GuideMarketing

How does Google Ads work?

Google Ads is Google's advertising system. It lets you appear at the top when someone searches for what you sell, and you only pay when someone clicks. Here are the basics, without the jargon. Google Ads used to be called Google AdWords, so it's the same thing.

Viktor Åkerlund

Reviewed by Viktor Åkerlund

Marketing specialist at Skale5 min readUpdated

Short answer

You choose which searches you want to appear for and how much you want to pay. When someone searches, an auction is held, and Google chooses which ads to show based on bid and quality. You pay when someone clicks, and with the right tracking you can see exactly which ads bring in customers.

Illustration of the path from search through auction and ad to a new enquiry

From search to customer, step by step.

Click through the steps, from choosing keywords until the customer gets in touch.

You decide this

You choose keywords.

For example "rörmokare halmstad" (plumber Halmstad) or "köpa stekhäll" (buy a griddle). These are the searches you want to appear for.

The auction and Quality Score.

The highest bidder doesn’t automatically win. Google weighs the bid against how good the ad is. This assessment is called Quality ScoreGlossaryQuality ScoreGoogle's rating from 1 to 10 of your ad, its expected click-through rate and your landing page.Read more in the glossary and is based on three things: how well the ad matches the search, how likely people are to click, and how good the page is where the customer lands. Together with your bid, this makes up your Ad RankGlossaryAd RankWhat decides your position in the auction: bid, quality and ad assets.Read more in the glossary.

Example: how Google might rate an ad
Expected click-through rateAbove average
Ad relevanceAverage
Landing page experienceBelow average
Here it's the page that's pulling the score down. A better landing page means both a better position and cheaper clicks.

Keywords and match types.

With match typesGlossaryMatch typeHow closely a search has to match your keyword for your ad to show: broad, phrase or exact.Read more in the glossary, you decide how closely a search has to match your keywordGlossaryKeywordThe word or phrase you want your ad to show for.Read more in the glossary. Try it: choose a match type and see which searches your ad appears for.

Your keyword: rörmokare halmstad

Your ad shows for searches Google considers related to your keyword. Reaches the most people, but needs the closest monitoring.

  • rörmokare i halmstadShown
  • akut rörmokare halmstadShown
  • vvs-firma halmstadShown
  • jobb som rörmokare halmstadShown

Simplified example. Google may interpret searches differently over time.

With negative keywordsGlossaryNegative keywordsKeywords you exclude, so your ad doesn't show when someone searches for them.Read more in the glossary, you exclude searches you don’t want to pay for, such as ”gratis” (free) or ”jobb” (jobs).

Want to rank for keywords without paying per click? Read our guide to keyword research.

Different types of ads.

Search ads

What it looks like

Text ads among the search results, when someone searches for your keywords.

Best for

Service businesses and anyone selling something people already search for.

Most businesses start with search ads, and webshops with Shopping, because that's where customers are already looking.

Tracking is what makes the difference.

Without tracking, you only know how many people clicked. With conversion trackingGlossaryConversion trackingMeasuring what visitors do after clicking, such as calling, sending an enquiry or buying.Read more in the glossary, you can see how many called, sent an enquiry or made a purchase, and from which keyword.

Without tracking
Clicks600
Enquiries?
Best keyword?
You know what you've paid, but not what it brought in.
With tracking
Clicks600
Enquiries30
Best keywordakut rörmokare
You can see what brings in customers, and move your money there.

Example with made-up figures.

Common mistakes.

Mistake

The ad leads to the homepage.

Do this instead

Send the ad to a page about exactly what the customer searched for.

Mistake

Only broad match, with no negative keywords.

Do this instead

Start with phrase or exact match, and keep adding negative keywords.

Mistake

No conversion tracking.

Do this instead

Track calls, enquiries and sales before you increase the budget.

Mistake

Too small a budget spread across too many keywords.

Do this instead

Focus the budget on the keywords closest to a purchase.

Advertising locally? Read How Google Ads works in Halmstad. Wondering what it costs? Read How much does it cost to advertise on Google Ads?

Want us to handle it for you? Read about how we work with Google Ads.

Key takeaways

1

You pay when someone clicks, and you choose which searches you want to appear for.

2

Quality matters as much as the bid. A good page means cheaper clicks.

3

Without tracking, you don't know what your ads deliver.

Terms in this article

Full glossary
Keyword
The word or phrase you want your ad to show for.
Match type
How closely a search has to match your keyword for your ad to show: broad, phrase or exact.
Negative keywords
Keywords you exclude, so your ad doesn't show when someone searches for them.
Quality Score
Google's rating from 1 to 10 of your ad, its expected click-through rate and your landing page.
Ad Rank
What decides your position in the auction: bid, quality and ad assets.
Conversion tracking
Measuring what visitors do after clicking, such as calling, sending an enquiry or buying.
Landing page
The page a customer lands on after clicking your ad.
Performance Max
A campaign type where Google shows your ads across all its channels and decides where they appear.

Frequently asked questions

What many people ask.

What is Google AdWords?

Google AdWords is the old name for Google Ads. Google renamed it in 2018, but the service works the same way: you pay to appear in the search results and pay when someone clicks.

What's the difference between Google Ads and SEO?

With Google Ads, you pay to appear straight away, and it stops when you stop paying. With SEO, you work to appear in the regular search results, which takes longer but lasts. Many businesses do both.

How quickly will customers come?

Ads can bring clicks from day one. It usually takes a few weeks to see which keywords and ads perform best.

Do we need a new website?

Not always, but the page your ad leads to decides a lot of the result. Sometimes a new landing page is enough.

Can we manage it ourselves?

Yes. It's easy to get started, but it takes time to follow up and improve. Otherwise it's easy to pay for clicks that bring nothing.

Read more

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