Google Ads: What Are Google Ads & How Do They Work?

Last updated on January 12th, 2023 | By: Grady Galvez

Every second, billions of queries are made on Google, and advertising is displayed on most search results pages. Google Ads, which companies purchase, are an efficient method to bring relevant, qualified traffic to your website precisely when people are looking for the kinds of goods or services your company provides.

In this post, you will discover what Google advertisements are, how they operate, and the benefits of running your own ads.


Describe Google Ads.

Google’s pay-per-click (PPC) program, known as Google Ads, enables companies to increase their visibility across Google properties. The most typical Google Advertisements ad type is the search ad, which shows up on the SERP for queries related to the advertiser’s goods and services. However, companies may also use Google Ads to display ads, shopping ads, YouTube ads, and other ads.

Search Adverts on Google

Here is an illustration of a Google SERP with advertisements. The non-paid or organic results are separated into two sections: one with paid results and the other without. Google display ads

You may also conduct display campaigns that are displayed on the Google Display Network, a sizable collection of external, third-party websites that have consented to host Google advertisements, as was already indicated. Google Display ads can be targeted in various ways, such as through audiences and remarketing, and they can be in text, image, video, or rich media format.

Shopping Advertisements on Google

Both the main SERP and the shopping tab display Google shopping advertising. Since you can’t target specific terms with this advertising, they work differently than ordinary search ads. Instead, you keep a thorough inventory of your goods, and Google will match them to queries. However, you may inform Google of the terms you do not want your advertisements to display.

Youtube Ads

Since Google owns YouTube, all advertising on the platform uses Google Ads. You may design advertisements that play before and during videos and everywhere on the site, whether text, video, or display—targeting for YouTube ads functions similarly to targeting for shows.

Why Google Ads are shown on SERPs

The terms that individuals are most likely to use while looking for a product are the focus of Google Ads. Advertisers build ads with particular offers and select a list of keywords to target pertinent to the request when they start a Google Ads search campaign. When a user does a Google search (often referred to as a query), Google looks to see whether any advertisers are competing for the keywords-related search. If so, advertisements will show up on that SERP.

Google Ads are shown on SERPsHow does Google select the advertising it displays? The Google Ads auction is now open.

We thoroughly explain the Google Ads auction process here, but we’ll condense it for this article. When a user searches on Google, advertisers place bids on keywords related to the inquiry; Google will submit all relevant terms—one per account—into the auction.

Based on its relevance to the query and other considerations, it will first assign each term a Quality Score ranging from 1 to 10. Then, it will multiply each keyword’s Quality Score by the related advertiser’s maximum bid to determine its Ad Rank score. The ads that appear are the ones with the highest Ad Rank ratings.

You must maximize your Quality Score and bid amount to “win” the Google Ads auctions and have your ads appear for relevant keywords. Your ad will appear in a better position the higher your Quality Score is in combination with your bid amount. The following elements, among others, influence your Quality Score:

  • How relevant your Google advertisement is to the search query
  • The Google keyword’s applicability to your ad group
  • The correspondence between your ad and its landing page
  • The ad’s and its ad group’s historical click-through rate (CTR)
  • Performance of historical accounts overall

There are also overall benefits to having a high-quality score:

  • Lower expenses: Google lowers the cost per click (CPC) for advertisers with high-Quality Scores, boosting ROI.
  • Greater exposure: When you have a high-Quality Score, your adverts will appear more frequently and in better SERP positions (top of the page as opposed to the bottom). As a result, you may increase clicks and conversions without increasing your bids.

Check Out This Infographic For More Details On How The Google Ads Auction Functions

Costs of Google Ads

The cost of Google Ads fluctuates depending on various variables, such as the level of competition in your sector and for your keywords, where you are located, how well your marketing campaigns are doing, and more.

The average cost per click for Google search advertisements in the US is $2.32 across all sectors. The average price of Google Ads is frequently substantially cheaper in other regions.

The Google Ads Performance Grader provides a free evaluation of your Google Ads account.

You have it now! An explanation of Google Ads.

Knowing which campaigns are practical for your company and where to make adjustments can help you maximize the impact of your Google Ads advertisements and campaigns. This is precisely what WordStream’s Free Google Ads Performance Grader can assist you with.

The complete free tool available is the Google Ads Performance Grader. The Google Ads Performance Grader runs a full audit of your Google Ads account in 60 seconds or less, emphasizing areas for improvement and successful parts of your account and how they stack up against industry benchmarks for competitiveness.