Google AdWords is an online advertising program or software that was created by Google. It enables a company to reach its targeted audience by creating online advertisements and competing for them being displayed. The ads created by using this software are based on the idea of Keywords, that are defined or selected by the advertisers. By using Google AdWords, companies can choose the budget they want to create the advertisement, the location or the web pages where the ads will be shown, as well as evaluate the result of the ad.

Basic principles of Google Adwords


If you are an advertiser or a business owner who wants to use AdWords for advertising your company, products, or services, then you need to understand how it works. Google AdWords is the most popular Pay-Per-Click technique which works on the basic principles which are provided in the list below:

Bidding Strategies

People who use this software need to place their ads in Auctions. These auctions are operated by Google in order to find the ads that show when a person searches on Google. In order to place your ad in an auction, you need to choose a bidding strategy which will depend on your goal. Here are some bidding strategies:

  • Cost-per-click – this is a method that focuses on getting more click on your ads. It is suitable for people who want to gain more traffic on their website.
  • Cost-per-impression – this is a method that focuses on the number of times the ad has been shown. It is suitable for people looking to build their brand image and name
  • Cost-per-Acquisition – this is a method that focuses on the conversion rates on customers. According to the experts from Digital Knockout Agency, it is suitable for people who are already established advertisers, and are not looking for promotional purchases.

Ad Rank

Another important aspect of Google AdWords is the ranking that is given to the ad which is based on its quality score and bid. All ads are placed in an order that is based on the Ad Rank. The ad that with the highest rank has the top position and subsequent ranks get the subsequent positions.

What are the top benefits of Google AdWords

1. Flexibility

One of the best benefits that you can get when using this software is that it is quite flexible and it can be customized by businesses for it to match the business’s needs. This software will make it possible for you to create advertisements for specific locations, your selected audience, and customized keyword searches.

2. Measurement and evaluation

Various AdWords agencies use online marketing strategies to measure specific aspects of their AdWord campaigns. You will be able to evaluate and measure results and the popular trends at a better level and change things as needed. You can measure conversions and brand awareness by using AdWords, so you can continue to improve yourself in order to improve your profits.



As you can see, by using Google AdWords, you can improve the efficiency of your business, as well as gain insights into the reach of your advertisements.