How Does Google Adwords Work?

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Internet wouldn’t be quite so vigorous it is today, if Google had not been there. Because of the sheer volume of information available online it is hard to find what you are looking for, without the help of a search engine.

And this is where a huge business opportunity also presents itself. This is applicable for both Google as well as a business trying to market its product. Most of us know that Google Adwords is the largest pay per click program on the Internet and has great exposure value attached to it. Google Adwords offers a win-win opportunity for everybody interested in marketing a product online.

But there has always been a mystery attached to how exactly Google Adwords works. After all, managing such a huge database of clients and still maintaining high standards of quality is not an easy task.

The primary thing which makes Google Adwords such a success is its advanced ranking algorithm. Most of the pay-per-click programs seem to operate under less rigorous parameters; the higher the bid on a keyword, the higher the rank of the ad.

However, this is not entirely the case with Google Adwords. Google Adwords takes into account a lot of other factors, such as click-through rate, relevance of the content and of course, the bid.

Adrank, the name of Google’s ranking algorithm, essentially multiplies the highest bid with the click through rate the ad gets. So, for example, if a client’s bid is 30 cents and the click through rate of the ad is 2, then the Adrank would be 6 for the client’s ads.

Apart from these two factors, Google Adwords has introduced another factor in its algorithm called “quality score”. Google hasn’t unveiled much about this aspect of Adrank but apparently, the quality score of an ad is determined by the click through rate, the relevance of the text, the performance of the keywords and the quality of the landing page.

This complexity can confuse people into supposing that Google Adwords operates as a manual process and the slaps or demotions in ranking that some people experience is a manually supervised process. However, this is not correct. There are tens of thousands of clients registered with Google Adwords and manual supervision of such a huge database is  virtually impossible for mere humans. Therefore, Google employs a complex automated system which takes into account various factors to slap an ad.

One of the primary reasons why an ad in Google Adwords is slapped is because of duplicate content issues. All too often various website owners simply copy the landing page of another website. In such a case, the parties concerned are punished and are degraded in  rank. This is done by Google Adwords in order to ensure a constant high quality in their search service.

Another common instance of slapping is related to the use of controversial keywords such as weight loss, which constantly attracts consumer complaints. Google Adwords weigh heavily on these keywords and the chances of getting slapped are very high in such a scenario.

There are some other factors too, regarding the algorithm associated with Google Adwords and  so it makes sense to go through the online tutorial that Google Adwords provides to make sure you know enough about how this amazing program operates before you take the plunge and market your web pages with Adwords.


I have been marketing online for 30 years helping people do it right with education, and list building tools and procedures.