Google Ads
With the introduction of the Google Ads advertising system in 2000, Google opened up a new way for webmasters and companies to generate additional traffic. Back then, it was launched under the name AdWords. At the same time, the search engine also gave up its "ad-free" status, which until then mainly stood for the independence of the search results. The ads are separated from the results of the organic search by the label "Ads" and a thin gray dividing line. To the right of the regular results list are additional ads that companies and service providers can run via the advertising program. The ads have particular significance in the area of SEA, search engine advertising.
This is how Google Ads works
Similar to organic search results, there is also a ranking order for ads, as a 1st position can only be occupied once. The search engine has introduced a kind of bidding system for this problem, where the user specifies their maximum cost-per-click (CPC) – that is, the cost they are willing to pay per click for their ad. The ad space is then "auctioned" among all "interested parties" for a specific search term. The calculation of the ad position simultaneously includes the so-called "quality score" (e.g., click-through rate for the keyword, relevance of the ad text). Similar to organic search or search engine optimization for websites, keywords also play a crucial role in Google Ads. The more accurately they match the company’s or service provider’s offer, the more successful the ads are (Return on Investment).
What ad formats are there?
Over the years, ad formats in Ads have continuously evolved. A brief overview of the campaigns and what they mean:
Search campaign
This refers to the pure text ads that appear above the organic search results. A maximum of four ads can appear above the organic results, and a maximum of three below them. The ads can be identified by the clear labeling with the term “Ad.”
Display campaign
Display ads appear in the Google advertising network on partner sites such as YouTube or Gmail. This allows you to increase product awareness, promote a brand, boost sales, or generate more leads.
Shopping Campaign
Shopping ads have surely appeared in search results for all of us at some point. For a search term, small images appear alongside the shop name, product, and price. For e-commerce merchants, shopping ads are a perfect choice. They also don't require keywords, as they are not displayed with advertising text.
Video campaign
These often appear before or during YouTube videos. But they also appear on video partner websites or apps in the Google Display Network. There are various formats, allowing a wide reach to engage customers.
App campaign
With an app campaign, one can promote apps and thus increase download numbers. All Google platforms are available for this purpose.
Smart Campaign
Anyone who is not yet familiar with Google Ads can use the Smart Campaign. Here, ads are automatically placed in Google Search, on Google Maps, in Gmail, on YouTube, and on partner sites. The setting options are limited.
Discovery Campaign
Here, ads are also placed smartly and automatically. For example, on the homepage of the Google app, ads can be displayed with Discovery. User preferences are searched for and ads are selected accordingly. However, you cannot place keywords or make further settings here; everything runs automatically.
Important: Keyword research
As in search engine optimization, which is the optimization of websites for organic search results, keywords are also particularly important in ads. For text ads, for example, relevant keywords should be selected that have a search volume and match the product/service being advertised. Competition also plays a role: it is often better to focus on a keyword with less search volume and, in turn, have less competition. This way, ads are more likely to be clicked. Additionally, click costs are usually higher if a keyword is highly competitive.
Click fraud and criticism of the advertising program
The position of an advertisement is calculated, among other things, from the quality score, which in turn depends on the click-through rate and the relevance of the ads. This results in the issue of click fraud, not because companies want to push their own ads, but because competitors aim to minimize the "value" of the ad while simultaneously depleting the advertising budget of the campaign switch without allowing it to complete a conversion. Since the inception of the advertising system, Google has been attempting to combat click fraud by, among other things, checking IP addresses and cookies. Clicks that show fraudulent intent are not charged to the advertiser—nor are those clicks that occurred "accidentally."