What Is Google Ads & How Does It Work? + Types 01 Jan

What Is Google Ads & How Does It Work? + Types

In today's digital age, reaching potential customers is paramount for any business. Google Ads, previously known as Google AdWords, has become a cornerstone of online advertising for small businesses, startups, established brands, and digital marketers. But what exactly is Google Ads, and how does it work? Let’s dive into the world of Google Ads, explore its types, and understand how to leverage this powerful tool to your advantage.

If you want to understand Google Ads completely, read this helpful blog post from the Helio Digital Marketing Department. This comprehensive guide will cover the essential aspects of Google Ads, from setting up your first campaign to optimizing your ads for better performance. By following the insights and strategies outlined, you will be equipped to make informed decisions, improve your advertising ROI, and drive growth for your business. Whether you're new to digital advertising or looking to refine your existing campaigns, this resource is designed to enhance your proficiency and success with Google Ads.

Introduction to Google Ads: What Is Google Ads?

Google Ads is an online advertising platform developed by Google where advertisers bid to display brief advertisements, service offerings, product listings, and videos to web users. It operates across Google's properties and partner sites. This platform effectively reaches potential customers due to its extensive reach and precise targeting capabilities.

What Are Google Ads Benefits?

There are numerous benefits, such as:

Targeted Advertising: Google Ads enables advertisers to reach specific audiences based on demographics, interests, location, and search behavior. This level of targeting ensures that your ads are seen by those most likely to be interested in your products or services, thereby increasing the chances of conversion.

Cost Control: With Google Ads, you have complete control over your budget. You can set daily or monthly limits and adjust them as needed. Additionally, the Pay-Per-Click (PPC) model ensures that you only pay when someone interacts with your ad, making it a cost-effective solution for businesses of all sizes.

Measurable Results: One of Google Ads' standout features is its ability to provide detailed analytics and reporting. You can track the performance of your campaigns in real time, see which ads are performing well, and gain insights into user behaviour.

Flexibility and Scalability: Google Ads can accommodate various types of businesses and campaign goals, whether it’s to increase brand awareness, generate leads, or drive sales. The scalable platform allows you to start small and expand your efforts as you see success.

Enhanced Visibility: By appearing at the top of search engine results pages (SERPs), Google Ads ensures your business is obvious to potential customers. This prime positioning can significantly boost traffic to your website and enhance your brand’s online presence.

Quick Results: Unlike organic search engine optimization (SEO), which may take time to yield results, Google Ads can drive traffic to your site almost immediately. This makes it an excellent choice for businesses that need to see quick returns on their marketing investments.

By leveraging these benefits, businesses can create effective advertising campaigns that not only attract potential customers but also drive long-term growth and success.

Benefits of Google Ads



Google Ads allows your business to appear at the top of search results, increasing the visibility of your products or services.


The platform supports various ad formats (text, images, video), making it versatile for different marketing needs.

Precise Targeting

Target specific demographics, locations, devices, and even the time of day.

Remarketing Capabilities

Reach users who have previously visited your website, increasing the likelihood of conversion.


Control over budgets and bids ensures that you only pay for actual clicks or impressions.

Measurable Results

Track performance metrics in real time to gauge the effectiveness of your campaigns


Different Types of Google Ads

Google Ads offers various advertising options to cater to different business goals and objectives. Let's take a look at some of the most popular types:

1.Search Network Campaigns

Search network campaigns display text ads on Google search results pages when users enter relevant search terms. These ads appear above or below organic search results and are labeled "Ad."

2.Display Network Campaigns

Display network campaigns showcase visual ads, such as banners or videos, across websites that partner with Google for their advertising space.

3.Video Campaigns

Video campaigns allow you to display ads on YouTube and other Google partner sites. You can also target specific audiences, interests, and demographics for maximum impact.

4.Shopping Campaigns

Shopping campaigns are ideal for e-commerce businesses. They showcase product listings directly in Google search results with images and prices. These ads have a higher chance of converting since users see the product before clicking through.

5.App Campaigns

App campaigns promote your mobile apps across various Google platforms such as Google Search, Play Store, YouTube, and more. They use machine learning algorithms to find the most relevant audience for your app.

Google Ads is a powerful advertising tool that offers an array of options to reach potential customers effectively. By understanding its types and benefits, you can create successful campaigns that drive growth for your business. So whether you're looking to increase brand awareness, generate leads, or boost sales, Google Ads has something to offer for every goal and budget.

Core Elements of Google Ads (Google Ads Account Structure)

To get started with Google Ads, it's essential to understand its core elements and how they work together. Here are the three main components of a Google Ads account:


Campaigns are the highest level of organization in your account. Each campaign has a specific goal, such as promoting a product or service or increasing website traffic. You can set budgets, locations, bidding strategies, and targeting options at this level.

Ad Groups

Within each campaign, you'll have various ad groups that contain related keywords and ads. These groups help organize your targeting efforts and allow for more precise budget allocation.

Keywords and Ads

Keywords and ads are the building blocks of your campaigns. Keywords are the search terms that trigger your ads to appear, while ads are the messages that entice users to click through to your website. Choosing relevant keywords and creating compelling ad copy is essential for maximum effectiveness.

Google Ads Terms to Know

As you dive into Google Ads, here are some essential terms to familiarize yourself with:

  • CPC (Cost Per Click): You pay each time someone clicks on your ad.
  • CPM (Cost Per Thousand Impressions): You pay per thousand times your ad is shown.
  • CTR (Click-Through Rate): The percentage of users who click on your ad after seeing it.
  • Quality Score: A metric that Google uses to determine the relevance of your ads, keywords, and landing pages.

By understanding these terms and their impact on your campaigns, you can make informed decisions to optimize performance.  Overall, Google Ads offers businesses a practical and versatile platform to reach their target audience and achieve their marketing goals.

Working Mechanism

Google Ads operates on an auction system. An auction is triggered when a user searches for a keyword that matches your ad's keywords. The key factors influencing this auction include:

  • Bid Amount: Maximum amount you're willing to pay for a click.
  • Quality Score: Based on the relevance and quality of your ad.
  • Ad Rank: Determines the position of your ad, calculated using your bid amount and Quality Score.

Types of Google Ads Campaigns

Lastly, let's briefly touch on the different types of campaigns you can run within Google Ads:

  1. Search Ads: Text ads that appear on Google search results.
  2. Display Ads: Image-based ads are displayed on Google's partner websites.
  3. Shopping Ads: Product listings that appear in Google Shopping.
  4. Video Ads: Ads that appear on YouTube.
  5. App Ads: Promote your mobile app across Google’s network.

Execution of Google Ads (How Does It Work?)

To execute a successful Google Ads campaign, follow these steps:

Setting Up

  1. Create a Google Ads Account: Sign up at ads.google.com.
  2. Define Goals: Decide what you want to achieve (e.g., website traffic, sales).
  3. Select Campaign Type: Choose the appropriate type based on your goals.
  4. Set Budget: Determine your daily or monthly spending.
  5. Choose Keywords: Use tools like Google Keyword Planner to select relevant keywords.
  6. Create Ads: Craft compelling ad copy and visuals.
  7. Launch Campaign: Start your campaign and monitor its performance.

Bidding Strategies

  1. Manual CPC: Control your maximum cost-per-click for each ad.
  2. Enhanced CPC: Adjusts your manual bids to maximize conversions.
  3. Target CPA (Cost Per Acquisition): Sets bids to get as many conversions as possible at your target cost per acquisition.
  4. Target ROAS (Return On Ad Spend): Sets bids to maximize conversion value while targeting a specific return on ad spend.
  5. Maximize Clicks: Automatically sets bids to get the most clicks within your budget.

Best Practices

  1. Research Keywords Thoroughly: Use tools and analytics to identify high-performing keywords.
  2. Optimize Ad Copy: Ensure your ads are compelling and relevant to your target audience.
  3. Use Negative Keywords: Exclude terms that are not relevant to your business to save on ad spend.
  4. A/B Testing: Continuously test different ad variations to see which performs best.
  5. Monitor and Adjust: Regularly review your campaign performance and adjust as needed.

Google Ads Examples

  1. Search Ads Example: A law firm using keywords like “best divorce lawyer” and appearing at the top of search results.
  2. Display Ads Example: A travel agency using visually appealing images of exotic destinations on partner websites.
  3. Shopping Ads Example: An e-commerce store displaying product listings for running shoes.
  4. Video Ads Example: A fitness brand showcasing workout tips on YouTube.
  5. App Ads Example: A new game app promoting downloads through Google Play.

Tips for Creating Successful Google Ads Campaigns

Now that you understand the basics of Google Ads, let's explore some tips for creating successful campaigns:

  • Conduct thorough keyword research to target relevant terms and phrases.
  • Use negative keywords to avoid irrelevant clicks and save budget.
  • Create compelling ad copy with a clear call-to-action (CTA).
  • Utilize different ad formats (text, images, videos) for variety and increased visibility.
  • Regularly review and adjust bids and budgets based on performance data.
  • Continuously test different variations of ads and landing pages to improve conversion rates.
  • Utilize targeting options, such as demographics and locations, to reach your desired audience.

By following these tips and utilizing Google Ads' various benefits, businesses can create effective campaigns that drive growth and success. So don't wait any longer—start leveraging Google Ads today!

Additional Resources

For those looking to deepen their understanding and expertise in Google Ads, here are some valuable resources:

  • Google Ads Help Center: Comprehensive guides and FAQs.
  • Google Ads Certification: Free courses and certifications from Google Skillshop.
  • Google Keyword Planner: Tool for researching keywords.
  • SEMRush: Advanced analytics for keyword research and competitive analysis.


Google Ads offers unparalleled opportunities for businesses to reach their target audience with precision and efficiency. Small business owners, digital marketers, and entrepreneurs can drive significant traffic and conversions by understanding and leveraging its various campaign types. Remember to monitor and optimize your campaigns for the best results continuously.

Ready to take your advertising to the next level? Start exploring the power of Google Ads today and watch your business grow.

Stay connected and keep learning for more insights and tips. Your journey to mastering Google Ads starts now!
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