{"id":13209,"date":"2022-02-14T21:23:05","date_gmt":"2022-02-14T21:23:05","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/14\/how-does-google-ads-work-in-2022-the-visual-guide\/"},"modified":"2022-02-14T21:23:05","modified_gmt":"2022-02-14T21:23:05","slug":"how-does-google-ads-work-in-2022-the-visual-guide","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/14\/how-does-google-ads-work-in-2022-the-visual-guide\/","title":{"rendered":"How Does Google Ads Work in 2022? The Visual Guide"},"content":{"rendered":"<p> <a href=\"https:\/\/go.fiverr.com\/visit\/?bta=1052423&nci=17043\" Target=\"_Top\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/fiverr.ck-cdn.com\/tn\/serve\/?cid=40081059\"  width=\"601\" height=\"201\"><\/a>\n<\/p>\n<div>\n<p>Google Ads help articles are certainly helpful, but when it comes to understanding exactly how Google Ads works, it\u2019s not so clear. And ask a super-passionate PPC expert how the Google Ads auction works and they may as well be an actual auctioneer.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-auction-meme.jpg\" alt=\"how does google ads work - auction meme\" width=\"585\" height=\"330\" class=\"wp-image-57328 aligncenter\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-auction-meme.jpg 585w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-auction-meme-480x271.jpg 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 585px, 100vw\"\/><\/p>\n<p style=\"text-align: center;\"><em>How it sounds when someone explains Google Ads to you.<\/em><\/p>\n<p>But as hard as it can be to understand how Google Ads works, <strong>it\u2019s important to know so you can make the right decisions with your ads.<\/strong> So in this guide, I\u2019m going to help you learn how Google Ads works once and for all\u2014with a step-by-step tour, a (might we say) ridiculously good-looking visual, and a FAQ section at the end.<\/p>\n<p><strong>Table of contents<\/strong><\/p>\n<p>Let\u2019s learn how Google Ads works, from keywords to costs and everything in between.<\/p>\n<h2>First of all, <em>does<\/em> Google Ads work?<\/h2>\n<p>You may think that as a digital marketing business, of course we\u2019re going to say yes. But here are the facts and stats that support our stance:<\/p>\n<ul>\n<li><strong>High intent: <\/strong>People come across Google Ads not when casually scrolling, but when proactively searching for something. Google Ads results receive <a href=\"https:\/\/www.askmedigi.com\/googleads-ppc-newupdate-2020-statistics\/\" target=\"_blank\" rel=\"noopener\">65%<\/a> of clicks for buying keywords, vs 35% for organic results.<\/li>\n<li><strong>Cost-effective: <\/strong>Your ads show only when relevant, you can set limits on your spend, <em>and<\/em> you can schedule your ads to appear at optimal times. Google Ads can deliver an <a href=\"https:\/\/economicimpact.google.com\/methodology\/\" target=\"_blank\" rel=\"noopener\">800% ROI<\/a>\u2014that is, $8 for every $1 spent.<\/li>\n<\/ul>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-800-percent-ROI.png\" alt=\"how does google ads work - 800% ROI\" width=\"720\" height=\"388\" class=\"aligncenter size-full wp-image-57293\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-800-percent-ROI.png 720w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-800-percent-ROI-480x259.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 720px, 100vw\"\/><\/p>\n<ul>\n<li><strong>Credibility: <\/strong>Google is the most popular and trusted search engine in the world, which is why <a href=\"https:\/\/clutch.co\/seo-firms\/resources\/search-engine-marketing-why-people-click-paid-search-ads\" target=\"_blank\" rel=\"noopener\">63%<\/a> of people say they\u2019d click on a Google ad, vs 15% for an Amazon ad, 9% for YouTube, and 6% for Bing.<\/li>\n<li><strong>Clear measurement: <\/strong>With data on what\u2019s working and what\u2019s not, you can adjust your ad copy, bids, and account structure accordingly to maximize your budget.<\/li>\n<li><strong>Immediate results: <\/strong>SEO is a must for businesses, but it takes time to rank organically. Google Search ads appear right away.<\/li>\n<\/ul>\n<p>Given the above, it\u2019s no wonder that <a href=\"https:\/\/www.webfx.com\/blog\/marketing\/ppc-stats\/\" target=\"_blank\" rel=\"noopener\">80%<\/a> of all businesses focus on Google Ads for PPC. Of course, how <em>well <\/em>Google Ads works depends on how well you manage your account\u2014you can use our <a href=\"https:\/\/www.wordstream.com\/google-adwords?cid=Web_blog_InContentTextLink\">Free Google Ads Performance Grader<\/a> to make sure you\u2019re doing everything right.<br \/><a id=\"tldr\"\/><\/p>\n<h2>How does Google Ads work? (the TLDR)<\/h2>\n<p>Now if this wasn\u2019t a loaded question, we wouldn\u2019t have dedicated an entire post and infographic to it. Even still, it always helps to see the full picture first before getting into the weeds. So here\u2019s the quick run-through:<\/p>\n<ol>\n<li>Advertisers create ads that target (bid on) keywords.<\/li>\n<li>Someone searches on Google.<\/li>\n<li>If any ads are targeting relevant keywords to that search, an auction is triggered.<\/li>\n<li>Google enters all relevant ads into the auction, only one per account.<\/li>\n<li>It then uses Quality Score and Ad Rank formulas to choose the winners.<\/li>\n<li>Advertisers only pay when their ad gets clicked.<\/li>\n<\/ol>\n<p>Now let\u2019s take a closer look at what those formulas are and how it all translates into 800% ROI.<br \/><a id=\"steps\"\/><\/p>\n<h2>How the Google Ads auction works<\/h2>\n<p>Knowing how the Google Ads auction works is important for everyone. Consumers can see why they\u2019re shown certain ads and advertisers can understand why it\u2019s important to maintain their account. Here is a full breakdown of the Google Ads auction as it pertains to Search ads (we\u2019ll talk about Shopping and Display in the FAQs section).<\/p>\n<h3>1. Advertisers create ads based on keywords<\/h3>\n<p>This is your <strong>keyword bidding.<\/strong> Unlike a regular auction where participants bid on products, advertisers in the Google Ads auction bid on <a href=\"https:\/\/www.wordstream.com\/keyword\">keywords<\/a>. For example, a pet adoption agency might create an ad that targets a group of keywords like <em>pet finder, pet adoption, pet rescue, animal shelter, <\/em>and more. They\u2019ll then tell Google the most their maximum bid\u2014the most they\u2019re willing to pay for a click on that ad (we\u2019ll talk more on this later).<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-keywords-bidding.png\" alt=\"how does google ads work - keyword and ad example\" width=\"720\" height=\"330\" class=\"aligncenter size-full wp-image-57309\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-keywords-bidding.png 720w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-keywords-bidding-480x220.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 720px, 100vw\"\/><\/p>\n<p style=\"text-align: center;\"><em>We cover more questions on keyword targeting in the <a href=\"#faqs\">FAQ<\/a> section of this guide.<\/em><\/p>\n<p>These ads and their associated keywords make up the <strong>advertiser pool<\/strong> for the Google Ads auction.<\/p>\n<h3>2. Someone searches on Google<\/h3>\n<p>This is called a <strong>query<\/strong>! Note that for the sake of this post, <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2011\/05\/25\/keywords-vs-search-queries\">queries and keywords<\/a> are essentially the same, the difference being that keywords are the terms advertisers target while queries are the actual terms users type in.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-example-of-query.png\" alt=\"how does google ads work - example of query\" width=\"720\" height=\"321\" class=\"aligncenter size-full wp-image-57307\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-example-of-query.png 720w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-example-of-query-480x214.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 720px, 100vw\"\/><\/p>\n<p>Sometimes the query exactly matches the keyword while other times it\u2019s relevant. Which leads us to the next step.<\/p>\n<h3>3. Google looks for matches<\/h3>\n<p>This is called <strong>keyword matching.<\/strong> Google will scan through the advertiser pool we mentioned above to see if any advertisers are bidding on keywords that it (Google) deems relevant to that query.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-keyword-matching-pet.png\" alt=\"how does google ads work - keyword matching\" width=\"720\" height=\"503\" class=\"aligncenter size-full wp-image-57305\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-keyword-matching-pet.png 720w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-keyword-matching-pet-480x335.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 720px, 100vw\"\/><\/p>\n<p style=\"text-align: center;\"><em>Learn more about keyword matching in the <a href=\"#faqs\">FAQ<\/a> section.<\/em><\/p>\n<p>Sometimes, such as for informational intent searches, there aren\u2019t any relevant keywords swimming around in the advertiser pool. But in many cases (for <a href=\"https:\/\/blog.adnabu.com\/adwords-auctions\/#:~:text=Yes%2C%20on%20an%20average%2C%20Google,ad%20shown%20to%20the%20user.\">3 billion<\/a> of the <a href=\"https:\/\/blog.hubspot.com\/marketing\/google-search-statistics\">5.6 billion<\/a> searches each day) there are, and as mentioned above, these may or may not exactly match the query. (There are actually three different <a href=\"https:\/\/www.wordstream.com\/keyword-match-types\">match types<\/a> you can select for your keywords, which we\u2019ll talk about in the FAQs)<\/p>\n<p>As a simple example, if the query is <em>pet adoption<\/em>, Google might deem keywords like <em>pet adoption, rescue shelter, pet finder, and buy a dog<\/em> (among hundreds, maybe even thousands of others) to be most relevant to the user\u2019s query and location. So, given that there are keywords in the pool\u2026<\/p>\n<h3>4. The auction begins!<\/h3>\n<p>What this means is, for each account that is bidding on one or more relevant keywords to the query, Google will choose one keyword per account to enter into the auction\u2014and that account\u2019s corresponding ad for that keyword. Make sense?<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-auction-keywords.png\" alt=\"how does google ads work - auction illustration\" width=\"720\" height=\"533\" class=\"aligncenter size-full wp-image-57304\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-auction-keywords.png 720w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-auction-keywords-480x355.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 720px, 100vw\"\/><\/p>\n<p>But given the fact that there are more than <a href=\"https:\/\/www.businessinsider.com\/macquarie-research-facebook-google-and-twitter-number-of-advertisers-2015-2\" target=\"_blank\" rel=\"noopener\">four million Google advertisers<\/a>, a single ad auction could contain thousands of ads, and there are only a handful of spots for Google ads to show on the SERP: three or four each at the top and bottom.<br \/><a id=\"winners\"\/><br \/>So how does Google determine the winners?<\/p>\n<h2>How does Google choose which ad to show?<\/h2>\n<p>The great part about the Google Ads auction is that the winners are not necessarily the highest bidders. Google takes several factors into account so it can choose the <strong>most relevant<\/strong> and <strong>highest quality ad<\/strong> for the user. This is great news for <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2022\/01\/19\/google-ads-for-small-businesses\">small businesses running Google Ads<\/a>. Here\u2019s how Google decides:<\/p>\n<h3>Step #1: Quality Score<\/h3>\n<p>First, Google assigns each ad a <a href=\"https:\/\/www.wordstream.com\/quality-score\"><strong>Quality Score<\/strong><\/a> from 1-10 based on three things:<\/p>\n<ul>\n<li><strong>Relevance:<\/strong> How relevant your ad is to the intent of the query.<\/li>\n<li><strong>Expected click-through rate: <\/strong>How likely your ad is to get clicked if shown, based on your historic performance in relation to competitors.<\/li>\n<li><strong>User experience: <\/strong>how relevant your landing page is to your ad and how useful the experience is.<\/li>\n<\/ul>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-quality-score-definition.png\" alt=\"how does google ads work - quality score\" width=\"578\" height=\"309\" class=\"aligncenter wp-image-57338\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-quality-score-definition.png 578w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-quality-score-definition-480x257.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 578px, 100vw\"\/><\/p>\n<h3>Step #2: Ad Rank<\/h3>\n<p>Next, Google uses each ad\u2019s Quality Score to calculate its <a href=\"https:\/\/www.wordstream.com\/ad-ranking\">Ad Rank<\/a>:<\/p>\n<p>Ad Rank = Quality Score X maximum bid<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-ad-rank-formula.png\" alt=\"how does google ads work - ad rank formula\" width=\"584\" height=\"289\" class=\"aligncenter wp-image-57299\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-ad-rank-formula.png 584w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-ad-rank-formula-480x237.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 584px, 100vw\"\/><\/p>\n<p>\u201cRank\u201d in Ad Rank can be a little confusing because typically we think of a ranking of one to be best. But in this case, the higher your Ad Rank, the better. There is no perfect Ad Rank score to seek after because it depends on the cost of the keyword.<\/p>\n<p>So in our example below, Sam has a Quality Score of 10 and a max bid of $2. So his Ad Rank is 10 x 2 = 20. Jane, on the other hand has a higher maximum bid but her Quality Score is only 1, so her Ad Rank is 8. She doesn\u2019t make it onto the SERP. (Time to <a href=\"https:\/\/www.wordstream.com\/adwords-quality-score\">improve that Quality Score<\/a>, Jane).<\/p>\n<p style=\"text-align: center;\"><strong><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-ad-rank-ad-position.png\" alt=\"how does google ads work - ad rank and serp\" width=\"588\" height=\"760\" class=\"aligncenter wp-image-57303\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-ad-rank-ad-position.png 588w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-ad-rank-ad-position-480x620.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 588px, 100vw\"\/><\/strong><em>The ads with highest Ad Rank scores win the auction and make it onto the SERP.<\/em><\/p>\n<h3>Step #3: Cost per click<\/h3>\n<p>The last step in the auction is price. Advertisers only pay if a searcher clicks on their ad (hence the term pay-per-click\/PPC). But this is not a fixed, one-size-fits-all price. It\u2019s also not necessarily the advertiser\u2019s maximum bid.<\/p>\n<p>Your cost per click = Ad rank of advertiser below you \/ Your QS + $0.01<\/p>\n<p>In the example below, Sam is in the #1 position. His Quality Score is 10 and his Ad Rank is 20. Mary\u2019s ad, directly below his, has an Ad Rank of 16. So, Sam\u2019s actual cost per click is 16\/10 + 0.01= $1.61.<\/p>\n<p>Notice how this compares to Pat. Pat\u2019s Quality Score is 2, Ad Rank 12, and cost per click $4.01. He appears two spots below Sam even though he pays more per click and had a higher maximum bid. <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-high-qs-low-price.png\" alt=\"how does google ads work - high quality score can lead to lower CPC\" width=\"554\" height=\"456\" class=\"aligncenter wp-image-57301\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-high-qs-low-price.png 554w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-high-qs-low-price-480x395.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 554px, 100vw\"\/><\/p>\n<p>So we can see here that maximum bid is factored into the auction (since it\u2019s used to determine Quality Score which is used to determine Ad Rank), but not the ONLY factor. And in fact, Google rewards higher quality ads with lower costs per click.<\/p>\n<p>And that is why the ROI for Google Ads can be so high: Searchers only see ads relevant to their search (and that they\u2019re most likely to click on) and advertisers pay the lowest possible price for each query. It\u2019s a win-win!<br \/><a id=\"infographic\"\/><\/p>\n<h2>How does Google Ads work: The complete visual<\/h2>\n<p>Let\u2019s put it all together into one mega, informative, and might we say ridiculously good-looking infographic:<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-infographic-1200-comp.png\" target=\"_blank\" rel=\"noopener\"><em>Click to see full-size.<\/em><\/a><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-infographic-720px.png\" alt=\"how does google ads work - infographic of google ads auction\" width=\"516\" height=\"2945\" class=\"aligncenter wp-image-57325\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-infographic-720px-980x5593.png 980w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-infographic-720px-480x2739.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, 100vw\"\/><br \/><a id=\"faqs\"\/><\/p>\n<h2>More FAQs on how Google Ads works<\/h2>\n<p>Here are some common questions that arise about the Google Ads auction to help you better understand how Google ads work.<\/p>\n<h3>What is a keyword?<\/h3>\n<p>Terms that get typed into search engines by people who are interested in what you have to offer. For example, if you\u2019re advertising your pet adoption agency, you might target pet finder, pet adoption, and dog rescue.<\/p>\n<h3>How many keywords should I target per ad group?<\/h3>\n<p>Google suggests no more than 30 keywords per ad group, but we suggest no more than 20. For context, in an <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2017\/05\/02\/adwords-account-structure-guide\">ideal Google Ads account structure<\/a> you have campaigns (Search, Display, etc.), then ad groups within those campaigns (max of 7-10 ad groups per campaign), then ads and keywords within each ad group.<\/p>\n<p>An ideal ad group consists of 2-3 ads (which all go to the same landing page) as well as the keywords they target (no more than 20).<\/p>\n<h3>How do I determine which keywords to bid on?<\/h3>\n<p>The best way to do this is to use a keyword research tool which will show you how many times that keyword is searched per month, the average cost per click on that keyword, and how competitive that keyword is. You can use our <a href=\"https:\/\/www.wordstream.com\/keywords?cid=Web_Blog_InContentTextLink_FKT\">Free Keyword Tool <\/a>for this or check out our <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2013\/09\/18\/best-keyword-research-tools\">list of keyword research tools here<\/a>. Oh, and of course, here\u2019s our <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2017\/08\/09\/easy-keyword-research-guide\">guide to keyword research<\/a>!<\/p>\n<h3>What\u2019s the difference between a keyword and a query?<\/h3>\n<p>Both of these refer to terms searched in a search engine, but keywords generally refer to the terms advertisers target while queries are the actual terms users type in. Sometimes the query exactly matches the keyword while other times it\u2019s relevant.<\/p>\n<h3>What is maximum bid?<\/h3>\n<p>This is the most you\u2019re willing to pay for a click on your ad. Google multiples your Quality Score by your maximum bid to determine your Ad Rank, which then determines whether or not your ad will appear on the SERP.<br \/><strong\/><\/p>\n<h3>How does maximum bid work with automated bidding strategies?<\/h3>\n<p>This is a great question, since yes, in our example above we assumed we were using the manual CPC bidding strategy and there are many other <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2018\/12\/19\/google-ads-automated-bidding\">automated bidding strategies<\/a> where it works differently. For example:<\/p>\n<ul>\n<li><strong>For CPM bidding: <\/strong>If a CPM bid is entered into an auction with CPM bids and CPC bids, Google\u2019s eCPM technology is used to determine the bid (the effective cost per 1000 impressions for both the CPM bid and the CPC bid).<\/li>\n<li><strong>For CPA bidding: <\/strong>When you use conversion-based bidding to hit a CPA or conversion value target, Google determines your max CPC bids for you based on historical conversion data to hit your overall goal.<\/li>\n<\/ul>\n<h3>Does the Google Ads auction run for every search?<\/h3>\n<p>Nope! It all comes down to search intent. For informational searches (<em>how to take care of a pet; how to start a pet adoption agency<\/em>), it\u2019s not likely. But for transactional and <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2014\/06\/30\/commercial-intent-keywords\">commercial intent keywords<\/a> (<em>buy tennis rackets online<\/em>), you\u2019ll always see ads.<\/p>\n<h3>How do match types work?<\/h3>\n<p>When you select keywords to target in your ads, you have to select a match type.\u00a0Google Ads has three:<\/p>\n<ul>\n<li><strong>Broad match:<\/strong> Google might show your ad for any search that includes or is related to your keyword.<\/li>\n<li><strong>Phrase match:\u00a0<\/strong>Your ad could show for searches that include the meaning of your keyword.<\/li>\n<li><strong>Exact match: <\/strong>Your ad could show for searches that have the same meaning as your keyword.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2021\/09\/27\/google-ads-match-type-update-2021-explained\">Keyword matching behavior evolves<\/a> with Google\u2019s technology, but here\u2019s <a href=\"https:\/\/support.google.com\/google-ads\/answer\/7478529?hl=en\" target=\"_blank\" rel=\"noopener\">Google\u2019s current chart:<\/a><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-match-types.png\" alt=\"how does google ads work - match types\" width=\"720\" height=\"509\" class=\"aligncenter size-full wp-image-57319\" data-srcset=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-match-types.png 720w, https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/02\/how-does-google-ads-work-match-types-480x339.png 480w\" data-sizes=\"auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 720px, 100vw\"\/><\/p>\n<h3>What is a good Quality Score?<\/h3>\n<p>Google Ads Quality Score ranges from 1-10, but it\u2019s not always necessary to strive for 10. In fact, many advertisers find that some of their highest performing ads have \u201clow\u201d Quality Scores. Does this mean that <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2021\/07\/19\/does-quality-score-still-matter\">Quality Score doesn\u2019t matter?<\/a> Of course not\u2014it\u2019s an ad algorithm ranking factor. But it does mean that a <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2017\/09\/19\/whats-a-good-quality-score\">good Quality Score<\/a> looks different for different types of keywords. Here\u2019s what to strive for:<\/p>\n<ul>\n<li>Branded keywords: 8-10<\/li>\n<li>High-intent commercial keywords: 7-9<\/li>\n<li>Low-intent keywords: 7<\/li>\n<li>Competitor keywords: 3+<\/li>\n<\/ul>\n<h3>What\u2019s a good Ad Rank?<\/h3>\n<p>Unlike Quality Score, Google Ads Ad Rank doesn\u2019t have a finite range. This is because the formula for Ad Rank is Quality Score multiplied by maximum bid\u2014and maximum bid all depends on the estimated cost per click and competition for that keyword. The key thing to remember for Ad Rank is that the higher your Ad Rank, the higher your position of your ad on the SERP; and you can improve your Ad Rank by improving your Quality Score.<\/p>\n<h3>What\u2019s a good cost per click in Google Ads?<\/h3>\n<p>This all depends on your industry, as some are more competitive than others. According to our <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2021\/10\/13\/search-advertising-benchmarks\">paid search benchmarks<\/a>, the average cost per click in Google Ads across all industries is $3.53, ranging from $1.40 (real estate) to $8.67 (legal services).<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.wordstream.com\/wp-content\/uploads\/2022\/01\/google-ads-for-small-businesses-industry-benchmarks-example.png\" alt=\"google ads for small businesses - cost per click industry benchmark chart\" width=\"391\" height=\"489\" class=\"aligncenter wp-image-55830\"\/><\/p>\n<h3>How much does Google Ads cost?<\/h3>\n<p>This depends on your industry, audience, budget, and how <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2020\/08\/24\/google-ads-optimization\">optimized your account is<\/a>. Head to <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2015\/05\/21\/how-much-does-adwords-cost\">our post on how much Google Ads costs<\/a> to determine what you can expect to spend per month.<\/p>\n<h3><span style=\"color: #333333; font-size: 22px;\">How does Google Ads billing work?<\/span><\/h3>\n<p>There are three payment options in Google Ads:<\/p>\n<ul>\n<li><strong>Automatic payment:\u00a0<\/strong>get automatically charged after your ads run, either once you reach a threshold or on a 30-day basis.<\/li>\n<li><strong>Manal payment:\u00a0<\/strong>pay before your ads run, and ads will stop once your payment is used up for future costs, when you want<\/li>\n<li><strong>Monthly invoicing:\u00a0<\/strong>applicable if you\u2019re eligible for a Google credit line.<\/li>\n<\/ul>\n<p>For more information on Google Ads costs and budgeting, head to our <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2016\/09\/14\/adwords-budget-guide\">guide on Google Ads budgets<\/a> as well as our <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2021\/12\/15\/google-ads-budget-report\">walk-through of the Google Ads budget report.<\/a><\/p>\n<h3>How long does it take for Google Ads to work?<\/h3>\n<p>Once you set your ad live, Google typically reviews the ad within 24-28 hours. Should your ad get disapproved, refer to our <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2021\/06\/23\/google-ads-disapprovals\">guide on Google Ads disapprovals<\/a> for help.<\/p>\n<h3>How do Google Shopping ads work?<br \/><strong\/><\/h3>\n<p>With Google Shopping, you don\u2019t bid on keywords. Instead, you <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2019\/02\/18\/google-shopping-feed\">optimize your product feed<\/a> and use negative keywords and priority settings to control your ad costs and delivery. You can <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2021\/08\/25\/google-shopping-ads-priority-bidding-structure\">learn more about priority bidding for Google Shopping here<\/a>.<\/p>\n<h3>How does the Google Ads auction work for Display ads?<\/h3>\n<p>The display ad auction works very similarly, but is triggered by \u201cplacements\u201d or pages on Google AdSense, where website or app publishers make advertising space available for Google Ads advertisers.\u201d You can <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2019\/05\/23\/google-display-ads\">learn more about display ads here.<\/a><\/p>\n<h2>Yes, Google Ads works!<\/h2>\n<p>And that\u2019s a wrap! Google Ads does work, as long as you know how to run them right. Use our<strong><a href=\"https:\/\/www.wordstream.com\/google-adwords?cid=Web_blog_InContentTextLink\"> free Google Ads Performance Grader<\/a><\/strong> to make sure you\u2019re not making any mistakes!<\/p>\n<\/div>\n<iframe data-lazy=\"true\" data-src=\"https:\/\/www.fiverr.com\/gig_widgets?id=U2FsdGVkX18x7XQvttUTrv1oEqmGNGTgvvCUiUoJ\/AP4z\/UyMz8lXGOLpu15jIMxBbTR0gmD5uBoFvhC4KWeALQRp3h\/X\/AwcVD0K8Wj9H\/ZzYKzcCNHosB9oS4SCJJFWiN85P9ICAc4OgCoE\/wHKIY7CDkf2\/DQ1vqGvk4smVe5cRDEmrLPCWi4FC8p40VUhSmWQ5udCm0zoJtorgWv3vbDQw0kKYkwn39ozAnQXDe+YvWMxkLFWA+O3TFwkJvdkIK+\/AUSnRssPKt5WHY0FhNOxnSPcLslEL4G4\/RfP95ve99U+kRnDy3X+KtzdQLY+u935ghON\/o3UE4IMv9oN6JX9RnxzL\/LRcOgnHigxStSGPKsZYtnz8RWNVT\/rOLAibqiWJadC5MYHRbekF3eg6FOGrQGkXYbsn0+a5aovnlLCbLwIqY9fcS17UX8J235iQ6cdmHNbrPeS84CMm34RA==&affiliate_id=1052423&strip_google_tagmanager=true\" loading=\"lazy\" data-with-title=\"true\" class=\"fiverr_nga_frame\" frameborder=\"0\" height=\"350\" width=\"100%\" referrerpolicy=\"no-referrer-when-downgrade\" data-mode=\"random_gigs\" onload=\" var frame = this; var script = document.createElement('script'); script.addEventListener('load', function() { window.FW_SDK.register(frame); }); script.setAttribute('src', 'https:\/\/www.fiverr.com\/gig_widgets\/sdk'); document.body.appendChild(script); \" ><\/iframe>\n<br \/><a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2022\/02\/14\/how-does-google-ads-work\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Google Ads help articles are certainly helpful, but when it comes to understanding exactly how Google Ads works, it\u2019s not so clear. And ask a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":13210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-13209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-universe"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Does Google Ads Work in 2022? The Visual Guide - mailinvest.blog<\/title>\n<meta name=\"description\" content=\"Technology is forever changing, and there are always new pieces of technology to replace obsolete ones. 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