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  • Writer's pictureLaura Disney

What Is Google AdWords & How Does It Work?

Reach new customers and grow your business with Google AdWords.

Google AdWords is an online advertising platform that allows advertisers to display their adverts on Google's search engine results page. Based on the keywords they want to target, businesses pay to get their adverts ranked at the top of the search results page, typically above any organic search results.

Google AdWords is a ‘Pay Pay Click’ service, in which you only pay when someone clicks on your advert through to your website. This type of online advertising can target traffic at a local, national or international setting.

By matching relevant search terms and keywords to the content on a website, AdWords presents an efficient way for a business to increase traffic on their website and thus generate more enquiries.

How Does It Work?

The Google AdWords marketplaces work like a live auction where people bid for clicks. Advertisers place a 'bid' in the AdWords system to secure a particular advert position.

Depending on the competition and price bid by other advertisers, the advertiser either gets the desired position or related to a lower position.

Advertisers pay Google to target users based on their keyword search, the country and device type and deliver their adverts to users who are interested in their products or services. However, it’s not necessary that the highest bid wins. Apart from money, Google also considers the quality score to ensure that the people clicking on the ads have the best possible experience.

Your actual advert position is, however, determined by two factors, your maximum bid multiplied by your quality score.

While maximum bid is how much you’re willing to pay when viewers click your advert, quality score refers to how well an ad is optimized, the quality of the landing page, your expected click-through rate and the relevance of your ad to the searchers. The better your ad rank, the higher your ad is displayed in the google search results.

High-quality adverts and well-performing AdWords campaigns are also rewarded by Google with discounted per-click costs, higher advert ranking positions and are more likely to show in top placement above organic listings.

How Does Google AdWords Charge?

The amount that Google AdWords charges advertisers depends on what they are advertising.

Since Google AdWords is a pay-per-click advertising program, your ads are displayed for free and you’re charged only when someone clicks on your ad on Google search results page. Also, the AdWords system is a live auction, therefore, the click prices are determined by the amount of competition, and how much they’re willing to pay for a click.


Google AdWords can drive high-quality traffic to the website at costs that are much more competitive as compared to other forms of advertising.

Google AdWords can work for all types of businesses – big and small. It’s an affordable form of advertising that can target qualified, in-market prospects.


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