How Do Google Ads Work: A Guide for Business Owners

Written By Melda Karaçelik
How Do Google Ads Work

If you’re a business owner, you’ve likely heard of Google Ads. But do you know how they work? In this blog post, we’ll break down the basics of how do Google Ads work and give tips on making the most of them, whether you’re just starting with Google Ads or looking for ways to improve your strategy.

What are Google Ads, and How do They Work?

A type of online advertising called Google Ads enables companies to advertise their products and services on the world’s biggest search engine. Google Ads works by allowing companies to bid on keywords that are relevant to their business. When someone searches for one of these keywords, Google will display the companies that have bid on the keyword in the form of an ad.

The ads are then ranked according to some factors, including the quality of the ad and the amount that the business has bid. The highest-ranked ad will then be displayed at the top of the search results page. Google Ads can be a helpful ad platform for increasing your consumer base and promoting your goods and services.

However, it is essential to remember that Google Ads has a cost. Every time someone clicks on one of your ads, you will be charged a certain amount of money. It is essential to consider your budget carefully before starting a Google Ads campaign.

Why should Business Owners Use Google Ads?

Any business owner knows that ads are a necessary part of doing business. With relevant and targeted ads, you can touch potential customers easily. Google Ads is one of the most effective platforms for advertising, as it allows you to target relevant keywords and reach a broad audience.

In addition, Google Ads is highly customizable, so you can tailor your google ad campaign to suit your unique business goals. And because you only pay when someone clicks on your ad, you can be sure that your advertising spend is going towards reaching potential customers who are interested in what you have to offer.

For all these reasons, Google Ads should be a vital part of any business owner’s marketing strategy.

How can Business Owners Create Effective Google Ads Campaigns?

When creating a Google Ads campaign, it is essential to keep the following in mind:

Google Ads can be helpful for increasing your potential customers and promoting your goods and services. However, to get the most out of your campaigns, it is important to follow some best practices. Here are a few tips for running successful Google Ads campaigns:

Choose the right keywords.

When creating your campaign, you will need to create a list of keywords that are relevant to your business. These keywords will be used to target potential customers who are searching for related products or services. It is important to choose keywords that are both relevant and popular, as this will help you reach a wider audience.

Create effective ads

Your ads must be eye-catching if you want people to click on them. Your ad copies should include a headline, description, and Call To Action. It is essential to ensure that your ad copies align with your keywords.

Set a budget

Setting a budget for your Google Ads campaigns is essential, as this will help you stay within your spending limits. It would help if you also kept in mind that you may not see results immediately, so it is essential to be patient, optimize, test and continue to invest in your campaign over time.

Track the results

It is important to track the results of your Google Ads campaigns to see how they are performing. This information can help you determine which keywords work best for you and which Google search ads generate the most clicks. You can then use this information to improve your ads performance and scale your campaigns. So you can get the best results on your spending money on ads.

Constantly be testing new strategies.

No matter how well your Google Ads campaigns are currently performing, there is always room for improvement. The key to continuously improving your results is constantly testing new strategies and tactics. By doing this, you will be able to learn what works best for your business and ensure that your google ad campaigns are continually optimized for maximum results.

How Do Google Ads Work A Guide for Business Owners

How can Business Owners Track the Results of Their Google Ads Campaigns?

Google Ads offers business owners some ways to track the results of their campaigns. By default, Google Ads will show the number of impressions (the number of times your ad was shown), clicks, and clickthrough rate (CTR) for each campaign. You can also see how much you’ve spent on each movement and how many leads or sales have resulted from your ads. You can find this information by clicking on “Campaigns” in the main menu and selecting “All campaigns.”

You can also create custom reports to track more specific data. For example, you might want to know how many people clicked on your ad and then called your business. To do this, you would create a custom report that includes the “Phone call” conversion action.

What are the Potential Risks and Challenges Associated with Using Google Ads?

Google Ads can be a very effective way to reach new customers, but some potential risks and challenges are associated with its use. One of the main risks is that you can quickly spend a lot of money on ads if you’re not careful. It is important to set a budget and track the results of your campaigns so that you don’t exceed your spending limit.

Another risk is that if your ads are ineffective, you will likely see a low CTR and spend more money without achieving the desired results. To increase your google ads campaign performance, you should create informative and call-to-action ads that clearly explain what you are offering. It would important that you also ensured that your ads are aligned with your website and the rest of your marketing materials.

Another risk is that Google may change its algorithm or policies, which could negatively impact your campaigns. You should always stay up-to-date on Google’s policies and make sure that you are following all of the guidelines. Your account could be suspended or terminated if you violate any of Google’s policies.

Finally, Google Ads can be one of the best ways to achieve success. To get effective results from your campaigns, it’s important to be patient, optimize, test and continue to invest over time.


One of the main ways that Google determines ads’ rank is through an auction. An auction is a process through which Google determines which ads will be shown and how much they will cost. To participate in the auction, you need to have a Google Ads account and be approved for the keyword or keywords you want to target.

The auction is based on factors, including the maximum bid you are willing to pay, the quality of your ad, and the competition for the keyword.

The higher your quality score and the less competition for the keyword, the lower your costs will be. There is no guaranteed way to win the auction, but by following these tips, you can increase your chances of getting your ad shown:

– Set a high maximum bid

– Have a high-quality score

– Write effective ad copies.

Ad Rank:

Ad rank is a number that Google assigns to each ad that is eligible to appear in the search results. This number is based on some factors, including the quality of your ad and the maximum bid you are willing to pay. The higher your ad rank, the more likely your ad will be shown.


Cost-Per-Mille (CPM) denotes the price you pay for 1,000 impressions of your ad. The average CPM for Google Ads is $5 to $20.

Quality Score:

A number that Google assigns to each keyword is used to determine your ad rank in the auction. The higher your Quality Score, the higher your ad will rank and the less you’ll pay per click.

Businesses pay every time a user clicks on one of their advertisements in Google Ads because it is a pay-per-click (PPC) system. Companies bid on keywords they think potential customers will search on Google for when looking for products or services. The amount businesses are willing to pay per click is determined by their ad budget and the keyword’s competitiveness.


The number of times your ad has been shown on a search engine results page (SERP).


The number of times users have clicked on your ad.

Click-Through-Rate (CTR):

The number of clicks is divided by the number of impressions. This is a good metric to track to see if your ad is performing well.

Cost-Per-Click (CPC):

The amount you’ve paid for each click on your ad.

Google Ads can be an effective way to reach potential customers who are searching for products or services that you offer. By bidding on relevant keywords and monitoring your clickthrough rate and cost-per-click, you can ensure that your Google Ads campaign is efficient and effective. This is the amount you pay every time someone clicks on your ad. The average CPC for Google Ads is $0,10 to $10.


A conversion is the desired goal you want people to take, such as making a purchase or signing up for a newsletter.


ROI stands for “return on investment.” This is the metric you use to measure how much money you make from your Google Ads campaigns concerning your spending.

Landing Page:

The landing pages are the web pages someone arrives on after clicking your ad. It should be relevant to the ad and contain a clear call-to-action (CTA).


It is a word or phrase someone uses to search for something on the internet.

Negative Keyword:

A negative keyword is a word or phrase you don’t want your advertisement to start showing up for.


Remarketing is a way to target ads to people who have already visited your website.


Placement refers to where your ad appears on the SERP which ad placement. Like Google Search, Youtube and etc.


Targeting allows you to specify the type of person you want to see your ad.


A campaign is a group of ads with the same settings, such as budget and targeting.

Ad Group:

An ad group is a collection of ads with the exact keywords and targeting options. Ad groups are used to organize your campaigns and make tracking your ads’ performance easier. Each ad group can contain one or more ads, and you can have multiple ad groups within each campaign.


An extension is an additional information you can add to your ads, such as your company’s phone number or address.


Your Google Ads campaign budget is the sum of money you are prepared to invest.


Bidding is the process of choosing how much you are willing to pay for each click on your ad.

Google Ads can be a very effective way to market your business online. By understanding how Google Ads works and how to use the platform effectively, you can maximize your chances of success.

Main Types of Google Ads Campaigns

There are five main types of Google Ads campaigns: search, display, shopping, video, and mobile.

Search Campaigns

Search campaigns are the most common type of Google Ads campaign. They allow businesses to bid on keywords that potential customers might use when searching for products or services like theirs.

Display Campaigns

Google display network campaigns allow businesses to show their ads to people not currently searching for anything specific. This can be effective for businesses that want to reach a more general audience.

Shopping Ads Campaigns

Google shopping ads campaigns allow businesses to show their ads alongside product search results on Google. Going out to potential clients who are already interested in purchasing what you have to offer can be done extremely successfully in this way.

Video Ads Campaigns

Video ad campaigns allow businesses to show their ads on YouTube. This can be a great way to reach potential customers who are already engaged in watching videos online.

Mobile App Ad Campaigns

App ad campaigns allow businesses to promote their apps on Google. This can be a great way to reach potential customers who are already using Google products and are likely interested in your app.

How to Use Google Ads for Your Business

Google Ads is a powerful tool that can help businesses of all sizes reach new customers and grow their business. If you’re new to Google Ads or are thinking about using it for your business, this guide will show you how it works and what you need to do to get started.

Creating a Google Ads account

Creating a Google Ads account is the first step to using Google Ads for your business. Once you’ve created an account, you’ll need to create a campaign. Campaigns are the cornerstone of Google Ads and determine where your ads will run, how much you’ll spend, and your goals.

After you’ve created a campaign, you’ll need to create ad groups. Ad groups are a collection of ads targeting the same keyword or topic. You’ll want to create different ad groups for each product or service you offer and for different target audiences.

Within each ad group, you’ll create personalized ads. These are the actual ads that will appear on Google and elsewhere online. Each ad should be carefully crafted to appeal to your target audience and to include a call to action.

Budget for your campaign

Once your ads are created, you’ll need to set a budget for your campaign. This will determine how much you will spend on each ad group daily.

Choose your keywords

You’ll need to choose your keywords. Keywords are the terms people will use to search for your product or service. Choosing the right keywords is essential to seeing your ads by potential customers.

Monitor your campaign closely

You’ll need to monitor your campaign closely to see how it’s performing. Google Ads provides comprehensive reporting tools that show you how your ads are doing and where you can improve.

Google Ads has two main types of bidding strategies: manual bidding and automated bidding. In manual bidding, you set the price you’re willing to pay for a click on your ad. In automated bidding, Google Ads chooses your best price based on your goals.

There are several different automated bidding strategies: target CPA (cost-per-acquisition), target ROAS (return on ad spend), target CPM (cost-per-thousand impressions), and Maximize clicks. Your choice depends on what you’re trying to achieve with your ads.

If you’re trying to get more leads or customers, then targeting CPA is a good option. You tell Google Ads how much you’re willing to pay for each conversion, and it will automatically adjust your bids to try to reach that goal.

If you’re more interested in getting sustainable results then target ROAS may be a better option. This setting tells Google Ads to aim for an inevitable return on investment from your ads rather than a certain number of conversions.

Target CPM may be a good choice if you’re more interested in getting as many impressions as possible. This setting tells Google Ads to set your bids at a level that will ensure your ad appears as often as possible, regardless of whether or not someone clicks on it.

Finally, if you want your ads to generate as many clicks as possible, then Maximizing clicks is the right choice. This setting tells Google Ads to set your bids at the highest level, which will still result in some profit margin for you.


How do Google Ads work?

Google Ads is an auction-based system where advertisers compete for ad space on Google.com and other Google properties.

How much does Google Ads cost?

The amount you pay for your Google Ads depends on a few factors, including the quality of your ad, the keywords you’re targeting, and the competition for those keywords. Generally, you can expect to pay anywhere from $0.10 to $10 per click.

What is the difference between Google Ads and AdWords?

Google AdWords is the old name for Google Ads. In 2018, Google rebranded its advertising platform from AdWords to Google Ads.

What are some tips for creating a successful Google Ads campaign?

Here are a few tips for creating a successful Google Ads campaign:

1. Use keyword research to find the right keywords to target.

2. Write compelling ad copy that speaks to your target audience.

3. Create a strong landing page relevant to your ad and offers a good user experience.

4. Set a budget you’re comfortable with and track your results so you can adjust your campaign as needed.

What is Google Analytics used for?

Google Analytics is a free tool that helps you track your website’s traffic and performance. You can use it to see how people find your site, what they’re doing on it, and where they’re coming from.


Google Ads are an effective way to reach potential customers. However, it’s important to understand how they work in order to create successful ads. As a Google Ads Agency, Our team can help you do just that.

Contact us today to learn more about how we can use this powerful marketing tool to drive traffic and sales to your business.

Melda Karaçelik

Melda Karaçelik

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