How Google Adword Campaigns Work

Potent Web places adverts against specific keywords. Keywords are the phrases that people commonly type into search engines. Initially in a campaign there may be as many as 500 keywords identified.

To place an advert, we bid against these keywords. Google ranks the bids it receives from all of the advertisers for each keyword. It is not just an auction system Google also rewards relevant adverts (that people click on) over less relevant adverts.

The Google advert ranking is made up of 4 components...

  • Bid Price
  • Quality Score (calculated by Google from your website)
  • Click Through Rate (CTR) calculated by dividing the amount of times the ad is clicked on the number of times it is shown. Higher the better.
  • Historical performance

Google believe strongly in maintaining the quality of search results. By rewarding advertisers with a lower Cost Per Click for high-quality keywords, they ensure that users (and your future prospects) get the best results for what they're looking for. This also provides an equitable marketplace for all advertisers, regardless of size or budget.

Where does the Advert Appear

Adverts appear on the right hand side of the Google search results page. If there is significant demand for a specific advert Google rewards it by placing it at the top on the left hand side in a shaded “Sponsored Links” area.

Websites that have significant natural demand are then displayed in order of Google ranking below left.