. Someone starting a Google search is looking for something – a product, information, or a known business. This difference in intention means they both serve different business goals with some overlap in brand awareness. Facebook matches Ads to people’s interests, and Google matches their intent. Although competing for your marketing budget, Ads can complement each other if part of a strategic marketing campaign. The average cost per click depends on how valuable that google ad word is as a keyword – some popular keyword result in average costs of $50 per click. The vast majority of clicks cost between $1 and $2.