Reach, Relevance, and Reward (ROI): How does Google Adwords work?

Reach, Relevance, and Reward (ROI): How does Google Adwords work?

Google Adwords may not be easy to understand; but, of all of the online marketing tools available, it is potentially the most efficient. At the very least, it allows you to set your own maximum budget. If you don't want to spend big bucks then don't (You can still generate revenue with a dollar per day). Adwords was created by techies and for techies, so if average Joe wants to advertise his small business, he will have to spend several hours figuring out how to utilize things like Keywords, Click through Rate, and Quality score. The learning curve for Adwords is very steep, but the payoff can be huge. The terminology is difficult, the options are extensive, and there are over 200 variables that comprise their statistics. However, Google Adwords is the program that will ensure that your business is listed at the top of the google results page when they search for your product.

Seriously, how many of you search for something on google at least once per day? Don't deny it. You don't go to bing when you need a restaurant review, and you don't go to yahoo to find a local hardware store. You use google, and it's time to let customers find you when they use google. How does Adwords work?


It starts with reach. Ads that are shown on google will reach hundreds of millions of unique users each month. Unique implies that they are first time viewers, and there's no old school marketing ploy that can reach such a massive audience in such a short period of time. Furthermore, if you're a small business, and lets say all of your customers are in Santa Fe, New Mexico for example, you can modify the settings on your Adwords account to only appear in Santa Fe. If your budget is small, you don't have to waste time with people who aren't potential customers. Let's say you are in the process of developing an international customer base; not a problem. The google network is comprised of a multitude of sites on the web. Adwords Ad campaigns reach four of every five unique internet users on earth. I'm not trying to sell you on Adwords, but I'm telling you that in terms of reaching your audience, you can get as much or as little as you want out of it.


A targeted Ad relates to the Keywords that a user searches on. If you run an art gallery, you may target users who search for "Best Art in Santa Fe." This is a way to target the right demographic and it accurately represents the products or services you are offering. The result is a good user experience because the user finds exactly what they were looking for. Thus, they are more likely to be happy with their overall experience. To ensure this process, you need to ensure that your keywords match your product/service. If the user types in "Best Art in Santa Fe," and a pizza joint pops up, they will not have a good experience. If your Ads are good representations of what you offer, then more people will click on your Ad. If more people click on your Ad because it relates to what they're searching for, you will attain a higher click through rate (CTR). Having a higher CTR represents more leads from a qualified group of potential customers. What makes Google Adwords so relevant is the fact that the user's search query is directly related to the advertisers' Ads and websites.

Reward (ROI):

Your ROI, or return on investment, is simply a result of how well you are running your campaign. If your keywords match the users' searches, you will get more clicks. Getting more clicks will give you a higher CTR, and a higher CTR will give you a higher quality score. A higher quality score will both make your advertisement more visible and it will even lower the cost of your Ads. Google literally rewards you for having better advertisements. Ultimately, your reward is increased commission. Users have sought your Ad out, and if you Ad provides the user with the info or offer they desired, they are more likely to take action while on your site. This drives the business you want, and satisfies your customer. It's good for the user and good for you (everyone wins). Using Adwords can be extremely helpful. You just have to make sure you have the time to make it work.

Digital Media & Content, Internet Advertising