What Are Google Ads & How Do They Work?

What Are Google Ads & How Do They Work?

Last updated on March 11th, 2024 at 01:35 pm

What Are Google Ads & How Do They Work?

What are Google Ads?

Google Ads is an online advertising platform by Google, enabling businesses to display ads on Google’s search results and partner sites. Advertisers bid on keywords, paying for clicks or impressions. Ads appear based on relevance and bid amount, helping reach target audiences. Campaigns comprise ad groups with specific goals, keywords, and ad content. Advertisers set budgets, locations, and bidding strategies. Google Ads offers diverse formats, fostering engagement through text, image, video, and app promotion ads. Analytics provide insights for ongoing optimization, making it a powerful tool for businesses to enhance online visibility, attract customers, and achieve marketing objectives.

Google Ads, formerly known as Google AdWords, is an online advertising platform developed by Google. It allows advertisers to display their ads on Google’s search engine results pages (SERPs), as well as on other Google properties, websites, and apps that are part of the Google Display Network.

Here’s a basic overview of how Google Ads works:

  1. Create an Account:
    To get started with Google Ads, you need to create an account. You can sign up with your existing Google account or create a new one specifically for advertising.
  2. Campaign Creation:
    After setting up your account, you create a campaign. A campaign is a set of ad groups, each targeting a specific goal or product. Within each campaign, you set parameters such as budget, location targeting, language preferences, and bidding strategy.
  3. Ad Groups:
    Each campaign consists of one or more ad groups. Ad groups contain a set of keywords and corresponding ads. This helps you organize your ads based on similar themes or target audiences.
  4. Keyword Selection:
    You choose keywords relevant to your business or product. When users search for these keywords on Google, your ads may appear, provided your bid is competitive and your ad is deemed relevant.
  5. Ad Creation:
    You create text, image, or video ads that will be displayed when triggered by relevant keywords or on relevant websites within the Google Display Network. It’s crucial to create compelling and relevant ad copy to attract users.
  6. Bidding:
    Google Ads operates on a bidding system. Advertisers bid on keywords, specifying the maximum amount they are willing to pay for a click (Cost-Per-Click or CPC) or impressions (Cost-Per-Thousand Impressions or CPM). The Ad Rank, a combination of bid amount, ad relevance, and expected click-through rate, determines the ad’s position on the SERP.
  7. Ad Auction:
    When a user enters a search query or visits a webpage, Google triggers an ad auction. In this auction, Google considers bids, ad relevance, and other factors to determine which ads to display and in what order.
  8. Ad Display:
    If your ad wins the auction, it appears on the SERP or relevant websites within the Google Display Network. Users can click on your ad to visit your website, call your business, or take other desired actions.
  9. Monitoring and Optimization:
    Regularly monitor the performance of your campaigns using Google Ads analytics. Adjust your bids, ad copy, and targeting based on the data to optimize your campaign for better results.

Google Ads provides a powerful platform for businesses to reach their target audience and drive relevant traffic to their websites. It offers various ad formats, including text ads, display ads, video ads, and app promotion ads, catering to different marketing goals.

Businesses use Google Ads to run display ads, shopping ads, YouTube ads, and more.

Google search ads

Google Search Ads are a form of online advertising displayed on Google’s search engine results pages (SERPs). Advertisers bid on keywords relevant to their business, and ads appear when users search for those terms. Paid placements are marked as “Ad,” and advertisers pay when users click on their ads (Cost-Per-Click or CPC). It’s a targeted and effective way to reach potential customers actively searching for products or services, driving traffic to websites and boosting online visibility.

Google display ads

Google Display Ads are visual advertisements shown on websites within the Google Display Network (GDN), comprising millions of sites and apps. Advertisers create image, video, or interactive ads to reach a broader audience beyond search results. Targeting options include demographics, interests, and website placements. Advertisers pay for clicks or impressions, and the visually appealing nature of display ads helps enhance brand awareness, attract potential customers, and drive engagement across the vast network of partner sites.

Google shopping ads

Google Shopping Ads showcase product images, prices, and business names in a visually appealing format on Google’s search results. Advertisers create product listings within Google Merchant Center and bid on relevant keywords. When users search for products, these ads appear, driving potential customers to specific product pages. Advertisers pay for clicks, and the ads enhance the online shopping experience by providing users with a quick view of products, prices, and where to buy them.

YouTube ads

YouTube Ads are video advertisements shown on YouTube, the popular video-sharing platform owned by Google. Advertisers create engaging video content and target specific demographics, interests, or keywords. These ads appear before, during, or after YouTube videos. Advertisers pay based on impressions or video views. YouTube Ads provide a powerful way to reach a vast audience, build brand awareness, and drive traffic to websites or products through captivating video content.

Why Google Ads appear on the SERP

Google Ads appear on the Search Engine Results Pages (SERPs) because advertisers use the Google Ads platform to bid on specific keywords relevant to their products or services. When users enter search queries matching those keywords, an ad auction takes place. Advertisers’ bids, ad relevance, and expected click-through rates are considered, and the winning ads are displayed prominently on the SERP. This allows businesses to promote their offerings to users actively searching for related information, products, or services, maximizing visibility and potential customer engagement.

  • Keyword Relevance:
    Ads appear based on the relevance of the keywords users search for.
  • Ad Auction:
    Advertisers bid on keywords in an auction, and the highest bidder with a relevant ad wins.
  • Ad Rank:
    Ad Rank determines ad placement, considering bid amount, ad quality, and expected click-through rate.
  • Targeting:
    Ads can target specific locations, demographics, and user interests.
  • Budget Allocation:
    Advertisers set daily budgets, controlling how much they spend on ads.
  • Quality Score:
    Ad relevance and landing page quality impact ad performance.
  • Ad Formats:
    Various ad formats cater to different campaign goals, including text, display, and video ads.
  • Bidding Strategies:
    Different bidding strategies, like CPC or CPM, influence ad visibility.
  • Campaign Structure:
    Well-organized campaigns and ad groups improve targeting and performance.
  • Device Targeting:
    Ads can be tailored for specific devices, such as mobile or desktop.
  • Ad Extensions:
    Additional information, like site links or phone numbers, enhances ad visibility.
  • Negative Keywords:
    Excluding irrelevant keywords ensures ads are shown to the right audience.
  • Ad Scheduling:
    Ads can be scheduled for specific times to target peak periods.
  • Ad Rotation:
    Testing different ad creatives helps optimize for better performance.
  • Dynamic Ads:
    Some ads dynamically adjust content based on user behavior, increasing relevance.

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