The Definitive Guide to Google Adwords for Dummies- 2019 Edition

18 August 2019 , Written by Rakshit Soral

image representing a theme in this article

When I first started my career as a Digital marketer, I was familiar with what Google ads are — but beyond that I had no idea. I hardly knew the difference between search and display marketing; Damn! I was also confused between Google ads and Adsense (Silly me. Sigh!)

This was way back in 2015 when Google totally revamped Adwords with a shifted focus on interactive mobile ads. Fast forward in 2019, I know a thing or two about Google Adwords. In this post, I am about to tell you everything I know or believe to be work in Google Adwords. You’ll learn the basics of setting up a Google adwords account, implement keyword research and bind that research to implement a simple yet effective Google ad campaign.

Let’s get start[ed], shall we?

Google Adwords for Dummies - Explain Google Adwords like I’m Five

Imagine the internet as a HIGHWAY where there are millions of billboards placed across it. These billboards are your AD placements. The more traffic a billboard attracts, the more expensive it becomes for the advertiser to place a bid.

Now, let’s assume you plan to place your ad on one of the billboards. Whom would you contact? Owner, right? But to your surprise, you found out that the billboard you want to buy has been sold to a big company. Why? Because getting an advertiser, selling millions of billboards, obtaining maintenance charges on the top of it isn’t a cup of tea for owner. That’s why he sold it to a company, the name of which you came to know is Google.

That’s exactly what an ad placement is. Advertisers buy ad frames (say billboards) to place their ads and Google (company) manages its infrastructure and charges according to its rules and policies. Since a billboard frame can be of any size and it often confuses an advertiser, therefore Google decided to sell only billboards of particular size. That’s why online ads (particularly display ads) have size requirements.

You got the gist, right??

You finally decided to buy some space on Billboard to place your ad so that you can attract relevant audience. You strolled through your way to the HIGHWAY and look for the best Billboard which can attract the maximum traffic. You took the route called “Buy Clothes Online”. This is the route where thousands of Advertisers are competing to advertise their Clothing Business. They all have the same goal as yours: to attract the right audience and insist them to make a purchase.

After inquiring about the bid and strategy, you came to know that most of the advertisers are competing for the lanes called “Buy branded clothes Online” and “Buy Clothes at cheapest rates Online” and their bid goes from the lowest to the maximum. These lanes have some space left so that you or others like you can also advertise there.

You called Google and screamed “Hey! I want to purchase a billboard space at ‘By branded clothes online’ lane.

Unfortunately, they hung-up your phone. Why? Because they are too busy to take your call (they often get thousands of phones anyway!). After further inquiring, you came to know that you can’t approach Google directly. Google came up with a way to screen Advertisers with a screening process which involves bidding and keyword placement strategy (since it manages the overall infrastructure and their main goal is to make the most of Advertisers money).

So, now you’ll directly compete with Advertisers who wants to advertise at the same lane. This is why you need to set the right bid and target the keywords which falls under the same lane. You can try bidding on “Buy branded shirts online”, “Buy branded pants online”, etc.etc.

But remember, there are thousands of advertisers possibly competing for the same keywords so that’s why bid increases when Traffic and competition increases. This whole concept of renting a Billboard at a competitive lane and bidding on the right keywords is called as Campaign.

Okay, Google Adwords sound Awesome! But, how do you beat the Competition?

Pay-per-click Advertising (Google Adwords) is very simple. You only pay for what you incur. No clicks? No leads? Zero impressions? You pay nothing, it’s as simple as that.

As I already said before, the whole Google Infrastructure (I am talking about Adwords!) works like an auction. Advertisers bid the biggest price for a click.

But, here’s the thing about Google Adwords: Big bids not always make you win in auction.

Yes, you heard that right. It is true that the greatest bid gives you an upper hand from your competitors, but it’s not the only prize you pay for winning the auction race.

Google doesn’t want you to fool your customers with Money. If that were the case, Big brands would always win the race and they would be unstoppable.

Google combines a quality factor with bid which is the single most effective way to outrank your competitors.

Quality factor + Biggest bid = Win-Win for Advertiser

However, it isn’t easy to master Google adwords. It requires lots of practice and perseverance to learn and get benefits using it. There are stories all over the internet who have spend lots of money on it but didn’t get benefited because of the serious mistake Advertisers commit while running a campaign.

Let’s now dig deeper into this Quality factor thing a bit more. What is Quality Score and How to improve it. The Quality factor I talked in above paras is also known as Quality Score in Google Adwords. Here’s the definition of Quality score as referenced from Google’s official statement,

“Quality Score is an estimate of how relevant your ads, keywords, and landing pages are to a person who sees your ad. Higher Quality Scores typically lead to lower costs and better ad positions.”

Google

According to Google, Quality score of an Adwords campaign depends upon three main factors:

  • Ads
  • Keywords
  • Landing Page

These three elements are analyzed by Google and a Quality score gets generated for your campaign.

However, a study done by Adalysis reported that Landing page experience and expected CTR are the top two factors responsible for a good Quality Score. Having said that, a better landing page experience or a CTR above average could result in a good Quality Score. The scale of a Quality score gets measured from score 1 to 10, 7 is average and anything below 5 is considered poor.

Quality Score is the biggest single factor how Google determines your Ad rank, therefore bidding a bigger bid from your competitors isn’t enough for you to rank better.

To put it succinctly, if your competitors are bidding a big amount and their Quality score is high, they will be paying half the price you pay for a single click. Meaning they will have relatively lower Cost per Click (CPC) as compared to you. That being said, The higher your Quality Score, the better will be your Click through Rate (CTR) and lower will be your Cost per Click (CTC).

Attached below is a graph by AdEspresso which denotes how Quality Score impacts CTR and CPC:

Quality Score is critical for better ranking in paid search results and decreasing the costs of clicks which results in better conversions.

Buckle up, because this is gonna be hard to understand. However, It’s very critical to understand as you’d better be spending thousands of dollars for Google Adwords each month and result won’t be guaranteed.

Here you go.

How to effectively structure a Google Adwords campaign?

Campaign structuring is the fundamental basis of being able to run cost-effective campaigns and keep your budget manageable. One of the major reasons why most campaign fail boils down to a single thing: not being able to effectively structure your Google campaign.

A good tip will be to think about the purpose of running campaign and ask yourself a couple of questions such as the following:

  • What is the goal of campaign you’re about to run? Is it for Product or Services?
  • Where are your potential customers located? What locations or regions you’d like to target?
  • What about Budgets? Are there different set of budgets for products and services? What’s your priority — to generate leads or to grow your business as a brand?

The basic structure of an Adwords campaign is relatively simple. Within each campaign, you have ad groups, ads and keywords. Each Ad groups inherit campaign settings (not applicable to mobile). They can be grouped within campaigns by keywords and Ad copy. All the keywords of an ad group will trigger an ad.

Below is an example of simple Adwords structure:

Here, Campaign1 and Campaign2 have two different Ad Groups and each Ad group has two different Ad copies (Ad A and Ad B) and related keywords.

As a rule of thumb, you should create two separate campaigns for different products or services. For example, as a garment business, you might want to create separate campaigns targeted at different locations you service.

Within each campaign, you should create different ad groups. But remember, if your Ad group consists of several keywords – all with different themes – your ads are less likely to be effective. If you’re someone who is in a garment business since a long time, it’s effective to have following ad groups:

  • ---- Garment business
  • ------Garment business supply
  • --------Garment business services
  • ----------Garment business shop
  • -------------Garment business company

In the above paras, you learned about structuring a Google adwords campaign. But that’s not the end of our goal yet. I am yet to tell you about the main part of running Google ad campaigns. Let’s get started and learn how to run a sample Google Adwords campaign.