Learn How to Use Google AdWords to Achieve Your Marketing Goals

Running an online business is not always easy, especially when the algorithms of search engines and social media platforms are constantly changing. Google, for example, makes thousands of updates to its search algorithms every year. And it's challenging for marketers to stay updated to and implement each of them in their strategies.

Competing with eCommerce giants like Amazon, small-scale online marketers often struggle to allocate their budgets across the right digital channels. While boosting one's organic reach is important, investing some percentage of the marketing budget in running impactful PPC ads is also crucial.

PPC ads can boost your reach and conversions exponentially, as opposed to the relatively slower results in the case of organic SEO. While different search engines have different tools, Google has a powerful advertising platform: Google Ads (former Google AdWords).

What is Google AdWords?

Google AdWords, currently known as Google Ads, is an online advertising platform that works on a pay-per-click (PPC) model. It allows online marketers to display their ads on Google’s search engine results pages (SERPs). The advertisers hosting their ad campaigns on Google AdWords pay for displaying and ranking their ads on the top of the search results, and the payment rates depend on the keywords they are targeting.

Google AdWords, or Google Ads, is a channel through which businesses promote their brand and its products and services by ranking on the top of Google SERPs. Through Google AdWords, companies can sell their products and services, improve their brand awareness, generate higher website traffic, and boost conversions.

Types of Google Ads

Google offers its online marketers a range of advertising options and campaigns, including −

  • Search campaigns − they appear as text ads on Google search results for specific keywords.

  • Display campaigns − they leverage Google’s website partners to display your ads on different websites.

  • Video campaigns − they appear before the start of a YouTube video in the format of video pre-rolls.

  • Shopping campaigns − they help you promote your products and services visually.

  • App campaigns − these are also included within the Display Network and act similarly to video ads, but you can use them for targeted campaigns.

How Google AdWords Works?

Businesses can seamlessly and efficiently manage their Google Ads accounts online and create and modify their ad campaigns anytime, anywhere. You can change and modify your ad text, images, etc., and alter or adjust your settings and budget easily.

Google Ads works on paid search strategies, in which marketers advertise their brand and its products or services on the search engine’s listings. The ad campaigns running via Google Ads are usually shown on the top of a SERP (search engine results pages) or the side panel. Paid search ads look similar to organic results, with an additional 'Ad' or 'Sponsored' label over them.

Before discussing how Google Ads works, let's understand the important terms and definitions.

  • Cost-per-click (CPC) − CPC is how much you pay every time a visitor clicks on your ad.

  • Cost-per-engagement (CPE) − CPE is the amount you pay whenever a user performs a certain action on your ad, such as watching a video, signing up for a list or newsletter, etc.

  • Cost-per-mille (CPM) − CPM is how much you pay for every 1000 ad impressions. The word 'Mille' in Latin means 1000. Therefore, CPM is also known as cost per thousand.

Google AdWords operates under a PPC (pay-per-click) model, which indicates digital marketers can run an ad based on a target keyword and make bids and budget adjustments on their keywords. These bids are the maximum bids, which means the maximum amount you are willing to pay for a particular ad.

Let's understand how Google Ads works with an example. Let's say you have placed a bid of $4 for a specific ad. And suppose Google determines that the cost per click (CPC) for that ad is $2, and therefore, you can get an ad placement. However, if Google determines that your CPC is higher than $4, then you won't get that ad placement.

Apart from the bidding practices, you can also set a maximum daily budget limit for a specific ad, which means you cannot spend more than that limit every day. This helps you to gain a better idea of the amount you should spend for your Google ad campaigns, thus making smarter budgeting decisions.

Can I Use Google AdWords for Free?

You can save your target keywords to your Google Ads Keyword Planner tool for free. But you will need to submit your billing information to be able to create a Google Ads account since you will need to pay for running keywords-targeted ad campaigns. However, signing up for a Google Ads account is free. You need to pay only when your potential customers take action, such as when they click on your ad to contact your business or visit your website.

Google Ads allows users to bid for appropriate advertising space on Google search results and other Google-powered platforms. Besides, to help you establish your ad account successfully, this Google-affiliated advertising tool will provide data analysis reports and real-time insights to help you track and monitor the performance and costs of your ad campaigns.

How to Get the Most of Google AdWords?

You can follow these tips to make the best use of Google Ads for maximizing conversions.

  • Identify your advertising goals and objectives. With the right goals in mind, you can have a clear vision of your next steps and the end result, thus creating and running more impactful and highly targeted ads.

  • Develop buyer personas by identifying who your customers are, where their interests lie, and what their buying patterns are on specific devices.

  • Conduct keyword research using tools like SEMrush, Google Keyword Planner, etc., based on market competition, market demands, customer preferences, and search volumes at every stage of the sales funnel.

  • Create targeted ad copies using relevant keywords, compelling call-to-action, an attractive headline, and proper ad extensions.

  • Structure and organize your Google Ads account into different ad groups and ad campaigns. Each of them should feature targeted keywords and relevant ads.

  • Design mobile-friendly landing pages, which should focus on the features and benefits of the product or service you are promoting. Use high-quality images, a short and simple contact form, and a clear and visually appealing call-to-action.

  • Avoid running irrelevant ads that don't match the searcher’s intent. If a visitor doesn’t find your ad relevant, it won’t receive enough clicks.


In conclusion, it’s time for e-commerce businesses to leverage the power of Google Ads to boost their reach, brand awareness, and sales. Google Ads (formerly Google AdWords) can be the most effective way to improve your online presence and stay ahead of the competition by catching your potential buyers’ attention. Moreover, given the high number of Google users, allocate a certain amount of your marketing budget for running PPC ad campaigns on Google! Take full advantage of your highly active digital audience.

Updated on: 03-Apr-2023


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