How Google AdWords delivers Google money

A few friends outside of digital marketing circles, along with a few clients,have asked me the question of how Google actually makes its money.

From an outsider’s perspective, it seems that Google is giving us everything pro-bono; that they are simply providing a service out of the good of their hearts. If you think that, it must be confusing as to why companies charge for AdWords management packages.

Look at any business technology website and you’ll soon see that Google is far from a charity.

The key to Google’s finances can be found in their search results. The three ‘Sponsored Results’ in the yellow box at the top of every search are Google’s paid ads – what they call Google AdWords. Look down the right hand side of the results and you’ll see more Google revenue generators.

AdWords is Google’s PPC program and it delivers around 70% of Google’s revenue. The other 30% comes from Google AdSense, a plug-in that shows Google sponsored ads on other websites. It’s from these two income sources that Google earns it’s millions.

Do people pay simply for their ads to show on Google?

No. Google AdWords delivers Google money only when someone clicks on an ad. That’s where the Pay-Per-Click (PPC) phrase comes from. You could imagine how blank AdWords would be if you had to pay just to advertise in the search results.

Google is essentially ‘free’ with the option to pay-you-way to the top.

How do you know how much you are paying per click?

Each keyword has a different value associated with it. The less competition, the less the keyword will cost. Simple.

AdWords takes an auction format. You can bid higher than the value associated with a keyword to try and get your ad in the #1, #2 or #3 positions. Other advertisers can also bump up their bids to try and trump you. The amount you pay is referred to as the cost-per-click (CPC).

In reality, an advertiser could pay $100 per click and be #1 for almost any keyword, but would this be cost-effective for the product they are selling?

So, what keywords cost the most? Here are the keywords with the top-5 CPC:

1. Insurance

2. Loans
3. Mortgage
4. Attorney
5. Credit

Amazingly, the top CPC for the keyword “Insurance” is $54.91 in Google AdWords. The keyword “Loans” generates a top CPC of $44.28. You can see the top-20 list in more detail here. If you are in the financial or law sectors, you’re in for an expensive time on Google AdWords.

Is Google transparent on how they set Google AdWords prices?

Google are as transparent as they can be without jeopardising their product. Their Facts about Google and Competition section provides information and videos on a variety of topics, including quality scores, their AdWords auction and how search ads work.

Want to get involved in Google AdWords?

AdWords is an attractive way to get your business on Google’s first page quickly. Our AdWords management packages are available to provide customers with the means to do just that. This article has detailed Google AdWords in a simple way. In reality, there is a lot more to it than just bidding high (see our article on the benefits of hiring a Google AdWords company).

If you would like to chat about Google AdWords management packages, or would like to learn more about SEM, contact Jayson Rodda on 1300 76 00 84.

Googel AdWords Campaign Manager

Managing a Google AdWords campaign is a process that requires inherent knowledge of product and medium. Business owners, of course, know their products in-depth. In fact, they should be the go to source for anyone looking for information about their products. It is theirs after all.

Because of this, a lot of business owners see themselves as the right person to manage their Google AdWords campaign. They know how to best market their own product along with what type of customers they want to attract.

Where this usually falls down is their lack of knowledge of the Google AdWords as a marketing medium. On first look, the interface seems basic. However, start entering in some keywords and you’ll soon find yourself scratching your head as to what you are looking at.

Then there are your budgets. AdWords is a PPC medium, meaning each ad-click will cost your business a set sum.

Test your AdWords knowledge

Are you familiar with all the AdWords related phrases below?

• Click costs
• Google display network
• Remarketing
• Mobile AdWords
• Wastage
• Geotargeting
• Broad, Exact and Phrase match
• Optimising for budget
• Quality score
• Click-to-call
• Social extensions

Are you familiar with all the above? Could you put them into a sentence or explain them to others?

They are just a few key phrases that come up in everyday AdWords speak. You may know your product, but a PPC consultant knows AdWords, and will be able to ensure you don’t spend a fortune trying to market your goods online.

How do I know if a professional is managing my Google AdWords?

Our team at Find Your Ideal Customers is made up of two types of PPC professionals:

1. A Google AdWords Manager: This person will have had 1-3 years experience in managing Google AdWords campaigns. They are mentored by a Google AdWords Consultant to ensure their progression is swift.

2. Google AdWords Consultant: This person will generally have a minimum of 4 years experience in the PPC industry and have managed over $10 million in advertising spend. They are capable of training AdWords Managers and can speak publicly about the intricacies of AdWords

By having a good mix of AdWords Managers and Consultants, we are able to put forward a team full of both enthusiasm and knowledge.

The above is a strong guide to utilise when looking into someone to manage your Google AdWords campaign. It’s no good signing a contract only to find out that you have been placed in the hands of rookie Google AdWords Manager who has no Consultant guiding their bids.

The key is to ask to talk to your AdWords Consultant before you sign on with a company. A salesman’s job is to sell, so don’t simply trust that you are “getting the best” – ask to speak to their best. You’ll then quickly find out the quality of their AdWords team. You could even run them through the test we gave above!

If you are interested in talking to Find Your Ideal Customers about Google AdWords management, visit our contact page.

Learn more about the author, give us a ring at 1300-76-00-84 and ask to speak directly to Jayson Rodda, today.

As digital marketing experts, we can tell you that creating your online marketing strategy doesn’t have to be a complicated experience, especially when you understand the power of the Google Adwords keyword tool. In fact, it is a straightforward process that only takes few minutes to learn.

What’s more, Google has many other tools at your disposal designed to do all the hard work for you (provided you know how to use them properly) so that you can focus on growing the returns for your business online.

Keywords Tool

The keywords tool is a free application that allows you to accomplish one of the most important tasks when validating your Online marketing campaign —choosing the right keywords. To start off, you will be prompted to enter a keyword based on either a phrase, website, or category.

We always recommend starting with what Google sees your website as being relevant for. For this you enter in the website address and select search.

Notice – we have selected:

• A. [exact] match search volumes – this is exactly how many searches made for the exact variation of keyword.
• B. Desktop & laptop search volumes – not including mobile traffic
• C. Review your results

What to do with this information:

1. A. Review these search terms for relevance & potential traffic volumes.
   • Prioritise SEO efforts based on existing rankings and level of competition.
2. B. Take note of the approximate Adwords Cost per click for each keyword
   • If you want Google front page visibility today, this is a guide to how much you should be paying – as an average.
   • Weigh up cost versus time.  Ranking your website for some keywords will take many months of concerted effortand in some cases years, with no real guarantees.
   • Every month that goes by, you could be missing on the chance to find your ideal customers

1. C. Research other potential keywords that Google does not find your website relevant for, using the same process.

We have completed this search below for – small business marketing

To give you an idea of how popular your chosen keyword is, AdWords keyword tool displays the number of searches it receives on a monthly basis, and either globally or locally. If you aren’t satisfied with the initial suggestions, you can simply click on “more like these” which then returns another batch of proposed keyword sets.

Options and Settings

To get the most accurate and effective keywords for your campaign, Google AdWords also allows you to select which terms to include and which ones to exclude. To improve accuracy, it also lets you determine whether your matches should be broad, exact, or any part of a phrase. That way, you are in full control of who views your ad and that it reaches the right people all the time.

If you are targeting consumers who know exactly what they want, then an “exact” match might be the best type for your ad campaign. These might include technical searches or gadgets with model numbers. However, for more generic searches such as “small business marketing” in general, you’d be better off selecting a “broad” match type as shown below. This will give you an indication as to the overall size of the market.

Allow Us To Help

Google AdWords is free to use. You only pay for how much you choose to advertise and are always in full control of your advertising budget. How successful you are depends on how well you use it.

We are based in Melbourne and are specialists in Google AdWords, AdWords Management, SEO Services, content marketing, display advertising, Facebook advertising, conversion rate optimisation, and paid search across other networks including Bing and Yahoo.

Our founder,Jayson Rodda, is an experienced AdWords veteran of 10 years and has a deep appreciation and understanding of the intricacies behind it. Don’t waste any more time. Get to grips with Google AdWords by phoning us at 1300-76-00-84 and ask to speak directly to Jayson Rodda, today.

Learn more about the Author: Jayson Rodda