Everything to Know About Google Ads

By Kamal
Apr 5, 2022 Reading time : 3 min

If you are thinking about spending some money on ads to help you reach your audience, Google is the right place. Online advertising is a great strategy to get potential customers you may not be able to access normally. This article will discuss different terms you should know about Google Ads. 

Name and Launch

Google Ads was launched in October 2000. The platform was first introduced as Google Adwords and after Google underwent some rebranding, it was renamed Google ads in 2018. The way it works is quite simple. When users search with a keyword, they get their results with a paid advertisement that targets that keyword. Click here to learn more.


The most important part of using Google Ads is the keywords. They are usually phrases or even words that help Google to know where and when your ads are needed. The hack is to choose phrases you know your potential customers will be searching for. 

It uses a pay-per-click model of operation. When you target a certain keyword, other marketers are competing for it too. Whoever can pay the maximum bid gets an ad placement. For example, if Google says your cost per click is $1 and you are willing to pay $3, you get an ad placement. 

Bid Options 

When using Google ads, three bid options are open to you. The most commonly used option is the cost per click option (CPC). You can also make use of the cost per thousand impressions (CPM) and cost per engagement (CPE) option. 

Cost-Per-Click (CPC)

This is the most used type of bid when using Google Ads. This means how much your ad placement will cost you if someone clicks on it. You’ll be able to set your maximum cost-per-click, which is the maximum you can spend. 

Cost-Per-Thousand-Impressions (CPM)

This is another type of bid that has to do with paying based on the number of times your advert was shown on the internet. 

There are different advertisement types available to marketers. Campaign ads appear as text ads on the result page. Shopping ads allow you to show images of your products. Display ads will show your ads on websites that are partnered with Google. There are also app and video ads that appear in applications and YouTube videos. 


The average cost of utilizing Google ads is between $1 and $3 in the United States. But you should know that the cost may vary depending on your website’s quality and also how much you are bidding. Due to this, the cost will be different for each ad. You can study the Ad Auction and Rank system to better understand the cost. 

Click-Through Rate 

This is one of the terms relating to Google ads. It is a metric that measures the number of users that have seen your ads and clicked through to your website. This metric can also help you know the ad that’s performing well among the rest.

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