What Are Google Ads And How Do They Work?

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Google ads, formerly known as Google AdWords, is a PPC or pay-per-click advertising campaign run by Google. It allows advertisers to display their ads on Google’s SERPs. It is an extremely powerful way of driving relevant, convertible traffic to your website by exactly targeting people who are searching for the types of products or services your business offers.

Users use Google to search 3.5 billion times per day. Each search provides openings for you to get your brand in front of more users. It aids in increasing leads generation, conversion, and sales through Google Ads. 

In this blog, we will in detail look at what Google Ads are and how they work to help you know the exact process you should use for your business today.

What is Google Ads?

Formerly known as Google AdWords, the search engine company renamed it Google Ads in 2018. 

Google Ads is one of the biggest online advertising platforms that help businesses target customers worldwide and expand their market. Through this pay-per-click system, promoters pay Google to target visitors based on their keyword research, country, and type of device to showcase their ads to visitors who are engrossed in their products or services.

Google Ads enables you to produce and share well-timed ads through both mobile and desktop with your target audience. It indicates your company will display up on the search engine results page (SERP) at the instant your potential customers are searching for products and services like yours via Google Search or Google Maps. In this way, you contact your target audience when it is the perfect time for them to come across your ad.

Why advertise on Google?

Google is the most accepted search engine, getting over 5 billion search queries per day. The Google Ads program has been about for nearly two decades, providing it some advantage in the area of paid promotion.

Google is a source used by people worldwide to ask questions that are answered with a mixture of paid promotions and organic results.

And, as per the reports, promoters make $8 for every $1 spent on Google Ads. So, these are some reasons why you’d require to recognize and plan an advertisement on Google.

Types of Google Ads

Google provides a variety of campaign types that you can apply:

  • Search campaign: Search campaign ads surface as a text ad on the page for the keyword. These are the ads you’re seemingly most familiar with. They seem on the search result page with the black “Ad” symbol after the URL.
  • Display campaign: The Display Network leverages Google’s expanded website associates to showcase your advertisement on various websites all across the Internet. The ads themselves are also adaptable in terms of style. Your ad can be a gif, text, video, or picture.
  • Shopping campaign: A shopping campaign enables you to advertise your products in a much more perceptible form. Google Shopping ads can get qualified leads by displaying your product directly to consumers if you have a physical product.
  • Video campaign: These are ads that emerge in front of YouTube videos in the order of pre-rolls. This is ideal if you have a vast video ad idea you want to experiment on. The video campaign ads appear in a variety of distinct forms. There are skippable video ads also.
  • App campaign: Similar to video ads, app ads are also covered in the Display Network but can be applied for targeted campaigns. The algorithm inquires about different asset blends and utilizes the one that produces the best more often.

How Google Ads Costs?

The cost of Google Ads alters based on a number of circumstances, including the competitiveness of your keywords and business, your demographics location, the quality of your advertisement campaigns, and more.

How Google Ads work

Google Ads works under a pay-per-click (PPC) form. That suggests marketers target a particular keyword on Google and do bids on the keyword, fighting with the competitors also targeting the same keyword.

The bids you do are “maximum bids,” or the highest you’re ready to pay for an ad.

For example, if your highest bid is INR 4 and Google decides that your cost per click is INR 2, then you get that ad position! If the executive believes that it’s more than INR 4, you do not get the ad placing.

Alternatively, you can set the highest daily limit for your advertisement. You’ll never pay more than a definite amount for that ad per day, serving you better understand how much you should estimate for your digital ad campaign.

Marketers have three choices for their bids:

  1. Cost-per-click (CPC). How much do you spend when a user clicks on your ad.
  2. Cost-per-mille (CPM). How much do you spend per 1000 ad impressions.
  3. Cost-per-engagement (CPE). How much do you spend when a visitor performs a specific action on your ad (signs up for a list, watches a video, etc.).

Google then gets the bid amount and joins it with an evaluation of your ad called a Quality Score. As per Google:

Quality Score is an estimation of the quality of your advertisement, keywords, and landing pages. Higher quality ads can point to lower prices and greater ad positions.

The score generally is between 1 and 10, with 10 being the ideal score. The higher you score, the better you’ll rank and the less you have to pay for converting.

Your Quality Score merged with your bid price affects your Ad Rank, i.e., the place your ad will appear on the search engine results page.

And when a visitor views the ad and clicks on it, the promoter pays a small payment for that click (thus pay-per-click).

The concept is that the more visitors click on an advertisement, the earlier they will achieve the advertisement’s goals (e.g., convert a lead or perform a purchase).

Now that you understand how Google ads work, let’s look at the different types of Google ads you can employ for your campaign.


Given its influence and power, Google Ads should be a part of your paid approach. There’s no such point as a Google Ads campaign that doesn’t accomplish. Using the approach and knowledge provided above, you own what you require to create a strong Google Ad campaign that encourages clicks and converts leads. In case if you fail to do so, you can contact DotCreative, and we can help you with both the organic and paid approach. You can contact us on 7980358244 or email us at [email protected].

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