Simplest Guide On How Google Ads Work In 2021

Google ads
Harshdeep Rajput
In Pursuit of Prosperity.

Simplest Guide On How Google Ads Work In 2021

6 min read

We tried our best to make this article as simple as possible that even an 8-year-old could easily understand. So without further ado let’s begin!

Before jumping into google ads, let’s talk about how google works.

It involves 3 parties.

  1. Person – Who has a query.
  1. Google – Where that person searches for that query.
  1. Results – Which answers the query of that person.

To simply put, This is sam. His mom’s birthday is coming and he wants to give her a beautiful present.

Now he is thinking about a present. He then goes to google and searches for “Gift for mom” and google responds to his query with the following results.

Google Search Query

These various websites will help him by answering the query.

So in this case Person was Sam and he was thinking about a present for his mom so he searched “gifts for his mom” on google and Google provided results to answer his query.

How GOOGLE works in simple words

       ↓

                  Step 1           →                       Step 2                  →                   Step 3

Query/ Problem of a person –>Searches for solution/answer ongoogle  –>Gets the Solution/Answer.

Now you have an understanding of how google works, right? Great! It’s time to jump into google ads.

After knowing how people use google and how it works it’s time to use that knowledge to generate some business from it. 

For instance, if you are selling pain relief products you can use google ads to convert a customer by solving their problem. 

This is Bobby. Bobby is suffering from back pain and wants relief from it. Now he will definitely see a doctor if the pain is severe but in most cases he could be facing it due to long office hours or any other reason.

The pain is not severe and he’s slightly feeling it but who wants to feel pain anyways? Even if it’s a minor one.

Now Bobby has a problem which is ‘back pain’.  He wants a solution to it so he searches on google ‘how to get rid of back pain’ 

So now google results provide him solution like this:

Google ads

As you can see google ads appear before the organic search results and Bobby is more likely to click on one of these and he’s likely to buy a product to get rid of his pain.

So what we are actually doing is “Solving Bobby’s problem with our products”

Step 1     →      Step 2      →         Conversion point              Step 3    

Query/ Problem of a person –>Searches for solution/answer ongoogle  –>Your chance to provide the solution to their problems with your products or services.Gets the Solution/Answer.

We’ve added one stop before step 3 which is “Conversion Point”. With google ads we are going to help people by solving their problems with our products and services. 

The goal is to provide the solution before our prospect gets to step 3. To stop them at the conversion point and convert them as customers.

Now that you know how people search for problems/queries on Google to get a solution and you can provide solutions/answers to them with your products or services.

There’s one last thing left to discuss, which is how you can get on top of the google search results even before organic results. With google ads? Easy? Right? Yes, it is.

Google ads work like an auction, you bid on keywords to rank your ad on google.

Ad rank

Ad rank is combination of an advertiser’s keyword quality score and their bid

Keyword quality score : It’s mainly based on 3 factors.

  • Ad relevance – How relevant your ad is to the keywords someone searches.
  • Expected CTR (Click through rate) – How often people click on your ad when it appears on the results page.
  • Landing page experience – How often people bounce after clicking on your ad.

After you take care of the keyword quality score it’s time to bid on the keywords. Remember you are not alone in this, other businesses who deal in the same field as yours will be bidding on the keywords too.

That means you have to fight your way to get on the top in which ‘Bid and keyword quality score’ are your weapons.

If your keywords quality score is good and you bid higher than your competitors then chances are, you are going to rank on top. Google marks your keyword quality score out of 10. So 7 and above is considered a good keyword quality score. 

There’s one important thing to keep in mind that google will only charge you when someone actually clicks on your ad. It doesn’t matter how many times your ad appears in search results, you won’t be charged anything unless someone clicks on it.

CPC : It stands for cost per click. You can decide how much you are willing to pay when someone clicks on your ad. It’s the amount you bid on your keyword. 

If your ad’s keyword quality score is higher than your competitor, then google automatically lowers your CPC, In simple words, you don’t have to pay more than your competitors to rank your ad on top.

This was the simplest way to present how google ads work, Now if you want to know how to set up google ads campaigns and their benefits please head over to our this article.

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