Google Ads: What is Google Ads and How Does It Work? [2023]

Google Ads has been a top famous global advertising platform for years. However, if you are a beginner, it won’t be easy to understand what Google Ads is, how it works, whether it is necessary to use in 2023, and how to run your first campaign. Let Mega Digital take you through everything you need to master it.

What is Google Ads?

Google Ads (Google Adwords) is Google’s online advertising platform to display your ads on Google search results and Google’s other domains (Google Search, Google Maps, Google Play,…), partner sites, and apps. Advertisers can set up and bid on their ads via this platform to brief and offer their services, products, etc., to worldwide internet users.

Note: Advertisements from Google Ads may appear on other channels, such as blogs, news, YouTube, and other sites on Google Display Network.

How does Google Ads work?

The way it functions optimally remains the same: Users who search for a keyword achieve the results of their inquiry on a search engine results page (SERP). So, what does an ad look like? Here is the result for “toys for kids”.

Google Ads on a search engine results page

You can see that the top of the SERP is ultimately taken up with ads. They resemble organic search results nearly identical, with the exception of the bolded “Ad” at the top of the post. 

It’s an excellent opportunity for advertisers because most traffic from search queries often goes to the first results on Google.

Why Google Ads?

Google Ads is a must-use channel in case you want to increase sales, raise brand awareness, test new business models online, or collect data. Why? Let’s take a look at the details.

Powerful platform

Over the years, Googling has become a behavior that internet users use to research information and their needs. Brands advertising on Google will be able to reach worldwide audiences more efficiently than none. It will be a waste if you haven’t joined this biggest market on the internet.

why should we choose Google ADs?

Reach precise customers

Google Ads allows you to take advantage of the advantages of online advertising by showing your ads to the right people, in the right place, and at the right time.

Targeting allows you to display your ads to reach people with specific interests — namely, people interested in your products and services and show them relevant ads. Take a look at the different ways of targeting:

  • Keywords: Words or phrases related to your products or services used to display your adverts when people search for those terms or visit related websites.
  • Ad location: Display your adverts on Google search result pages and websites in the Google Search and Display Networks.
  • Age, location, and language: Choose your consumers’ age, geographic location, and language.
  • Devices: Your advertising can display on various devices, and you can control which devices and when they appear.
  • Days, times, and frequency: Display your advertising at specific hours or days of the week, and set the frequency with which they show.

A common example that many businesses use is running ads only from Monday through Friday, from 8 a.m. to 5 p.m. This is often because firms close on weekends or operate at a lower capacity. This may optimize ad spending.

Edit Google Ads schedule to reach precise customers

Target specific devices

Businesses can select the types of devices on which their advertisement will appear using Google Adsense. Regarding the search network, you can use desktops, tablets, or mobile devices.  Companies may target particular devices on the display network, like iPhones or Windows, by drilling down even further. On devices more likely to convert on your site, bid adjustments enable automatically raising or lowering bids.

Campaign Targeting Specific Devices

Pay only for results

Google Ads uses a pay-per-click (PPC) business model. So, what is Google Pay Per Click? That means advertisers target a keyword by Google and place bids against other rivals using the exact phrase. This way, businesses save money by only paying when users have taken action to their advertisements.

Over time, Google Ads will also help you analyze and improve these ads to reach more people so your business can hit your paid campaign goals.

Additionally, no matter your business size or available resources, you can tailor your ads to fit your budget. The Google Ads tool allows you to stay within your monthly cap and pause or halt your ad spending anytime.

Performance tracking

Google Ads enables businesses to track the performance of their ads. As a result, you can follow the number of users who view and click on your advertisement. You also monitor the number of users visiting your website and then take the desired action using Google Ads. Your dashboard can show any of the following information, depending on your account settings:

  • Impressions: See how frequently any version of your ad has been viewed.
  • Clicks: See how frequently any version of your ad was clicked.
  • Call clicks: See the number of times potential customers clicked your ad’s “Call” button from mobile devices.
  • Verified calls: See how often you received calls to the Google forwarding number in any version of the ads.
  • Map actions: Track the number of times people saw your ad and then clicked your business’ pin on Google Maps or got directions to your business.
  • Analytics goals: You can use tracking IDs and tags to monitor traffic from your ads by linking your Google Ads and Google Analytics accounts.
  • Amount spent: See how much money your campaign has spent.

Types of Google Ads

Google Ads types

There are many types of Google Ads which used for different campaigns with targeted customers: 

  • Google Search: A type of advertising that appears on Google’s search engines. Search ads are effective when businesses have identified a set of keywords that are suitable for their products and services.
  • Google Display: A type of advertising that actively reaches customers through images and videos. Display ads actively reach customers in the form of images and videos.
  • Google Video Ads: You can create video ads in various formats to engage customers on YouTube and Google partners.
  • Google Shopping Ads: A type of online shopping advertising. The purpose is to quickly and easily show buyers essential product information. Google shopping ads operate on two platforms: Google Ads and Google Merchant Center.

>>> Read more: What is Google Shopping ads? All you need to know from A to Z

  • Google App Ads: App Ads are ad types that allow users to install your app right from the ad. Google will match your ad to search terms relevant to your app or its catalog.
  • Local Campaign: Local campaigns can help you attract customers when they intend to visit different destinations.
  • Google Smart Ads Campaigns: Smart campaigns are designed to help business owners make the most of Google Ads easier. These campaigns continuously improve the management of your keywords and spending so that targeted customers can find your business when needed. 
  • Google Discovery Ads: Discovery campaigns allow you to reach your ideal customers at scale through a single campaign.
  • Performance Max Campaign: A goal-based campaign type that allows advertisers who want to increase performance across all Google Ads channels from a single campaign.

What is the cost of Google Ads?

The average cost-per-click will vary across industries, typically approximately 1 – 2 USD per click. However, your Google Ad cost depends on numerous factors. These elements include the quality of your website and your bid amount.

table search advertising benchmarks average CPC

As mentioned above, Google Ads pricing varies from $1,4 to $8,67. For example, the business services verticals, such as legal, accounting, dental, etc., are one of the more competitive verticals, which can be understood as a higher cost per click (CPC). On the other hand, businesses in the arts and entertainment verticals, such as real estate and travel,… have lower CPCs. The budget spent will be cheaper when running ads targeting these audiences. All the details will be shown in the above chart.

How to set up a Google Ads account

Step 1: Define a goal

Go to the homepage. After that, click the Start Now button in the page’s center or upper right corner.

Google Ads homepage Start Now button

If your dashboard appears, select New Campaign.

The next step is to decide on your campaign goal. By selecting this objective, you’ll inform Google about the audience you want to reach and the method you’ll use to pay for your advertising.

New Campaign google ads goal

You can select from a number of goals. Once you do, it will assist in providing the best types of advertisement for you.

Step 2: Choose your business name and keywords

After you’ve chosen your goals, click Next. On the next page, you must enter your company name.

choose business name

Once you’ve added your company name, click Next. Now, you can provide the URL consumers will visit after clicking on your ad.

your landing page url

You can select the keyword themes with your advertisement and brand on the next page.

Note: You should spend your time with the Keyword Planner tool to select the precise keywords for your campaigns.

add keyword themes in google ads

After you’ve chosen all of your keywords, click Next.

Step 3: Choose your target audience

On the next page, you’ll be able to choose where to target your ad. This could be close to a particular place, like a shop or other physical site. Other options include more prominent areas, cities, and zip codes.

targeting ads based on countries

Choose the region you want to target. After you’ve done this, click Next.

Step 4: Make a great advertisement

It’s now time for the enjoyable part – Creating the actual advertisement.

You may write the title and description for the advertisement in this area. The right-side ad preview window makes everything even more straightforward. Google also provides valuable tips and model advertisements to assist you in getting started with developing your advertising.

review ads campaign

Knowing your audience is the only thing you need to keep in mind when crafting effective ad text.

Step 5: Set up your billing

Add all your billing information and any discount coupons you may have.

Set up billing confirm payment

Then, select Submit.

Congratulations! Your first ad has just been generated!

>>> Read more: How to set up Google Ads account in five minutes

As a Google Agency Partner, we know the platform inside out and have our capabilities verified by Google. We provide excellent Google Shopping Advertising service with 24/7 support. Contact us to get help running Google Ads campaign!

How to build successful Google Ads campaigns

The following strategies can make your Google Ads campaign more successful, so carefully consider them in your quest to run your business online successfully:

Track customer demand before launching a Google Ads campaign

Customer demand is an essential component of a successful Google Ads campaign. Your efforts will be meaningless if people aren’t looking for suitable items and services.

Before beginning any online campaign, consider the following factors to determine whether there is sufficient demand for the product or service you will highlight in your campaign:

  • Is your target customer looking for your solution?
  • What exactly are customers looking for? Customize your advertising solutions accordingly.
  • Do you offer an in-demand product or service?

You’ll be better positioned to launch a successful campaign once you’re confident that your offering has customer demand.

Optimize your landing page

You’re unlikely to launch a perfect Google Ads campaign from the start. You’ll need to optimize it midway through to ensure you get the best results. Consider the following:

  • Keyword bids: From the time you implement generating clicks to your website, you should consider optimizing your keyword bids. You can increase your bidding for keywords that bring you a lot of sales. If the keywords don’t achieve the desired results, lower the bids or switch to other ones.
  • Target customer in mind: The call to action on the landing pages should be evident and enticing while also being scannable. This calls for intelligent sentences and a clear objective. Whatever your goal, check out our advice on creating high-converting landing pages.

Nail the headline

The headline is the most crucial part of your Google Ads. After all, it’s the first thing potential consumers see. Additionally, it must stand out from the other listings on Google’s first page.

As a result, you must ensure that the title is perfect. Making captivating headlines is accessible in a few different ways. Our main advice is to avoid clickbait. It not only irritates your readers but also damages your company’s reputation.

Frequently Asked Questions about Google Ads

What is Adwords?

Adwords is an advertising system Google developed to help all businesses reach online target audiences through its search engine platform or partner sites. On July 24, 2018, Google AdWords changed its name to Google Ads. The new name will represent the full range of existing campaign types, including Search, Display, and Video.

What is a Google Ads account?

Owning a Google Ads account enables users to reach new customers with online ads tailored to their business goals and budget. Signing up for an account is almost free. You’ll only be charged when your customers take action, for example, when they click your ad to visit your website or call your business.

What is Google Ad Manager?

Google Ad Manager is an ad management platform for many publishers with significant direct sales. Ad Manager provides granular controls and supports a variety of ad exchanges and networks, including Ad Exchange, AdSense, third-party networks, and third-party exchanges.

What is Search Engine Advertising?

Search engine advertising (SEA) is an online marketing engine used by businesses to increase their exposure and boost sales. Paid advertisements can be published on search engines like Google, so their visibility on the first page of search results is given priority. Targeted advertising is displayed to users who search for specific keywords and phrases, and the company pays a fee every time users click on the ad.

What is Google PPC?

PPC stands for pay-per-click, so Google PPC is a powerful and inexpensive way to raise brand awareness and drive qualified traffic to your site, which can boost sales of products and services you can give. Marketers need to pay a fee each time their ad is clicked.


We hope this guide has helped you understand what Google Ads is, why we should use it, and how it works. If you need any further information, don’t hesitate to contact us. As the leading partner of Google in APAC – Mega Digital, we provide premium Google Ads agency account rental services. Get in touch with us to start increasing your revenue!

5/5 - (12 votes)