Smart Use and Effects of Google AdWords

Google Adwords is an advertising program created by Google. It offers companies the possibility to reach users of the search engine with ‘ search ads’. Adwords also offers advertisers the opportunity to research the most interesting keywords. For example, Adwords can indicate the search volume of a word, the costs of advertising with it in Google and how many other companies want to advertise with the word (competition level). Google Adwords is also the largest source of revenue from Google and is widely regarded as the most effective online advertising method in the world. You will also need to know what is Google AdWords.

The advantages of Google Adwords

Due to the large power position of Google as a search engine, Google has a lot of data about the search intentions of consumers. With this data they can show very targeted advertisements, which makes it interesting for companies. For example, if you want to sell dog biscuits as an organization, Google can reach anyone who thinks they have a dog because of the information they have about people. This allows the advertisement to work very effectively. This very effective way of advertising is also the reason why Google is as big as it is now. Adwords is responsible for approximately 97% of Google’s total revenue; it generates over 72 billion euros annually!

The cost of Google Adwords

Advertising on a specific keyword works like a sort of auction at Adwords. If there is a high demand for a word, it automatically becomes more expensive to advertise on it. After all, there is only a limited space in which Google can place its advertisements, while at the same time several advertisers are fighting for a position at the top.

As an advertiser you pay at Google Adwords per click. It does not matter how often the advertisement is shown; there are only costs charged when someone actually clicks on the link. These costs per click can differ from one euro cent to dozens of euros. For example, companies in America that advertise on the keyword ‘Business Services’ pay about 55 euros per click!

The most profitable Google Adwords branches

In 2017 there were more than 1.2 million companies that had advertisements published via Google Adwords. It is interesting to see that 1% of these customers account for 99% of the total turnover. Google gets the most revenue from customers in the ‘finance and insurance’ sector, with more than 9 billion dollars. Then comes the ‘sales and merchandise’ branch with approximately 7 billion dollars, narrowly followed by the ‘tourism and travel’ and ‘jobs and education’ branches, with some 6.5 billion and 6 billion dollars respectively. If you want to know which companies spend the most, check out our top 10 with the biggest Google Adwords customers.

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