How do search ads work? All you need to know

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How do search ads work? All you need to know

More than 90% of users search for something on Google before buying. Among so many companies on the internet offering practically the same service/product, it is important to know how to stand out and especially how search ads work.

You could do this with organic and paid SEO strategies, of course. But search ads are able to put you in the spotlight with only the click of a few buttons. They are a great way to stand out in the short term, while your SEO team works on the longer-term organic traffic.

Ready to learn how search ads work? Well, here’s all you need to know to start taking advantage of this strategy.

Table of Contents

  • What are search ads?
  • How do search ads work?
  • Terms you need to know to understand how Search ads work

What are search ads?

There was a time when companies bought advertisements in magazines and newspapers to reach their audience. Appearing in these media outlets was a good way of reaching customers and standing out in the market.

With the internet, the ways in which advertising is done have diversified. Customers increasingly turn to search engines like Google to find the products and services they want.

With this opportunity came Search Ads. They are a type of online advertising that highlights a search result. They appear:

  • at the top of search pages
  • at the bottom of search engine pages (SERPs)

How do search ads work?

Every time someone clicks on the ad, it generates a payment to the sponsor. This makes it good value for money. You only pay if someone sees and clicks. Very interesting, isn’t it?

In a more didactic way, this is how it works:

  1. A company or marketing agency identifies the keywords consumers use to search for products or services similar to theirs.
  2. The company creates a search ad with those keywords.
  3. Bidding is made on each keyword. The higher the bid, the more likely it is to be at the top of the SERPs.
  4. The company creates a search ad with those keywords.
  5. A bid is made on each keyword. The higher the bid, the more likely it is to be at the top of the SERPs.
  6. When someone clicks on your ad, you pay the bid amount (per click).
  7. The visitor reaches your site and your product.

Terms you need to know to understand how Search ads work

It is time to delve deeper into Search ads.

Keywords

Keywordsany search ads strategy

And it’s important that keywords, thinking specifically about the name, are no longer just one word. There are two types of keywords:

  • Short tail keywords
    • They are more generic and with high search volume and competition. Examples: tool, sandwich, company
  • Long tail keywords
    • They are more niche and with less search competition. Examples: “Which is the best tool to tighten screws”.

By choosing long-tail keywords you can zone in on what your customers are looking for. And search ads are a very interesting way to enter into symbiosis with the customer’s desires. It’s aligning what you offer with what they’re looking for (literally).

Metrics

Here is the most important aspect of search ads: the metrics. Unlike TV ads or billboards, you can find out exactly how many people you reached, how many clicked on your ad and how many engaged on your page.

Thus, it is much simpler to adapt the strategy and understand what is or isn’t working with your client. Here are two of them:

  • CPC (cost-per-click)
  • and CTR (Click-through-rate) CPC

CPC

Essentially in PPC (pay-per-click) campaigns, the CPC calculates whether the engagement is positive or not. In this evaluation, the bid that was given by the keyword and the quality indexes are considered. Effective ads are those where you pay less and get a positive result. The top tip: have branded keywords. They can increase your CPC.

CTR

The click-through rate (CTR) is an x-ray of the success of the search advertising campaign. What it does, in addition to what the name itself says, is to bring insights into the proportion between clicks and impressions.

Therefore, it is important to place your ad within the local context. Tailor the local keywords you want to target. This way you will be able to contextualize and optimize the campaign.

Here are some additional things to know about search ads:

  • Search ads will only reach people who are genuinely interested in your product or service. That is: investment with guaranteed return, since you only pay to reach people who are already interested in what you have to offer. Quite a step in the customer journey.
  • Search Network ads are very competitive, so choose carefully which keywords to choose. Define them before people see them – to not waste money.
  • You can use Search Network ads to drive traffic to your website. But don’t forget that your site has to be well-built and optimized correctly. You want your customers to spend as much time there as possible. This way you’ll maximize the return on investment (ROI) of Search Ads.
  • Use ads to leverage your message and adapt it to different communities. Find out how your audience usually speaks, what they are looking for, and try to see these insights as advice to improve what you offer as well.
  • Don’t just bet on paid ads. Organic optimization is still the best option to succeed. If you use a multiple strategy you will get a much better result.

So, be sure to invest in a good PPC strategy. But don’t be content in only knowing how search ads work, bet on other ways to engage your audience to get the widest possible audience coverage. The goal is to promote lasting involvement and customer loyalty. Always remember to provide the best possible experience for them.

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