What is Google Adsense And how it works?
You should understand how Google Ads works it's important to understand how Google works and with Google, it always starts with a person this person has a thought or an idea and they have a question of something they want to search on Google so what do they go to Google to try to get this question answer to get this pain point solved.
Now this is the key part when people search on Google they want to find the answer to something and this is your opportunity to show your company to show your product to show the solution that your business has to this person's problem and within Google there's what's called the organic results and these are the things that Google puts in the search results for free because it's just really high-quality content.
And Google knows that it's gonna provide a solution but Google puts at the top of the search results paid ads and the way to get to the top of the search results on these paid ads is through the Google ads platform used to be called Adwords but it's since changed its name to Google ads so to get to the top of the search results on Google you have to pay and I'll explain how this works in just a minute but let's recap.
What happened here someone had a question a concern some kind of pain that they needed a solution for they went to Google and when they googled it your company your business showed up at the top of the search results at this point you might be wondering why use Google Ads especially because right below it is the organic search results which Google puts there for free once you rather just be an organic search results and the answer is yes it'd be great to be an organic search results but that is very very hard to do you have to write really high quality content.
Get lots of Link's pointing to you the benefit of using Google Ads is it accelerates your results and the way it works is you might tell Google you know what I want my ad to be on the top of the search results for a certain keyword in a keyword is whatever someone searches in Google so, for instance, you might tell Google.
I want to be at the top of the search results anytime someone types in the word peanut butter now Google wants to get paid for this and so what you tell Google is I'm willing to give you $1 every time someone clicks on my app now you don't pay unless someone clicks on your ad now it's a bidding system someone else might along and say I'll pay $1 10 they would go to the top of the search results and so the more people involved the higher the bid potentially could be now it does get a little bit more complicated than that but this simple version is you pay Google every time someone clicks on your ad.
And the way it works too is you know every time someone clicks on the ad it cost you $1 if you can make $2 on average every time someone clicks on your ad it makes sense so a quick example of this is it cost you $1 per click and if everyone average every 10 people that click on your website you make a sale and every time you make a sale you do $20 in profit you spent $10 to get $20 in profit you should do that all day long and that's how Google ads works and part of the reason why it's so powerful.
But it doesn't stop there the other thing that makes Google ads so powerful is not only can you target very specific keywords you can actually, target by geography or what time of the day you want to show your ads for or what kind of device someone is using are they using a cell phone or a computer so you can get very analytical in figure things out that work for you in your business now a quick tip if you are selling peanut butter for instance you wouldn't want to bid on the keyword peanut butter because people search peanut butter for a ton of different crazy reasons instead you'd want to bid on a more targeted keyword like organic 16-ounce peanut butter because the person that's searching that is much more likely to buy your product than someone that's searching something more generic this is called a longtail keyword.
And is another reason why Google Ads can be so powerful another very important thing to know about Google ads is you need to split test the message split test what's called your ad copy so you might have an ad that looks like this but maybe you can write a better ad and you might want to try a second one out so the message and this is the actual wording that shows up when someone is about to click on your ad is very important and Google has a feature that will let you test different messages and the goal is to get a message that converts as high as possible meaning that out of every 100 times, someone sees your ads how often do they actually click on your ad you want that number to be as high as possible
This is called your click-through rate the better your click-through rate is the lower Google will charge you per click so to sum all this up this is what's called a funnel at the funnel is everybody in the world that is searching peanut butter now of those people that are searching peanut butter a small percentage of them will actually click on your ad and of those people that click on your ad a small percentage of them will actually purchase your product and that's what's important you want to try to grow every section of this as you can because ideally a hundred percent of people that search for peanut butter would go to your website and a hundred percent of those people would buy your product it's not realistic so the way to increase your sales is to increase the percentage that goes through every step of your funnel because that'll have a trickle-down effect now this is just the tip of the iceberg for Google.