All language subtitles for 2. How Google Ads Works

In this video you're going to learn how Google Adwords works and this will help you understand how Google

became one of the biggest companies in the world and also then how to reduce the costs of your advertising

campaigns.

So if you understand the mechanics and the general system you're going to be much more effective and

be able to reduce your advertising costs.

So firstly how did Google become one of the biggest advertising companies in the world.

Well it's amazing actually had a genius system.

They really were able to create unlimited advertising space.

So let me just give you an example here.

So if I type in digital marketing course online I can see that there 1 2 3 4 advertising slots there.

And if I move further down to the bottom of the page there is three more so seven advertising slots

per page.

Now if we look at a traditional newspaper they have a similar thing where they've got another place

to sell their advertisements you can see it's one ad here and as we go through there's another ad here

and there's probably another couple of Odd's stand here as well.

So it would appear it would appear on the face of it that they're selling kind of advertising space.

You know Heidi Google become ten times like you know a billion billion dollar company when a newspaper

like this would it would a similar advertising model just didn't get big at all.

Well the genius part of Google AdWords is that they serve ads depending on where people search for.

So now you've got seven slots here to sell.

But if I change this search term to say another topic like ethical hacking you can see that we've got

maybe another six or seven advertising slots to sell as well.

And if you want to get a scale of how many advertising slots they've got you can see on these Internet

life stats Web site that Google gets over 3.5 billion searches per day.

This is a live Kantar of it here.

So if there's 3.5 billion searches a lot of those terms can be there can be advertising space sold for

them.

Multiply that by 7:7 slots per search term and you have got a phenomenal business and really an unlimited

advertising space that you can sell to not.

It is just a lot more than a traditional newspaper and that's really how Google became the biggest advertising

company in the world it's actually genius and it's just amazing to see how powerful that is.

So with so much advertising space it's unlimited obviously there's a challenge there how do you actually

sell all this advertising space in an effective way.

A traditional newspaper might ring up this company Virgin and say hey you know we've got a space for

the banner on our Web site.

You know this is what it costs.

And boom they book it in and they just manually put this here.

But obviously with so much advertising space Google can do that.

They can't ring individual people and they can't even set up the ads for them.

So that's why they have created Google Adwords which is a self-serve platform so you come in as an individual

and set up your own ads and that allows them to feel that advertising space very very easily.

Now the way that they've set it open outwards as well here is it's essentially an auction system.

So if you want to be in the top spot here in Google you have to make a bid to be at the top and then

you're bidding against other companies who want to appear at the top here.

So for example in this ad it's pleural side versus you to me and they would be bidding against each

other to get to this top spot here.

But unlike a traditional auction where the only factor is price to the highest bidder gets the top spot

actually in Google they've added in another factor which is a quality score.

And it's those two factors combined that actually determine your rank or who gets the top spot and Google

or what position you appear in.

So it's called Odd rank and as it says here it's really determines the position of your odd an odd rank

is calculated by the bid amount plus you're multiplied by your quality score.

So this is important if you want to really reduce the costs of your advertisements.

The good thing to know is that you don't have to have the highest bid what you need to have is the highest

bid multiplied by your quality score.

So if you can improve your quality score you can essentially rank those higher bidding competitors.

Now I will explain why quality score is here in a second.

But one question you might be adding Well why didn't they just leave it at the highest bidder.

That would just seem to me just an easier process to do.

Well that is true but the thing is say if you to me had a much bigger budgets than any other company

then they could just buy up the advertising space for every single related keyword and Google don't

want that they want to create ads that are really very relevant to people searching.

So that's why they've added in this factor of the quality score and the quality score if we look it

up here it's the expect to click through race and the odd relevance on the landing page experience so

it's a combination of these factors that actually make up the quality score.

So if you want to reduce the cost of your advertisements and get to the top spot with a lower bid than

what you can do is improve your quality score.

And the way that you do that is firstly by increasing your expected click through rate.

Now that is based on historical data.

So if you have an advertisement here that is has great copy in it that really want and wants me to get

to click through then Google is going to say that and theyre going to say this is an ad that people

have clicked through in the past.

So theres a good chance that theyre going to click through in future and you can improve this part of

your quality score you expect to click through rate by really writing a great ad and that is an important

part of increasing your expected click through rate and increasing quality score.

Now add relevance of course is very important.

So you want to really want to make sure that your ad includes the keywords that you are appearing in

the ad for so people will click through and also your landing page experience.

So when they do click through on the and are they actually staying there or are they just clicking straight

back to their Google will be really measuring all of that.

So in terms of having success on onwards and keeping the costs of your campaigns low it's really important

to put time and effort into writing ads that are going to grab people's attention and make them want

to click through that you were creating ads that are really targeted to specific keywords and not just

general ads that cover everything.

And also then where you're sending people actually through to is that or is that relevant to the ad

and what they've been searching for.

So there's a couple of factors to think about there.

It's not just about setting up your campaigns and just pressing go and forgetting about it.

You do need to have a think about it and make sure it's relevant and so you can really keep that quality

score high on our rank competitors with bigger budgets.

So that is really how Google Adwords works how it became one of the biggest companies in the world by

selling Riddhi on limited advertising space and how you can reduce the costs and I rank higher bidding

competitors by increasing your quality score.