How Does Google Ads Work? What Type is Right for My Business?

Thinking of running ads for your business and wondering how does Google Ads work? You’re not alone, and this post is going to explain it to you.

using Google Ads


If you’re a business owner, spending a great deal of money on Google ads with little to no return is one of the worst possible marketing outcomes.

Today, a successful Google Ads operation typically calls for the knowledge and experience of certified Google Ads specialists who have been managing campaigns for a long time rather than the guesswork of inexperienced service providers.

For instance, high Google ads spending doesn’t guarantee high conversion rates and sales.

The Google Ads system comprises four products: Google Display Advertising (+ Youtube), Google Search, Google Remarketing, and Google Shopping. 

Mixing these options right is critical so you can use your advertising budget fully.

Meanwhile, how does Google Ads work? Are Google Ads worth your time and investment? How can this digital marketing tool help you scale your business? 

This article provides information on how various types of Google Ads work to help you determine whether they’ll help achieve your business goals.

How Google Ads Work

Google Ads allow businesses to improve their visibility across Google platforms.

Google considers the following factors to determine which bidders deserve the ad slots:

    • Ad quality: The relevance and quality of your advertisement are crucial. Google’s Quality Score summarizes their assessment of your ad’s quality.
    • Bid: Your bid is the highest amount you intend to pay for a click on one of your ads.
  • The projected impact from ad types and extensions: How you write or organize your ads can help you rank higher at a cheaper cost, even if your market rivals execute good bidding tactics.

Still, note that you can lose a significant amount of money very quickly if you don’t keep an eye on your advertising expenses or aren’t testing enough.

But if you find the correct combination of Google ad products, expect a steady flow of qualified leads.

What Is Google Ads?

Google Ads refers to Google’s pay-per-click (PPC) advertising platform. This ad option operates via a bidding system.

The most commonly used Google Ads product is the search ad, which appears on the SERP (search engine results page) for queries related to the advertiser’s items and services. 

However, many companies also use Google Ads for display, YouTube, shopping, and other types of ads.

The Role of Google Ads in Advancing Your Business

Google Ads can help advance your business in the following ways:

  • Appear when potential buyers look for what your business offers: Your advertisement may appear in an advantageous position when somebody searches for similar services or products on Google.

Still, remember that with Google’s capacity to reach millions of people per hour, a single targeting error might consume your daily budget before you even leave your computer.

  • Better Visibility: Google places its search and shopping advertisements before any organic listing so that customers can see them first. However, it takes more than developing organized (and frequently expensive) marketing campaigns to land those sought-after ad positions.
  • Measurability: Your Google Ads campaign’s success depends on data. Many analytic tools compatible with Google Ads can help you conduct a detailed study of your campaigns to determine what works and doesn’t for your business goals.

Lastly, here’s how each Google Ads product can help scale your business: 


Your search ad is in a prime position to receive a click if it appears on a Google search results page for relevant terms. Google can place your ad within the top four search results if they think it provides helpful links and information.


Millions of websites have agreements with Google to display the ads it manages. No one outside Google knows which sites belong to the vast Google Display Network (GDN). 

Some people liken the GDN’s extent to the universe. The GDN is expansive enough to reach 90% of internet users.

However, if you’ve used the GDN before, you know that the “90% reach” can also drain your marketing budget quickly. Since the risks are too high, you can’t just wing it or work with an amateur Google Ads service provider.

Consult with Google-trained experts to help you fine-tune your ads for better ROI or return on your investment.


From a Google Ads perspective, Google Shopping can offer the best ROI for online retailers. Consider these observations from Digital Spotlight, a premier digital marketing company based in Australia:

  • At least 55% of your target market compares offerings online 
  • Around 44% of your potential customers use a search engine (presumably, Google) to search for product information

Google Shopping ranks your products based on its data, so product data optimization is vital to your success. 


A well-displayed attention-grabbing video in the GDN can also help improve your online presence.

For most businesses, it does (which is why Google is the behemoth it is today). Generally, it only works if you have people managing your campaigns who understand your products and marketing goals and know how to talk like Google does (in numbers).


There are a lot of components and strategies involved in creating an effective Adwords campaign. The information above should help you hone in on a bidding strategy that will work for your business. Before launching your first campaign be sure to check out these 5 tips to create a low-cost PPC campaign.