Monday, October 12, 2020 • customer-journey,paid-advertising,strategy

The Basics of Google Advertising: Google Ads Bidding


Every company wants to know what is the quickest way to get leads coming in the door immediately. 

It doesn’t matter if you are talking to the owner of the company or the Marketing Director. Each might have different reasons, but they still want the same product.

This is and always will be paid advertising. Why? Time. It takes time to build SEO, email subscribers, mailing lists, conventions to happen, etc.

When you do paid advertising you are essentially paying to take the time out of your marketing efforts.

Is Paid Advertising the most effective way to market? Absolutely not. Factually only about 30% of internet users look at paid advertising. That means you also need to account for the other 70% when working out a marketing strategy.

If I am only targeting 30% of internet users….what’s the point. Unless your company is on page 1 of a Search Engine Result Page you will miss out on 93% of all internet users.

There are only 10 companies on a Search Engine Results Page. Depending on the industry, you could be looking at thousands of companies not getting their brand recognized as people do not see it.

Therefore people bid to get their advertising on page 1 of the Search Engine Results Pages and work at the same time to increase their organic search engine rankings.

There is an axiom regarding this – The lower you rank on search engines the more money you need to spend on paid advertising and conversely, the higher you rank on search engines the less you will need to spend on paid advertising (for a specific keyword or keyword phrase).

Since Paid Advertising is so important, we felt it would be relevant to discuss the subject and layout the basics of this technology.

Knowledge is power and it can never hurt to understand how this can help your company.

There are three main aspects to every paid advertising campaign: Bidding, Ad Creation and Destination.

In this blog we will discuss the first of these, bidding. In two following blogs we will cover ad creation and destination.


If just throwing money at paid digital advertising worked, we would all be very rich people. Unfortunately this is not the case. You need to remember that each and every competitor you have is probably doing the exact same thing.

To solve this problem, search engines came up with two different answers. 

Bidding to pay the highest dollar amount and an algorithm to determine the most relevant ad based on the keyword or keyword phrase entered into the search engine.

Now, there are two ways to pay for digital advertising. You can pay-per-impression or you can pay-per-click. Each has different end goals.

Pay-Per-Impression’s (PPI for short) only objective is to increase brand awareness. While you might get a limited number of conversions, that is not the purpose of this form of advertising. You will pay the search engine a certain amount based on how many people see your ad.

Pay-Per-Click’s (PPC for short) objective is conversions. You want the potential client to click on your ad, go to a landing page and convert. You only pay when a person actually clicks on the ad and gets directed to your landing page.

As you can see PPC will be a much better method of spending if you are looking for conversions.

Google specifically has tools that can help you determine the best spend for the keywords you would like to rank for.

Once you have a Google Adwords account set up, you can go to the tools and setup icon in the top right corner. In the drop down menu find the Performance Planner and follow the instructions.

You can only spend how much you have in the budget, but this will help you determine the best way to do that.

Of all digital marketing, Paid Advertising is the one thing that I tell all my friends, family and peers to hire a competent marketing firm for.

I hope you found this article helpful. Please follow us on any of our social media accounts to continue to receive helpful articles such as this.

Copyright © 2024 Evolved Strategic Marketing | All Rights Reserved