Definition:
Google Ads
(formerly called Google Adwords)is an advertising service of Google, aimed at companies that want to show their ads in the search engine and their advertising network. The program allows businesses to set a budget for advertising and pay only when people click on ads. The ad service focuses heavily on the keywords employed.
How Google Ads works
With Google Ads you can create relevant ads using keywords that you think people who search the web can use using the Google search engine. When the indicated keyword is searched, the trigger that shows the given ad is activated. Sites that are advertised in Google Ads will appear on the search page, in the “Sponsored Links” section above or below the Google search results. If an advertisement is clicked, the user is immediately directed to that website.
Keywords in Google Ads
When you choose keywords for Google Ads campaigns, different match options will appear:
- Broad concordance: It reaches more users by showing your ad when the keyword is searched.
- Negative concordance: This option prevents an ad from appearing when a word or phrase that you specify is searched.
- Exact phrase match: The ad is displayed in searches that match the exact phrase.
- Exact match: The ad is displayed in searches that match the exact phrase exclusively.
Calculation of cost price per click
Using keywords in Google Ads also determines the cost of advertising. Each keyword you choose will have a certain cost per click (CPC).
Prices are auctioned, specifying the maximum amount you are willing to pay each time someone clicks on an ad (the maximum cost per click).
A higher CPC bid can cause an ad to appear higher on the page.