Updated: September 4, 2021

7 Ways Google AdWords Can Help Grow Your Business

Written by Purushottam Kiri

Google AdWords is a paid advertising program that allows you to promote your website, business, or product in a way that is similar to Google Search Results. This advertising program allows you to reach a targeted audience, engage with them, and turn them into customers. 

It allows you to "pay per click" for your ads to show up on Google, and only when someone clicks on your ad. So if you have an ad that shows up in Google's search results, and someone clicks on it, you pay for that click. 

You pay a certain amount of money per click based on your maximum bid and the Ad Rank for your keyword (which is the quality of your ad compared to all the other ads that are bidding on the same keywords).

What is Google AdWords?

Google AdWords is Google's advertising program that allows businesses to advertise online with pay-per-click (PPC) advertisements. Similar to Google's organic search results, AdWords ads show up when someone searches for certain keywords in Google. AdWords ads are placed above and to the right of organic search results.

AdWords is able to deliver relevant ads because Google AdWords uses a search engine called AdWords. This search engine uses a form of artificial intelligence to determine the best possible ad to show to each person who searches online. 

The first time a person searches online and clicks on an ad, they are recorded in the system so that they see similar ads in the future. 

These ads will be more relevant because they are based on what people searched for in their past. This also means that if someone likes an ad that is relevant to them, they will be shown more ads like it in the future. These ads will then be more likely to be clicked on because they are relevant and valuable. 

Also, because Google has been recording this information for years, it knows how much traffic each keyword receives, and which keywords have the most value (this is called an Ad Rank). The better your ad rank, the higher it will appear above and to the right of organic results.

Benefits of Google AdWords

1) Niche Targeting

The first benefit of Google AdWords is that it allows businesses to target customers who are searching for very specific terms. Instead of showing up just when someone searches for a broad term like "restaurant," businesses can show up when someone searches for "Italian restaurants near me," or even "Italian restaurants in Chicago" if they want. They can also show up if someone searches for a specific name of a restaurant like "Mario's Italian Restaurant." 

This allows businesses to make sure that their ads are only shown when they are relevant to what someone is looking for. 

For example, if someone is looking for an Italian restaurant near them, they will be shown ads from nearby restaurants instead of businesses who live far away. It also allows them to find customers they wouldn't have found otherwise because many people won't search for a very specific keyword such as "the best Italian restaurant in Chicago." 

However, if someone sees a relevant ad that says "best Italian restaurant in Chicago," they might be interested and click on it.

2) Brand Awareness

The second benefit of Google AdWords is the chance it gives businesses to build brand awareness with customers. When people see an ad before they visit a website, they tend to remember it better than if they saw the website first without any ads. 

If the customer sees five or more ads from a company before visiting their website, they tend to think of that company as more trustworthy than companies they don't see very often. This means that businesses can use Google AdWords as a marketing tool even if no one buys from their website after clicking on their ad. 

It can be used as part of an overall marketing strategy including other types of advertising and direct customer outreach. You can use this advertising program even if you don't want people to buy from you right away but want them to remember your brand as reputable in the future so that they will buy from you at some point in the future when they are ready.

3) Drives Word of Mouth

The third benefit of Google AdWords is that people are more likely to recommend something if it came up while they were searching online. If someone sees an ad somewhere before going online to look for something else, and then sees an ad again after searching online, they will be more likely to remember that company and recommend it because it seems like 

Google recommends it by showing your ad again after someone looked for something else online. People also tend to like brands that advertise online because it seems like the company has enough money and is confident enough in its product or service to spend money on advertising instead of just trying to sell products directly through its own website or stores. 

Customers might also recommend companies who advertise online because those companies understand how important customer reviews are nowadays, especially on sites like Yelp and TripAdvisor where people go frequently just to read reviews about businesses in their area. 

Because these sites allow people to leave reviews about anything from restaurants and hotels to gyms and dentists' offices, businesses should advertise online so that customers will go talk about them there instead of writing bad reviews about them without having ever bought anything from them before.

4) Focus Geographically 

The fourth benefit of Google AdWords is that it allows businesses to focus their advertising efforts geographically. With other forms of advertising like TV or radio advertisements, it isn't too easy or affordable for companies to focus their advertisements in only one area unless they have nationwide coverage. 

This means that many companies end up advertising everywhere whether or not their product or service would be relevant everywhere or not. For example, a company might advertise its ice cream truck business on TV everywhere because no one can tell whether or not ice cream trucks are really common where people live until they see an advertisement for one (and if there aren't any ice cream trucks where you live, you might not watch TV at all). 

With online advertising though, businesses can target exactly where their service is relevant (such as an ice cream truck company targeting cities where there are lots of hot summers) and where it isn't (such as states with cold winters). 

By only showing their ads where there are relevant customers, businesses can save time and money by focusing their efforts where they actually serve customers instead of everywhere else at once where there might be no customers.

5) Compete Better

The fifth benefit of Google AdWords is that it will allow companies to compete better. The internet has changed a lot of things in business, and one of them is that smaller businesses are able to compete with bigger companies. 

With online advertising, small businesses can now advertise directly to prospective customers and show them exactly what they have to offer and then let the customers choose if they want to buy from them or not. 

This means that small businesses can compete with big businesses because customers can now go directly to their website and see what they have to offer, instead of just relying on big businesses' ads on TV or radio and hoping for the best. 

This also means that businesses can be more customer-focused because they aren't limited by how much TV or radio time they can buy, they just need to pay whatever amount they are willing to pay for a click on their ad.

6) Measure ROI and Adjust to Improve 

Google AdWords is a way for businesses to track their return on investment (ROI). Because they can track their ROI, they can measure how effective their ads are and adjust them accordingly. If a company is spending money on an ad and not getting any results from it, they will just stop advertising this way. 

But then if they get a new customer from that ad, they might decide to continue advertising in the same way because it is working (and the customer might tell others to come by too). With other forms of advertising, there isn't an easy way for companies to track their ROI. 

For example, a TV or radio ad might work well at first, but then people might slowly stop watching TV or listening to the radio, so the ad stops working as well. 

With online advertisements though, companies can track and monitor how effective their ads are, so they can adjust them if necessary and make them more effective.

7) Manage and Scale Your Spending

If you get a traffic spike from an ad, you want to make sure you're not overspending to capture that traffic. 

You can do this by using the Cost-per-click (CPC) data to help you determine what your true cost per customer is. This metric is valuable when you are getting ready to spend money on a specific campaign or keyword. You'll be able to set a maximum CPC and budget for each campaign. 

If you know the average CPC and the average conversion rate for your campaign, you can set your max CPC to the average CPC divided by your average conversion rate. Setting a maximum CPC will prevent you from spending more than you want to.

Bottom Line

Companies use Google AdWords because it is a great way for them to reach customers online who are actively looking for what they have to offer. It gives them an opportunity to show their ads to people who are searching online for something specific, so they know their ads are being seen by people who are genuinely interested in their offering. 

It also lets them focus geographically on where their product or service is relevant instead of everywhere at once. 

And finally, it allows companies to compete better with bigger companies because it allows them to reach people with ads on the internet who aren't being reached by other large companies (and even if you are a big company, you can still use AdWords because it allows you to reach smaller niche markets).

Frequently Asked Questions

  • Google AdWords is Google's pay-per-click (PPC) advertising program. It is a bidding system where advertisers bid on certain keywords that their ads will be shown when someone searches for those keywords. People usually use AdWords to promote their websites, but it can also be used to promote other types of business.
  • "Keywords" are words that people use when searching for something on Google. The AdWords program allows you to bid on certain keywords so that your ad will be shown when people search for those keywords.
  • Many different types of businesses use AdWords. Google AdWords is generally used for businesses that sell products directly to the consumer.
  • Yes, you can use AdWords to promote your website.
  • Using AdWords to promote your website has several advantages. First, Google is the #1 search engine in the world. Second, people are far more likely to click on an AdWords advertisement than on a regular organic listing. Third, you can control the keywords that you want to bid on, so you can target the exact kind of customers you are looking for.
  • It is best to advertise as frequently as possible. The more often your ad appears, the more times people will see it, and the more likely it will be that someone will click on it.
  • The main disadvantage of using AdWords to promote your website is that you have to pay every time someone clicks on your ad. If you are not careful, this can get expensive.
  • A landing page is the page of a website that someone lands on after clicking on an ad. A landing page is most commonly used in conjunction with pay-per-click (PPC) advertising programs like Google AdWords.

Written by Purushottam Kiri

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