Google Ads is the world’s largest advertising platform and one of the most common methods of marketing for businesses looking to put targeted adverts in front of high-intent customers. 

However, for those new to paid advertising, Google Ads can seem overwhelming. That’s why we’ve created this comprehensive guide on Google Ads, so beginners can understand a little more about this incredibly popular and highly effective platform. 

How Do Google Ads Work? 

Google Ads work on an auction-based system. The best quality ad with the highest bid gets the best spot in the SERP (search engine results page), and when a user clicks on your ad, you pay a fee. 

Google Ads come in many formats, such as:

The actual process of advertising with Google is fairly straightforward:

Step 1: Create an Ad

First off, you need to build the actual ad. This means writing headlines, descriptions, and adding links. Depending on the type of ad you’re setting up, you may need additional assets such as images and specific product information. You will also need to choose a goal for your advert – i.e. sales, leads, website traffic, etc.

Step 2: Choose Your Keywords  

You need to decide which keywords you want your ad to show for. For example, if you sell running gear, you may want to target ‘ladies’ running shoes’. 

There are a few different types of keyword matching options in Google Ads, including: 

Which you choose depends on what you’re trying to achieve. If you want to reach a much wider audience, for example, you might use broad match keywords. The audience you reach will be less targeted, but if your only goal is to raise awareness, this can be a good option. 

Step 3: Enter the Auction

Each time someone searches on Google, an auction takes place (yes, every time) and the advertisers targeting that keyword get entered into it.

The winner of the auction is based on:

Step 4: Payment 

Most Google Ads work using a pay-per-click model, meaning you only pay when someone clicks on your ad. However, you can also pay through CPM (cost per 1,000 impressions) and cost-per-conversion (pay when someone takes an action e.g. making a purchase). 

How Much Do Google Ads Cost? 

There isn’t a one-size-fits-all answer to ‘how much do Google Ads cost?’ It can vary significantly depending on a number of factors, but is primarily influenced by the industry you’re in and the quality of your ad. 

Since you only pay when a user actually clicks on your ad, the cost of Google Ads depends on the CPC (cost-per-click). This is determined by your bid, how much competition there is for a keyword, and your ad rank (where your ad sits in the SERP). Generally, the higher the competition, the more expensive the CPC. 

The average CPC in the UK ranges from £0.50 to £5, but for highly competitive industries, like insurance and legal services, this can be considerably higher. 

Common Google Ads Mistakes 

Here are some of the most common Google Ads mistakes advertisers make time and time again, so you know what not to do. 

Failing to Narrow Down Your Audience

Google is there to make money. The more people you reach, the more money you will spend. The platform will encourage you to widen your audience by using board match keywords as a default. While broad audiences can work in some instances, most businesses need to keep their reach tight to ensure ads are only being placed in front of the people who are most likely to convert. 

Saving your ads for high-intent visitors who are actively interested in what you have to offer is crucial for achieving a good ROAS (return on ad spend).  

Poor Quality Landing Pages  

The page your ad leads to (landing page) needs to complement your ad and provide a good user experience. If someone clicks an ad for ‘ladies’ running shoes’ they expect to be taken to a page that shows exactly that. If your page doesn’t match your ad, or provides a poor user experience, the user will more than likely leave before taking action. 

Creating high-quality ads that target the right keywords is crucial, but overlooking the landing page could render those efforts useless. 

Broken Conversion Tracking 

Continuously optimising your ads is essential, but you can’t optimise effectively without the right data. Broken conversion tracking means you can’t access valuable insights that will help inform your strategy going forward.

Before you begin a PPC campaign, you need to be sure conversion tracking is set up properly on your website, and audit it regularly. 

Are Google Ads Worth it? 

Whether or not Google Ads are worth it comes down to the individual business. Most brands with a clear product to sell and enough time and resources to monitor campaigns will benefit from Google Ads. However, if you have low profit margins, poor landing pages, and no conversion tracking, you may struggle to see much ROI (return on investment). 

Google Ads: Our Summary 

Google Ads is a popular advertising platform, one that many businesses use to target customers ready to make a purchase. By understanding how Google Ads works, you can leverage the platform to increase brand awareness, drive worthwhile traffic to your website, and ultimately make more money.