How Google Ads Works in 2024Nov 13, 2023
In this article, I'll guide you through four core concepts crucial for success with Google Ads in 2024. So, let's dive straight into learning, starting with the first essential aspect of Google Ads:
1. Google Ads operates on an auction model:
Unlike traditional auctions, such as house or eBay auctions, the highest bid doesn't always win. Google Ads uses a scoring system called AD RANK for each advertiser in the auction, determining the placement.
2. Targeting in Google Ads involves Keywords, Audiences, Demographics, Locations, and Devices:
Many overlook that Google Ads is not solely based on keywords; you can target campaigns using audiences, demographics, locations, and devices. For instance, if you're marketing toddler-specific baby formula, you can narrow your focus to parents of toddlers aged 1-4. Refining campaigns based on regional targets is also possible.
Remember, newer campaign types like Performance Max and Demand Gen target audiences even before users complete keyword searches.
3. Budgets are set at the campaign level:
Understanding that budgets are set at the campaign level is crucial. This is because, within a campaign, Google may allocate spending unevenly among ad groups. Factors like location, traffic volume, and profit margins should influence your budget decisions.
Consider segmenting campaigns based on:
- Locations (countries, states, or cities)
- Traffic volume for better results
- Profit margins for specific products or services
Remember, more campaigns don't always equate to better results. Simple accounts with 1 or 2 campaigns can often perform exceptionally well.
4. You can use automated bidding strategies:
The two most popular types are Maximise Conversions and Maximise Conversion Value, giving Google the power to bid automatically and optimize for more conversions or revenue. However, it's essential to follow these recommendations:
- Avoid adding Max Conversions or Max Conversion Value bidding strategies for at least the first 90 days of a campaign.
- Aim for 30 conversions in 30 days before implementing automated bidding.
- Look for stabilization in results over a 4-week period.
- Set your automated bidding strategy based on current campaign results rather than desired outcomes.
Stay tuned for more insights in the Get Google Ready for 2024 Series!