How Does Google Advertising Work?

Google Advertising, also known as Google Ads, is an online advertising platform that allows businesses to place ads on Google’s search engine results pages, as well as on other websites and platforms that are part of the Google Ad network. Google Ads uses a pay-per-click (PPC) model, meaning that advertisers only pay when someone clicks on their ads. By using Google Ads, businesses can drive targeted traffic to their website and increase sales. However, running a successful Google Ads campaign requires careful planning, monitoring, and optimization. This can be time-consuming, costly, and challenging for small business owners who are already juggling multiple responsibilities.

To free up cash flow and prepare for an increase in sales, you may need to utilize inventory financing. As you may already know, inventory financing can be expensive and hard to qualify for, but it doesn’t have to be. Kickfurther is a small business committed to helping other small businesses and entrepreneurs by maintaining a platform that allows businesses to fund inventory on consignment. Because you should stay in control of the business you’ve dedicated your life to build, inventory funding through Kickfurther is debt-free and allows you to maintain full ownership. The list of reasons why you should use Kickfurther goes on to include affordability, flexible payment terms, and a community of entrepreneurs here to support you. 

Ready to grow your business? Here’s what you should know about how Google Advertising works.

What is Google Advertising?

Google Advertising is a marketing platform created by Google that allows businesses to display ads on its search engine results pages (SERPs), on other websites that participate in the Google Ads program (known as the Google Display Network), and on YouTube videos. This platform is designed to help businesses of all sizes to reach their target audience and drive traffic to their website or physical store. Google Ads operates on a pay-per-click (PPC) model, meaning that businesses only pay when a user clicks on their ad. The platform uses a bidding system in which businesses bid on specific keywords and ad placements to determine how much they will pay per click. 

How do Google Ads work?

Google Ads works by allowing businesses to create ads, target specific audiences, bid on keywords, and pay for clicks. By using this platform, businesses can reach a wider audience and increase their online visibility, leading to more leads and sales. 

Here is how Google Ads works:

#1. Create an account: First, businesses must create a Google Ads account and set up a campaign. They can choose their budget, targeting options, ad format, and keywords to bid on.

#2. Set a budget: Advertisers set a daily or monthly budget, which determines how much they are willing to spend on their ads.

#3. Choose keywords: Advertisers choose specific keywords that are relevant to their business and target audience. They bid on these keywords, and the amount they bid determines how likely their ad is to appear when someone searches for those keywords.

#4. Create ad groups: Advertisers create ad groups that contain one or more ads and relevant keywords. Each ad group targets a specific audience and contains ads that are tailored to that audience.

#5. Write ads: Advertisers write ad copy that appears on the SERP when someone searches for the relevant keyword. The ad copy should be compelling and encourage the user to click on the ad.

#6. Launch the campaign: Once the campaign is set up, advertisers can launch their ads and start bidding on keywords. Google’s system will automatically show the ads that are most relevant to the user’s search query and that have the highest bid.

#7. Measure and optimize: Advertisers can measure the performance of their ads using Google Ads analytics tools. They can track metrics like clicks, impressions, and conversions, and use that data to optimize their campaigns to get better results.

How do I create a Google Ads account?

To create a Google Ads account, follow these steps:

1. Go to the Google Ads website at https://ads.google.com/.
2. Click on the “Start now” button.
3. Choose the Google Account you want to use for Google Ads or create a new one if you don’t have one.
4. Follow the prompts to set up your account. You will need to provide information such as your business name, website, location, and payment details.
5. Once you have provided all the necessary information, click on the “Submit” button to create your account.

After creating your account, you can start creating your first Google Ads campaign by following the instructions provided by Google Ads. Remember to set up your targeting options, choose your keywords, write your ads, and set your budget and bids.

What are the different types of Google Ads, and how do I choose the right type for my business?

There are several types of Google Ads that you can use to promote your business, and choosing the right type depends on your business goals, target audience, and budget. Here are some of the most common types of Google Ads:

• Search Ads: These are the most common type of ads that appear at the top and bottom of Google search results. They are text-based ads that target specific keywords and search phrases.
• Display Ads: These are image-based ads that appear on websites across the internet that are part of the Google Display Network. They can be targeted based on demographics, interests, and behavior.
• Video Ads: These are video-based ads that can be shown on YouTube and other websites across the internet. They can be skippable or non-skippable and can be targeted based on demographics, interests, and behavior.
• Shopping Ads: These are ads that feature product listings and appear at the top of Google search results when someone searches for a particular product. They are targeted based on product data and can be used by online retailers.
• App Ads: These are ads that promote mobile apps and can appear in Google search results, Google Play, and other mobile apps. They can be targeted based on app data and user behavior.

To choose the right type of Google Ads for your business, consider your goals and budget. If you want to increase website traffic and sales, search and shopping ads may be the best option. If you want to build brand awareness, display and video ads may be more effective. If you have a mobile app, app ads can help you acquire new users. Ultimately, it’s important to test different types of ads to see which ones perform best for your business.

How to set a Google Ads budget

To set a Google Ads budget, consider following these steps:

• Determine your advertising goals: Before you set your budget, you should have a clear understanding of what you want to achieve with your Google Ads campaign. Your goals will help you determine how much you need to spend.
• Choose your bidding strategy: Google Ads offers different bidding strategies that allow you to control how your budget is spent. You can choose to pay for clicks (CPC), impressions (CPM), conversions (CPA), or maximize clicks or conversions.
• Estimate your costs: Use the Google Ads Keyword Planner tool to estimate the cost of your keywords and get an idea of how much you need to spend to achieve your advertising goals.
• Set your budget: Once you have a clear understanding of your advertising goals, bidding strategy, and estimated costs, you can set your budget. Start with a conservative budget and adjust it as you monitor your campaign performance.
• Monitor your campaign performance: It’s important to monitor your campaign performance regularly to ensure that you are getting a good return on investment (ROI). Adjust your budget as necessary to improve your results.

Remember that your budget is just one part of your Google Ads strategy. To get the best results, you should also focus on targeting the right audience, choosing the right keywords, and creating compelling ad copy.

Tips for choosing keywords for your Google Ads campaign

Choosing the right keywords is crucial for the success of your Google Ads campaign. The world of Google Ads can be confusing so don’t be ashamed if you need to hire a professional to help. It’s better to invest and do things the right way rather than take on more than you can handle. Should you choose to execute your own Google Ads, learn as much as you can about keywords. 

Here are some tips for selecting effective keywords:

• Use keyword research tools: Use keyword research tools such as Google’s Keyword Planner to identify relevant keywords for your business. These tools can help you identify search volume, competition, and estimated cost-per-click (CPC) for each keyword.
• Consider intent: Choose keywords that align with the intent of your target audience. For example, if you are a plumber, you might use keywords such as “emergency plumbing services” or “leaky pipe repair” to target people who need immediate plumbing help.
• Focus on relevancy: Choose keywords that are relevant to your business and your landing page. Avoid broad or generic keywords that are not specific to your business.
• Use long-tail keywords: Long-tail keywords are more specific and less competitive than broad keywords. They are often cheaper and more effective at driving relevant traffic to your website.
• Monitor and refine: Monitor the performance of your keywords regularly and refine your list as necessary. Remove underperforming keywords and add new ones that are driving relevant traffic to your website.
• Consider negative keywords: Use negative keywords to exclude irrelevant searches that may trigger your ads. This will help you avoid wasting your budget on clicks that are unlikely to convert.

How to create effective ad copy for Google Ads

Creating effective ad copy for your Google Ads campaign is essential for driving traffic to your website and converting leads into customers. Here are some tips for creating compelling ad copy:

• Use a clear and concise headline
• Highlight your unique selling proposition (USP)
• Use persuasive language
• Include a call-to-action (CTA)
• Use ad extensions
• Test and refine

Remember that your ad copy should be relevant to your target audience and aligned with your landing page. By creating compelling ad copy that resonates with your target audience, you can increase the effectiveness of your Google Ads campaign and drive more traffic to your website.

Tracking Google Ads performance

Tracking the performance of your Google Ads campaign is important to ensure that you are getting a good return on investment (ROI). Here are some key metrics to track and tools to use:

• Click-through rate (CTR): CTR measures the number of clicks your ads receive divided by the number of impressions. A higher CTR indicates that your ads are relevant and engaging to your target audience.
• Conversion rate: Conversion rate measures the percentage of clicks that result in a desired action, such as a purchase or a sign-up. A higher conversion rate indicates that your ads are effectively driving conversions.
• Cost-per-click (CPC): CPC measures the cost of each click on your ads. A lower CPC indicates that you are getting more clicks for your budget.
• Return on investment (ROI): ROI measures the revenue generated by your ads divided by the cost of your ads. A positive ROI indicates that your ads are generating more revenue than they cost.
• Google Ads reporting: Use the reporting features in your Google Ads account to track your campaign performance. You can create custom reports that show data for specific time periods, campaigns, and keywords.
• Google Analytics: Google Analytics provides additional data about your website visitors and can help you track conversions and ROI.

Remember to regularly monitor your campaign performance and adjust your strategy as necessary to improve your ROI. By tracking your Google Ads performance, you can make data-driven decisions that improve the effectiveness of your campaigns.

How Kickfurther can help

Google Ads campaigns can drive a lot of traffic to a business’s website, but this traffic won’t convert into sales if the business doesn’t have enough inventory to meet demand. Kickfurther can help with small business inventory funding that’s affordable and easily accessible. Free up the cash flow you need to grow your business all while ensuring you have enough inventory on hand. At Kickfurther you can get inventory now and pay later – and yes, it’s really that simple.

Closing thoughts

With a successful Google Advertising campaign, you should see an uptick in sales. To free up cash flow to invest in the campaign all the while stocking enough inventory for the increase in demand, we encourage you to use inventory funding. 

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you control. Our unique funding platform can fund your entire order(s) each time you need more inventory, so you can put your capital on hand to work growing your business without adding debt or giving up equity.

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes