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Blog · 7 December 2023

What is Google Ads and how does it work?

Google Ads is one of the most popular and effective online advertising platforms. With it, businesses can show text, image, shopping, mobile app and video ads through the search network. They can also use Google’s Display Network and video network.

By the Marketingkenners team
7 December 2023

Google Ads ads appear on Google Search, Maps, YouTube, the Google Display Network and even in your Gmail inbox. But how exactly does Google Ads work?

In this comprehensive guide we give you an overview of how Google Ads works. This lets you set up optimised, well-performing campaigns.
How Google decides which ads are shown

Google uses a combination of factors to decide which ads are shown. This happens for a given search or website visit. These factors include:

1. Keyword bids

Advertisers bid on specific keywords that are relevant to their business. The higher the bid, the greater the chance their ad is shown for that keyword.

2. Ad Rank

Ad Rank is calculated from the amount bid and the Quality Score. The Quality Score is based on the expected click-through rate, ad relevance and the experience on the landing page. A higher Quality Score improves Ad Rank.

3. Ad auction

Every time a search is entered, an auction takes place behind the scenes. Google evaluates the Ad Ranks of all eligible ads. The winners are then shown in descending order.

4. Targeting options

Ads can be targeted at specific locations, audiences, devices, categories and more to improve relevance. Google rewards more precisely targeted ads with a better Ad Rank.

A guide to setting up a Google Ads campaign

Follow these steps to start an effective Google Ads campaign:

1. Set your campaign objective

To start, you need to decide what you want to achieve: do you want to generate more sales, leads, website traffic, phone calls, store visits or brand awareness?

Depending on the goal, there are different campaign types. The first thing you do when creating a campaign is define your objective.

2. Decide your monthly budget

When you set your monthly budget, divide it by 30 and use that as your daily budget. Base your monthly budget on your overall goal.

Low budgets can limit your total volume, but you also don’t want to set your budget so high that your campaign isn’t profitable. You can also use shared budgets in Google Ads, for example.

3. Choose your bid strategy

Google offers automated bid strategies tailored to campaign objectives. Think of the target return on ad spend or the target cost per Conversion. This makes optimising a lot easier.

4. Use keywords

Do keyword research and group similar keywords into themed ad groups around topics or products. This improves relevance.

5. Create compelling ads

Write clear, concise ads with compelling call-to-action copy. Run A/B tests on ad copy and design as well.

If you use conversion tracking, Google Ads automatically optimises your ads and shows your best-performing ads. To improve performance, it is best to create new ads every month. That way you can look at the best headlines and descriptions and include them in the new version.

6. Send traffic to relevant landing pages

Direct traffic to landing pages that are directly related to your ads. Offer a clear path to conversion from the landing page.

7. Monitor and optimise performance

Analyse performance data and refine targeting options, bids, keywords and ads. This improves the results.

Benefits of understanding how Google Ads works

The most important parts of Google Ads are setting up conversion tracking and creating optimised campaigns. With conversion tracking you can create campaigns that focus on your key performance indicators. Think of:

  • More website traffic and brand awareness
  • More leads and sales from ads
  • Improved ROI on ad spend over time
  • Optimised campaigns that can deliver results all year round
  • More refined targeting can lead to more targeted leads
  • Valuable customer insights through analysis and conversion tracking

Why try Google Ads?

  • Increased visibility: your ads can appear on the world’s most popular search engine and those of Google partners.
  • Targeted reach: you can target your ads by keyword, location, audience and more.
  • Measurable results: Google Ads provides real-time data on impressions, clicks, conversions and other metrics.
  • Flexible budgeting: you can set a daily maximum budget and only pay when someone interacts with your ad.
  • Automated optimisation: Google Ads AI analyses your campaign data and automatically optimises targeting and bids.

Need help with Google Ads?

Can’t quite work it out yourself and need help with your Google Ads? Then we’re happy to help. Feel free to get in touch with us.

Want to have Google Ads set up and managed? See what we do with Google Ads.

Questions

Frequently asked questions

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Our team answers your questions.

Dat verschilt per zoekwoord en per regio, omdat de prijs in een veiling tot stand komt. Je betaalt per klik en stelt zelf een dagbudget in. Hoe hoger je kwaliteitsscore, hoe minder je meestal betaalt voor dezelfde positie. Lees meer over de kosten per klik.

Je advertenties zijn kort na goedkeuring zichtbaar, dus de eerste klikken komen snel. Het duurt wel even voordat je genoeg data hebt om zoekwoorden, biedingen en advertenties goed bij te sturen. Zorg vooraf dat je conversiemeting werkt, anders weet je niet wat je klikken opleveren.

Ja, omdat je adverteert op zoekopdrachten van mensen die nu een klus hebben en je advertenties op je eigen werkgebied kunt richten. Begin met een beperkt aantal zoekwoorden met duidelijke koopintentie en een landingspagina die daarop aansluit. Bekijk hoe wij Google Ads aanpakken.

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