How The Google ADs Algorithm Works- Step By Step
Yo what is going on everybody shrieking aah stay here so how does the Google Ads algorithm work I'm a very big believer in building a strong foundation before you start putting the layers on top of the base and in this case when it comes to Shopify drop shipping are just ecommerce in general your base is the skills that you have regarding the advertising platforms that you use and it doesn't matter whether it's Facebook ads or Google Ads you need to know how to use these platforms correctly so you're not just burning through money because let's face it right now at this moment about 99% of the people that I'm seeing and those people that hit me up on Instagram asked the most basic questions and have these viewpoints regarding these advertising platforms which kind of just lets me know that they may not be really that successful with these platforms so in order to get good results with them you need to actually understand how they work so this tutorial is one tutorial you're gonna want to read until the end because it covers literally the ins and outs of Google ads and how it works but it's no secret that Google ad is not an easy platform there are so many different functionalities on the Google ads dashboard and so many different things that you can do that oftentimes beginners or even people who are kind of experienced sometimes get confused as to what to do and what should be done but again as I mentioned it all comes down to the basic understanding if you have a solid foundation you will achieve success with Google ads period but if you focus on the numbers and you don't really take the time to learn about the platform you may struggle a lot but without wasting any more time let's just jump right into it so the first step to understanding how the Google Ads algorithm really works is to smash that like button for the website algorithm just kidding but hopefully you do do that anyways but before we start talking about the algorithm itself I want to go ahead and start talking about the basics of Google Ads exactly what is Google ads and how does it work and I'm gonna be comparing Google ads with Facebook often but Google Ads is basically a search based platform this is a platform where the Google ad segment is attached to google.com meaning people directly search
for products on Google and then your Google ads pop up for those search queries so in this case no target and I quote targets because I will be comparing it to Facebook but no targets are chosen like you would do on Facebook so if you've already had some experience with Facebook ads or you have readed some tutorial s on Facebook ads you know that with Facebook ads you choose one audience there may be multiple different audiences to the Facebook ads and then supply some advertisements to those specific ad sets and then your campaign starts running to those specific audiences that you have chosen in this case with Google you're not doing the same thing because there's no section and Google ads when you're creating the campaign which lets you choose these audiences so you may be thinking how does Google then find those correct audiences for us how do we get our ads shown to the right people well the thing is the audience comes to you you don't go towards the audience unlike with Facebook ads and there are multiple different ways as to how this can be achieved but to have the right audience come towards you and your website you need to understand that the keywords in your titles descriptions and image alt tags determine your audience this is why I constantly hammer in my website tutorial s that you need to be doing proper SEO optimization and some people don't even pay attention to what I say but let me ask you one question if you plan on using Google as or you already have Google ads campaign running if your products are not properly SEO optimized what makes you think that Google will be able to do its job effectively of finding the right audience for your products so that you actually get sales and profit from your campaigns literally with Google shopping at your just Google ads in general there is no other way to find good success without doing proper
SEO optimization because these keywords whatever use in your titles in your descriptions and your image alt tags they basically act as the audience is that you choose for Facebook ads with the audience's on Facebook you basically choose them and then Facebook targets to those people only with Google whatever keywords that Google crawls through on your website associate those keywords to the product that you're selling and when it makes that connection what happens is Google start showing up for those specific search terms which people are searching for on Google which are related to the product that yourself that may sound kind of confusing but just understand that without the proper SEO optimization in your descriptions and titles you will not be shown for the right search terms which means you'll have a bad audience so you can't get sales that way but another thing to say about this is that you want to think of this as basically competing for search terms you aren't necessarily competing for the products sure products play a very very important role when it comes to Google but more than that the search terms play the biggest role because let's say for example you're selling a spaceship on your website which takes people all the way to Mars and Jupiter and so on if nobody on Google is searching for the search term spaceship or anything related to a spaceship and nobody has any buying intention your spaceship is going to rot on your website for years to come
so that is why it is so important to compete aggressively with search terms and think of this as a search based platform from the beginning so that you put more of the attention towards the search terms and the SEO optimization that you do on your website rather than the products itself because without proper SEO optimization or using the right search terms your products which will just not sell but again as I mentioned the products also play a very very important role it needs to have demand it needs to be useful to the person in orders for the person to even consider buying that product and that's where proper product research methods come into play this tutorial is not on proper product research methods because I already made a tutorial on that link shut up popped up in the top right of your screen read that tutorial after this one but when it comes to Google ads to compete with the search terms that people are searching on Google you need to supply a specific bit amount to Google and this bit amount determines whether you rank for that specific search term or not and one thing about bids is that each search term on Google for every different product has a different amount of bid some search terms for the same exact product people may be bidding as low as five cents for other search terms for that same exact product people could be bidding as high as one dollar and fifty cents so the big ranges fluctuate based on the keyword and the popularity of that keyword that's one thing to keep in mind when searching for these search terms and that is why it is so important to have a competitive bid I'm gonna be talking more about how your auctions are basically shown very very shortly but before that I want to show you an image with illustrates how the algorithm works with Google so here we have an image with four different advertisers the first advertiser is Bob second one is Jane third one is sue and fourth one is Tom all of these four individuals are trying to
compete for the same exact keywords and trying to sell a very very similar product but here are the differences advertiser number one Bob has his max bid limit for his general testing campaign at four dollars but Jane has set it at three dollars sue has set it at two dollars and Tom is the cheapest one he aside at $1 because he doesn't believe in investing money so you can make more money so based on the bids that these individuals have set there are different factors which are determined when it comes to the option and all these specific factors are part of the option so the first one is quality score and second and most important one is the ad ring the third one is of course the max bid which I'll be talking about very soon but I want to give you guys a formula with this photo so the formula is that your ad ring is determined by the max CPC that you have set for your campaign multiplied by the quality score that you have so this one right here these two sections are basically multiplied together to give Google to a drink and a drink is basically the rank at which your products are shown so there are specific different a drinks available right now so let's go ahead and go on over each one so sue ranked number one for the specific product meaning she ranked at the very beginning of the google shopping ads number two was Jane over here and number three was Tom as you can see Bob who had the highest bid did not rank at all and this is one of the biggest misconceptions a lot of people have with Google which is if I set my bid at the highest possible I'm gonna win all of the auctions I'm gonna have tons and tons of sales that is one big misconception because as you can see in this photo Bob clearly lost the auction despite having the high speed and there are several reasons as to why that happened main one that you want to understand is that the part of the equation which makes up the a drink which is basically where you rank was the Quality Score and in Bob's case he had a low quality score there are different factors which determine what should call the score is some are include the CTR meaning the click-through rate of your ads the landing page experience meaning do people come
on to your website and then immediately leave also known as the bounce rate or do they come on your website browse around and actually maybe add something to cart initiate check on maybe even purchase welcome a sixth are they having on your website and the third main important thing is how relevant are your ads to what the people are searching this goes back up to the right audience this is why it's so important to do proper SEO optimization because if the right audience does not come onto your website you're gonna have very very low relevant score diamonds there you're gonna have a high bounce rate your CTR will also be low because of these two factors and that is negatively going to affect your quality score so as you can see all of these factors are interlinked with each other you can't have one and leave out the other you need to have all these working together to give you the best possible results with your ads but basically the a drink is determined again by the quality score x max CPC Bob had a very very high beta so he was good over there but his quality score was very low maybe a CTR was less than 1% maybe his landing page experience was bad because there were too many pop-ups the bounce rate was super high cuz maybe even the website's page speed was slow or maybe the product that bob was trying to sell is not relevant to what people were searching so this led him to have a low quality score which basically led to a low impact on the ad rank and his ad was not shown as you can see on the other hand Jane had a $3 max bid but her quality score was high so that's a good sign but her impact was still low because maybe there were some issues on her website which were causing the conversion rate to be at its best meaning 2% 3% 4% and that is what she ranked number two so over here got away with a $2.00 max CPC she had half of the max CPC s Bob so she was spending half of the money but her quality score was high the impact she had on the ad rank was high as well because she was giving customers a very very good landing page experience her website was highly optimized for conversions her price point was correct she was
doing as much as she could correctly and that resulted in her ranking number one but finally there's Tom Tom had the lowest CPC bid limit and his quality score was medium it wasn't the best but it wasn't bad either like Bob and his impact on the admin was also medium so it was alright which is why he ended up number three so as you can see your quality score and your ad rank determine literally everything of how much you find success with Google ads so just bidding high is not everything with Google you need to have all these other factors in consideration and as I said a drink is number one and that is determined by the max CPC I am multiplying by the quality score again you need to have a good quality score and in order to improve this you can read my tutorial on optimization of your Google Ads I'll leave the link in the description as well but that brings me to the real point of this tutorial which is the Google Ads algorithm and how it works so when it comes to the Google ads algorithm you need to understand that google has literally millions and millions of dollars of spent data this means Google is able to detect the right audience correctly as long as you provide Google with the relevant keywords in the titles and descriptions image alt text as long as maybe this and this is optional by the way but maybe you provide the Google product category for your Google ad again
if you're not sure what this is and how to set it up and set up in your shopping feed and I'll have the link for this tutorial as well in the description but this one is optional you need to 100% do this though and that is have relevant keywords because without relevancy you're just not gonna find success with Google Ads period no matter what you do and the third and main important thing is that your product complies with ad policies because if your products don't comply with Google's ad policies they're gonna get disapproved and when your Merchant Center account has tons and tons of products which are disapproved believe it or not that negatively affects your results with Google ads so you'll end up spending a lot of money and unnecessarily that way as well but going back to the comparison between Facebook and Google you want to understand that Google basically works like a CBO when you compare it to Facebook on facebook as if you run one CBO with five ad sets what happens is the CBO automatically allocates a certain amount of budget to a few specific ad sets which are performing the best the other axes which are maybe not doing that well are not allocated the budget Google works in the same way so more budget is allocated to products which are getting the most impressions click sales so what happens is a lot of people complain about this as well but they notice that only a few products in their account are getting the most amount of sales clicks and spent the other products are zero impressions they're not getting any results at all for those products and this is very common because again Google works like a CBO it determines which product to get to spend most of the money on because it has enough data to determine that and there's enough search volume for that and you want to understand unlike Facebook Google is built towards providing positive
ROI for their customers meaning they want you to make money so that you can continue using their platform and they believe in the slogan earn more spend more the more they make their customers earn meaning us the more we will spend with them and this something not true with Facebook because a lot of people struggle a lot with Facebook with Google I've seen that there's a lot more consistency with results and positive ROI as well but it does require work as you guys can see and it does require that you understand the basic foundation of Google Ads which is this photo right here if you understand this you will know how to kill it with Google but
if you found any type of value in this tutorial smash the like button and smash the follow button and I'll see you guys next time.
for products on Google and then your Google ads pop up for those search queries so in this case no target and I quote targets because I will be comparing it to Facebook but no targets are chosen like you would do on Facebook so if you've already had some experience with Facebook ads or you have readed some tutorial s on Facebook ads you know that with Facebook ads you choose one audience there may be multiple different audiences to the Facebook ads and then supply some advertisements to those specific ad sets and then your campaign starts running to those specific audiences that you have chosen in this case with Google you're not doing the same thing because there's no section and Google ads when you're creating the campaign which lets you choose these audiences so you may be thinking how does Google then find those correct audiences for us how do we get our ads shown to the right people well the thing is the audience comes to you you don't go towards the audience unlike with Facebook ads and there are multiple different ways as to how this can be achieved but to have the right audience come towards you and your website you need to understand that the keywords in your titles descriptions and image alt tags determine your audience this is why I constantly hammer in my website tutorial s that you need to be doing proper SEO optimization and some people don't even pay attention to what I say but let me ask you one question if you plan on using Google as or you already have Google ads campaign running if your products are not properly SEO optimized what makes you think that Google will be able to do its job effectively of finding the right audience for your products so that you actually get sales and profit from your campaigns literally with Google shopping at your just Google ads in general there is no other way to find good success without doing proper
SEO optimization because these keywords whatever use in your titles in your descriptions and your image alt tags they basically act as the audience is that you choose for Facebook ads with the audience's on Facebook you basically choose them and then Facebook targets to those people only with Google whatever keywords that Google crawls through on your website associate those keywords to the product that you're selling and when it makes that connection what happens is Google start showing up for those specific search terms which people are searching for on Google which are related to the product that yourself that may sound kind of confusing but just understand that without the proper SEO optimization in your descriptions and titles you will not be shown for the right search terms which means you'll have a bad audience so you can't get sales that way but another thing to say about this is that you want to think of this as basically competing for search terms you aren't necessarily competing for the products sure products play a very very important role when it comes to Google but more than that the search terms play the biggest role because let's say for example you're selling a spaceship on your website which takes people all the way to Mars and Jupiter and so on if nobody on Google is searching for the search term spaceship or anything related to a spaceship and nobody has any buying intention your spaceship is going to rot on your website for years to come
so that is why it is so important to compete aggressively with search terms and think of this as a search based platform from the beginning so that you put more of the attention towards the search terms and the SEO optimization that you do on your website rather than the products itself because without proper SEO optimization or using the right search terms your products which will just not sell but again as I mentioned the products also play a very very important role it needs to have demand it needs to be useful to the person in orders for the person to even consider buying that product and that's where proper product research methods come into play this tutorial is not on proper product research methods because I already made a tutorial on that link shut up popped up in the top right of your screen read that tutorial after this one but when it comes to Google ads to compete with the search terms that people are searching on Google you need to supply a specific bit amount to Google and this bit amount determines whether you rank for that specific search term or not and one thing about bids is that each search term on Google for every different product has a different amount of bid some search terms for the same exact product people may be bidding as low as five cents for other search terms for that same exact product people could be bidding as high as one dollar and fifty cents so the big ranges fluctuate based on the keyword and the popularity of that keyword that's one thing to keep in mind when searching for these search terms and that is why it is so important to have a competitive bid I'm gonna be talking more about how your auctions are basically shown very very shortly but before that I want to show you an image with illustrates how the algorithm works with Google so here we have an image with four different advertisers the first advertiser is Bob second one is Jane third one is sue and fourth one is Tom all of these four individuals are trying to
compete for the same exact keywords and trying to sell a very very similar product but here are the differences advertiser number one Bob has his max bid limit for his general testing campaign at four dollars but Jane has set it at three dollars sue has set it at two dollars and Tom is the cheapest one he aside at $1 because he doesn't believe in investing money so you can make more money so based on the bids that these individuals have set there are different factors which are determined when it comes to the option and all these specific factors are part of the option so the first one is quality score and second and most important one is the ad ring the third one is of course the max bid which I'll be talking about very soon but I want to give you guys a formula with this photo so the formula is that your ad ring is determined by the max CPC that you have set for your campaign multiplied by the quality score that you have so this one right here these two sections are basically multiplied together to give Google to a drink and a drink is basically the rank at which your products are shown so there are specific different a drinks available right now so let's go ahead and go on over each one so sue ranked number one for the specific product meaning she ranked at the very beginning of the google shopping ads number two was Jane over here and number three was Tom as you can see Bob who had the highest bid did not rank at all and this is one of the biggest misconceptions a lot of people have with Google which is if I set my bid at the highest possible I'm gonna win all of the auctions I'm gonna have tons and tons of sales that is one big misconception because as you can see in this photo Bob clearly lost the auction despite having the high speed and there are several reasons as to why that happened main one that you want to understand is that the part of the equation which makes up the a drink which is basically where you rank was the Quality Score and in Bob's case he had a low quality score there are different factors which determine what should call the score is some are include the CTR meaning the click-through rate of your ads the landing page experience meaning do people come
on to your website and then immediately leave also known as the bounce rate or do they come on your website browse around and actually maybe add something to cart initiate check on maybe even purchase welcome a sixth are they having on your website and the third main important thing is how relevant are your ads to what the people are searching this goes back up to the right audience this is why it's so important to do proper SEO optimization because if the right audience does not come onto your website you're gonna have very very low relevant score diamonds there you're gonna have a high bounce rate your CTR will also be low because of these two factors and that is negatively going to affect your quality score so as you can see all of these factors are interlinked with each other you can't have one and leave out the other you need to have all these working together to give you the best possible results with your ads but basically the a drink is determined again by the quality score x max CPC Bob had a very very high beta so he was good over there but his quality score was very low maybe a CTR was less than 1% maybe his landing page experience was bad because there were too many pop-ups the bounce rate was super high cuz maybe even the website's page speed was slow or maybe the product that bob was trying to sell is not relevant to what people were searching so this led him to have a low quality score which basically led to a low impact on the ad rank and his ad was not shown as you can see on the other hand Jane had a $3 max bid but her quality score was high so that's a good sign but her impact was still low because maybe there were some issues on her website which were causing the conversion rate to be at its best meaning 2% 3% 4% and that is what she ranked number two so over here got away with a $2.00 max CPC she had half of the max CPC s Bob so she was spending half of the money but her quality score was high the impact she had on the ad rank was high as well because she was giving customers a very very good landing page experience her website was highly optimized for conversions her price point was correct she was
doing as much as she could correctly and that resulted in her ranking number one but finally there's Tom Tom had the lowest CPC bid limit and his quality score was medium it wasn't the best but it wasn't bad either like Bob and his impact on the admin was also medium so it was alright which is why he ended up number three so as you can see your quality score and your ad rank determine literally everything of how much you find success with Google ads so just bidding high is not everything with Google you need to have all these other factors in consideration and as I said a drink is number one and that is determined by the max CPC I am multiplying by the quality score again you need to have a good quality score and in order to improve this you can read my tutorial on optimization of your Google Ads I'll leave the link in the description as well but that brings me to the real point of this tutorial which is the Google Ads algorithm and how it works so when it comes to the Google ads algorithm you need to understand that google has literally millions and millions of dollars of spent data this means Google is able to detect the right audience correctly as long as you provide Google with the relevant keywords in the titles and descriptions image alt text as long as maybe this and this is optional by the way but maybe you provide the Google product category for your Google ad again
if you're not sure what this is and how to set it up and set up in your shopping feed and I'll have the link for this tutorial as well in the description but this one is optional you need to 100% do this though and that is have relevant keywords because without relevancy you're just not gonna find success with Google Ads period no matter what you do and the third and main important thing is that your product complies with ad policies because if your products don't comply with Google's ad policies they're gonna get disapproved and when your Merchant Center account has tons and tons of products which are disapproved believe it or not that negatively affects your results with Google ads so you'll end up spending a lot of money and unnecessarily that way as well but going back to the comparison between Facebook and Google you want to understand that Google basically works like a CBO when you compare it to Facebook on facebook as if you run one CBO with five ad sets what happens is the CBO automatically allocates a certain amount of budget to a few specific ad sets which are performing the best the other axes which are maybe not doing that well are not allocated the budget Google works in the same way so more budget is allocated to products which are getting the most impressions click sales so what happens is a lot of people complain about this as well but they notice that only a few products in their account are getting the most amount of sales clicks and spent the other products are zero impressions they're not getting any results at all for those products and this is very common because again Google works like a CBO it determines which product to get to spend most of the money on because it has enough data to determine that and there's enough search volume for that and you want to understand unlike Facebook Google is built towards providing positive
ROI for their customers meaning they want you to make money so that you can continue using their platform and they believe in the slogan earn more spend more the more they make their customers earn meaning us the more we will spend with them and this something not true with Facebook because a lot of people struggle a lot with Facebook with Google I've seen that there's a lot more consistency with results and positive ROI as well but it does require work as you guys can see and it does require that you understand the basic foundation of Google Ads which is this photo right here if you understand this you will know how to kill it with Google but
if you found any type of value in this tutorial smash the like button and smash the follow button and I'll see you guys next time.
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