Google Ads – Today we want to get you started with the topic of “advertising on Google” or AdWords. CPC, CPM, AdWords, impressions, clicks,… lots of technical terms from performance marketing! Today we want to explain Google Ads very simply, using the most frequently asked questions. How does advertising on Google work? How do I advertise on Google? What are the real benefits of Google AdWords? As an agency for Google in the specific area of advertising, target groups, targeting and marketing campaigns, we receive many questions every day. We have collected the most important ones and would like to answer them for you here. How advertising on Google works, search engine marketing (SEM), explained step by step.
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Google AdWords – Here we have important tips for successful advertising with Google AdWords and thus more sales in the online store at the same time. The online marketing mix is becoming increasingly complex. There are now numerous ways to place digital advertising for e-commerce. From organic to paid reach. However, the most interesting option for most online retailers is Google AdWords! Today, we’ll explain why and how based on the most important questions we receive as a Google AdWords agency.
Increase product awareness
Promoting the brand and brand awareness
Increase sales
Generate more leads
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Advantages of Google Ads
Advantages of Google Ads at a glance:
Advertise on keywords
Place advertisements according to data (age, location, language, …)
Days, time and frequency can be planned
Costs = user / scalable
Cost control
Local / global orientation
By the way, how much does an ad on Google cost? How much does 1,000 impressions cost? Calculate your Google Search Ads media budget here as an example.
How does advertising on Google work?
The main advantage of advertising on Google is the extremely precise reachability of target groups.
Simply put, Google is one of the biggest companies when it comes to user data. Not just data: Many insights can be gained from it: Wishes, dreams, habits, probabilities.
What interests do users have? What do they want? Where do they come from? Which website do they visit? Which products do they look at in online stores? How much time do they spend on a particular topic, e.g. in an online blog? What interests do they have? Google can answer all these questions and accordingly users can be targeted extremely precisely with advertisements.
The more precisely these advertisements are sent out (target group definition), the less budget has to be spent on the advertisement. This naturally reduces costs!
The ads are then displayed on various websites, blogs and online stores in the display network. Not only that, ads are also displayed in apps, regardless of whether they are Android or iOS devices. The technical term for this is the aforementioned display network.
Agencies that deal explicitly with the topic of Google Ads are there to define target groups, identify them, create campaigns, test them against each other and get the greatest possible success out of the advertisements. This is how you achieve your goals of “product awareness”, “brand awareness”, “increased sales” and “more leads”.
Campaign optimization
CPC bids (bid management)
Quality factors
Keyword pools
Account structure
Campaign settings
Conversion and landing page
Remarketing / retargeting of visitors
But it gets even better: remarketing and retargeting make it easy for online retailers to reach visitors to their own website or online store again. Anyone who does not decide to buy directly, but leaves the shopping cart or even just the product page, will be presented with the product again through remarketing. An ingenious marketing tool!
The user is therefore not lost when he or she abandons or leaves the online store. He or she is immediately and precisely recorded during the visit and packed into a further segmented target group. In this way, individual stages can also be created within campaigns, e.g. people who have visited your online store, placed a product in the shopping cart but have not ordered it! Exactly the same product with photo and/or description is now displayed. Within the search engine but also in the Display Network, if desired.
Retargeting therefore makes it possible to reach a specific user or user group again with a specific product, regardless of whether it is physical or digital.
Reach target groups: minimize wastage
As just described, certain target groups can also be created. For example, the people who have placed a product in the shopping cart. Users who have viewed a specific product can also be reached. Users can also be segmented according to length of stay. Anyone who has been on the online store for more than a minute will be saved separately because they were very interested. The more precise the target groups, the more cost-effective the advertisements will ultimately be.
Depending on this, individual and personalized advertisements can be created. These appeal to people even more precisely through the already known product, which increases the potential willingness to buy. This is the big secret of target groups behind advertising on Google.
A/B tests and success optimization: personalization of advertising
The great advantage of digital marketing, especially with and on Google, is the flexible possibilities.
This includes, for example, testing different advertisements (so-called A/B tests or split tests). In the past, in classic advertising, e.g. with posters, designs were decided in lengthy processes and ultimately printed thousands of times, posters – unchangeable. If you advertise on Google, you can adapt your ads permanently, 24 hours a day, 7 days a week. Personalization is the big magic word. The more personalized such an ad is, the higher the sales generated by the ad.
Good agencies therefore constantly test different ads against each other. These tests differ, for example, in the wording, the text layout, the type of words, the length of the words, … All forms and variations are tested against each other in order to filter out the most effective ads.
The CPC is used as the key figure. CPC means cost per click, i.e. the costs incurred for a click. Depending on the campaign, you do not primarily pay for the impressions (quantity of ads), but for the actual clicks.
Conversion: sales, leads & co.
Good conversion, bad conversion? In online marketing, conversion stands for a “conclusion” (sale, newsletter, workshop, etc.). A conversion does not always have to be a sale of a product; for example, registration for a newsletter or registration for a webinar (free online video course) is also referred to as a conversion. The key figures that are used to measure success, such as the CPC described above, also differ depending on this.
Analysis and evaluation in monitoring
The permanent analysis of such different tests running against each other to check the effectiveness of individual campaigns is what makes ads so efficient after the initial runtime for tests on Google.
In online marketing, this form of analysis opens up completely new possibilities and, of course, detailed statements about successes and failures. Here is another small comparison with classic poster campaigns: key figures were hardly verifiable here! With an advertisement on Google, you can even recognize the age of the buyers, as well as information about people who have not bought, such as interests, place of residence and much more.
In the past, an expensive market research institute would have been commissioned to carry out such a detailed analysis, but today the figures are available for free!
Due to the constant and extremely detailed analyses, the monitoring at the end of the process is of course also extremely sophisticated, which in turn enables short yet meaningful reporting for the customer.
Advertisement optimization
The better the initial target groups are organized, the more precise the retargeting of individual products, the better the tests, the better the conversion, the better the analysis and monitoring, the better the ads! Good agencies make sure that the key figures are always optimal and that your media budgets are used efficiently.
How do I advertise on Google?
How do I advertise on Google? As one of the largest companies in the world, Google naturally offers its own system for placing advertisements. In this Google Ads Manager, which is definitely very complex for beginners, you can make all kinds of settings and configurations.
What are the benefits of Google Ads?
What are the real benefits of Google AdWords? This is the question that is asked in many marketing departments, in many companies, by many employees! After all, there are now numerous ways to promote sales in the online marketing mix. From content marketing to influencer marketing, social media marketing to social media advertising, article placements in blogs and magazines, search engine optimization, the possibilities are so diverse.
Google Ads make it possible to advertise your own products and services online, but how effective are ads on Google?
As you will see later in the best practice example of the click behavior or heatmap of search engine results, a large proportion of active clicks and interactions are limited to the top rankings in particular. This is precisely where advertisements such as Google Ads are placed. Although it is obvious to the normal user that it is an advertisement, it plays no role for the user in the active search. Accordingly, users particularly like to click on the first place, whether it is an advertisement or not.
Fast results, buy quickly!
Google Ads therefore fit into people’s normal everyday lives, they are not an annoying pop-up, but in the first, quick perception a recommendation from a renowned brand, Google. Moreover, the recommendation comes from Google, the largest search engine in the world, a brand that is highly trusted by its users. This is the answer to the question, how does advertising on Google work? A strong algorithm that meets the needs and desires of users, a strong brand that is highly trusted and the typical click behavior, quick results, little comparison. By placing advertisements, you can quickly get your company to the top rankings.
This makes good ads an extremely successful model in online marketing!
What is a Google AdWords campaign?
Google AdWords campaigns target the search results in the Google search engine.
The largest search engine in the world
First of all, the biggest and ultimate advantage of Google as an advertising platform: the majority of all search queries in this world are made via Google.
In many countries around the world, the word “googling” is a technical term in its own right for searching for information online. Billions of people want to know every day, what is the best dog food? What is the weather like in New York? Women’s T-shirt trends? Recommendation vacation Italy? Divorce lawyer? The search queries are as varied as the users themselves, Google filters billions of web pages and sorts them through the extremely smart algorithm in a way that has allowed Google to become one of the top companies in the world.
This is why Google is so interesting as a platform for companies. Extremely wide reach, targeted to specific user groups, personalization of ads.
Companies that advertise on Google use AdWords. The program for advertisements on Google. Anyone who advertises here is displayed in the first places in the search engine.
Display in the first places
The first places are extremely coveted, not only in search engines, but also in recommendation lists. Whether it’s a printed magazine in the lifestyle and living sector or a super digital Instagram page with lots of followers. Referral marketing is always a powerful method of convincing people of your own product or service. Accordingly, a good ranking and recommendation lists are also worth so much in search engines. The one at the top is important! This is exactly how the principle and concept behind Google Adwords works. You can now see how extremely the click behavior is concentrated on the first places in the click behavior and heatmap.
Click behavior and heatmap
If you look at the click behavior and the movement of the eyes on the Google homepage, as shown here in our best practice, you will quickly recognize that the front rankings in the search engine in particular have a very high frequency. The majority of clicks happen right here on the first rankings. This listing is correspondingly valuable.
Believe it or not, we also receive very simply formulated queries that ultimately contain an interesting core. E.g. this one, “What does it mean to advertise on Google Search?” In fact, there are two different factors for ads on Google: impressions, i.e. the ad in the search results, and clicks, i.e. an active interaction leading to your own website or online store.
Impressions therefore express the number of people who have seen your website or online store in the search results. However, this does not yet lead to an active action or interaction. Only a click makes this happen. In the end, clicks are also paid for, and the costs and prices are calculated accordingly.
Costs are incurred with every single click. The more people click on the ad, the more media budget is spent. In the end, the clicks are decisive in the key figures: how many people went to the online project and what interaction did they carry out afterwards? Did they view a specific product? Was a product perhaps even placed in the shopping cart? Has the purchase process already been triggered but then canceled?
This brings you back to the topic of ad optimization around target groups and target group segmentation. The more precisely the actions on your own website or online store are tracked, the more precisely advertisements can be displayed on Google afterwards.
Unconsciously, many in online marketing would of course immediately think that different offers are being compared by the visitor – no! In fact, we usually accept the first offer. Anyone who works with a search engine company, for example, knows how difficult it is to get to number one. But in the end it’s all that counts! Because almost nobody looks at page 2 in the search results, 90% stay on page 1. Not even one in ten people go so far as to look at the second page of search results. In fact, 68% only stay with the first 5 rankings of the first pages.
Page 1 and Top 5 is everything
Accordingly, there is only one goal, ranking at the top! This can be achieved either by spending on search engine optimization (long-term) or by buying direct results (short-term) through Google AdWords.
What do Google impressions mean?
Two key figures are particularly important if you deal with advertising frequently. Impressions and clicks. What is the difference?
Basically, the entire process, including the search results, is focused following a user’s search query. The user sees the search results, which usually consist of 10 recommendations, sorted in the ranking from 1 to 10, on page 2 you will then find further recommendations, from 11th to 20th place and so on.
Impression and click – the difference
Impressions: Display in the search results
Impressions – Every time your website or online store is displayed to a user within the search results, this is an impression. This means that your company has been displayed once.
Clicks: Referral and visit
Clicks – Clicks are important because the user only lands on your website or online store when they actively click.
In the area of Google Ads, but also in search engine optimization, the focus is therefore particularly on these two key figures. In search engine optimization, there is also the average ranking, because organic traffic is built up through content marketing. That sounds good, doesn’t it? But what is the downside? Content marketing is always a long-term project, every single page has to be written and new articles have to be published all the time.
With Google Ads, you can skip this long route and place your product or service directly at the top of the search results. The big goal in search engine optimization can be achieved in just a few minutes – that’s the big advantage. This is what makes Google Ads so popular with companies and a real model for success in online marketing.
How much does advertising on Google cost?
How much does it cost to advertise on Google? Costs and prices, the most interesting question for many who are looking for a good Google Ads agency. How much does such advertising actually cost? And how much does advertising cost in comparison, e.g. on Facebook? There is competition not only in online marketing, but of course also in traditional media, for example TV advertising. In larger projects, questions such as “How much does a Super Bowl ad cost?” or, on a smaller scale, “How much does advertising on ZDF, RTL, Pro7 and co. cost?”
Different advertising formats compete against each other and ultimately it is about evaluating and assessing the different channels. Which advertising channel promises the most effective benefit, the greatest attention and the most sales?
The big question for many: what does an ad on Google cost?
Price calculation: Advertising spaces and competition
The advertising rates are extremely individual, depending on the industry you are in with your company, who you want to reach and what competition you have in your particular area. Topics such as finance, vacation, hotels, real estate,… are highly competitive. Accordingly, this requires smart concepts and strategies to ensure the necessary extra attention in the search engine and among the competition. To give you an idea of how much an ad on Google costs, we would like to give you a brief insight into various areas and sectors.
Here you can see the click price for certain search queries. But you can also see the difference in the spelling. Briefly described: You book advertising spaces (individual keywords) with Google AdWords. The fewer advertising spaces available, the higher the price. As you can see in the example “buy house Berlin” compared to “buy house Berlin” – 50% saved!!!
“Buy house Berlin” with 9,900 search queries per month is €1.10 / click
“Buy house in Berlin” with 1,000 search queries per month is €1.19 / click
“Buy Berlin house” with 720 search queries per month is only 0.55€ / click
If you manage to reach 10,000 visitors a month, you will reach 120,000 visitors a year. 120,000 clicks that do not have to be financed by paid advertising. Accordingly, search engine optimization pays off extremely well in the long term.
120,000 visitors per year at an average of 0.92€ / click = 110,400€ equivalent value
A good SEO project that attracts 120,000 visitors over 5 years reaches a total of 600,000 people, an equivalent of 552,000 €.
However, this is once again the most obvious and greatest benefit of Google Ads compared to advertising such as that placed on TV or on billboards. Users click directly on the offer. Even better, they have actively carried out a search query themselves beforehand, so they are currently in a phase of interest, need and desire. With a poster or TV advertisement, this interest still has to be generated!
User has executed search query independently
Recommendation at the moment of active interest
The desire for interest does not have to be generated first, as with posters or TV advertising, but also a large part of social ads if they are not well configured
Key figures: Comparison by KPI
There are so many different ways to reach people! But how do you compare the different advertising measures with each other?
For new campaigns, but also for entire new strategies, ways must be found to inform people. Classic marketing! There are different ways to Rome, but ultimately it is always about reaching people in order to activate and inform them. From the message from the public relations department to the new product launch in the online store.
CPM: Costs to reach 1,000 people
To enable a comparison between the different media, the “cost per thousand” (CPM ) is used for evaluation and comparison, i.e. the costs invested to reach 1,000 people.
How to start a Google Ads strategy?
If you decide to run Google Ads or AdWords at a professional level, you need a good strategy!
The advertising strategy is worked out together with the agency. The first step is a brief initial discussion and the naming of your most important goals. In the next step, the agency will brainstorm your brand. In a subsequent workshop, concrete goals are identified and strategic paths are developed.
Strategic development includes, for example, prioritization but also categorization of products. In classic business administration, this is known, for example, from the categorization of A, B and C products. Products only make up a small part of the range, but deserve a large part of the attention. For example, because they serve as a PR vehicle, as well as a specific product from a specific brand, such as the world-famous “Billy shelf” from a Swedish furniture brand. Certain areas have such a focus, e.g. brand names, certain brand products or even bestsellers.
After identifying the most important products: how do you go deeper? Whether you have 1,000 or 2,000 links, a good Google AdWords agency will ensure that you have a presence in the world’s largest search engine! Every single product, every single link and every single page is optimized, based on keywords, semantics but also through attention-grabbers, e.g. capital letters, arrows or discounts.
The deeper you go into the subject, the more complex and broader the topics that need to be taken into account in AdWords in order to place Google Ads. From the first meeting to the workshop with the agency to the final strategy, campaign set-up, optimization and expansion, monitoring and reporting. To ensure that your company is always up to date and state-of-the-art, we recommend working with an agency for professional Google Ads management.
Google Ads Agency
Do you want to advertise on Google? Then you’ve come to the right place! We can help you with the conception, strategy and implementation of your ads and campaigns.
Consulting, workshop and strategy
With many recommendations and experience, we create campaigns for our clients. We do not focus on quantity, but on quality. Consulting is therefore one of our cornerstones, as is the development of strategy papers and, of course, the subsequent campaign implementation for our clients. From national e-commerce to international, multilingual systems. We guarantee you performance and solid service.
Advertisements, campaigns and search engine marketing (SEM)
We place advertisements and campaigns, analyze the results and optimize them to make them ever more efficient.
Contact and contact person
Questions about consulting, workshops, strategy development? Then get in touch with our contacts now:
Native ads (native advertising or native display ads) refer to all paid advertising formats that are discreetly labeled as ads. Simply put, native advertising is advertising that does not look like advertising. Native ads offer minor disadvantages, but above all advantages. Did you know? According to a white paper by AppNexus, the CTR of native display advertising is on average 8.8 times higher. According to Forbes, purchase intent increases by 18% with native ads. We also always measure a higher CTR in our customer projects. What does this have to do with? Personalization of content, storytelling and more discreet communication channels: referral marketing. Why native advertising? What is native advertising? What is native advertising?
Have you already gained experience with Google Ads? And are you looking for new challenges? Perfect! Support us and our clients in performance marketing. Find out more about us, vacancies and contact details for your application here:
Email marketing is part of the overall performance marketing strategy.
Agency, strategy for closing sales
Performance marketing agency – Performance marketing includes a mix of online marketing tools. We will introduce you to all areas and advantages step by step. You will get to know: Social media, email marketing, affiliates, display and native advertising, but also content marketing, search engine ads and, last but not least, search engine optimization. It all starts with the right strategy and a good performance marketing agency that knows its trade.
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