AdWords

Top 5 Reason Why Companies Spend The Most On AdWords

What is Google? Google is an exhaustive Internet-related service provider that has created its own ecosystem of services and software to give the most value to their customers who spend most of their budgets to show ads. 

But why do the top industries spend the most only on AdWords, and not Facebook or Bing ads? 

Let’s discuss.

Table of Contents

What is Google AdWords

Adwords is the advertisement platform of Google that lets users design and run ads through various integrated platforms like websites, mobile apps, and Google search result pages. As Google fundamentally is an advertising company, a huge fraction of its revenue is generated through AdWords. 

What is Google AdWords?
What is Google AdWords?

As a user, you can decide on the content, keywords, and location of the ads. AdWord works through a bidding setup that decides which ads are to be shown for specific keywords. If you’ve bid too low, the ads might not be shown to your audience, but setting the bid price too high will only leave you with a lower return on investment (ROI). 

AdWords help a lot of companies every year to grow their business through online ads. Most of the top industries, those who are reliant on the online markets, spend most of their budget on AdWord. 

In the online advertisement space, the only competitor AdWords and Google has is Facebook Ads. The value of which has already been plummeting due to the recent privacy update from Apple. 

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Top Industries That Spend the Most on AdWords

In 2021, it was reported that Amazon holds the top place on the list of top spenders for Google AdWords. Here’s a list of the top 10 companies along with Amazon, which spent the most on Google AdWords the previous year. 

RankIndustry NameAd BudgetSEO Clicks
1amazon.com$17.4M3.37B
2info.com$12.9M29.9K
3consumeradvocate.org$7.01M555K
4progressive.com$5.78M3.89M
5geico.com$5.22M9.6M
6ebay.com$5.05M473M
7wayfair.com$5.02M198M
8statefarm.com$4.02M12.4M
9walmart.com$3.79M410M
10homedepot.com$3.79M504M

The difference in SEO clicks despite having almost the same budgets for some companies is due to the volume of target audience and reliability of the company. If a domain is well known to the customers, they tend to click on the links more. 

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Why the Top Industries Spend the Most on AdWords

But, why do the top industries spend most of their advertising and marketing budget on Adwords? Let’s see.

1. AdWords is Faster Than SEO

SEO is a long game. For startups and new companies, building up a sustainable SEO strategy depending on their niche could take years of effort and determination. In contrast, AdWords gives results within a matter of days. If your company is focused on sales and brand awareness, AdWords is the best alternative available. 

With that said, spending money on AdWords can also be futile if you don’t know what you’re doing. Irrelevant keywords, faulty pitching, and unrelated graphics can prove to be destructive on your finances and brand image. 

With AdWords, even though the cost of pushing a campaign is not much, the traffic generation relies on the funds exhausted. If you stop investing in a campaign, the traffic volume diminishes. With SEO, as it’s done from scratch, the traffic generation is mostly organic and sustainable. 

2. Brand Awareness

Creating brand awareness is quite difficult for newer companies. Beyond sales and revenue generation strategies, brand value creation is the next big thing where Google Ads help with display and search networks.

Display Networks

The most effective Google Ad placements for generating brand awareness are done through display networks. The display network includes websites, image searches, in-app ads, and video ads. As the objective of brand awareness campaigns is to maximize the visual cues and not sales, investing too much in the ads themselves doesn’t make much sense. 

Responsive banner ads placed throughout the display network might not be the most attractive option, but it’s the most effective one to inform your audience about your presence. Audience targeting also plays an important role while placing display ads. 

Search Network

In contrast to display ads, search network ads that appear on the search pages are more effective for conversion and sales. But it can also be used to create brand awareness for new companies. As AdWords offers a lot of customization options, it’s possible to design your ad content around your brand to make the most out of cheap search network campaigns. 

However, if you are targeting search network traffic for brand awareness, bear in mind that the clicks cost more than display ads. So, it’s best to adapt to a hybrid model that can be used for both brand awareness and conversion if you are going to use the search network ads. 

3. Email Marketing

Email Marketing
Email Marketing

AdWords incorporates direct promotional email marketing to your campaigns. You just need to add your existing email address list to Adwords and customize it according to your next campaign strategy to send promotional emails to your customers. 

Although most of those emails end up in the Promotional folder, many of those end up in the Social folder, but never in spam. Top industries have already understood that opting for a hybrid model that consists of paid media ads, content, and email marketing is the best possible way to go ahead. Thus, they spend most on AdWords to maximize their returns. 

4. RLSA Campaigns

Remarketing lists for search ads (RLSA) campaigns are targeted to customers that have already visited your website or app. If you can target the customers who’ve visited your website recently, the chances of conversion grow significantly. Hammering them repeatedly with your brand and their choice of keywords, in accordance with the RLSA campaign, have proved to be very effective.

RLSA is a relatively new model that has been adopted by top companies. In contrast to ads based on keywords–which the customers can only see if they search for that particular word or phrase–RLSA makes use of user cookies to push ads that are more meaningful to them. 

5. Performance Metrics

Without performance data on the latest campaigns, it’s impossible to understand which aspects of the ads have been successful and which haven’t. Google AdWords offer extensive metrics for the present and past campaigns. 

Impressions, clicks, cost per click (CPC), average cost per action (CPA), conversions, and click-through rate (CTR) are the most popular and useful data points that Google lets the users analyze and interact with. The data scientists from top industries use these data to analyze the best future course of action.

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Frequently Asked Questions

What is Google Ads?

AdWords is the advertisement platform of Google that lets users design and run ads through various integrated platforms like websites, mobile apps, and Google search result pages. As Google fundamentally is an advertising company, a huge fraction of its revenue is generated through AdWords. 

What is Email Marketing?

AdWords incorporates direct promotional email marketing to your campaigns. You just need to add your existing email address list to Adwords and customize it according to your next campaign strategy to send promotional emails to your customers. 

What is performance metrics?

Without performance data on the latest campaigns, it’s impossible to understand which aspects of the ads have been successful and which haven’t. Google AdWords offer extensive metrics for the present and past campaigns. 

What are the benefits of advertising on Google AdWords?

1.Adwords is more efficient than SEO
2.Obtain more clients by using their Gmail Inbox
3.Regularly assess your performance
4.Utilize your adverts to learn more
5.Increase brand awareness

The Bottom Line

Top companies spend the most on Google AdWords primarily because it’s the best and only choice. There isn’t really a competitor present in this segment who offers such extensive functionality and affordability over such vast networks. One other reason that top companies use AdWords is that it just works and they get the most value out of every dollar spent through AdWords and Google Ads. 

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