Using Google Ads for Your Business: A Beginner's Guide
A practical starting point for business owners trying Google Ads for the first time: the ad types, an eight-step setup walkthrough, best practices and the jargon you will meet along the way.
In this article
If you are new to digital marketing, using Google Ads for your business can seem like a daunting task. It doesn't have to be. With a clear plan, you can set up an account and start running effective ads quickly. Google doesn't just dominate the search engine market; its ads have a reach that is hard to match. Your ads can appear on the Google Search Network, the Display Network, YouTube and more, and you choose which ad types suit your business best.
In this guide you'll learn how the platform works and the step-by-step process of setting up your account. With so many people starting their search for products and services on Google, it's important for your business to be seen on the results page.
What is Google Ads?
Google Ads, formerly known as Google AdWords, is Google's online advertising platform. It lets advertisers display ads on Google's search results pages and other Google properties, such as YouTube. Advertisers bid on keywords relevant to their target audience and create campaigns that are shown to users who search for those keywords.
Search campaigns run on a pay-per-click model, meaning advertisers pay when a user clicks on their ad. The platform offers a wide range of targeting options, from location and device targeting to demographic and interest targeting, which makes it a highly effective tool for reaching specific audiences.
How does Google Ads work?
Advertisers create ads and select keywords that are relevant to their business. When a user searches for those keywords, the ads can appear above or below the organic results. Advertisers bid on the keywords they want to show up for, but the highest bid doesn't automatically win the top spot. Google also looks at the quality and relevance of the ad and the landing page, along with the bid, when deciding which ads to show and in what order.
Used well, Google Ads drives targeted traffic to your website and increases your business's visibility online.
Types of Google Ads
Search ads
Search ads appear as sponsored results when people search for the keywords and phrases you've chosen to target. They help businesses connect with potential customers at the moment they are looking, and you keep full control over your budget and ad text.
Display ads
Display ads appear on websites, apps and videos across the web. They can reach audiences who may not have heard of your product or service before, and you can target users by interests and demographics. Unlike text ads, they feature visuals, which helps them stand out. With careful targeting and good creative, display ads build brand awareness and drive more website traffic.
Shopping ads
Shopping ads are visual product listings that appear on Google search results and the Shopping tab. They show the product image, price and store name, and link to the product page on the merchant's website. Retailers can control where and when their ads appear and measure performance closely, making Shopping ads an effective way to drive sales from interested buyers.
Video ads
Video ads run on YouTube and across Google's video partners. They promote products, services or content in a visually engaging way and can be targeted by interests, location and demographics. Video campaigns can be used to increase brand awareness, generate leads or encourage specific actions.
App ads
App campaigns help businesses promote their mobile apps across Google Search, Google Play, YouTube and the Display Network. They are built to drive installs and in-app actions, and you can track metrics such as cost per install to measure effectiveness and optimize your campaigns.
How to advertise on Google
To get started, you create a Google Ads account, add a payment method and create a new campaign. The campaign includes a budget, a target audience, a geographic location and keywords. Then you write compelling copy and, for visual formats, create attractive images or videos. Google reviews your ads before they start showing to potential customers. With careful management and a thoughtful strategy, your business can see real results from Google advertising.
Setting up your Google Ads account
Step 1: Sign up for a Google Ads account
The first step is easy: sign up for an account. Once you do, you'll have access to the full suite of tools for creating and managing campaigns, plus the insights and reports that help you deliver better results.
Step 2: Set your budget
Next, configure your budget. In Google Ads you set an average daily budget for each campaign, and it affects how many clicks and impressions you can get. Decide how much you want to spend, set the daily amount and start your campaign. Setting a budget is only the beginning, though. You also need to think about which keywords and ad formats will help you reach your business goals.
Step 3: Select your target audience
By defining who you'd like to reach, you can write messages tailored to them. You can narrow your audience using filters such as age, gender, location and interests. You can also use audience segments such as custom segments and life events to reach people who are already interested in products or services like yours.
Step 4: Choose where your ads appear
Next, decide where you want your ads to show. Search campaigns can run on Google Search and, optionally, Google's search partners, where text ads appear when users search for relevant keywords. Display campaigns reach people on websites, apps and videos across the Google Display Network. If you sell products, a Shopping campaign lets you advertise them directly. Think carefully about where your audience spends time to maximize reach and effectiveness.
Step 5: Choose your keywords
Keywords are the words and phrases you want to trigger your ad when people search on Google. When building your list, think about the terms your customers might use when looking for products or services like yours. Consider long-tail keywords as well: they are more specific than generic terms, are often cheaper, and can help you reach customers who are further along in the buying process. Take time to research keyword ideas so your campaign targets your ideal customers.
Step 6: Set your bid
A bid is the amount you are willing to pay when someone clicks on your ad. You can set bids manually or let Google's automated Smart Bidding strategies set them for you. With manual bidding, you set the maximum cost per click you're willing to pay. With automated bidding, Google adjusts your bids based on your goals and performance data. Bid strategies should evolve as your campaign progresses, so revisit them regularly.
Step 7: Write and create your ad
Now it's time to write your ad. The right combination of words draws in potential customers and encourages them to take action. Keep your ad informative and concise: grab attention without overwhelming people, and focus on the benefits of your product or service rather than every detail. Include relevant keywords to improve relevance, add the URL of the page you want people to land on, and for visual formats design an eye-catching image. Every element should suit the needs and interests of your target audience.
Step 8: Review and publish
Before submitting, preview your ad to make sure it looks right and includes everything people need to act. Your goal is an ad that stands out from the competition and gives searchers a clear reason to click.
Google Ads best practices
If your campaigns aren't producing the results you want, don't be discouraged. There are many possible reasons, and a few basic habits can make a big difference.
1. Plan your campaigns in a template
Good PPC management requires organization. A simple planning spreadsheet or template helps you map out campaigns, ad groups, keywords and ad copy before you build them, and keep track of character limits so every ad stays clear and concise.
2. Be careful with broad keyword terms
Getting your keywords right is essential, and there's no one-size-fits-all approach. Very broad terms can bring in clicks from people who aren't looking for what you sell. Test, review your search terms report and refine your keywords over time until they accurately reflect your target audience.
3. Avoid running irrelevant ads
You don't have to settle for unprofitable campaigns. Make sure your ad copy matches what the searcher is looking for. Responsive search ads let you supply multiple headlines and descriptions so Google can test combinations and show the best-performing ones.
4. Pay attention to Quality Score
A good Quality Score helps your ads show in better positions at a lower cost. Google's Quality Score diagnostics highlight where improvement may be needed: expected click-through rate, ad relevance or landing page experience.
5. Optimize your landing page
A user's journey doesn't end with the click. The post-click experience needs to be just as well optimized as the ad itself. Every element of your landing page should help visitors find a solution to their problem or question, and the path from ad to conversion should be as smooth as possible.
Important Google Ads terms
Understanding key terms is the backbone of running Google Ads well. Some are specific to Google Ads; others apply to PPC in general.
Quality Score
Quality Score is a 1–10 diagnostic rating of your keywords. It is based on expected click-through rate, ad relevance and landing page experience, and reflects how your ads compare with other advertisers'.
PPC
Pay-per-click advertising means you pay when someone clicks on your ad. It's a fast way to get your business in front of customers, and understanding its basics is essential for getting the most from Google Ads.
Keywords
As an advertiser, you choose keywords that match the searches you want your ad to appear alongside. For example, if somebody searches "how to clean gum off shoes", the results may include ads targeting keywords like "gum on shoes" and "clean shoes". You can also add negative keywords to stop your ads from showing for certain searches. Negative keywords are usually terms related to your target searches that fall outside of what your business offers.
Assets (formerly extensions)
Assets, previously called ad extensions, let you add extra information to your ads, such as sitelinks, phone numbers, locations, callouts, promotions and more. There is no extra charge to add them, and they can make your ads larger and more useful.
Display Network
Beyond search results, Google Ads can place ads on websites and apps in Google's Display Network. These placements can be text or image based and are matched to relevant content and audiences.
Conversion rate (CVR)
Your conversion rate shows how well your landing page turns visitors into customers or leads. A high conversion rate suggests visitors find the page easy to use and in line with your ad's message. Improving it means improving the user experience and delivering exactly what you promise.
Click-through rate (CTR)
CTR is the number of clicks your ad receives divided by the number of times it is shown. It indicates how well your ad matches search intent and appeals to people seeing it. A relatively high CTR suggests you're targeting relevant keywords with strong ad copy.
Campaign type
Google Ads offers several campaign types for different goals: Search, Display, Video, Shopping, App, Demand Gen and Performance Max. Search ads are text based and appear in Google search results, while display ads are image based and appear on sites in the Display Network. Video campaigns suit engaging, visual content, Shopping campaigns highlight products, and App campaigns promote installs. Performance Max gives a single campaign access to all of Google's ad inventory.
Bidding
With cost-per-click (CPC) bidding, you set the maximum amount you're willing to pay for a click. With cost-per-thousand-impressions (CPM) bidding, you pay for every thousand times your ad is shown. Automated strategies such as Maximize Conversions or Target CPA let Google set bids for you based on your goals.
Ad Rank
Ad Rank determines where your ad appears and whether it shows at all. It takes into account your bid, the quality of your ad and landing page, and other factors such as the context of the search and the expected impact of your assets. The higher your Ad Rank, the more likely your ad is to appear in the top spots.
Advantages of using Google Ads
Google Ads lets businesses create tailored ads, target people with precisely chosen keywords, adjust bids for visibility and track performance to inform future campaigns.
1. Performance tracking
Google Ads doesn't just show how your ads perform. With conversion tracking and Google Analytics, you can also see what people do after they reach your site, so you know which keywords and ads are actually driving sales or leads.
2. Pay for results
With search campaigns, businesses pay when people click on their ads rather than simply for being seen. This makes it easier to tie spend to real visits.
3. Device targeting
You can see how your ads perform on computers, mobile phones and tablets, and adjust bids by device to put more budget where conversions happen. Google Analytics adds deeper conversion and e-commerce data to help with these decisions.
4. Precise targeting
Search advertising is especially valuable for local businesses, which can target potential customers by location, age, keywords and more. You can also schedule when your ads run to make the most of your budget. For instance, some businesses only run ads during business hours on weekdays, when they can answer calls and enquiries.
Final thoughts
Google Ads is an excellent way to reach people who are already searching for products or services like yours. Start by understanding how the platform works, set up a focused first campaign, and keep optimizing your keywords, ads and landing pages. Done consistently, that's how Google Ads turns into a reliable source of customers.
