But how do Google ads really work? My customers often asked me “Could you explain Google ads in some very simple language?” That’s why I decided to write the article. Hope it will give you a better idea of how Google ads work.

Google Ads Auction

Google Ads determines which ads should show with a lightning-fast ad auction, which takes place every time that someone searches on Google.

For example, say you are a cleaning company that provides cleaning services to commercial properties. When the potential customer searches “office cleaning” from google, you and your competitors all want to be seen from the google search result. Then how does Google decide whose ad appears on the top of the page?

The Ad Rank

The order in which the ads appear for a specific search is called the ‘Ad rank.’ The ad with the higher rank will be shown in the higher positions on google. Ads with the highest Ad Rank get the most desirable placements on the page.

There are three main factors that determine the ad rank.

1. The Bid Amount

By setting the bid, you are allowing Google to understand how much you are willing to spend for a click on your ad.

Back to the example, when someone searches for “office cleaning”, you and company A, B, C all want to be seen. So, everyone put in an auction price – how much you are willing to pay for the ad placement in the search result.

• You – $2 per click
• Company A – $4 per click
• Company B – $3 per click
• Company C – $1 per click

Note that you are able to change your bid at any time.

2. Quality Score (QS)

The Quality Score is decided by

• Expected click-through rate
• Ad relevance
• Landing page experience

It is on a scale of 1 to 10. 5 is the average. 10 is the highest.

3. The Expected Impact of Ad Formats

There is always an option for additional information to be linked into the ad, known as ‘ad extensions.’ From here, Google is able to estimate how extensions and other formats of ads are able to positively impact your ads performance.

Google combines bid price, Quality Score, and ad format impact to decide the final position of your ad. Your Ad Rank is recalculated each time in an auction, so your ad position can fluctuate each time depending on your competition, the context of the person’s search and your quality at that moment.

See the above example, although company A’s bid price is $4/click, their quality score and format impact are low. So, they only got 4 points in the auction. Although your bid price is $2/click, your quality score and format impact are high. You got 20 points in total, which is the highest Ad Rank, thus you will get the #1 position on the search result.

According to the ad rank, the ads will appear in the below order:

#1 You

#2 Company B

#3 Company C

Company A’s ad won’t show up on google search result this time although he is willing to pay more.

The Actual CPC

The amount you end up paying is generally less than your bid price. Your actual CPC is going to be $0.01 more than the Ad Rank of the advertiser below you divided by your Quality Score.

Your Actual CPC = the Ad Rank of the advertiser below you / your Quality Score + 0.01

See below example,

It’s Worth Focusing on Quality

An experienced Google Ads advertiser will devote time to optimizing the Quality Scores of their campaign week-by-week and month-by-month. The rewards for doing this can be significant. Even if your competitors have higher bids than yours, you can still win a higher position at a lower price by improving your Quality Score and using highly relevant keywords and ads. It will not only save the ad cost a lot in the long term but also give you the most exposure in Google search results.

In digital marketing, the landing page, not to be confused with the home page is a single webpage that is created specifically for marketing. Landing pages are where the visitor ‘lands’ after clicking on a link from an email or from an ad they may have come across. It is designed to create a compelling, focused experience for the user. This is because it prompts visitors with one clear goal- a call to action. This call to action is essentially an invitation or marketing target strategy to prompt users to take the desired action. In the case of marketing or advertising companies, this would be to purchase goods, or hire their services, just to name a few.

Understanding Quality Score and the landing page experience in Google ads

Google utilizes the 1- 10 Quality Score metric in your Google ads account, which should be paid some attention to by advertisers. The quality of your ads is calculated for each Google ads auction they are entered into. The Quality Score that is returned to you is the general metric presented as a diagnosis of your ads’ overall performance within the auction. Higher quality ads come with more bonuses for the advertisers. These include lower cost-per-click (CPC), better ad positions, and eligibility for ad extensions as well as other ad formats. Furthermore, the Quality Score can be used as a tool to improve the customer experience and delight of your visitors.

Below are the main factors that affect your Quality Score:

• keyword relevancy
• ads relevancy
• landing page experience.

Thus, it goes without saying that the better the landing page experience, the higher your Quality Score will be and the more likely the visitor will turn into a customer. Specifically, landing page experience is Google Ads’ measure of how successfully your website provides viewers with what they are looking for upon clicking your ad. The measurement of the quality of these ads is monitored both by Google AI and humans. This is to ensure that the more useful ads are shown in higher ranks on Google.

What is the average landing page conversion rate?

In electronic marketing or eCommerce, conversion rates are the number of visiting customers who then become paying customers, i.e. those that end up using the services provided. And in marketing, conversion is an important step in increasing the money that your business makes. According to a recent survey, the average conversion rate is 2.35%, with the top 25% of businesses on Google Ads holding a conversion rate of 5.31% or higher. However, a good conversion rate would be one of 10% or above, with some very successful global businesses achieving a conversion rate of 11.35%.

How to optimize the landing page to increase the conversion rate?

There are a few steps that should be undertaken. Once done so, you will begin to see an increase in your conversion rates.

1.      Include the keyword

Ensure to include the keywords you are targeting in the headline so that users are confident that they are in the right place.

For example, if you are targeting audience who search for “Graphic Designer in Sydney”, it is a good idea to include “graphic design” in your headline. When people landing on the page, they will know immediately this is what they are looking for.

2.      Include your unique selling proposition

When you tell your audience what you are selling, ensure that your propositions are unique, supporting the headline and hero image at the top of the page. Be succinct with your message to ensure the customer stays engaged.

• What are you able to offer your customer?
• Why are you different from your competitors?
• What are the benefits that your customer will be receiving from your services?

Make sure to highlight your selling points with clear and short messages.

Below is a good example from TPG’s website, where they include all the benefits of the BizPhone they are offering on the banner with easy-to-understand terms. Their message and services are succinct and positive.

3.      Include a feature section

A feature section is a part that provides a little more detail about additional features or benefits. It would also answer any FAQs that users may hold. The detailed information will give audience more confidence to buy.

4.      Include the call-to-action

Create a clear call-to-action that prompts users to get involved with your services right away! This is the ultimate goal of the landing page.

To increase your advertisement conversion rate, it is a good idea to create some small steps to encourage your audience to take action now. For example,

• A free trial
• Request a demo and call back
• Leave you a message
• Phone you
• Come in-store
• Follow you on social media
• Request a free quote
• Sign up for newsletter

Make clear what your visitor will receive in exchange for signing up. Being open with your visitors from the get-go will more likely encourage visitors to take action.

5.      Include a self-introduction

Creating a proper self-introduction is vital so that you can create an instant connection with your visitors.

One suggestion would be to introduce the team behind the brand name. For example, a team photo, roles present, or even some additional info outlined in an introductory video. This is a simple and effective way of connecting your brand with customers. This prevents them from feeling as though they are communicating with a ‘sales machine.’

All the information provided above will play a large role in assisting you with creating a landing page to increase the conversion rate. Keep in mind that it will not only save your cost in Google ads but will also optimize your ROI. Why not starting optimizing your landing page now!