google ads setup agency

Why should businesses use Google Ads? Benefits of contextual advertising

Should you use the contextual ads provided by Google Ads or would it be better to use Yandex.Direct, classic SEO, or social media targeting? The information below will show you the benefits Google Ads provide.

Ads are shown to the target audience that is ready to make a purchase

It is up to you which keywords (searches) are going to trigger your ad demonstrations. Businesses are usually looking for commercial queries that include words like “buy” or “order”. Ads will be shown to the audience that is ready to purchase a product or a service.

Geolocation and ad demonstrations in a specific region

Geolocation in Google Ads is an option that allows showing ads only to the users that are located in a specific area / city / district. Google Ads tools support configuring ad demonstrations in a 5-10 KM area from the object in question: a restaurant, a tire shop, a beauty salon, a cafe etc.

Why is it more beneficial to use search advertising in Google Ads than Facebook or other social media targeting? Flexible tooling allows you to configure ad demonstrations at the time when the user’s search query is ready (which provides the highest conversion rates).

For example, your business is a pizza restaurant with deliveries within your city. Once a potential customer enters “order pizza” into the search field, they will immediately receive the relevant ad. At this point they only need to click on it and complete the order.

Settings Flexibility

A major advantage of Google Ads contextual advertising is its flexible settings that allow placing ads with any budget while reaching maximum effectiveness (both in branding goals and direct response).

Google Ads pay-per-click model (PPC)

Google Ads uses a “pay-per-click” payment model (or PPC). This means that your business is only required to pay if a user clicks on an ad.

How much does contextual advertising cost with this model? The price depends on the competition in rates for the keyword(s) that triggered the ad demonstration. For example, there are very competitive niches with higher rates (“plastic window sales in Estonia”, “lawyer in Estonia”, “new buildings in Estonia” and others)

Google Ads tools allow you to set:

  • rate limits for ad clicks;
  • maximum daily budget.

This means that you are controlling exactly how much you spend (you can increase spending during specific campaigns or sales and decrease during the “off” season). Traditional advertising implies demonstrating the ads to everyone and at a fixed rate.

Tracking conversions and effectiveness

Flexibility is what makes the contextual advertising provided by Google Ads stand out. It’s important to know how to configure gathering analytics in the following parameters:

  • how many people see the ad(s) in the search results;
  • how many times was the ad clicked;
  • how many actions did the users make (completed forms, shopping baskets etc).

Generally analysts can configure and set up sales funnels to be able to see the “weak spots” (areas where changes need to be made) in real time. For example, if an ad is shown frequently, but doesn’t generate many clicks, it’s necessary to review how attractive the offer is for the user, stop-words configuration, the relevance of an ad demonstration and so on.