AdWords How it works? Simple steps to understand - DLI

Author: Digital Leadership Institute

What makes you enjoy the most, while playing any game?

Let me reframe the question, what is that one thing that keeps you involved in any game?

You might be wondering what is this question has to do with working of Adwords?

I won’t confuse you anymore.

I believe you really give your hundred percent when you know the rules of the game. In the context of Google Adwords, by rules of the game, I mean the working of Adwords. Knowledge of how the whole thing functions can give you a head start and the necessary hacks to save your day.

The people who top the search results in the Google search engine have found their hack?

It is your turn now.

Let’s lay down the rules of this game of Adwords to top the list and see where it all began.

When I am in need of some information pertaining to any field, I either ask my friends surrounding or go to Google and search in the blank box.

  • Every time a query is raised by me or any user on the search engine.

Google would search the advertiser’s pool and checks if there can be an auction.

If one or more is bidding on the keyword an auction is triggered as Google deems it relevant.

NOTE: Keywords are not the exact search queries, the keyword opted for bidding is considering the best user experience. Let’s take an example to understand.

For the search queries such: pet supplies, medicine for dogs

The opted keyword listed for auction could be: "Pet medicine"

  • Advertisers identify keywords they want to bid on and create groupings of these keywords that are paired with ads.

Note: You can only have one entry into any query auction from your account.

  • This is the final stage. You have done your homework. But the important question here is what would define the order of the listing which you have auctioned for?

Once you have entered yourself into the auction. The order of listing ads depends on the ad ranks. The ad ranks of your advertisement depend on two factorials.

  1. Quality score
  2. Maximum Bid

You need to rank high on both fronts to top the search list. To give more context, the Quality score is the relevance of the ad with respect to the user, while the bidding is the money in your pocket.

You cannot just pour all the money into bidding and expect result if your quality score is not up to the mark. Higher the ad ranks the better chances you have to reach the target audience.

As the ad results are shown before the organic results. Google Adwords is considered to be the efficient modes of marketing in the long run.

The next time anyone asks, Adwords how it works?

Do refer the link to this blog, to help this person understand the rules of the game which in return will help him enjoy the game.