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.
Reviewed by Viktor Åkerlund
Marketing specialist at Skale5 min readUpdated
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.
From search to customer, step by step.
Click through the steps, from choosing keywords until the customer gets in touch.
You choose keywords.
For example "rörmokare halmstad" (plumber Halmstad) or "köpa stekhäll" (buy a griddle). These are the searches you want to appear for.
Someone searches.
Google looks at which advertisers want to appear for that search.
The auction decides.
Google weighs bid and quality and chooses which ads appear, and in what order. It takes a fraction of a second.
Your ad appears.
At the top or bottom of the search results, labelled "Sponsored". Appearing costs nothing.
The customer clicks.
You pay for the click, and the customer lands on your site.
The customer gets in touch or buys.
With conversion tracking, you can see which keywords and ads brought in the customer.
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.
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 ad shows for searches Google considers related to your keyword. Reaches the most people, but needs the closest monitoring.
Your ad shows when the search has the same meaning as your keyword, even with other words around it.
Your ad only shows when the search means the same thing as your keyword.
- 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
Text ads among the search results, when someone searches for your keywords.
Service businesses and anyone selling something people already search for.
Shopping
Products with an image, price and shop name in the search results.
Webshops.
Display
Image ads on websites and apps that partner with Google.
Reaching a wide audience and reminding people who have already visited your site.
YouTube
Video ads before, during or next to videos on YouTube.
Businesses that have video, or can produce it.
Performance Max
A campaign that shows ads across all of Google's channels and lets Google decide where.
Webshops and businesses with good tracking and a large enough budget.
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.
Example with made-up figures.
Common mistakes.
The ad leads to the homepage.
Send the ad to a page about exactly what the customer searched for.
Only broad match, with no negative keywords.
Start with phrase or exact match, and keep adding negative keywords.
No conversion tracking.
Track calls, enquiries and sales before you increase the budget.
Too small a budget spread across too many keywords.
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
You pay when someone clicks, and you choose which searches you want to appear for.
Quality matters as much as the bid. A good page means cheaper clicks.
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
- GuideGoogle Ads
How much does it cost to advertise on Google Ads?
Price per click, a sensible budget and what an agency costs, with worked examples.
Insights - GuideMeta
How much does Facebook advertising cost?
How the price is set on Facebook and Instagram, and what budget makes sense.
Insights - GuideGoogle Ads
How Google Ads works in Halmstad
Local searches, local customers and how you show up in Halmstad.
Insights
Marketing
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