What is Google Ads?


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I am sure that more than once you have heard about Google Ads, formerly called Google Adwords. But do you know what it is and if you should use it?

I will tell you in advance that Google Ads can be your great ally when developing an online strategy. Thanks to it, you will be able to reach your target audience more easily and therefore you will get more customers and more sales. In this post we will try to explain in a simple way what Google Ads is.

What is Google Ads?

Table of Contents

Google Ads is the online advertising platform owned by Google. In Ads, we can show ads in the Google search engine, in its network of search partners, in more than a million web portals, in videos and in applications (what is known as the Google display network). Of course, including YouTube, the second search engine after Google itself.

The “Adwords” brand can be translated as “ads by words” or “ad words”, and it makes a lot of sense since the platform relies on keywords to display ads.

Adwords management Melbourne started out being mainly known for search engine ads, we have many more places to advertise, including computers, tablets and mobile phones (hence the name change to Google Ads):

  • Google search engines integrated in portals (for example, in terra.es).
  • Other search sites owned by Google, such as Google Maps, Google Shopping, and YouTube.
  • Millions of web portals from around the world, which are part of the AdSense program.
  • In YouTube videos.
  • In Gmail.
  • In Mobile Apps.

How does Ads work?

Before getting into explanations, I am going to define four basic concepts that we are going to need to know how Google Ads works:

Campaign: The campaign is the set of ad groups (ads, keywords) that share a budget, geo-targeting and other settings. Many times a campaign is carried out for each product that we advertise.

Keywords (“keywords”): These are individual terms or phrases that are defined by the advertiser and that trigger the ads to be displayed. That is, when a user searches for that word in Google (or one more or less similar or related), in addition to the natural results, he sees our ads.

Ads: These are the different advertising texts that will appear in search engines announcing our products. They look more and more like the natural results shown on Google.

The maximum bid: Represents the maximum cost that the advertiser is willing to assume so that his ad is clicked or shown (on Display). On the search network, bids are set on a cost-per-click (CPC) basis, while on the display network you can bid on clicks (CPC bids) or impressions (cost-per-thousand-impressions bids, CPM). ).

Quality Score: If I have created campaigns that perform well, meaning the keyword is closely related to what people are searching for, to the ad, and to the landing page, Google rewards me with a high Quality Score. The good Quality Score has the immediate effect that the CPCs for my words decrease and that the ads appear more times.

Its operation is as follows:

After creating and configuring a campaign with its geographical and demographic segmentations, determining the budget, etc., we must create ads that will appear in search engines when someone enters the keywords that we have indicated in their search.

Where does the maximum bid come into play? Well, the maximum bid will determine, not in all cases since it depends on more factors, the positioning of our ads. In other words, imagine that we bid a maximum of €1 for a keyword, “web design companies”, but our competitors bid €1.01. In this case, the competition’s ad should come out above us. However, this is not entirely the case, and thank goodness because if it were so, those with the highest budget and the highest bid would always be at the top. As I have mentioned, the positioning of the ads also depends on other factors such as the quality level.

Thanks to this, it makes it possible for businesses with a small budget to compete on “equal” terms with large businesses. In Ads, the person who bids the most does not position better, but whoever does it the best. I explain in depth in this video how Google Ads works.


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