What Are Google Ads and How Do They Work?

Google Ads, formerly known as Google AdWords, is a powerful online advertising platform used by businesses across the globe. It gives small business owners the ability to reach potential customers precisely when they’re searching on Google for the things you offer.

Understanding Google Ads

At its core, Google Ads is a pay-per-click (PPC) advertising system, meaning that advertisers pay each time a user clicks on one of their ads. By allowing businesses to display targeted ads in Google’s search results and on other Google properties, this platform efficiently connects products and services with individuals actively seeking them.

The Mechanics of Google Ads

When you set up a Google Ads campaign, you’re essentially entering into an auction. Every time a search query matches your chosen keywords, Google dips into the pool of ads and determines which to show based on a combination of factors:

  • Bid: The amount you’re willing to pay per click.
  • Quality Score: A value that takes into account your click-through rate, relevance, and landing page quality.
  • Ad Rank: The combination of your bid and Quality Score determines your ad’s position.

This system ensures that not only the highest bidders get visibility but also those providing the most relevant content to users.

The Types of Google Ads

Google offers a variety of ad formats to cater to specific business needs:

  • Search Network Campaigns: Text ads on Google Search results.
  • Display Network Campaigns: Visual ads on websites that partner with Google.
  • Shopping Campaigns: Product listings on Google.
  • Video Campaigns: Video ads on YouTube and other Google Display Networks.
  • App Campaigns: Promotions for your mobile app in Google Search, YouTube, and Google Play.
  • Performance Max Campaigns: This is a new type of campaign set up enabling advertisers’ access to their portfolio of Google ads from one campaign.

These campaigns can be customised with ad extensions, providing additional information to potential customers, such as contact details, links to certain parts of your website, or even product ratings.

How Google Ads Benefits Small Business Owners

Google Ads can be an incredibly beneficial tool for small business owners looking to gain a competitive edge:

  • Targeted Reach: Show your ads to users based on their location, search terms, and device.
  • Controlled Costs: You decide how much to spend per month, per day, and per ad. You only pay when someone clicks your ad.
  • Measurable Impact: Detailed reports show how your ads are performing in terms of generating clicks, impressions, and conversions.
  • High Flexibility: You can pause, start, or adjust your ads anytime based on business needs or results.

Setting Up a Google Ads Campaign

Getting started with Google Ads involves a few strategic steps:

  • Identify Your Objectives: Understand what you wish to achieve, be it increased traffic, sales, or brand awareness.
  • Select The Right Campaign Type: Choose the campaign that aligns with your goals and where your advertisements will be shown.
  • Conduct Keyword Research: Find the keywords that potential customers might use to search for your products or services.
  • Set Your Budget: Determine how much you can spend on your campaign and set your bids accordingly.
  • Create Engaging Ads: Write compelling ad copy and, if you’re using the Display Network, design enticing visuals.
  • Monitor and Optimise: Continuously monitor your ads’ performance and make improvements based on data collected.

PPC With Google Ads

Google Ads is a sophisticated tool that can drastically increase the visibility of your small business online. By leveraging the platform’s capabilities to target specific audiences, control your ad spend, and measure the performance of your campaigns, you can effectively drive more traffic to your website and quality leads to your business.

Small business owners should consider Google Ads as not just an advertising platform but an investment in their digital presence and overall marketing strategy. With proper understanding and strategic utilisation, Google Ads can provide robust support in realising your business growth objectives.

For those who may feel overwhelmed by the complexity of Google Ads, seeking professional advice or services may ensure that your efforts yield the best possible returns. Always invest the time to learn and adapt; mastering this platform means mastering a significant part of online marketing.

As a PPC marketing agency in Croydon, we can help local businesses set up their next Google Ads Campaign or provide a review of their current PPC campaign

Check out our PPC Pricing Calculator to help you optimise your PPC Ad spend.