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What Is Google Ads and How Does It Work?

In today’s digital-first world, businesses can’t rely solely on word of mouth or foot traffic. To attract potential customers online, you need to be visible where they’re searching—and that’s where Google Ads comes in. Whether you’re a local business, an e-commerce brand, or a global enterprise, Google Ads offers one of the most powerful tools to grow your audience and revenue.

In this blog, we’ll explain what Google Ads is, how it works, the different types of campaigns available, and how to get started.


What Is Google Ads?

Google Ads (formerly known as Google AdWords) is Google’s online advertising platform that allows businesses to display ads on Google Search, YouTube, Google Maps, Gmail, and across the Google Display Network—a vast collection of partner websites and mobile apps.

Advertisers use Google Ads to promote their products or services, increase website traffic, generate leads, and ultimately drive sales. The platform works on a pay-per-click (PPC) model, meaning you only pay when someone clicks your ad.

Google Ads image 1


How Does Google Ads Work?

At its core, Google Ads functions like an auction. But instead of simply bidding the highest amount, Google also considers ad relevance, quality, and user experience. Here’s how the process works:


1. Keyword Targeting

Google Ads primarily works by targeting keywords—words or phrases that people type into the Google search bar. For example, if you sell running shoes, you might target keywords like “buy running shoes online” or “best running shoes for women.”

When someone searches for those terms, Google scans all relevant ads in its system to determine which ones to show.


2. Ad Auction

Every time a user performs a Google search, an ad auction takes place in milliseconds. Multiple advertisers may be targeting the same keyword. Google considers three main factors:

  • Bid Amount – How much you’re willing to pay for a click.

  • Ad Quality – Based on your Quality Score, which includes click-through rate (CTR), ad relevance, and landing page experience.

  • Ad Extensions & Expected Impact – Additional info like phone numbers, site links, or location info.

The combination of these factors determines your Ad Rank, which decides your ad’s placement on the page.


3. Pay Only When Someone Clicks

You’re not charged when your ad is displayed—only when a user clicks on it. This model is known as CPC (Cost-Per-Click) advertising. Your actual CPC may be less than your maximum bid if your ad is high quality.


Types of Google Ads Campaigns

This offers several campaign types tailored to different goals and placements. Here’s a breakdown:


1. Search Campaigns

These text-based ads appear on Google’s search engine results page (SERP) when users search for targeted keywords. They’re ideal for capturing high-intent traffic.

Example: A user searches for “plumber near me” and sees your ad at the top of the results.


2. Display Campaigns

Display ads are visual banners that appear on millions of websites in the Google Display Network. They’re perfect for brand awareness and retargeting.

Example: A person visits your website and later sees your product ad while reading a blog.


3. Shopping Campaigns

These are product-based ads that include images, prices, and product names. They appear in Google Shopping results and on SERPs. Great for e-commerce businesses.

Example: A user searches for “wireless headphones” and sees your product listing with a photo and price.


4. Video Campaigns (YouTube Ads)

These are short video ads that run on YouTube or across video partners. They’re effective for increasing brand engagement and awareness.

Example: A 15-second ad plays before a YouTube video on tech reviews.


5. Performance Max Campaigns

A newer campaign type that uses AI to optimize across all of Google’s platforms (Search, Display, YouTube, Gmail, Maps) in one campaign. It’s great for advertisers who want simplicity and full-funnel targeting.


Benefits of Using Google Ads

Google Ads is a go-to platform for digital marketing advertisers for many reasons:

  • Massive Reach – Google processes over 8.5 billion searches per day.

  • High Intent – Users searching on Google often have strong purchase intent.

  • Budget Flexibility – Start with as little as ₹500 or $10 per day.

  • Detailed Analytics – Track clicks, conversions, impressions, and ROI.

  • Advanced Targeting – Target by location, age, device, time, and more.


How to Get Started with Google Ads

Starting with Google Ads is straightforward. Here’s a quick guide:


1. Set Your Goals

Decide what you want to achieve—more website visits, phone calls, store visits, or sales.


2. Choose a Campaign Type

Select the right campaign based on your objective (Search, Display, Shopping, etc.).


3. Define Your Audience

Use targeting options such as demographics, keywords, interests, and location.


4. Set Your Budget & Bids

Decide your daily budget and bidding strategy. You can let Google automate bidding or set it manually.


5. Create Your Ads

Write compelling ad copy, choose engaging images or videos, and include a clear Call to Action (CTA).


6. Launch and Monitor

Once your campaign is live, use Google Ads dashboard and Google Analytics to monitor performance, optimize, and make changes.


Tips to Succeed with Google Ads

  • Use relevant keywords with high intent.

  • Write attention-grabbing headlines and CTAs.

  • Make sure your landing page is optimized for mobile and conversions.

  • Use ad extensions to increase visibility and value.

  • Continuously monitor and A/B test your ads.

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