Optimization Models in Google Ads Campaigns

Abstract

Google Ads is a powerful tool for companies wishing to gain visibility on Google searches, as it offers impression privileges for advertisers, by featuring the ad above the organic results listing. This chapter contributes to the optimization of Google Ads campaigns. It includes an empirical study with a sample of marketing professionals exploring their views on the challenges of Google Ads as a digital marketing tool. According to the participants in this study, Google Ads campaign profitability depends, largely, on the ability to choose a keyword pool that achieves the company's goals. Moreover, the complexity of these pay-per-click decisions, the costs involved, and its business implications demand more reasoned, quantified, and, if possible, optimized solutions. The chapter develops linear programming optimization models based on impressions, clicks, conversions, and billing. The models are tested on a real example using Excel optimization add-ins.