How to Do Google Ads for Business

Introduction to Google Ads

How Google Ads Works

Google Ads is an online advertising service that allows advertisers to display ads on Google search results pages, YouTube, and other partner websites through an auction system. When users search for keywords related to ads, Google will decide which ads to display in the search results based on a series of factors such as bids, ad quality, and relevance. The core of this process is keywords, and the keywords selected by advertisers will directly affect the exposure and click-through rate of ads.

Google ads are mainly divided into two forms: search ads and display ads. Search ads usually appear at the top or bottom of the search results when users search for specific keywords, while display ads are displayed on various websites through images or videos. Advertisers only pay for actual clicks (i.e. cost per click, CPC) or per thousand impressions (CPM), which makes Google Ads a flexible and cost-effective marketing tool.

The value of Google Ads for businesses

For businesses, Google Ads provides a variety of unique values. First, it can accurately target the target audience. By selecting specific keywords and audience characteristics, advertisers can show their ads to potential customers who are most likely to make a purchase. This precise targeting not only improves the effectiveness of advertising, but also significantly increases the return on investment (ROI).

Secondly, Google Ads' real-time monitoring and data analysis capabilities enable companies to adjust their strategies in a timely manner. Advertisers can view the performance of their ads, including click-through rate, conversion rate, and budget usage, and then optimize advertising to ensure the effective use of resources. In addition, Google Ads supports a variety of ad formats, including text, images, and videos, and companies can choose the appropriate format according to their needs and goals.

Finally, the wide coverage of Google Ads is also its appeal. As the world’s largest search engine, Google processes billions of search requests every day, which provides advertisers with huge exposure opportunities. Whether it is a small startup or a large multinational company, Google Ads can reach a large number of potential customers, increase brand awareness, and drive sales growth.

Keyword Research and Targeting

How to perform keyword analysis

Keyword research is the cornerstone of Google Ads. First, use Google Keyword Planner to enter relevant topics to get potential keyword suggestions and search volume data. Understanding the competition and search volume of each keyword, choosing those with high search volume and low competition will help you stand out.

Secondly, it is equally important to analyze competitors’ keywords. Use tools such as SEMrush or Ahrefs to check competitors’ advertising strategies and find keywords that are not yet fully utilized. Keep your keyword list updated regularly to respond to market changes and consumer needs.

How to find good keywords

There are a few things to pay attention to when choosing good keywords:

1. Relevance and intent: Keywords should be closely related to your product or service. For example, “best running shoes” can better meet the needs of users than simply “shoes”.

2. Search volume and competition: Choosing keywords with moderate search volume and low competition, especially long-tail keywords, can bring higher conversion rates.

Find the best keywords for your website

To find the best keywords:

• Understand the audience: Create user personas and delve into their needs and pain points.

• Use analytical tools: Combine Google Analytics and Google Search Console to analyze current traffic and user behavior and find keywords that perform well.

• Focus on seasonality and trends: Use Google Trends to track keyword search trends and grasp the best time to place ads.

• Dynamically update the list: Develop and maintain a dynamic keyword list, test and optimize it regularly to ensure that the ads always remain competitive.

CPC analysis of keywords

Cost and pricing of keywords

Cost per click (CPC) is the fee that advertisers pay in Google Ads, reflecting the market value of a specific keyword. Understanding the composition of CPC is crucial to effectively managing advertising budgets. The main factors affecting CPC include:

1. Level of competition: The level of competition of keywords is an important factor affecting CPC. If multiple advertisers compete for the same keyword, CPC will naturally rise. Typically, highly competitive fields (such as legal, medical, or financial) will have higher CPCs, while niche keywords may be cheaper.

2. Search volume: Search volume represents the level of user interest in a keyword. Keywords with high search volume tend to mean higher CPCs because they attract more attention and potential clicks. Understanding the search trends for specific keywords can help advertisers make more strategic bids.

3. Quality score: Google uses quality score to evaluate the relevance and quality of ads. The higher the score, the lower the CPC. Ways to improve quality score include optimizing ad copy, improving landing page experience, and ensuring that keywords are closely related to ad content.

Selection and analysis of high-CPC ads

Selecting high-CPC ads requires considering multiple aspects to ensure maximum return on investment. First, make sure these high-CPC keywords are highly relevant to your target audience. For example, if you sell high-end fitness equipment, targeting keywords such as “high-end fitness equipment” is more effective than “fitness equipment” because the former has a more specific target audience.

Second, it is crucial to evaluate potential profits. Calculate the revenue and expenditure brought by these ads to ensure that the advertising expenditure is reasonable. The value of high CPC keywords can be determined by analyzing conversion rates and customer lifetime value.

For the performance analysis of high CPC ads, the following measures can be taken:

• Competitor comparison: Observe the performance of competitors on high CPC keywords and analyze their ad copy, bidding strategies, and target audience positioning. This can help you find the advantages and improvements of your own ads.

• Data-driven optimization: Use Google Ads’s analytical tools to monitor ad performance in real time and identify which ads perform best and which need improvement. Through continuous A/B testing, adjust ad content, bidding strategies, and landing pages to improve overall conversion rates.

Use of PPC keyword research tools

In order to effectively manage advertising spending and optimize keyword selection, it is essential to use professional PPC keyword research tools. Here are some recommended tools and their functions:

• Google Keyword Planner: This tool can help you find potential keyword suggestions and corresponding CPC estimates, and is suitable for basic keyword research.

• SEMrush: This tool provides in-depth competitor analysis, which can help you view competitors' keyword performance and advertising strategies and identify market opportunities.

• Ahrefs: In addition to keyword analysis, Ahrefs also provides a keyword difficulty score to help you assess the level of competition for specific keywords and identify potential long-tail keyword opportunities.

• SpyFu: This tool focuses on analyzing competitors' PPC strategies, providing their historical advertising data to help you develop more effective advertising strategies.

Search Engine Marketing Cost

Cost of Different Types of Ads

Search engine marketing (SEM) includes a variety of advertising formats, each with a different cost structure. Here are the common types of ads and their costs:

1. Search ads: Usually charged per click (CPC), the cost varies depending on the competition of the keyword. The CPC for popular keywords may reach several dollars or even more than ten dollars, while long-tail keywords are usually cheaper. Advertisers can flexibly set daily budgets based on the search habits of the target audience.

2. Display ads: Display ads are usually charged per thousand impressions (CPM) and are suitable for brand exposure. CPM costs vary depending on the placement and ad format, usually ranging from a few dollars to tens of dollars. The cost of display ads is often closely related to the visual appeal of the ad and the relevance to the target audience.

3. Shopping ads: Shopping ads provide e-commerce merchants with the opportunity to directly display product images, prices, and merchant names. The cost of this type of advertising is usually also based on CPC, and the specific cost depends on the product category and the degree of competition. For e-commerce platforms, shopping ads are an important tool to drive sales.

4. Video ads: Such as YouTube ads, which are usually charged per view or per thousand impressions (CPV or CPM). The cost of video ads varies depending on the quality of content creation, viewing time, and audience targeting, and generally ranges from a few dollars to hundreds of dollars.

Estimation of advertising costs for small businesses

Budget setting is a key link for small businesses when conducting search engine marketing. Generally, the estimation of advertising costs for small businesses can start from the following aspects:

1. Initial budget: It is recommended that small businesses set a reasonable initial budget when launching an advertising campaign, usually between $500 and $1,000 per month. This budget can be used to test different keywords and ad formats to find the most effective combination.

2. CPC estimation: Depending on the degree of competition for the selected keywords, the expected cost per click (CPC) may be between $1 and $5. When setting a budget, take into account the expected click-through rate (CTR) and conversion rate to better evaluate the overall performance of the ad.

3. Daily budget setting: Small businesses should allocate daily budgets based on the overall budget to ensure that the ads are evenly distributed throughout the month to avoid being consumed in a short period of time. A reasonable daily budget can help small businesses stay competitive in the market.

4. ROI evaluation: Small businesses should regularly evaluate the return on investment (ROI) of advertising, monitor advertising performance, and optimize advertising strategies. If certain keywords or ads are not performing well, you can adjust the budget and focus resources on more effective channels.

How to choose the right type of Google ads

1. Clear advertising goals

Determine the specific goals you want to achieve through advertising. Is it to increase brand awareness, guide website traffic, or drive sales conversions?

2. Understand the target audience

Study the characteristics, needs, and online behaviors of your target audience. Understand which platforms they are active on and their preferences for advertising formats.

3. Budget considerations

Evaluate your advertising budget and choose the right type of advertising based on the budget. For example, if the budget is limited, search ads may be more cost-effective.

4. Competitive analysis

Observe your competitors' advertising strategies and understand the types of ads they use and their effectiveness. This can help you identify market opportunities and potential points for improvement.

5. Choose the right ad type

Based on the above analysis, choose the following appropriate ad types:

• Search ads: Suitable for brands that want to reach potential customers directly through keywords.
• Display ads: Suitable for increasing brand awareness and attracting the attention of target audiences.
• Shopping ads: For e-commerce platforms, directly display product information to drive sales.
• Video ads: Suitable for attracting users through video content, suitable for brand promotion or product display.

6. Testing and optimization

After launching the ad, monitor its performance regularly. Conduct A/B testing based on data feedback, optimize ad content and strategy to improve ad effectiveness.

Search Engine Positioning Software

1. SEMrush

• Features: Integrate SEO and PPC tools to provide comprehensive market data.
• Main functions:
  • Keyword research: Get keyword search volume, competition level, and related keyword suggestions.
  • Competitor analysis: View competitors' advertising strategies and performance.
  • Project monitoring: Track your website’s performance in search engines, including rankings and traffic.
• Advantages: Powerful functions, rich data, suitable for users who need in-depth analysis.
• Disadvantages: The price is high, beginners may find the functions complicated, and the learning curve is steep.
• Applicable scenarios: Large enterprises, digital marketing agencies, or advertisers who need comprehensive marketing data

2. Ahrefs

• Features: Backlink analysis is its strength, and it also provides keyword research tools.
• Main functions:
  • Keyword research: Analyze the traffic potential and competition difficulty of keywords.
  • Content analysis: View the performance of related content and find opportunities for improvement.
  • Backlink monitoring: Track and analyze the backlink situation of the website.
• Pros: The user interface is intuitive, suitable for the combination of SEO and PPC, and there are rich learning resources.
• Disadvantages: It does not support advertising management and mainly focuses on SEO analysis.
• Applicable scenarios: Enterprises that want to combine SEO and PPC strategies, especially users who have needs in content marketing.

3. Moz Pro

• Features: Provide keyword research, website audit and ranking tracking functions.
• Main functions:
  • Keyword exploration: Identify new keywords and analyze their potential.
  • Website audit: Detect SEO problems and provide optimization suggestions.
  • Ranking monitoring: Track the ranking changes of target keywords.
• Pros: Active community support, rich educational resources, suitable for beginners.
• Disadvantages: The analysis tool for PPC is relatively weak, and its functions are not as comprehensive as SEMrush.
• Applicable scenarios: Small and medium-sized enterprises or users who want to improve SEO performance.

4. SpyFu

• Features: Focus on competitors' PPC strategies and provide historical data analysis.
• Main functions:
  • Competitor keyword analysis: View the keywords and ad copy used by competitors.
  • Advertising history: Analyze competitors' ad delivery history and find optimization opportunities.
• Advantages: It can deeply understand competitors' strategies and help optimize its own ads.
• Disadvantages: The data analysis function is relatively simple and the interface is not modern enough.
• Applicable scenarios: Enterprises that want to understand competitors' advertising strategies, suitable for small and medium-sized enterprises.

5. Google Keyword Planner

• Features: Google’s official tool, mainly used for keyword research and advertising budget planning.
• Main functions:
  • Keyword suggestions: Provide relevant suggestions based on keywords entered by users.
  • Search volume data: View the search volume and competition of keywords.
• Advantages: Free and easy to use, directly integrated with Google Ads.
• Disadvantages: Basic functionality, lacks in-depth competition analysis.
• Suitable for: Beginners and small businesses, especially with a limited budget.

6. Rank Tracker

• Features: Professional ranking tracking tool that can monitor keyword performance in multiple search engines.
• Main functions:
  • Keyword monitoring: Track ranking changes of specified keywords in different search engines.
  • Reporting function: Generate detailed ranking reports for easy sharing and analysis.
• Pros: Provides flexible customized reports, suitable for long-term monitoring.
• Disadvantages: It may take some learning time to master all its functions.
• Suitable for: Enterprises that want to monitor and optimize keyword rankings in the long term, especially SEO-focused teams.

Google Ads Reporting and Monitoring

AdWords Reports

1. Search Term Report

This report provides the keywords that users actually searched for, clicks, and conversion data. By analyzing this data, you can identify well-performing keywords and potential long-tail keywords to adjust your delivery strategy. For example, you can find out which keywords bring the most clicks and conversions, and also identify those irrelevant search terms so that they can be excluded.

2. Campaign Report

This report summarizes the overall performance data of each campaign, including budget, spend, click-through rate (CTR), and conversion rate. It helps you clearly understand which campaigns are performing well and which ones need improvement. In addition, you can evaluate the trend of campaign changes by comparing with historical data to better allocate budget.

3. Ad Group Report

In this report, you can analyze the performance of ads in each ad group, including click-through rate, conversion rate, and quality score. By comparing the performance between different ads, you can find out which ads are more attractive and optimize ad copy and settings.

4. Conversion Tracking Report

This report tracks specific actions that users complete after clicking on an ad, such as purchases or registrations. It provides the number of conversions and conversion rates for each ad, allowing you to measure the return on investment (ROI) of your ads. You can also view the path of users from ad clicks to final conversions and analyze which factors affect conversion rates.

5. Device Report

This report analyzes ad performance on different devices (such as mobile devices, desktops, and tablets). By identifying the click volume, conversion rate and cost data of each device, you can understand the performance differences between devices and help develop more targeted optimization strategies.

6. Geographic location report

This report shows the performance of ads in different geographic areas, including click-through rate and conversion rate. It can help you identify efficient market areas, analyze the behavioral habits of users in different regions, and optimize geographic targeting strategies.

Dashboard reporting tool selection

1. Google Data Studio

This is a free data visualization tool that can connect to multiple data sources, such as Google Ads and Google Analytics. It allows users to create interactive dashboards and update data in real time. The interface is user-friendly and suitable for non-technical users to get started quickly. Users can customize report design and choose different chart types and layouts.

2. Tableau

Tableau is a powerful data analysis and visualization tool that supports multiple data connections, such as Excel and SQL databases. It provides rich visualization options for complex data processing. Users can perform advanced analysis and build data models to gain deep insights.

3. Microsoft Power BI

Power BI is a business intelligence platform that supports multiple data sources and provides an intuitive user interface. Users can create custom dashboards and real-time data updates. It allows natural language queries, and users can get data analysis results through simple questions, which is suitable for users who need to generate reports quickly.

4. Klipfolio

Klipfolio focuses on real-time data dashboards, which can integrate information from multiple data sources into one panel. It provides flexible visual design and supports the creation of multiple charts and gauges. This tool is easy to set up and suitable for small businesses and teams.

5. AdEspresso

AdEspresso is an optimization and reporting tool designed for Facebook and Google ads. It provides one-click A/B testing, and users can easily compare the performance of different ads. The interface is user-friendly and suitable for small and medium-sized enterprises that want to simplify advertising management.