Google Ads Basic
What is Google Ads?
Google Ads, formerly known as Google AdWords, is a bid-based online advertising platform that includes text format search engine ads, video ads, banner ads, YouTube ads, and other display options. Google Ads appear across Google search results and millions of Google partner websites.
How do Google ads work?
You write an ad, place a bid, wait, and sales roll in. That’s basically it… with a few small caveats.
I’ll cover how to create a Google Ads campaign in step-by-step detail later, but essentially, Google Ads works on a pay-per-action pricing model, usually calculated as cost-per-click (CPC). That means you pay a certain price every time a user clicks on your ad, or whatever your goal action is.
That price changes often and depends on multiple factors, including how many other brands are currently targeting that keyword, search volume, expected reach, time of day or year, and more.
When you place your ad, you specify your “maximum bid” — the most you’re willing to pay for a click (or view, or other action you’ve defined).
The three main bidding options are:
- Cost-per-click (CPC): You pay when a user clicks on your ad.
- Cost-per-mille (CPM): You pay per 1,000 ad impressions.
- Cost-per-engagement (CPE): You pay when a user performs a specific action on your ad (signs up for a list, watch a video, etc).
Types of Google ads
Google Ads has changed a lot over the years, with new features and ad types. Right now, Google Ads consists of:
- Responsive search ads
- Performance Max ads
- Discovery ads
- Display ads
- Shopping ads
- App ads
- Smart campaigns