IBO Tech Consults


Google Ads

The workings of the Google Ads algorithm

If your ads are well-positioned on search engine result pages (SERPs) and for your target keywords, Google Ads is one of the greatest solutions for growing your business’s online clientele. 

That’s a major “if” that no marketing team should take lightly…

One of the most well-known and well-liked sources of online advertising is Google Ads. You’ll place yourself in the greatest possible position for people to find you by considering Google ads, which is one of the main reasons you should do so. 

It is somewhat uncommon that someone may stumble onto your company by pure accident in daily life. When you advertise on Google, people can easily locate your company at the ideal time. 

People frequently use Google to look up goods, services, and anything.

Your company has a better chance of being seen with Google ads, especially among the numerous search results that appear after each search. The fact that Google ads don’t have an ad minimum is another consideration. 

There will frequently be a minimum charge for adverts on several platforms, usually in the thousands. You need to just invest $50 to dangle your toe in the water with Google. 

Using Google AdWords, you can quickly track the progress of your advertisement. You can check exactly how many people have viewed and engaged with your advertisement by using Google’s interface, AdWords. 

Additionally, you can view important details like the number of phone calls that came from that advertisement alone, as well as website leads and purchases. 

One of the finest ways to market your company is through Google, especially if you’re just getting started. It can be economical and simple to use while still being effective.


Marketers utilize Google Ads as a platform for promotion because:

  • By placing advertisements on Google, a site that people use to search for information, you may draw in more clients.
  • Offers can be promoted to both local and international audiences.
  • With segmentation and personalization, you may contact your target audience at the ideal time.

Latest Google Ads Features and how it works

Google Ads

On its various platforms, Google has unveiled new intelligent features and ways to purchase ads. They enable marketers to broaden their audience and test out novel ideas. 

There will be a learning curve, as there always is with novelty.

  1. Obtain a free listing on Google Shopping

You can benefit from Google Shopping’s free traffic, but make no mistake, it is still primarily a paid PPC channel. Why is a free option available? Most of the other price comparison websites were eliminated from Google’s SERP after the launch of the shopping channel (Shopping.com, Shopzilla, BizRate, and others). Because of the aggressive action, Google was fined $3 billion by the European Commission in 2017 for violating EU antitrust laws by “providing an unfair advantage to another Google product, its comparison shopping service.” 

Even though an appeal is still pending, Google has taken measures to ensure that there are other options available on its services and SERP in addition to its own.

How to use it to your advantage

You must first optimize your shopping ads and ascertain which products receive the most clicks and conversions. To get shopping reports, for instance, utilize SEISO Google Shopping Analyzer (free to test). 

From there, you can modify your product feed and product pages to focus only on items with a positive margin.

You can access your Google Merchant Center account from the Growth Menu after trimming the feed and pages. 

A channel called “Surfaces across Google” can be found there. It should be set to “ACTIVE.” Initially only accessible in the USA and India, this feature is now being made available everywhere.

  1. Gain YouTube and display ad impressions, but only pay for sales

When it comes to online acquisition, you probably don’t think about ads in video or display formats. They are more often used to impact and raise brand awareness.

Google, though, is now trying to change your mind. Why? Google can forecast what users will purchase since it has access to so much information about user profiles and intentions. 

Facebook’s platform was developed using user data gleaned from surfing and sharing. Google has a wealth of information about its customers, including information gleaned from search queries, media consumed on its platforms (such as videos and AMP pages), and past purchases made possible via receipts received in Gmail.

This wealth of information allows the program to determine which new video game console the user desires. And when he’s ready to make a purchase, it just displays the pertinent adverts to him. By only displaying convertible advertising to viewers, the ad will have a higher chance of converting, and Google will make more money on every page.

How to use it to your advantage

  • Combined with a tCPA or tROAS bidding method, use Smart Display. This enables you to keep using the Smart Display framework’s advantages without giving up control.
  • The best targeting is “Similar converts” & “Custom Intent on your competitors,” according to 13,000+ Google Ads accounts analyzed by SEISO.

To determine which audience is most pertinent for you, use the audience analysis part of SEISO. Additionally, it is free to try.

  1. Getting new customers is excellent, but getting new customers is better

Not every conversion is created equal. A new customer’s purchase on your website is worth more than a returning one in terms of acquisition methods. 

Of course, customer loyalty is important, and you must look after your current clientele. However, neither the primary nor the most cost-effective route for doing this is search engine marketing. 

CRM is more effective at re-engaging your customers than earned social media or email marketing. The best method to increase your client’s lifetime value is through the symbiosis between acquisition and loyalty.

You can adjust the price you are willing to pay for a new customer vs an existing one once you know how much money you can expect from a user over the long term.

How to use it to your advantage

Make sure you are keeping track of your new clients; there are two methods for doing this, and you ought to do both:

  • Ensure that your Google Analytics account and Google Ads account are linked. By doing this, the algorithm will be aware of all sales made on your website, regardless of where they originated.
  • Set distinct tags for new and returning consumers, then let your e-commerce platform or tag manager handle it. Depending on the customer’s status, you must display one or the other tag.

Generally speaking, you ought to coordinate this with your marketing plan. To help your best-recruiting items, concentrate on your product selection. The ones that lead to a new customer’s first purchase on your website.


How then can you use Google Ads to your advantage? Everything is based on the Google Ads algorithm. Google employs hundreds of algorithms, but there are a few crucial ones that everyone managing Google advertising campaigns has to be aware of Ad Rank, Quality Score, and Position.

It is crucial to comprehend these algorithms and all of their parts. To calculate your final ad position, Google uses its mathematical calculations known as algorithms (which will determine when and where your ads are shown on a specific page and for specific audiences).

Google never ceases to try out new functionality. Even with your paid search agency, the best approach you can take to have a top-performing Google Ads account is to follow suit and try the new features as soon as they are made available. When each feature sees widespread adoption, you would have optimized it to the fullest extent this way.

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