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Do you have a website? If so, you absolutely need to understand and to be familiar with the way that Google AdWords works. This tool allows you to earn a good ranking in the search results following a search query being entered on Google. In order to succeed, you have to be willing to pay certain fees on a regular basis, as Google AdWords’ effect only works when you pay.

How does paid referencing work

Paid referencing, of which Google AdWords is a part, is a web marketing strategy aimed at attracting visitors on a website. It is also known under the names of Pay Per Click (PPC) or Search Engine Advertising (SEA).

This advertising system allows websites that pay to appear in the best search result rankings, which are generally the first 3 results and those that are found at the bottom of the page. In order to have access to this service, a person must start an account on their website and aim for certain keywords that are related to the services and/or content they offer. The amounts that will need to be paid can vary from one extreme to another, as it is possible to spend hundreds, even thousands of dollars per week.

Paid referencing vs. Organic referencing

Although they are often presented as opposing forces, organic referencing and paid referencing work very well when they are combined. In a nutshell, organic referencing is a set of website optimization techniques aiming to increase its visibility. To learn more about this subject, check out our article What is organic referencing?

Organic referencing has long term results and can take more time to show its impact whereas paid referencing works much more quickly.

How much does an AdWords campaign cost?

There are three variables that must be taken into consideration to know how much you will need to spend for an AdWords campaign

  • First is the price you are willing to pay per click (PPC) or per lead (PPL). In the second case, you have to pay according to the number of contracts or sales with respect to the number of visitors that come on your site;
  • Next, there are management fees that are only applicable if you collaborate with an agency for your paid referencing campaigns;
  • Lastly is the maximum budget you wish to spend per day on your campaign. In general, it is recommended to choose a budget that amounts to somewhere between $200 and $1000 per month, but this number can vary depending on the size of your company and according to your needs.

The cost per click can vary depending on the amount of competition in your field. When a specific field has a lot of players, you will have to pay more to stand out. In this sense, Google AdWords works like an online auction where several people compete to get the best ranking for a specific keyword.

How to aim for the right keywords

To know which keywords you should aim for, you must start by preparing a list of words and phrases that are most likely to be relevant for your website and services. Next, you will need to use a tool like Google Keyword Planner or Moz to measure the amount of competition, the number of people that do searches for these keywords and the estimated costs for the AdWord campaigns. Following that, you will be able to choose which ones work best for you.

You can select popular keywords, if you feel that they are very important for your website, but also remember to focus on keywords with less competition as even though they get fewer searches, you have better chances of earning good results.

3 things to know about Google AdWords

- A profitable campaign needs more than just money. You will have to master Google AdWords’ tools in order to properly target your audience, geographical zone, standard profile, etc.

- Google sets a quality score that helps it to decide who will be placed in the top results. This score takes into account the relevancy of your website and its content. This means that if your website does not have high-quality content, you can pay a lot of money without earning a high ranking. The AdRank system calculates both your quality score and the amount of money you are willing to spend.

- 9 web users out of 10 click on the first three search results that appear when they launch a query. That is why Google AdWords is so useful, as these are the first results that show up under the search bar. 

Learning more about Google AdWords

Are you looking to find out more about Google AdWords, how to optimize your campaigns, how much you need to spend and more? Here is a list of articles that we have published on our marketing blog, which will help you know and master the subject:

Find an expert to manage your AdWords campaigns

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