Google Ads, How can it help your business? Here are 9 Facts
What Is Google Ads?
Google’s advertising program is a method of advertising through Google’s infrastructure, such as its search engine or YouTube, and includes publishing partners—online sites that collaborate with Google. This advertising program is widely known as Google Ads (formerly Google AdWords).
This program constitutes Google’s largest revenue source. Through Google Ads, advertisers are granted access to manage and promote products on their websites and apps to Google users. The audience for your ads isn’t limited to search engine users; it also includes users on Google Maps, Gmail, and YouTube.
Given the vast number of Google users, the platform also collaborates with website owners to share revenue by displaying ad spots. When a visitor clicks on an ad displayed on these websites, the site owner earns a share of the revenue, sometimes exceeding 50% of the cost-per-click.
In summary, Google Users + Partner Sites’ Users = Google Ads Audience. This audience comprises tens of millions of Indonesian viewers every day. The challenge lies in how Google, with its sophisticated technology, can present the right ad to the right user at the right time. This is why the Google Ads platform continues to evolve and improve.
Read Also: Here are 7 Advantages of Using Google Ads for Business
What Are the Types of Ads on the Google Ads Platform?
Google Ads campaigns are generally categorized into four main types:
- Search Ads (Google Search Network):
These are ads displayed on Google’s search engine and its partner sites. You create ads that appear based on specific keywords. - Display Ads (Google Display Network):
These ads are shown on third-party websites outside of search engines (including Gmail). Ads can take the form of images, text, or videos, and target visitors based on specific profiles, behaviors, or keywords relevant to the website content. - Video Ads:
These are advertisements displayed on YouTube. Similar to display ads, these target viewers based on profiles or behaviors but can also target specific YouTube videos or channels. - App Ads (Mobile):
These are designed to promote mobile applications. This type of ad intelligently targets potential users to drive app installations and in-app actions.
Characteristics of Each Ad Type Based on Experience
Through our experience with these campaigns, we have identified the unique features and strengths of each ad type.
- Search Ads: Best suited for capturing users actively looking for specific information or services.
- Display Ads: Ideal for brand awareness and visual engagement across various third-party platforms.
- Video Ads: Perfect for storytelling and engaging a large audience through rich media content.
- App Ads: Tailored for businesses looking to grow their app user base efficiently.
| Google Search | Google Display | Google Video Ads | Google App Campaign | |
| Cost | Pricier | Cheaper | Cheaper | More Expensive |
| Range | Depends on Keyword and Search Volume | Cheaper | Cheaper | Automatic |
Notes:
Cost is a relative cost of cost per click. In practice, advertisers may limit the maximum cost-per-click amount.
How Does an Advertising Platform Work, and What Are the Costs?
Advertising platforms like Google Ads operate on an auction system. The process begins by filtering audiences based on location, time, and device. Once filtered, the auction determines which ads are displayed based on campaign type and targeting settings.
Common Locations for Google Ads and Auction Types:
- Google Search: Auction is based on targeted keywords. Factors include maximum bid per click, ad relevance, landing page quality, and ad format (known as Ad Rank).
- Google Display & Video: Auction is determined by visitor targeting (demographics, behavior, and interests) and media targeting (keywords and topics).
- Google App Campaign: Automated auction using Google’s intelligent algorithms.
Key Characteristics of Costs:
Advertisers can set a maximum bid per action and a daily budget.
Payment Types:
- CPC (Cost Per Click): Payment per click on the ad, used in Google Search and Display.
- CPM (Cost Per Mile): Payment per 1,000 impressions, used in Google Display.
- CPV (Cost Per View): Payment per video view, counted when a user watches for at least 30 seconds or to the end.
- CPI (Cost Per Install): Payment for app installations, used in app promotion campaigns.
How Does Google Find the Right Customers for My Business?
Google uses intelligent algorithms to match your ads with the most relevant audience. Various targeting parameters allow precise ad management:
Global Targeting:
- Location
- Device
- Schedule (Time-Specific)
Search Network:
- Keywords
Display Network:
- Audience Targeting:
- Demographics: Age, gender, and income levels.
- Affinity: Audiences with specific behaviors or lifestyles.
- In-Market: Audiences actively searching for products or services.
- Remarketing: People who previously interacted with your site or ads.
- Similar Audience: Users with similar characteristics to your remarketing lists.
- Placement Targeting:
- Topics: Over 2,000 categorized topics.
- Website URLs: Specific websites for ad placement.
- Page Keywords: Pages relevant to targeted keywords.
Video Ads:
- Demographics
- Interests and Behaviors
- In-Market Audiences
- Life Events
- Remarketing
- Placement: Specific videos or YouTube channels.
- Topics
- Keywords
- Devices: Computers, mobile devices, tablets, or TVs.
Advertising vs. SEO: Which is Better for Search Engine Visibility?
There are two main ways to appear in Google’s search results: SEO (Search Engine Optimization) and advertising. The goal is to maximize your business’s visibility on the first page, especially on smaller mobile screens. A detailed discussion of this topic is available in our article SEO vs. SEM (GSN): Which Should You Prioritize?
Google Ads, Facebook Ads, or Instagram Ads: Which Is Best?
The answer depends on your business type. For example, if you run a car rental business, Google Search Ads are more effective because they target users with clear intent. On the other hand, if you sell beauty products, Instagram Ads or Google Display Ads may work better for broader awareness.
We recommend experimenting with multiple platforms during the initial months to gather data and determine the most effective strategy for your business.
| Google Ads | ||
| Range | More broadly, because Google users (Web and Android) including 3rd parties that work with Google are the target of adverts | Only on Facebook and Instagram ecosystems |
| Data accuracy | Google search is very precise but Google display and video based on machine learning algorithms | More Accurate, as it is based on the database and user behaviour in the ecosystem |
| Cost | Google display is cheapest to bring in visitors but conversions tend to be better with Google Search costing more visits tends to be higher | Higher than Google, but better visitor characteristics |
Notes: At the time of advertisement running characteristics may change, this is a general description
How Much Initial Budget Is Needed to Advertise on Google?
You can start advertising on Google with any budget. However, from our perspective, Google’s intelligent system requires sufficient data to optimize its algorithm. Advertising with a very small budget may delay achieving the desired results.
If you’re unsure where to start, we recommend allocating 20% of your marketing budget initially. If the results are positive, you can gradually increase it.
If you do not yet have a dedicated marketing budget, we suggest starting with 5–10 million IDR per month based on our client accounts.
In certain cases, you can request a refund for any unused funds remaining in your account.
We recommend consulting (free of charge) with our Account Manager to discuss this further. Click here to schedule a consultation.
How to Measure Advertising Success?
The success of an advertisement is determined by its commercial impact on your business. Advertising goals, often referred to as conversions, are categorized into two types:
- Macro Conversions: Direct commercial impacts, such as sales transactions.
- Micro Conversions: Non-commercial impacts that still add value to your business, such as newsletter subscriptions, catalog downloads, or customer service inquiries.
It’s important to note that most conversions require multiple site visits before they occur. A click does not always lead to an immediate conversion.
Factors That May Affect Conversion Rates:
- Incorrect audience targeting.
- Poor website performance affecting user experience.
- Slow loading times.
- Disorganized text placement.
- Offers that fail to capture the visitor’s interest.
Avoid directing visitors to your homepage via ads. Instead, create a dedicated landing page with a specific topic for your ad campaign.
To measure ad performance effectively, we recommend using analytics platforms such as Google Analytics.
Tips for Collaborating with a Google Partner Agency
Google collaborates with third-party agencies (such as Doxadigital) to establish quality standards for working with advertisers. This program is called Google Partner. We recommend working with certified partners for better results.
For more details, check out our article on Google Partner Indonesia.
Have Questions About Google Advertising?
Feel free to leave a comment below or contact us at +6221-5324093. This article will continue to be updated to provide sharper insights and help you better understand how Google Ads can benefit your business.
Contact Doxadigital for professional Google Ads services tailored to your business needs.
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