A Beginner-Friendly Guide to Google Ads

If you build it, they will come… right? In today’s market, if you build a good Google Ads campaign, they will.

Once a luxury, digital advertising has become a necessity—especially for new companies striving to break through the noise.

Online advertising with Google Ads is one of the most effective ways to reach new customers and grow your business. However, before you dive in, you need to know how to use it effectively to maximize your return on investment and avoid common pitfalls.

What types of Google Ads should you use? What should your goals be, beyond simply “selling more stuff”? How do you measure success, and more importantly, how much is all of this going to cost you?

Pour yourself a hot bevvy and let’s get into everything you need to know to master Google Ads.

What is Google Ads?

Google Ads, formerly known as Google AdWords, is a robust, bid-based online advertising platform owned and operated by Google. Utilizing a pay-per-click model, it empowers millions of businesses worldwide to reach new customers and meet their sales, marketing, and revenue goals. As the largest and most widely used online advertising network, it plays a pivotal role in the digital marketing landscape.

The platform offers advertisers a variety of ad formats across multiple networks, including:

Search ads: Targeted text ads that appear when users search for relevant keywords, capturing high-intent audiences.
Display ads: Visually engaging banner ads that reach a vast potential audience across partner websites.
Shopping ads: Product-based campaigns that connect detailed product feeds to showcase items in search results and on the Google Shopping tab.
YouTube ads: Video and display ads that appear on YouTube, leveraging Google's ownership of the platform.

By combining these diverse ad formats, Google Ads not only maximizes visibility but also provides the flexibility to tailor campaigns for various marketing objectives. In the United States, it stands as the largest digital ad publisher, accounting for 28.4% of all ad revenue, which underscores its dominant position in the digital advertising arena.

Why use Google Ads?

Google Ads stands out in the crowded field of pay-per-click advertising by offering benefits that go beyond what traditional PPC channels deliver.

Fast results: Unlike SEO, which requires time and consistent effort to rank content organically, Google Ads can start driving traffic as soon as your campaign goes live. This immediacy is crucial for businesses that need quick wins and rapid visibility.
Data and insights: Every campaign you run provides a wealth of data that can be harnessed to optimize your strategy. With detailed analytics, you can fine-tune your targeting, maximize your budget, and gain deep insights into customer behavior, ensuring your marketing efforts are both efficient and effective.
Full funnel-friendly: Whether you're engaging potential customers with Search ads, capturing attention with Display ads, promoting products with Shopping ads, or leveraging the reach of YouTube ads, Google Ads offers a versatile suite of tools. This multi-channel approach ensures you can interact with your audience at every stage of the buying journey.
High ROI: Google Ads is renowned for its return on investment. With the platform's efficient allocation of ad spend, many advertisers report earning an average of $2 for every $1 invested, making it one of the highest ROI channels available.

These advantages not only highlight why Google Ads is a go-to solution for modern businesses but also illustrate its pivotal role in driving both immediate and long-term success in digital advertising.

How do Google ads work?

Google Ads operates on a straightforward pay-per-action pricing model, which is typically calculated as cost-per-click (CPC). In essence, you write an ad, place a bid, and—if your ad gets the right exposure and engagement—sales follow. However, several nuances define how the process works.

When you launch a campaign, you set a “maximum bid”—the highest amount you’re willing to pay for a click, view, or another defined action. This bid fluctuates based on various factors, including competition for the keyword, search volume, expected reach, and even the time of day or year. For instance, if your maximum bid is $2 and Google determines the value of that click to be $2.55, your ad might not show. Raise your max bid slightly above that threshold, say to $2.56, and your ad stands a better chance of being placed.

The bidding process is flexible, offering three primary options:

Cost-per-click (CPC): You pay when a user clicks on your ad.
Cost-per-mille (CPM): You pay per 1,000 ad impressions.
Cost-per-engagement (CPE): You pay when a user performs a specific action, such as signing up for a newsletter or watching a video.

Budgeting is another key aspect. You can either set a daily average budget and let Google optimize your bids automatically or manually fine-tune both your overall budget and the maximum bid for each ad. For beginners, setting a daily budget and relying on Google's optimization can lead to more effective and economical results. For example, with a total budget of $1,000, you might run a 30-day campaign at approximately $33 per day or opt for a 14-day campaign at about $66 daily.

There’s also a crucial element known as Quality Score—a numerical rating from 1 to 10 that helps Google determine which ad best fits a particular search query. This score is influenced by how well your ad aligns with the search intent. While it doesn’t directly affect your placement or budget, a high Quality Score suggests that your ad is well-targeted, increasing its likelihood of being shown and receiving clicks.

In summary, Google Ads is a sophisticated system that combines bidding strategies, dynamic budgeting, and quality metrics to ensure that your ads reach the right audience at the right time.

Types of Google ads

Google Ads has evolved significantly over the years, introducing a variety of ad types and features designed to meet diverse business needs. Currently, the platform comprises:

Responsive search ads
Performance Max ads
Discovery ads
Display ads
Shopping ads
App ads
Smart campaigns

Let’s explore each type in detail.

Responsive Search Ads
These remain the cornerstone of search advertising. While older formats displayed a single version of your ad, responsive search ads allow you to create multiple headlines and descriptions. Google’s AI then dynamically assembles the best combination to match the search query and user intent.
When to use:

As a baseline for all campaigns—every brand can benefit from targeted text ads.

Specs:

Headlines: Minimum of three and up to 15 headlines, each with a 30-character limit.
Display URL: Must use your domain but can include a simplified “Path” of up to 15 characters.
Descriptions: At least two descriptions are required, with up to four allowed, each with a maximum of 90 characters.

Performance Max Ads
Performance Max isn’t just an ad type—it’s a comprehensive campaign strategy that leverages Google’s best machine learning and AI-powered bidding techniques. By using your provided data, such as custom audiences, it optimizes for your specific goals, whether that’s sales, leads, or another action.
When to use:

To complement standard search campaigns when you have a clear goal.
When you possess additional data (e.g., from previous campaigns or custom audiences).

Specs:

Utilizes a variety of creative assets—graphics, video, and text—to achieve the best results.

Discovery Ads
Discovery ads appear where consumers are actively researching products or reading reviews—across the YouTube homepage, Watch Next pages, Gmail inboxes, and even on the Google homepage. They blend the strengths of display and shopping ads to reach a wide audience.
When to use:

When you already have multiple campaigns and assets in Google Ads and wish to scale sales or retarget previous customers.

Specs:

Encompass text, graphic, and video formats.
Require installation of the Google tag (formerly known as “sitewide tagging”) on your website for optimal performance.

YouTube Ads
YouTube ads offer versatility through various video formats that play before, during, or after videos, or even appear in different placements on YouTube. They allow precise targeting based on user sign-in status, interests, watch history, and more.
When to use:

For product launches, new offers, or brand awareness campaigns, provided you have high-quality video content.

Specs:

Skippable in-stream ads: No maximum length, though it’s recommended to keep them under three minutes.
Non-skippable in-stream ads: Typically 15–30 seconds long.
In-feed/outstream ads: No maximum length; these can leverage existing videos from your channel.
Bumper ads: Up to 6 seconds long.

Display Ads
Display ads, comprising images or videos, appear across millions of websites within Google’s Display Network and on Google-owned sites like YouTube. You can either manually design these ads or upload a suite of assets and let Google’s AI optimize the combinations.
When to use:

Once you have visual assets ready—graphics or videos—to engage your audience.
For retargeting campaigns aimed at re-engaging previous customers.

Specs:

Image ads: Support various dimensions, so it’s best to prepare multiple sizes.
HTML5 ads: Available for advertisers meeting specific spending and account age criteria, created using Google Web Designer.

Shopping Ads
Essential for e-commerce, shopping ads use your product catalog to display ads in an e-commerce–friendly format across Google Search, Display networks, YouTube, and Gmail. They seamlessly blend organic and paid listings to drive product visibility.
When to use:

For every e-commerce retailer, especially if you utilize platforms like Shopify, WooCommerce, BigCommerce, or GoDaddy.

Specs:

Require structured product data feeds that include unique IDs, descriptions, URLs, images, and more.
Product information must be updated (either manually or automatically) every 30 days.

App Ads
Designed to boost mobile app downloads and engagement, app ads draw on images, videos, and content from your app store listing. For Android apps, there’s even an option to run pre-registration campaigns to secure early sign-ups before launch.
When to use:

If you have an app and want to drive installs or engagement (typically needing 50,000 installs to be eligible, except for Android pre-registration ads).

Specs:

Images: Accepts PNG or JPG formats up to 5 MB, with recommended sizes like 1200px x 1200px, 1200px x 628px, or 1200px x 1500px.
Video (optional): Must be hosted on YouTube or sourced from your app store listing.
Text: Up to five headlines (30 characters each) and five descriptions (90 characters each).
HTML5: Available for select advertisers.

Smart Campaigns
Smart campaigns harness Google’s AI for automated bidding, targeting, and ad placements, making them ideal for beginners and time-strapped advertisers. They simplify the ad creation process by automating many of the tasks traditionally handled by an expert.
When to use:

If you’re new to Google Ads, as they can be set up in under 15 minutes.
Even seasoned brands may find that Smart campaigns often outperform traditional campaigns while requiring less ongoing management.

Specs:

Each ad within a Smart campaign includes multiple components: a headline, description, URL, business name, and—if applicable—a phone number, address, or map location.

Each of these Google Ads types offers unique strengths and capabilities, allowing businesses to tailor their strategies to meet specific objectives—from driving immediate traffic to nurturing long-term customer relationships.

How to create Google ads in 7 steps

Creating a successful Google Ads campaign involves a systematic approach that starts with a solid foundation and evolves through ongoing testing and optimization. Here’s how to do it in clear, actionable steps:

1. Establish Your Foundation
Begin by defining your audience and clarifying your goals. Ask yourself: What do you want to achieve with Google Ads—lead generation, e-commerce sales, or brand building? Your answers will shape the campaign types you select and how you structure your account. Develop detailed buyer personas to understand where your ideal customers are, when they’re searching, and which devices they use. For further insights, consider exploring resources on developing effective PPC plans and creating accurate buyer personas.

2. Set Up Your Google Ads Account
Getting started is straightforward. You can create an account using an existing Google login or set up a dedicated Google Ads account. During setup, you’ll configure key details such as your location, time zone, and billing information. Don’t forget to set up conversion tracking—this is crucial for measuring your campaign’s success.

3. Identify Your Keywords
Keywords are the bridge between your ads and your target audience. Use tools like WordStream’s Free Keyword Tool to research terms related to your business. This tool will provide you with keyword suggestions along with important data such as search volume, cost-per-click, and competition levels, helping you pinpoint the most effective terms to bid on.

4. Create Your Campaign
With your account ready and keyword research in hand, you can now create your campaign. Key steps include:

Picking your campaign type
Setting your ad schedule
Choosing your target location and language
Determining your budget
Selecting a bidding strategy
Adding your chosen keywords

Each of these elements works together to ensure your campaign is well-targeted and aligned with your overall marketing goals.

5. Create Your Ad
Crafting a compelling ad within limited space is a challenge. A strong Google Ads headline should:

Convey clear value
Incorporate the targeted keywords
Use language that resonates with your audience
Elicit an emotional response
Include a strong call to action

Responsive search ads require you to provide multiple headlines and descriptions so Google’s AI can test different combinations to find the most effective message.

6. Report on Performance
Google Ads is not a “set it and forget it” endeavor. Regularly monitoring your campaign’s performance is essential. Key performance metrics include:

Cost per click (CPC)
Click-through rate (CTR)
Conversion rate
Cost per action (CPA), also known as cost per acquisition or cost per conversion

Depending on your specific objectives, you might track additional metrics, but these are the core indicators of your campaign’s health.

7. Optimize, Test, & Adjust
No campaign is ever truly finished. The digital landscape is always evolving—so are your customers’ needs. Continuously test different settings, ad copy, offers, and adjust bids based on keyword performance. Adding negative keywords to filter out unqualified traffic is also a key tactic. This ongoing optimization ensures that your campaign remains effective and cost-efficient over time.

By following these steps, you’ll be well-equipped to create and maintain a Google Ads campaign that not only reaches your target audience but also delivers measurable results.

4 Tips for creating winning Google Ads

Here are four essential tips to help you create winning Google Ads campaigns:

1. Focus on Headlines
Take full advantage of the opportunity to include up to 15 headlines per ad. Google will mix and match these headlines—separating them by dashes—to display the combinations most likely to convert. Maximizing your headline variations can significantly enhance your ad’s potential.

2. Test and Experiment
Even if your ads are already performing well, there’s always room for improvement. Regular A/B testing is crucial—experiment with different ad copy, visuals, and formats. Constant testing allows you to refine your approach and discover what resonates best with your audience.

3. Have a Clear Call to Action
A direct, simple call to action is essential, especially for conversion-focused pay-per-click campaigns. Ensure that your call to action clearly states what you want your audience to do, guiding them seamlessly toward the next step in the conversion process.

4. Use All Available Ad Attributes
While optional, adding extra elements such as callouts and sitelinks can help your ad stand out. These additional fields not only capture attention but also provide more information about your offerings—such as financing options—further enticing potential customers.

By integrating these strategies, you can create more compelling, effective Google Ads that drive higher engagement and better results.

Tips for running Facebook ads

Here are four key tips to help you run successful Facebook Ads campaigns:

1. Optimize Your Account Structure
A logical account structure can dramatically impact not only the ease of managing your Facebook Ads but also the overall performance of your campaigns. A well-organized Facebook Ads Manager setup brings several benefits, such as:

More relevant traffic and engagement
Higher ad relevance scores (leading to lower costs per result)
Easier optimization and maintenance of your campaigns

For Facebook, this means structuring your campaigns into clear objectives, with each campaign containing distinct ad sets targeting specific audiences, placements, and budgets, and each ad set housing its own creative variations and landing pages. Consider organizing your account by your website’s structure, product or service categories, or geographic regions if your business operates in multiple markets.

2. Stay on Top of Updates
Facebook’s advertising platform is continually evolving. New features and policy changes are regularly introduced, so it’s vital to stay informed. Whether it’s updates to ad formats, changes in targeting options, or modifications to bidding strategies, keeping up with these changes can help you avoid surprises and adjust your campaigns accordingly. Follow Facebook’s official Business updates, as well as trusted industry publications like Social Media Examiner and AdEspresso, to get expert insights and practical advice.

3. Optimize Your Landing Pages
Your landing page is where the real conversion happens—it's the destination that turns interest into action. To create high-performing landing pages for Facebook Ads, consider these guidelines:

Minimize form fields: Simplify the process to boost conversion rates.
Focus on benefits, not just features: Clearly articulate how your offering solves a problem or adds value.
Use high-quality visuals: Multiple product images can enhance appeal and credibility.
Make your call-to-action unmistakable: Ensure it’s clear what you want the user to do next.
Ensure mobile responsiveness: With many Facebook users on mobile, your landing pages must load quickly and display properly on all devices.

4. Build Remarketing Lists
Remarketing is a critical component of any successful Facebook Ads strategy. By building custom audiences based on past interactions—whether visitors to your website, users who engaged with your ads, or existing customers—you can keep prospects moving through your sales funnel. With Facebook’s powerful retargeting tools, you can create tailored ads that re-engage users, remind them of your offerings, and ultimately drive conversions.

By integrating these tips into your strategy, you’ll be well-equipped to maximize your ad budget and drive meaningful results with your Facebook Ads campaigns.

How to evaluate the strength of your Google ads account

Evaluating the strength of your Google Ads account is an ongoing process that can significantly boost your campaign’s performance. By regularly adjusting and optimizing your account, you can ensure that your efforts are driving the desired results.

Focus on key PPC metrics such as Quality Score, which reflects the relevance and effectiveness of your ads, and Impression Share, which indicates how frequently your ads appear compared to the total available impressions.

Also, review your account activity to track engagement levels and identify trends over time. Keep an eye on wasted spend to uncover areas where your budget might be misallocated.

Regular assessments of these metrics provide invaluable insights, allowing you to pinpoint areas for improvement and fine-tune your strategy for maximum impact.