Day 4 - AdWords Fundamentals

FUNDAMENTALS OF
ADWORDS

by Tuhin Ghosh

MBA (XLRI), Guest Faculty (IIM-L), Digital
Marketing Strategist and Consultant























































FUNDAMENTALS OF ADWORDS

RECAP

FUNDAMENTALS OF ADWORDS > RECAP

o Keywords , significance and planning
o Using Keyword Planner and other tools
o Keyword matches and their usage
o Campaign Structure and Organisation

Let us discuss the keyword assignment and share your
outputs and challenges.

FUNDAMENTALS OF ADWORDS > INTRODUCTION

OBJECTIVES

Fundamentals of Adwords

FUNDAMENTALS OF ADWORDS > OBJECTIVES

At the end of this module, you will be able to:

o Understand Quality, Rank and Relevance of Ads affects your

performance

o How to set up Bids and Budget
o Enable different targeting settings in your campaign
o Use extensions and enhance clicks
o Understand ad policies and approvals

FUNDAMENTALS OF ADWORDS

QUALITY, RANK AND RELEVANCE OF
ADS

How to Improve Them?

FUNDAMENTALS OF ADWORDS > AD POSITION

Top Ads Bottom Ads

• In the top there are 4 • Bottom- 3 position
positions (max) (max)

• Top Ads are wider, can • Bottom Ads are less Top Ads
combine many lines of wider compared to top Bottom Ads
text and feature Ads
domain name and
prominent extensions • Less conversion
happen in Bottom Ads
• Most of the conversion
happen in the top
position

FUNDAMENTALS OF ADWORDS > AD QUALITY

The key factors on which quality of an ad depends on:

Quality Score (1-10)
Expected Click: Through Rate :CTR (above average, average, or below
average)
Ad Relevance: how closely is the ad related to the keyword (above average,
average, or below average)
Landing Page Experience: is a gauge for the quality of the customer’s
experience on our website

FUNDAMENTALS OF ADWORDS > LANDING PAGE EXPERIENCE

FUNDAMENTALS OF ADWORDS > QUALITY SCORE

FUNDAMENTALS OF ADWORDS > AD RANK Where to find your Ad Position?

It is the value that determines whether your Ad makes it

onto the first page of search results

And what Ad Position it takes up on the page (first,

second, third etc.)

It determined by
Components of Quality Score
Your bid
Expected impact of Ad extensions and Ad formats

FUNDAMENTALS OF ADWORDS > EFFECT OF AD QUALITY ON THE ADWORDS ACCOUNT

FUNDAMENTALS OF ADWORDS

BIDDING AND BUDGET

Different Methods and Tactics

FUNDAMENTALS OF ADWORDS > BID AND BUDGET OVERVIEW

Budget Bid

Establishes a charging The amount you are
limit for an individual willing to spend per
campaign click.

FUNDAMENTALS OF ADWORDS > VIDEO

Control Your Costs

FUNDAMENTALS OF ADWORDS > DELIVERY TYPES
Ad delivery determines how often your Ads show throughout the day.

Standard Delivery Accelerated Delivery

Standard delivery will spread your throughout the Accelerated delivery uses up your budget much faster. This will make your ads to
day by serves your ads throughout the day, be served as frequently as possible until the budget is used up.

FUNDAMENTALS OF ADWORDS > AD ROTATION

Ad Rotation is the way Google deliver your Ads within an
Ad group.

Optimize for Clicks Optimize for Rotate Evenly Rotate Indefinitely
Conversions
Ads expected to Delivers your Ads Delivers your Ads
provide more clicks Ads expected to more evenly into the more evenly into the
are delivered more provide more Ad auction. If Ads are Ad auction, but does
often into the Ad conversions and are unchanged for 90 so for an indefinite
auction than other delivered more often days, the campaign amount of time and
Ads in the Ad group into the Ad auction automatically begins to does not optimize
than other Ads in the optimize for clicks or
Ad group
conversions

FUNDAMENTALS OF ADWORDS > DAILY AND MONTHLY BUDGET

FUNDAMENTALS OF ADWORDS > CHANGING BUDGET

FUNDAMENTALS OF ADWORDS > BUDGET VS ACTUAL SPEND

The total daily cost could be up to 20% more than the usual daily budget when search traffic in higher, but AdWords keeps the
check from overspending for the month based on a monthly charging limit.

FUNDAMENTALS OF ADWORDS > MONTHLY CHARGING LIMITS

If you do not change your budget, you will not be charged

more than your daily budget multiplied by the average
number of days in a month, which is 365 days in a year ÷
12 months or 30.4 days or month.

However if your daily budget changes throughout the

month, the monthly charging limit will not be used,
though the 120% daily limit will still apply.

FUNDAMENTALS OF ADWORDS > FOR AN EFFECTIVE CAMPAIGN BUDGET

FUNDAMENTALS OF ADWORDS > THREE COMMON BIDDING TYPES

Bidding Options
Cost-Per-Click or CPC

Cost-Per-Thousand-Impressions or CPM

Cost-Per-Acquisition or CPA