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What are Google Adwords ads and how do they work?

Every second, 2.3 million Google searches are performed and the majority of the search results that appear in front of us are Google ads. Paid by businesses, Google Ads can be a very effective way to increase website traffic when someone is looking for products or services offered by your business.

But what are Google Ads (AdWords)?
Google offers paid ads that appear in search results on google.com using Google AdWords or banner ads that appear on other sites through Google Display and Google AdSense.

Why Google ads appear
The Google AdWords auction focuses on keywords. Advertisers choose a list of keywords related to their business, words that people are more likely to use when searching for their product.
They then put the keywords up for auction by “bidding” on the amount they are willing to pay for a Google user to click on their ad. This bid, combined with a Quality Score assigned by Google (based on the quality of your ad), determines which Google ads appear and in which position. When users click on ads, the advertiser pays a specific cost (cost per click or CPC).

The AdWords auction system works every time a user searches for keywords.

In order to “win” AdWords auctions and have your ad run higher and higher, you need to optimize your Quality Score and bid amount. The higher your Quality Score, combined with the amount of your offer, the better your ad position. The following factors (among others) affect the Quality Score:

The relevance of your Google ad to what the user types and searches for
The relevancy of the Google keyword to your ad group
The relevancy of your ad to its landing page

There are also overall benefits to achieving a high degree of quality:

Lower cost
Google rewards advertisers with high quality scores by reducing cost-per-click (CPC), helping to improve ROI.

Higher exposure
When you have high quality metrics, your ads will appear more often, in higher search positions. This allows you to get more clicks and conversions without having to increase your bids.

Google Ads makes it easy for you to show the world what differentiates your business so you can reach customers who are looking for what you offer.

Source : wordstream.com