How Google Ad-word Works?

How Google ad-words workSEM:

 Is a form of Internet marketing that involves the promotion of websites by increasing their visibility in SERP’s primarily through paid advertising.

When your search engine strategy is not working for you or you have not enough time for waiting for SEO results or you want better and instant results for your business then you will go with search engine marketing. Another reason for using this platform, If you have new startup then you can definitely go with SEM. It gives you better results as well as fast results.

Otherwise if you have time or you are confident with your SEO strategy then you can use only SEO.

SEM is broken in to two categories:

How Does Google Ad Words Works?

When user enters a query in to the search box on , Google scans a keyword on each webpage in its index to see if the pages matches with user query. Then Google displays webpages that most related to the user query.

Google also displays ads which are related to the user query. For example if you are searching for a particular mobile then google also displays the add related your query like if you searching for MotoZ then google displays the add run by Flipkart or Amazon. But with ads, google scans the keywords that you have chosen to represent your business. When user enters query in to the search box and this query equals to your keyword then your add will be displayed next to the search results.

how does google adwords work

Google shows the ads which are related or relevant to the user query. if your keywords are similar to the users query then your add will be displayed on to the top of the search results, which depends on the competition between those keywords.

Suppose you have business relat

ed to the fitness, also you have a website but it is not so popular. So google adwords is very good option for your business. It doesn’t matter you have website or your website have top ranking.

What is PPC?

PPC is nothing but a pay per click. When one of the user click on your display or search add then google could apply charges for this click to you.

Why PPC or Why Search Engine Marketing?

There are few which elaborate the why PPC is required for businesses,

  • Fast measurable results
  • You have control of budget and scheduling
  • Traffic is targeted
  • You only pay for clicks
  • Get on top spot of Google page and search result instantly

General Media Pricing:

  1. CPM:

-Cost per Thousand


In this scenario you can pay only when how many times your add will be displayed that is cost per thousand           impressions.

                       2. CPC:

                       -Cost per click


The advertising cost calculated by following formula,

Advertising Cost= The Ad rank of the person below you/Your quality score + $0.01

Quality Score:- Google assigns a score (1-10 scale) that affect how relevant an advertiser keyword, ads and landing pages for the searcher query.

Factors affecting on Quality Score:

  • Keyword relevancy
  • Landing Page
  • Ad relevancy
  • Historical performance
  • Various relevancy factor

Following diagram shows how CPC working,

cost of ppc                   

                  3. CTR:

                  -Click through rate

                  -CPC and CTR are look like similar but they have different are, in CPC you want to pay for per click, but in case of CTR you could pay the total number of clicks. Following formula shows how CTR works,

what is CTR                 

                   4. Cost per Conversion:

                    In this scenario you will pay only when your conversion goal will be achieved. When user filling the       registration form, user could bought the product, download the E-book or pdf’s or doing the particular activity you want to doing for user.

what is Cost per conversion


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