Google Ads

What Is Google Ads? (Formerly AdWords)

Google Ads (previously known as Google AdWords) is Google’s online advertising platform that allows businesses to display paid ads across Google Search, partner websites, YouTube, and apps.

It works on a Pay-Per-Click (PPC) model—you only pay when someone clicks on your ad—making it a cost-effective way to drive traffic, leads, and sales.

How Google Ads Works – Step-by-Step Breakdown!

1. Keyword Targeting

Advertisers select keywords relevant to their business.
When users search those terms on Google, the ads may appear above or below organic search results.

2. Bidding System

Google Ads operates like an auction. Advertisers set a maximum bid (how much they’re willing to pay per click).

3. Ad Rank & Quality Score

Google doesn’t only look at your bid—it also evaluates your:

• Ad quality

• Landing page experience

• Expected click-through rate

These factors generate a Quality Score, which helps determine Ad Rank—where and how often your ad shows.

4. Budgeting

You control your daily or campaign-level budget, ensuring you never overspend.

Key Features of Google Ads

Search Ads

Text ads shown at the top/bottom of Google Search results—labeled with “Ad.”
Best for: Capturing users actively searching for solutions.

Display Ads

Image-based or rich media ads shown on Google’s Display Network—millions of websites, apps, and blogs.
Best for: Brand awareness, retargeting, visual engagement.

Shopping Ads

Product listings (with images, price, and seller info) appear for commercial intent searches like “best running shoes.”
Best for: E-commerce stores.

Video Ads

Run on YouTube—can be skippable, non-skippable, or bumper ads.
Best for: Brand storytelling and broad reach.

App Promotion Ads

Encourage app installs or in-app actions, optimized for Android and iOS.
Best for: SaaS and mobile-based products.

Local & Map Ads

Ads that appear in local search results and Google Maps, targeting users in a specific area.
Best for: Physical businesses like clinics, restaurants, or repair services.

Key Metrics in Google Ads

1. Click-Through Rate (CTR)

The percentage of people who click your ad after seeing it.

CTR = (Clicks ÷ Impressions) × 100

2. Cost-Per-Click (CPC)

The amount you pay for each click on your ad. Lower CPCs mean more affordable traffic.

3. Conversion Rate

The percentage of clicks that result in an action (purchase, signup, download).

Conversion Rate = (Conversions ÷ Clicks) × 100

4. Return on Ad Spend (ROAS)

How much revenue you earn per dollar spent on ads.

ROAS = Revenue ÷ Cost

Examples of Google Ads in Action

Local Business Example

A bakery runs search ads targeting:

“birthday cakes near me” They appear in Google’s top results, driving nearby orders.

E-Commerce Example

A shoe store uses shopping ads for:

“best running shoes” Their products show up with images, prices, and links to buy.

Mobile App Example

A fitness app company runs YouTube video ads showing how their app helps users reach health goals.

Google Ads vs. Organic SEO – What’s the Difference?

Pro Tip: Use both together for best results. Google Ads gives instant traffic while SEO builds long-term credibility.

Final Thoughts: Why Google Ads Matters

Google Ads is a powerful performance marketing tool that delivers quick, measurable results. Whether you’re launching a product, growing a service, or expanding a local business, Google Ads helps you reach the right audience at the right time.

Bonus Tip: Combine Google Ads data (like top-performing keywords) with your SEO strategy for faster organic growth!