What is Google Adwords, What Does it Do and How Does It Work?

Google AdWords has been rebranded as Google Ads. However, the fundamental concepts and functionalities remain the same. Please verify if there have been any significant changes since then.

Google Ads is an online advertising platform developed by Google. It allows businesses to display ads on Google's search engine results pages (SERPs), Google Display Network, YouTube, and other partner websites. The platform operates on a pay-per-click (PPC) model, where advertisers bid on keywords and pay for clicks on their ads.
Here's a brief overview of how Google Ads works:

Ad Campaign Creation:

• Advertisers create campaigns to promote their products or services.
• Within each campaign, they create ad groups that contain a set of related keywords and ads.

Keyword Targeting:

• Advertisers select keywords relevant to their business. When users search for these keywords on Google, their ads may appear.

Ad Creation:

• Advertisers create text, image, or video ads to be displayed when users search for relevant keywords or browse partner websites.
• Ads typically include a headline, description, URL, and, if applicable, additional features like callouts and site link extensions.

Bidding:

• Advertisers set a bid, which is the maximum amount they are willing to pay for a click on their ad. The bidding system determines ad placement.

Ad Auction:

• When a user enters a search query or visits a website that is part of the Google Display Network, an ad auction takes place.
• Google's algorithm considers various factors like bid amount, ad relevance, landing page quality, and expected click-through rate (CTR) to determine which ads are displayed and in what order.

Ad Ranking:

• Ad Rank is calculated based on bid amount and ad quality. Higher Ad Ranks lead to better ad placements.
• Ad Quality is influenced by the ad's relevance, historical performance, and expected CTR.

Payment:

• Advertisers are charged only when a user clicks on their ad, following the PPC model. This means you pay for actual engagement rather than just ad impressions.

Campaign Monitoring and Optimization:

• Advertisers regularly monitor campaign performance using Google Ads' analytics tools.
• They can adjust bids, tweak ad content, and make other optimizations based on performance metrics to improve the effectiveness of their campaigns.

Google Ads provides a powerful tool for businesses to reach potential customers across various online platforms, allowing for precise targeting and measurable results. Keep in mind that the platform's features and policies may evolve over time, so it's advisable to refer to the latest Google Ads documentation for the most up-to-date information.