Google Ads Notes

Introduction to Google Ads

Google Ads, formerly known as Google AdWords, is an online advertising platform

developed by Google. Advertisers pay to display brief advertisements, service offerings,
product listings, or videos to web users. It can place ads both in the results of search engines
like Google Search and on non-search websites, mobile apps, and videos.

Types of Google Ads Campaigns

1. Search Campaigns:
o Appear on Google Search results pages when users search for products or
services.
o Keywords trigger these ads.
o Text-based.
2. Display Campaigns:
o Appear on Google Display Network (GDN), a collection of over two million
websites, reaching over 90% of Internet users.
o Image-based ads.
3. Video Campaigns:
o Ads shown on YouTube and other Google partner sites.
o Can be skippable or non-skippable video ads, bumper ads, or out-stream ads.
4. Shopping Campaigns:
o Showcase products in a visual format.
o Appear on Google Search, Google Shopping, Google Search Partner websites,
35 and the Google Display Network.
o Use product data from the Merchant Center.
5. App Campaigns:
o Promote app installs and engagement on Google Search, Play Store, YouTube,
and GDN.
o Automated campaign type.
6. Smart Campaigns:
o Simplified campaign type using machine learning to optimize ad delivery.

Key Concepts and Terminology

 Keywords: Words or phrases that describe your product or service. Keywords trigger
your ads when someone searches for those terms.
 Ad Rank: Determines the position of your ad on the search results page. Calculated
based on bid amount, ad quality, and the expected impact of extensions and other ad
formats.
 Quality Score: A metric used to determine the relevance and quality of your ads,
keywords, and landing pages. Higher Quality Scores can lead to lower costs and
better ad positions.
 CPC (Cost Per Click): Amount you pay when someone clicks on your ad.
 CPM (Cost Per Thousand Impressions): Amount you pay per one thousand views
(impressions) of your ad.
  CPA (Cost Per Acquisition): Amount you pay when someone takes a desired action,
like a purchase or a signup.
 CTR (Click-Through Rate): Ratio of clicks to impressions. A higher CTR indicates
a well-targeted ad.
 Conversion Rate: The percentage of users who take a desired action after clicking on
your ad.
 Ad Extensions: Additional information about your business included with your ad,
such as phone numbers, additional links, or locations.

Setting Up a Google Ads Campaign

1. Account Creation:
o Sign up for a Google Ads account.
o Set up billing information.
2. Campaign Setup:
o Choose campaign type and goals.
o Define campaign settings: locations, languages, budget, and bidding strategy.
o Set up ad groups: organize keywords and ads.
3. Creating Ads:
o Write compelling ad copy.
o Use keywords strategically.
o Create multiple ad variations to test performance.
o Include call-to-action (CTA).
4. Choosing Keywords:
o Conduct keyword research using tools like Google Keyword Planner.
o Select relevant keywords with a balance of high search volume and low
competition.
o Use match types: broad match, phrase match, exact match, and negative
keywords.
5. Budget and Bidding:
o Set a daily budget and bidding strategy (manual or automated).
o Adjust bids based on performance and goals.
6. Ad Extensions:
o Add relevant ad extensions to improve ad visibility and performance.

Optimization and Management

 Monitor Performance: Use Google Ads dashboard to track key metrics like CTR,
conversion rate, and CPA.
 A/B Testing: Continuously test different ad variations to determine what works best.
 Keyword Optimization: Regularly review and refine your keyword list. Add
negative keywords to prevent your ads from showing on irrelevant searches.
 Quality Score Improvement: Enhance ad relevance, improve landing pages, and
ensure good user experience.
 Bid Adjustments: Optimize bids for better performance by increasing bids on high-
performing keywords and decreasing on low-performing ones.
 Use Automation: Leverage Google's automated bidding strategies and responsive ads
to improve efficiency.
PPC (Pay-Per-Click)

 Definition: PPC is an online advertising model where advertisers pay a fee each time
their ad is clicked. Essentially, it’s a way of buying visits to your site, rather than
attempting to earn those visits organically.
 How It Works: Advertisers bid on keywords relevant to their target market. When a
user types in one of these keywords, the ad may appear in the search results. If the
user clicks on the ad, the advertiser pays the bid amount.
 Platforms: Google Ads, Bing Ads, social media platforms (e.g., Facebook,
LinkedIn).
 Benefits:
o Immediate Results: Quick visibility in search results.
o Targeted Advertising: Ads shown to users actively searching for specific
terms.
o Measurable ROI: Detailed metrics on ad performance.
 Key Components:
o
o Keyword Research: Finding relevant keywords that potential customers are
searching for.
o Ad Creation: Crafting compelling ad copy and design.
o Bid Management: Adjusting bids to optimize ad spend and performance.
o Landing Pages: Creating relevant landing pages to convert clicks into
customers.

CPC (Cost Per Click)

 Definition: CPC is the amount you pay for each click on your ad. It’s a critical metric
in PPC advertising, determining how much you spend when someone interacts with
your ad.
 Calculation: CPC = Total Cost / Number of Clicks.
 Influencing Factors:
o Bid Amount: The maximum amount you're willing to pay for a click.
o Quality Score: Google's metric assessing the relevance and quality of your
ads, keywords, and landing pages. Higher Quality Scores can lower your CPC.
o Competition: Higher competition for keywords can drive up CPC.
 Strategies to Lower CPC:
o Improve Quality Score: Enhance ad relevance, improve landing pages, and
ensure a good user experience.
o Optimize Keywords: Use more specific (long-tail) keywords with lower
competition.
o Refine Targeting: Use audience and location targeting to reach the most
relevant users.

CPA (Cost Per Acquisition)

  Definition: CPA measures the cost of acquiring a customer who completes a desired
action, such as making a purchase or filling out a form. It’s a performance-based
metric that reflects the effectiveness of your advertising campaigns.
 Calculation: CPA = Total Cost / Number of Conversions.
 Benefits:
o Performance-Based: You only pay for actual conversions, not just clicks.
o Budget Control: Helps manage budget by focusing on actual customer
acquisitions.
 Strategies to Lower CPA:
o Improve Conversion Rates: Optimize landing pages and user experience.
o Target High-Intent Audiences: Use remarketing and custom audiences to
target users more likely to convert.
o Test Ad Variations: Continuously test and refine ad copy and creatives.

CTA (Call to Action)

 Definition: A CTA is a prompt on an ad or webpage that encourages the user to take a

specific action, such as "Buy Now," "Sign Up," or "Learn More."
 Importance:
o Directs User Behavior: Guides users towards desired actions.
o Increases Engagement: A compelling CTA can boost interaction rates.
 Best Practices:
o Clarity: Be clear and concise about what action you want the user to take.
o Urgency: Create a sense of urgency with phrases like “Limited Time Offer” or
“Act Now.”
o Visibility: Ensure the CTA stands out with contrasting colors and prominent
placement.
o Relevance: Align the CTA with the content and user intent.

CTR (Click-Through Rate)

 Definition: CTR measures the percentage of users who click on your ad after seeing
it. It’s an indicator of how well your ad is performing in terms of attracting clicks.
 Calculation: CTR = (Number of Clicks / Number of Impressions) * 100.
 Importance:
o Ad Relevance: High CTR indicates that your ad is relevant and appealing to
the audience.
o Quality Score Impact: Higher CTRs can improve your Quality Score, leading
to better ad positions and lower costs.
 Strategies to Improve CTR:
o Compelling Ad Copy: Write engaging and relevant ad headlines and
descriptions.
o Effective Keywords: Use keywords that match user intent closely.
o Ad Extensions: Use site links, callouts, and other extensions to provide
additional value and attract clicks.

CPM (Cost Per Thousand Impressions)

 Definition: CPM is a pricing model where advertisers pay for every thousand
impressions (views) of their ad. It’s commonly used in display advertising.
  Calculation: CPM = (Total Cost / Number of Impressions) * 1000.
 When to Use: CPM is useful for brand awareness campaigns where the goal is to
maximize visibility rather than drive immediate clicks.
 Benefits:
o Wider Reach: Good for increasing brand exposure.
o Predictable Costs: Easier to forecast ad spend.
 Strategies to Optimize CPM:
o Targeting: Narrow down your audience to ensure your ads are seen by
relevant users.
o Ad Quality: Create visually appealing ads to capture user attention.
o Frequency Capping: Limit the number of times your ad is shown to the same
user to prevent ad fatigue.

What is ROI?

ROI (Return on Investment) shows how much profit you made compared to the total
amount you spent.

It answers: "Was the money I spent worth it?"

Profit
ROI = * 100
Total Investment

Or you can say:

Revenue−Total Cost
ROI = * 100
Total Cost

Let’s Break It Down:

 Revenue = Total money you earned from sales
 Total Cost / Investment = Money you spent (ads, product cost, delivery,
etc.)
 Profit = Revenue – Total Cost
xample:
Suppose:
 You earned ₹5,000 from a campaign (Revenue)
  You spent ₹1,000 on ads + ₹2,000 on product and delivery (Total Cost =
₹3,000)
Then:
Profit = ₹5,000 – ₹3,000 = ₹2,000
ROI = (₹2,000 ÷ ₹3,000) × 100 = 66.67%

ROAS (Return on Ad Spend)

Simple Definition:
ROAS tells you how much money you earned for every ₹1 you spent on
ads.
It helps check if your ad campaign is bringing in revenue.
Formula:

¿
ROAS = Revenue ¿ Ads Ad Cost

Example:
If you spent ₹500 on ads and earned ₹2,000 from sales:

2000
ROAS = =4
500

That means you earned ₹4 for every ₹1 spent on ads.