How Adwords Works

Pay Per Click (PPC) advertising is great because you chose what keywords you want to trigger your company’s advert online.

The PPC advertising that 99% of companies care about is Google AdWords. That’s not to say that Bing, Yahoo and others don’t matter, it’s just that Google dominates the market.

How Google AdWords and PPC Works

You construct small text ads that will appear on the top or side of the Google search results page. When people type in one of the keywords that you selected, your ad appears.


google adwords example chicago roofing

[Ads in positions 1 – 3 cost more than ads that appear on the side]


Because you pay for every click, the art of AdWords is optimizing the ads to appear for the right keywords and enticing the right type of people to click the ads. Window shoppers or tyre kickers cost you money on Google Adwords.

It’s Easy to Get Started

The great thing about Google AdWords is that you can be up and running tomorrow. It’s a great way to generate instant traffic while it’s also an excellent way to test the market for new products or services before launching head first into an expensive advertising campaign.

Running a good campaign takes some experience (newbies can burn through money if they don’t know what they’re doing), but all you need is a Google account and a credit card to start with.

How Much do You Need to Spend?

The short answer is you can spend as little or as much as you like, from $10 per day to $1000 per day. Some terms can cost $0.10 per click and others $25.00 per click. This is referred to as the Cost Per Click (CPC).

The Bid Process

AdWords works on a bid based process for keyword phrases, so what you end up paying depends on the market for that term. Some terms or phrases are more valuable than others. Terms with commercial intent (buy, review, discount, coupon, best) cost more per click than informational terms (‘how to’ or ‘where’) because people are ready to pull out their credit card and buy something with commercial intent terms.

Example:  “buy house and contents insurance” vs. “what is house and contents insurance “

Note: Paying more isn’t a bad thing, it’s all relative to the industry you’re in and the value of a conversion. Paying $17 for each click and $105 on average per conversion is great if you sell high-end 3-D printers. It’s all relative.