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Google AdWords

Google AdWords and Online Marketing since 2008.

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Google Adwords

Google Adwords is a pay per click online advertising platform, created by the internet’s biggest search engine used as an outlet for businesses of all sizes to get their products to the average internet user. Companies will choose keywords that when put into a search query will link the user to your website. When multiple companies choose similar keywords they have to bid on an ad slot.


Cost-per-click (CPC) where you are charged every time someone clicks your ad.

Cost-per-impression (CPM) which will charge you after your ad has appeared in the search engine 1000 times. When using CPM it does not need to be clicked, it just needs to be seen on a search engine when potential customers are searching. Payment will start with a maximum bid, this is the max amount you are willing to pay for your ad spot. You typically won’t have to pay this unless your ad is ranked the lowest. Generally, you will be paying less for your ad spot.

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How does Google AdWords work?

Google Adwords a bidding pay per click system, which means that a website owner would pay to have their website advertised, either through the Google Search Network or Google Display Network. As the name, pay per click, suggests Google charges the advertiser a certain amount of money per click on the link.

The Ad Auction that Google uses to put a specified advertisement in its position starts when a user first searches something in the Google Search Engine. Google then finds keywords in a users search query and then creates a list of potential advertisements that could be displayed. The list is then ordered based off of two main factors; maximum cost per click bid and a quality score. The maximum cost per click bid is how much you would be willing to pay for a customer to click to your website. A quality score is determined using a formula created by Google to determine how relevant that website would be to the user based off of the content and metadata.

Ultimately an Ad Rank is created and the websites at the top get displayed more often in Google’s Search Network.

How much does Google Adwords cost?

The price of a click varies based mainly on whether it’s on the Google Search Network or Google Display Network. The Google Search Network cost per click is much more expensive than Google Display Network, generally, it is about 1 to 2 dollars per click. This price is much higher because the Google Search Network utilizes ads in a way that increases the likelihood of a person buying that product. The Google Display Network normally has less than one dollar per click because of the more passive advertising it utilizes.

Google Search Network’s ad rank system allows for a higher quality score to increase your ad rank. This means that if you have content relevant to your keyword and a website that Google would deem useful to the user, then you would end up having to pay less to get a higher ad rank.

Many smaller businesses choose Google Search Network advertising because of its higher click to customer ratio. Small businesses often find that Google’s Display Network purpose is more about spreading brand awareness with flashy advertisement banners than directly attracting customers. Creating proper brand awareness requires massive amounts of money that small businesses simply can’t afford to create.

Pricings and Demands of Keywords

Choosing proper ad words, setting an accurate location, and viewing your ads at the right time is all part of getting more customers. Overall, setting an ad campaign is not all it takes, Google’s algorithms learn over time and each ad word campaign will need to be tweaked. And over time can generate more traffic to any website. Carefully understanding the market demands and knowing the price of each Adword and adjusting to each budget is also a key aspect when e creating online AdWords. 

While some companies or products are in higher demand it leads google to price them differently. For example, there is a significant price difference between the ad word Insurance and Core blood, while one costs $54.91, the other is priced at $27.80. This is because more insurance companies are competing for customers. Another example is insurance ad words priced higher than other ad words like “rehab” where there are fewer demands and a lower rate of competition. Following is a list of price comparisons from wordstream:

  • Insurance – $54.91
  • Loans – $44.28
  • Mortgage – $47.12
  • Attorney – $47.07
  • Credit – $36.06
  • Lawyer – $42.51
  • Donate – $42.02
  • Degree – $40.61
  • Hosting – $31.91
  • Claim – $45.51
  • Conference call – $42.05
  • Trading – $33.19
  • Software – $35.29
  • Recovery – $42.03
  • Transfer – $29.86
  • Gas/Electricity – $54.62
  • Classes – $35.04
  • Rehab – $33.59
  • Treatment – $37.18
  • Cord blood – $27.80

Bidding on correct ad words

For a business owner, it is important to make sure they bid on the right ad words. Hence, when choosing ad words being specific and choosing the right balance of keywords will minimize the cost. For example, using expensive keywords like Insurance in every advertisement can be damaging and costly for any company’s financial position, therefore it is suggested that a range of long tail keywords are utilized.

Quality Score for Google AdWords

A quality score is given to your ad from Google. This score is based on the ad itself and how relevant the keywords you chose were. The main factors Google considers when giving a Quality Score include:

  • Click-Through-Rate, this is the rate at which people will click on your ad after seeing it. Click-through-rate is generally calculated with the formula (total of clicks on the ad) / (total times ad seen). This is a very important component in finding the quality score. Having larger click-through-rate shows that users find your ad relevant and useful.
  • How relevant your ad is to the keywords you have chosen. It is important to use ads relevant to the keywords you are choosing because it should help the user find what they are looking for.
  • Relevance and quality of the landing page is the third factor in finding the quality score. The landing page is a web page you end up on after clicking on an ad. The landing page should be the most relevant page to your ad. If you are trying to sell something the ad should take you to the page with that item, not your home page.
  • The relevance of ad-text. This is the text that appears with your ad. It should be short and straight to the point of what you are offering. The final factor is how well your AdWords account has done in the past.

The Benefit of a High-Quality Score

You want to aim for a high-quality score. Having a high-quality score will increase your ad rank, and lower your cost. When you get a higher quality score it will start to give you discounts on your bid prices. When it starts to decrease you will have to start paying more.

Ad Rank

The ad rank you are given is used to determine who will get the first position on the ad list. The higher your ad rank the higher your ad will be placed. Your ad rank is calculated with the formula (maximum bid) X (quality score). You want to try and balance the quality of your ad to your maximum bid. Attempting to optimize like this will help increase your ad rank and keep your cost to a minimum.

Actual Cost-Per-Click

After the ad-rank has been calculated and all ads are placed, the CPC will be found. The amount you will pay is based on competing for ad ranks, and your quality score. The formula is (ad rank of the company’s ad below) / (your quality score) + $.01 = actual CPC. This means the higher your quality score and the higher ranked you are the less you must pay. If your ad is ranked the lowest you will end up paying your maximum bid.

Google Adwords - Lower CPC based on higher quality scores.

Google Adwords – Lower CPC based on higher quality scores.


Google Adwords generally have the following structure:

  • Ad-Text: The ads you will be running through Google AdWords will be text ads. The best way to organize these is into four short simple lines.
  • Headline: In this line, you just want to say what you are offering. It should not exceed 25 characters.
  • URL: The URL line is just where you put your URL. It should be shorter than 35 characters.
  • Description Line ½: These two lines should grab the reader’s attention and convince them to click on your ad. Both of these should not exceed 35 characters.



Keywords are words or phrases that will be search queries. Search queries are what users are typing to local small businesses, products or any other service or content. Your keyword can be extracted from any search query that holds your specified keyword. If your keyword is “shoes” your ad will be triggered by “Nike shoes”, “Adidas shoes”. It will all get mapped back to your keyword.

Keyword Match Types

Google AdWords has five different match types to choose how broad your ad will reach.

  1. Exact Match: Exact match keywords will only match companies adword with users search query when the match exactly. If there are any other words in the search query than the adword will not get matched. This match type has the most narrow reach.
  2. Phrase Match: Phrase match keywords will match with a search query when the adword is in the same exact order. However, other words may be around the adword phrase when in the search query but this will not trigger if the adword in the search query is changed.
  3. Modified Broad Match: The modified broad match keywords will match the adwords and the search query in any order. Within the search query, any words can appear between or next to the registered adwords.
  4. Broad Match: When broad match keywords are used it will match with similar words. The search query does not need to contain the exact adword, it will trigger an ad when similar words are in the search query. This match type will have the broadest reach.
  5. Negative Match: Negative match keywords will stop your ad from being shown. When a negative match keyword appears in the search query than the ad will not be shown to the user.


Grouping Keywords

When using Google AdWords, one of the best strategies you can use is the Keyword Grouping. By grouping keywords, you are able to create higher quality ads. To start grouping keywords you should grab the broadest keyword. From there you should start branching them out too much more narrow categories. Doing this starts to create a tree with branches that help organize the keywords.

Once your keywords are grouped you will have them grouped by theme. You will be able to run multiple ad campaigns that will be a better fit for the different set of keywords.

By grouping ads, you are able to create much more relevant advertisements. These groups will also help you create landing pages that are more relevant to who you are advertising to. Improving both of these will improve your quality score which brings great benefits.


Dynamic Keyword Insertion

Dynamic Keyword Insertion(DKI) is a tool within Google AdWords to make your ads more relevant to users searches. This is an important tool to learn how to use, it can be extremely useful. However, you need to be careful when using it because it has the potential to create big problems.

DKI will make your ads more relevant based on user searches. This occurs by DKI inserting words from the user’s search query into the ad. The words would replace the keyword in the ad to make it look more specific to what the user is looking for. So if your keyword is “Shoes” and the headline of your ad is “Great Prices on Shoes”. If the user is searching for “Nike Shoes” then that will replace “Shoes in the headline. Your new headline will say “Great Prices on Nike Shoes”. This will make the ad much more relevant to the user, and allow it to reach further.

Advantages of Dynamic Keyword Insertion

Using DKI makes your ad more specific to the user. When ads are more related to users needs they are more likely to click on it. This will increase your click-through-rate and thus raise your quality score. Google AdWords will bold words that are used in your ad if they are also used in a search query. So when the user’s search query is placed into the ad itself it will make it pop. Making it pop will draw the users attention and might make them more likely to click on.

Disadvantages and Dangers of Dynamic Keyword Insertion

A disadvantage of DKI is that many inserted words will be longer than the original keyword. This could cause the line to go over the character limit. When this happens it will just use your base keyword. Another problem that can be caused by DKI is that it could cause bad wording or grammar in the ad. If someone just searches “Shoe” your ad would say “Great Prices on Shoe”. This could cause people to click on the ad because they find it funny. They will not go there looking to buy anything. This could cause your click-through-rate to be high and conversion rate low. The conversion rate is the rate that people who click-through actually use the service.

The largest danger that comes from using DKI is it is possible to get trademark violations. This can happen when a competitors brand name is used in the ad rather. You are allowed to bid on that keyword, but if their name appears in your headline you could get in legal trouble.

Is Google AdWords Worth Using?

Google AdWords has a large learning curve but can become very effective. If you can learn how to pick out the keywords that are best fit for you. Then you make an ad that can get a high-quality score that is also relevant to the keywords you chose. It can bring in many more customers if you know how to use. Using other tools like DKI will allow you to become more prominent on Google. Of course there is organic search optimization too!

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Why would you want to use Google Adwords?

There are many useful ways to use Google Adwords to benefit your business, and the main way is finding your specific customer demographic. Google offers services like ad scheduling, geotargeting, and device targeting, to allow you to manipulate where and when your ads are displayed based off of the analytics you are getting from Google.

Ad Scheduling is a tool that allows for a business owner to manipulate the time that your ad would be displayed. This is especially useful for retail stores or restaurants that have physical storefronts and thus are only open during a specific time of day. Perhaps you own a cafe; you would most likely set your ad scheduling so you get more ads out in the morning for people looking to get breakfast to find it.

Similar to how a cafe would set their ads in the morning, a realtor would want customers coming within their region. Google’s geo-targeting allows people to specify areas where their ads would be displayed on a device. Have you ever noticed when you would be on your phone and notice an ad for a local restaurant right down the block? This is Google’s geo-targeting feature at work. Geo-targeting is especially useful as you can avoid paying for clicks that come from an unlikely customer that lives far off from your store.

Device Targeting is another way to find a specific customer and end up saving money on useless clicks. If you think about it, if a person is making a big purchase or some other important decision, they would most likely use their personal computer to do that. By this logic, allowing the ability to choose which devices your ads target allows you to more likely find paying customers.

Search Engine Optimization

A major flaw with Search Engine Optimization is that it would take months for a website to get to the top of a Google page, if ever. Many people perceived this effect to be Google intentionally filtering out new businesses because they were paid by larger competitors. However, the real problem was that a website needed enough site authority to allow the algorithms to put them higher in the search engine. Google Adwords can solve this problem. Google Adwords’ instant solution to getting a little bit of customer traffic in the beginning also has beneficial long-term effects. With Google Adwords, you can find the keywords that would help you find the largest amount of customers, and then apply it to a Search Engine Optimization campaign.

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Our online marketing services are not just limited to Seattle, Bellevue, Renton, Tacoma or Bellingham. But we offer services to all businesses nationally and globally. Go ahead and contact one of the top digital marketing agencies near you. You'd only realize that the SEO services that they offer will be extremely costly and outside your budget. In fact, there are many SEO Companies to choose from but we ask you to check our reviews and decide why our customers chose us.

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Google AdWords for Small Businesses

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Besides providing SEO and online marketing to local businesses we also provide such services to small businesses in other states. For example, local cities include SeattleFederal Way,  Issaquah, Kirkland, Lakewood, WA, Monroe, Olympia, Tacoma and Bellingham, WA.

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