Google Ads is an online advertising service developed by Google, where advertisers pay to display brief advertisments, service offerings, product listings, and video content within the Google ad network to web users. Google AdWords’ system is based partly on cookies and partly on keywords determined by advertisers. Google uses these characteristics to place advertising copy on pages where they think it might be relevant. Advertisers pay when users divert their browsing to click on the advertising copy. Partner websites receive a portion of the generated income.
AdWords has evolved into Google’s main source of revenue, contributing to Google’s total advertising revenues of USD $95.4 billion in 2017. AdWords offers services under a pay-per-click (PPC) pricing model. Although an advanced bidding strategy can be used to automatically reach a predefined cost-per-acquisition (CPA), this should not be confused with a true CPA pricing model.
The AdWords program includes local, national, and international distribution. Google’s text advertisements are short, consisting of two headlines with a maximum of 30 characters each, a description with a maximum of 80 characters, and a display URL of 40 characters.These are called Adwords expanded text Ads. These mimic what the average search result looks like on Google. Image ads can be one of the several different standardized sizes as designated by the Interactive Advertising Bureau (IAB). In May 2016, Google announced its reformatting of ads to help consumers and advertisers succeed in a mobile-first world. The new format, called Expanded Text Ads, allows for 23% more text. This new format is available on both the Google Search Network and the Google Display network. It features two headlines with 30 characters each, replacing the standard of a single headline with 30 characters. The display URL has been replaced with two 15 character paths, not including the root domain.
Sales and support for Google’s AdWords division in the United States is based in Mountain View, California, with major secondary offices in Hyderabad, Dublin, Singapore, Ann Arbor and New York City. The third-largest US facility is the Googleplex, Google’s headquarters, which is located in Mountain View, California. Google AdWords engineering is based at the Googleplex, with major secondary offices in Los Angeles and New York.
As of June 2018, Google derives 86% of its total revenues from trading advertising inventory through AdWords, DoubleClick AdExchange, and DoubleClick Bid Manager, among others.
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