To understand how Google Ads works, it's important to understand how Google works. And with Google, it always starts with a person. This person has a thought or an idea, and they have a question of something they want to search on Google. So what do they do? They go to Google to try to get this question answered, to get this pain point solved. Now, this is the key part. When people search on Google, they want to find the answer to something. And this is your opportunity to show your company, to show your product, to show the solution that your business has to this person's problem. And within Google, there's what's called the organic results. And these are the things that Google puts in the search results for free because it's just really high quality content. And Google knows that it's going to provide a solution. But Google puts at the top of the search results paid ads. And the way to get to the top of the search results on these paid ads is through the Google Ads platform. It used to be called AdWords, but it changed its name to Google Ads. So to get to the top of the search results on Google, you have to pay.

And I'll explain how this works in just a minute. But let's recap what happened here. Someone had a question, a concern, some a pain that they needed a solution for. They went to Google, and when they googled it, your company, your business, showed up at the top of the search results. At this point, you might be wondering why use Google Ads, especially because right below it is the organic search results, which Google puts there for free. Wouldn't you rather just be in the organic search results? And the answer is yes, it'd be great to be in the organic search results, but that is very, very hard to do. You have to write really high quality content, get lots of links pointing to you. The benefit of using Google Ads is it accelerates your results. And the way it works is you might tell Google, you know what? I want my ad to be on the top of the search results for a certain keyword. And a keyword is whatever someone searches in Google. So for instance, you might tell Google, I want to be at the top of the search results anytime someone types in the word peanut butter.

Now, Google wants to get paid for this. And so what you tell Google is, I'm willing to give you $1 every time someone clicks on my ad. Now, you don't pay unless someone clicks on your ad. Now, it's a bidding system. Someone else might come along and say, I'll pay a dollar ten, they would go to the top of the search results. And so the more people involved, the higher the bid potentially could be. Now, it does get a little bit more complicated than that, but the simple version is you pay Google every time someone clicks on your ad. And the way it works, too, is you know every time someone clicks on the ad, it cost you a dollar. If you can make $2 on average every time someone clicks on your ad, it makes sense. So a quick example of this is it cost you a dollar per click. And if on average, every 10 people that click on your website, you make a sale. And every time you make a sale, you do $20 in profit, you spent $10 to get $20 in profit, you should do that all day long. And that's how Google Ads works.


And part of the reason why it's so powerful. But it doesn't stop there. The other thing that makes Google Ads so powerful is not only can you target very specific keywords, you can actually target by geography, or what time of the day you want to show your ads for, or what device someone is using. Are they using a cell phone or a computer? So you can get very analytical and figure things out that work for you in your business. Now, a quick tip. If you are selling peanut butter, for instance, you wouldn't want to bid on the keyword peanut butter because people search peanut butter for a ton of different crazy reasons. Instead, you'd want to bid on a more targeted keyword like organic 16oz peanut butter, because the person that's searching that is much more likely to buy your product than someone that's searching something more generic. This is called a longtail keyword and is another reason why Google Ads can be so powerful. Another very important thing to know about Google Ads is you need to split test the message, split test what's called your ad copy. So you might have an ad that looks like this, but maybe you could write a better ad, and you might want to try a second one out.


So the message, and this is the actual wording that shows up when someone is to click on your ad is very important. And Google has a feature that will let you test different messages. And the goal is to get a message that converts as high as possible, meaning that out of every hundred times someone sees your ads, how often do they actually click on your ad. You want that number to be as high as possible. This is called your click-through rate. The better your click-through rate is, the lower Google will charge you per click. So to sum all this up, this is what's called the funnel. At the top of the funnel is everybody in the world that is searching peanut butter. Now, of those people that are searching peanut butter, a small percentage of them will actually click on your ad. And of those people that click on your ad, a small percentage of them will actually purchase your product. And that's what's important. You want to try to grow every section of this as you can, because ideally, 100% of people that search for peanut butter would go to your website, and 100% of those people would buy your product.


It's not realistic. So the way to increase your sales is to increase the percentage that goes through every step of your funnel, because that'll have a trickle-down effect. Now, this is just the tip of the iceberg for Google Ads. I have a full-on walkthrough tutorial that will actually get you down and dirty in the Google Ads platform, and you can click right here to watch that. And by the end of this video right here, you will go from a beginner to a Google AdWords expert. So make sure to click that video, and I'll see you in the next video.