How Google Search Ads Work

by Garrett Nafzinger

Google Search Ads are one of businesses’ most powerful tools to reach potential customers online. These ads appear when people search for products or services related to your business, helping you connect with users actively looking for what you offer.

With Google Ads, you choose specific keywords or topics that trigger your ad. Google then decides which ads to show based on factors like your bid amount and ad quality. This ensures that users see relevant ads while businesses reach the right audience at the right time.

Google Search Ads can be displayed across Google platforms, including Search, YouTube, Maps, and more. This wide reach allows you to connect with customers across multiple touchpoints, increasing the chances of conversion.

Basics of Google Search Ads

Paid search ads let you target people looking for what you offer by displaying your ads at the top or bottom of search results. You only pay when someone clicks on your ad, making it a cost-effective way to drive traffic.

Google Ads, formerly Google AdWords, operates on a pay-per-click (PPC) model. Your ads can appear across Google Search, YouTube, and partner websites, giving you substantial reach across the internet.

Keywords in Search Advertising

Keywords are the foundation of search ads. These words or phrases related to your business trigger your ad when someone searches for them.

  • Choosing Keywords: Select keywords that match your customers’ likely type into Google. Google provides tools like Keyword Planner to help you identify high-traffic terms.
  • Keyword Match Types: You can use broad, phrase, or exact match types to control how your ads are triggered:
    • Broad match: Reaches a wide audience (e.g., “running shoes”).
    • Phrase match: Targets a more specific group (e.g., “blue running shoes”).
    • Exact match: Focuses on precise searches (e.g., [women’s running shoes]).

Good keyword selection helps your ads reach the right audience, ensuring higher relevance and engagement.

Auction and Bidding

Google Ads uses an auction system to decide which ads appear for each search query. Every time someone searches, a mini-auction takes place in real time.

  • Setting Bids: You set a maximum bid, which determines your ad’s placement in the search results. Your bid, along with ad quality, determines the cost of a click.
  • Ad Quality: This includes the relevance of your ad, the quality of your landing page, and the click-through rate. Higher-quality ads can win better positions, even with lower bids.
  • Daily Budgets: Set daily budgets to control your spending and avoid surprises. You can adjust these as needed to align with your marketing goals.

Understanding how the auction works allows you to optimize your bids and improve your ad’s placement without overspending.

Setting Up a Google Ads Campaign

Setting up a Google Ads campaign requires thoughtful organization. Each campaign should be structured around specific goals, products, or services.

Account Structure and Organization

Your account structure should reflect your business. To manage ads effectively, create separate campaigns for each product or service category.

For example, if you sell shoes, you could have campaigns for men’s, women’s, and children’s shoes. Within each campaign, create ad groups for specific types of shoes, like sneakers or boots.

  • Clear Naming: Use clear, descriptive names for your campaigns and ad groups. This will make tracking performance easier and help you optimize your strategy.

Creating Ad Groups and Choosing Keywords

Ad groups are subdivisions within your campaigns. Each ad group should focus on a specific theme or product.

  • Keyword Selection: Choose a mix of broad, phrase, and exact-match keywords to capture different segments of your audience. Use tools like Google’s Keyword Planner to refine your keyword choices and find new ideas.

Writing Compelling Ad Copy

Your ad copy needs to grab attention and drive action. Start with a strong headline that includes your main keyword and a clear and compelling description.

Tips for Effective Ad Copy:

  • Include a clear call-to-action (e.g., “Buy Now” or “Learn More”).
  • Highlight special offers or discounts.
  • Use numbers and statistics to make your ad stand out.
  • Keep your message simple and relevant to user intent.

Landing Pages

Your landing page should match what your ad promises. A well-designed landing page increases conversions and improves your Quality Score.

Make sure your landing page:

  • Loads quickly on all devices.
  • Matches the ad’s promise with a clear headline and relevant content.
  • Has a prominent call-to-action to guide users toward the next step (e.g., making a purchase or signing up).
  • Uses simple language and is visually engaging.

Ad Rank and Quality Score

Ad Rank determines where your ad shows up in search results. It’s calculated based on your bid, ad quality, and expected performance.

Factors Influencing Ad Rank

Ad Rank depends on:

  • Bid amount: How much you’re willing to pay per click.
  • Ad quality: Ad relevance, landing page quality, and expected click-through rate.
  • Contextual factors: Google considers the searcher’s location, device, and time of day to display the most relevant ads.

High-quality ads can outperform higher bids, meaning you can achieve better ad positions without always spending more.

Improving Quality Score

Google assigns a Quality Score from 1 to 10 based on how well your ads, keywords, and landing pages align with the user’s intent.

How to Boost Your Quality Score:

  • Use relevant keywords in your ad text and landing pages.
  • Create specific ad groups for different products.
  • Write clear, compelling ad copy.
  • Ensure your landing pages are fast, mobile-friendly, and user-friendly.
  • Use ad extensions to provide more information.

A higher Quality Score can lead to better ad placements and lower costs.

Targeting Options

Google Ads offers several ways to target the right audience. You can adjust settings to reach users based on demographics, location, devices, and more.

Demographic and Geographic Targeting

Target specific demographics, such as age, gender, and income level. You can also choose geographic areas, ranging from entire countries to specific cities or regions.

Local businesses can focus their ads on nearby customers, ensuring that ads are shown only to people within a certain radius.

Device and Time Targeting

You can show your ads on computers, smartphones, or tablets. Set your ads to run when your audience is most active. For example, a coffee shop might run ads during morning hours to attract more customers.

Budget Management

Google Ads provides tools to manage your budget and control spending. You can set daily limits and use bid modifiers to adjust bids for different conditions.

Setting and Adjusting Your Budget

Set a daily budget for each campaign to control how much you spend. You can adjust this budget anytime based on performance or seasonality.

Using Bid Modifiers

Bid modifiers allow you to increase or decrease your bids based on device type, location, or time of day. This ensures you’re spending wisely by focusing on the highest-performing segments.

Performance Measurement and Optimization

Tracking performance is essential for optimizing your campaigns. Use conversion tracking and ROI calculations to measure success.

A/B Testing for Ads and Landing Pages

Run A/B tests to compare different versions of ads or landing pages. Test small changes, like headlines or calls to action, to see which performs better.

Tracking Conversions and ROI

Set up conversion tracking in your Google Ads account to see when users take action after clicking your ad. Use ROI calculations to measure profitability and make data-driven adjustments.

Final Thoughts

Google Search Ads offer a direct way to connect with potential customers when they’re searching for what you offer. By focusing on relevant keywords, writing compelling ads, and optimizing your campaigns, you can drive more traffic, improve conversions, and increase your return on investment.

Ready to get started with Google Search Ads? Schedule a consultation with Garrett Digital today to take your campaigns to the next level.