Google Ads 101 – Everything You Need to Start on The Right Foot

Google Ads 101 – A Complete Guide to Getting Ahead

Google Ads - Everything You Need to Start on the Right Foot

Harnessing the power of Google Ads might be the most profitable decision for countless business owners. Google attracts more than three billion internet users daily, and each user is a potential prospect you can convert into a loyal paying customer.

With billions of people using Google, each search is an opportunity to increase your brand exposure online and attract more consumers to your business. However, building an authoritative brand presence requires sales, conversions, and lead generation. That’s where Google Ads comes into the picture.

Google Ads allows brands to promote their products and services by advertising them on the world’s largest search engine. You advertise your brand using search-relevant keywords that lead back to your business website. If used correctly, it can launch your lead generation sky-high. Read on to learn what Google Ads are, how they work, and more.

Google Ads explained

Google Ads is a premium online advertising service for regular and business internet users. Launched by Google, this type of online advertising allows e-commerce brands to promote their products and services to attract target audiences and generate the desired revenue.

When a potential prospect searches for brands using keywords, Google displays the relevant matching results on a search engine results page (SERP). Some of the displayed results can include a paid advertisement that matches the used keyword.

The most important thing about Google Ads is that it displays ads on the top of the SERP. That’s vital to your business effort to attract wider audiences, as the first results on Google’s search results page get the most organic traffic.

How it works

Google Ads uses a pay-per-click (PPC) model to operate. Marketers target specific keywords and phrases on Google and place bids (the maximum amount a marketer pays for an ad) to get ahead of competitors targeting those exact keywords and phrases.

You can set daily advertising budgets to limit spending and create cost-efficient digital ad campaigns. That can help you to manage your advertising budget and find the best ways to make the most of your promotional efforts.

Google Ads Explained

Google search ads explained

Google search campaign ads display as text ads in the SERP for the queried keyword. They appear on the first page of SERPs and have the black “Ad” symbol next to the link.

Google display ads explained

Google Display Network allows marketers to tap into Google’s immense network of website partners to display ads on various portals, forums, and websites all over the web. Display ads appear in several ways:

  • Third-party website ads
  • Pre-roll video ads before YouTube videos
  • Gmail ads
  • Google’s app network ads

Display ad campaigns can benefit your brand in various ways. For example, they can increase your reach by allowing you to connect with over two million partnering websites and ensure your ads get the necessary exposure. In addition, you can also customize your ads using images, videos, text, or GIFs.

Auctioning for ads

Although the average cost-per-click is between €1 and €2, the price depends on various factors, such as your bidding efforts and the website’s quality. The cost varies from ad to ad, but you can use the Ad Auction system to set your advertising budget.

When an internet user uses a targeted keyword, Google automatically switches on the auction mode and compares your Ad Rank to other advertising campaigns targeting the same keyword.

However, don’t let this fool you into believing that your ad budget has anything to do with better ad ranking. Google favors brands that provide consumers with real value and will assign those brands a high Quality Score.

Google Ads - A Complete Guide 2022

Ad ranking

Your ad ranking depends on two factors: Quality Score and Bidding.

Quality Score

Google assesses the quality of your landing pages, keywords, and ads to determine your Quality Score. The higher the ad quality, the better the ad positions. In addition, higher ad quality also makes your Google advertising campaigns more cost-efficient.

Quality Score ranges between 1 and 10, where 10 marks the highest quality score. It also ensures top ad ranking, allowing you to save resources on conversions. Quality Score and bidding create your Ad Rank or the ad position that will show in the SERP.


Brands have three bidding options for their ad bids:

  • Cost-per-click (CPC) – the amount a marketer pays when an internet user views their ad;
  • Cost-per-mille (CPM) – the amount a marketer pays per 1000 ad reactions;
  • Cost-per-engagement (CPE) – the amount a marketer pays when internet users perform a specific action on their ad.

Google relies on your bidding amounts to pair your advertisement efforts with an estimation of your Quality Score to determine your ad ranking.

Google Search Network and ad displaying

The Google Search Network gathers search-related apps, platforms, and websites where advertisers can display ads. When you use the Search Network, your ads display next to matching search results.

When an internet user types in terms relevant to your keywords in Google, the query results will relate to your ads across Google Search sites such as the Maps app, Google Maps, Google Images, the Shopping tab, and Google Play.

In addition, your ads will appear on all related websites of Google search partners, including YouTube. The clickthrough rate (CTR) for ads on Google Search Network won’t affect your Quality Score.

Creating an account on Google Ads

There are lots of Google Adwords agencies that will setup and manage your Google Ads accounts for you, but if you want to do it yourselrf, then keep reading to learn how.

You will need a Google account to create a Google Ads account. Users of Gmail can use their credentials to set up an ads account. If you don’t have a Gmail address, you’ll need a separate account for Google Ads.

Visit to create a Google account. Click Create account and navigate to the “Manage my Business” tab. Fill out the required details to sign up for Google Ads. You must be logged in to the Google account to create a Google Ads personal profile.

After you complete the signup process, Google will redirect you to the first step of setting up a Smart campaign. We recommend avoiding this step and clicking on Switch to Expert Mode instead. The Expert mode will allow you to create a customized ad campaign according to your specific needs.

Google Ads - How It Works

Creating your first campaign

Create your first Google Ads campaign by following these steps.

Targeting and audiences

Google Ads allows you to choose from several campaign types for different purposes:

  • Search
  • Display
  • Video
  • Shopping
  • App
  • Discovery
  • Local
  • Performance Max

Your campaign type depends on the advertising goal. For example, if you choose a Search campaign, Google will ask you to select an objective such as website traffic. Google will show you which campaign types are available depending on your objective.

We recommend experimenting with several campaign types instead of limiting yourself to just one. The best way to achieve your advertising goals is to combine campaigns that align with your PPC objectives. The combination of ad campaigns will help you track clicks coming from different devices to target your ideal audience.

Adding your budget and bidding

Calculate your daily Google Ads budgets to ensure the best results. Start by determining your monthly expenses. Forecast your average CPA and CPC by considering Google Ads benchmarks for your industry and doing some keyword research. Divide that sum by the average number of days in a month to get your daily spending. Keep in mind that daily budgets will frequently change. You should aim to be as cost-efficient as possible.

Aside from your budget, you must select the appropriate bidding strategy:

  • Manual bidding – determine maximum CPC bid for specific keywords to specify the pay-per-click amount. Manual bidding is an effective way to get more control over your Google Ads campaign;
  • Automated bidding – allows Google to automatically set your max CPC bids for you.

Ad extensions

Ad extensions are the additional details that can spice up your ads to make them more visible and improve CTR. Since the goal is to drive as many clicks as possible, ad extensions can help rank your ad higher in the search results. To add extensions to your ads, navigate to the Extensions tab, and you will see numerous ad extension options.

Google Ads - Ad Extensions

Using groups

Ad groups are sections where you can hold the highest-rated keywords for your ads to help manage your campaigns and keep your ads organized. They allow you to structure your Google Ads account by separating relevant keywords into thematic groups and naming them accordingly.

Adding keywords

Keywords are the lifeblood of your Google Ads campaign. Without them, you can’t fund your ads or accomplish results. Keywords are unique terms and phrases your target audience is typing into search engines like Google.

You should only add keywords you want your ads to show up for. Manual bidders should set their max CPC bid individually to get the option to add keywords into ad groups according to their needs. We recommend using keyword research tools like Google Keyword Planner to outline your key terms based on metrics like their average CPC and monthly search volume.

When adding keywords, you must also specify which match type you aim for. Since internet users perform many unique queries, indicating match types will help you choose the most relevant keywords for your target audience. In addition, Google relies on match types to show relevant ads for the indicated keyword variations.

There are three match types available:

  • Broad match – show ads for any query relevant to indicated keywords;
  • Phrase match – match queries that include the same meaning as your determined key terms;
  • Exact match – only show ads when queries are identical to your selected keywords.

Tip: Include keywords that clearly state your commercial intent, such as for sale, cost, and more. If your ads campaign targets local PPC, focus on location-based key terms.

Finish ads, write headlines, and add URLs

Choose the general settings for your ads campaign to complete the process:

  • Campaign name – select an easily memorable name for your campaign to make organization within your account as straightforward as possible. The name of your campaign won’t impact your performance;
  • Network – display your ads on Google’s partner networks to lower costs and widen your reach. Partner networks gather millions of websites, allowing you to get your ads in front of countless internet users. Inform Google when to display your ads to limit spending by only using your funds when it counts.

Click on Show more settings to set your ad schedule:

  • Pick your start and end dates;
  • Determine your ad schedule;
  • Choose your campaign URL options;
  • Include CTAs;
  • Set Dynamic Search Ads to customize your ads automatically.

Here’s a tip: Google defaults your ad schedule to your timezone. You’ll need to manually set your ad schedule to advertise to demographics in different time zones.

Google Ads - Conclusion

Google Ads allows you to define your advertising goals, target the right audience type, and save resources by making the most of your budget at hand. Marketers can choose from different campaign types and demographic targeting options to help them generate more leads.

You can choose the specific audiences, languages, and locations where you want to display your ads and track your performance to identify the areas for improvement. Since Google Ads links back to your landing page, optimize it with a clear call to action, an easily scannable page design, and simple navigation.

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