Google is paid to display the ads

Google Ads: A Comprehensive Guide

If you plan to spend some of your marketing budget on ads, you should be using the right system to do so. A platform with 3.5 billion daily interactions and an estimated return on investment of 800 percent, which reaches 90 percent of all Internet users worldwide, doesn't sound too bad at first. And that's exactly what Google Ads has to offer.

In this guide, we will therefore show you how you can create attractive and effective ad campaigns in Google Ads here.

How works Google Ads?

Google Ads (formerly Google Adwords) shows advertisers' ads to users who are interested in your product or service. To do this, they bid on search terms and the ad with the highest bid appears first in search results, in YouTube videos or on relevant websites in the Google Display Network.

Google Ads: The most important thing about the giant among advertising systems

Google Ads was introduced just two years after, which is now by far the most visited website in the world. The advertising platform started in October 2000 under the nameGoogle AdWords and was launched inGoogle Ads renamed.

This is a platform for paid advertisements according to the Pay per click model. So advertisers pay per click (PPC) or per thousand impressions (CPM) of an ad. The better your ad campaign is designed, the more clicks will be generated and the greater the likelihood that it will turn into new leads or customers.

Brush up on your knowledge of Pay per click with our introduction to PPC advertising.

The reach of ads on Google Ads spans many channels including Google, YouTube, Blogger, and millions of other websites that make up the Google Display Network. So you've probably seen (and possibly clicked) ads like this yourself, as have your potential customers.

This guide will tell you everything you need to know when looking to advertise Place Google Ads want. We'll look at the specific features of this platform and show you how you can optimize your campaigns to get the best possible results.

Why should you run ads on the Google Marketing Platform?

With 3.5 billion daily search queries, Google is by far the most widely used search engine in the world. And the advertising platform, which has been on the market for 20 years, has sufficiently proven itself.

Google is used by people all over the world to ask questions that are answered with a combination of organic search results and ads. In addition, according to Google, advertisers achieve an ROI of 800 percent with their ads. So there are good reasons why you should Google Ads as a complement to your SEO strategy should consider.

Would you like more reasons? Your competitors use Google Ads surely too (and probably even bid for your brand or industry-specific search terms). Thousands of companies use ads to promote their products. This will slide you down in the search results and appear below your competitors.

So, as you can see, if you use PPC ads to promote your products or services, Google Ads should definitely be part of your strategy.

Reasons Your Google Ads Are Not Working

If you're not satisfied with your previous attempts to show ads on Google, don't give up right now. There are a number of reasons why your ads may not have been as successful as expected. Let's take a look at some of the most common mistakes made so that you can use your budget more profitably in the future.

  1. General keywords: It is extremely important that you use the right keywords. To do this, you should repeatedly test different options and combinations in order to optimize your strategy. Using keywords that are too generic will deliver your ads to the wrong audience, resulting in fewer clicks and higher costs. You should therefore continuously monitor what is working well (i.e. which keywords you actually use to generate clicks) and adjust the keywords accordingly in order to tailor your ads to the right target group. It's normal for the mix not to be perfect the first time you try, but keep adding, deleting, and adjusting keywords until you get the best result.

  2. Irrelevant ads:If your ads don't match the intentions of Google users, you won't get enough clicks for your ad spend. The headlines and body of your ads need to reflect the keywords you're bidding on, and the solution you're promoting in your ad needs to match the issues people are researching on Google. It depends on the combination of these factors, which you should keep testing in order to continuously optimize your ads. For example, you can create multiple ads per campaign - and then use A / B testing to find out which versions work best. However, it would be even better to use responsive search ads from Google.

  3. Low quality factor: Based on the quality factor (given as a key figure between 1 and 10), Google determines the ranking of ads - and the higher the ranking, the better your ranking. If you have a low Quality Score, your ads will appear less often and, accordingly, you will generate fewer conversions. Google will tell you your Quality Score, but you can only improve it yourself.

  4. Insufficient landing pages:While it's important that your ads are optimally designed, the post-click experience is just as important. What do your prospects see on your landing pages? Are the same keywords used here? Are the problems or questions of the users solved or answered on the landing pages? Landing pages are a central element for a seamless user experience from display to conversion.

Google Ads terms you should know

In the following we explain some essential terms around the creation, management and optimization of your ads. Some of them are specific to Google Ads, others are general terms from the context of paid advertising.

These are the keywords you should be familiar with in order to develop effective ad campaigns. Incidentally, Google has its own glossary where you can find more information if you need it.

Ad Rank

Ad Rank determines where an ad will be placed. The higher the ad rank, the better the ranking, which means that more people will see the ad and the more likely it will be clicked. The ad rank is calculated by multiplying the maximum bid by the quality score.


Google Ads uses an auction system in which advertisers define a maximum bid they are willing to pay for a click on an ad. The following applies: the higher the bid, the better the placement of the ads. There are three options to choose from:

  • CPC: Cost per click - a certain amount is charged for each click on an ad.

  • CPM: Price per thousand contacts / costs per thousand contacts - 1,000 ad impressions are billed here. "Impression" means that an advertisement is shown to a number of users.

  • CPE: Cost per interaction - this is where user interactions with ads are billed.

We'll go into more detail about the different bid strategies later in this post.

Campaigns and ad groups

Before starting an ad campaign on Google, you can choose between the following five types of campaigns:

  • Search engine ads are text-based ads that appear on Google's search engine results pages (SERPs) along with organic search results.

  • Display ads are mostly graphically designed ads that are displayed on websites in the Google display network.

  • Video ads are between 6 and 15 seconds long and appear on YouTube.

  • Shopping ads advertise products from online shops and include a product image and text as well as the price and the name of the shop.

  • App campaigns make users of the display network aware of your app. In addition to the name of the app, the display usually also shows its star rating and a download button.

No matter which type you choose - every campaign always contains at least one Ad group. These help you structure your keywords thematically.

For example, if you run an online shop that sells women's, men's and children's clothing, you can assign the keywords that describe the individual products to the ad group for "women", "men" or "children". In this way, you can make the display of the ads even more targeted.

Click Rate (CTR)

The click rate is the number of clicks on an ad divided by the number of impressions. A high click rate is therefore proof that the ad is well matched to the search intentions of the users and that the right keywords are used.

Conversion rate (CVR)

To determine the conversion rate, the number of clicks on an ad is divided by the number of conversions (e.g. from submitting forms). In simple terms, a high conversion rate is an indication that a landing page offers a seamless user experience and meets the expectations that were aroused in the ad that brought users to the landing page.

Display network

With Google Ads, you can create ads that appear either on search engine results pages (SERPs) or on a website on the Google Display Network (GDN). The GDN is a network of websites that reserve space for Google ads on their pages - purely text-based ads or image ads can be used. The ads are presented in the context of content that matches the keywords chosen. The most popular options for these display ads are Google Shopping and App Campaigns.

Ad extensions

With ad extensions, ads can be expanded with additional information at no extra cost. The top five ad extensions are: sitelink, call, location, offer and app extensions. We'll take a closer look at these enhancements below.


When users make a search query on Google, matching search results are provided. Keywords are the corresponding words or word combinations that match or correlate with the search intent of the user and respond to their questions. What this means for you is that you need to choose your keywords in such a way that your ads appear along with the results of the correct search queries. The Google Keyword Planner or alternative tools can help you with this. For example, if a user entered "how do I remove gum from the sole of a shoe", they would be shown ads for keywords such as "chewing gum on the soles of a shoe" or "shine shoes".

Negative keywords on Google Ads

Negative or negative keywords are terms that should not appear when entered. These are usually terms that do not exactly match the search terms you are targeting and therefore do not match what you are offering. Google will then not include your ads in the auctions for these terms.

Pay per click (PPC)

With this pricing model, advertisers pay a certain amount per click on their ads. Pay-per-click is the most common model for ad campaigns on Google Ads and is also used on many other ad platforms.

Beware of advertising fraud!

Unfortunately, the groundbreaking success of Google Ads also makes the platform attractive to dishonest machinations. Online scammers take advantage of how the system works to get rich. For example, they create their own websites, join the display network and offer lots of advertising space. In the following, bots visit these pages and click on the corresponding advertisements in a targeted manner in order to help website operators to generate high advertising income via PPC - at the expense of advertisers, whose message fizzles out.

However, Google is aware of the danger and has installed various mechanisms to curb this "ad fraud". For example, special filters are used that react to clicks with conspicuous combinations of date, time and IP address. As a customer, you can also report click behavior that seems strange to you.

In order for your ads to be effective and successful, there are many factors to consider, which we will look at in detail below.

Google Ads Ad Rank and Quality Score

The placement of your ads is determined by the ad rank, which in turn is calculated from your Quality Score and the amount of the bid. As already mentioned, the Quality Score is based on the quality and relevance of an ad, which is measured by Google using the ad's click-through rate. The click rate in turn depends on how well the ad is tailored to the search intentions of the user, which can be derived from three factors:

  1. Relevance of the keywords.

  2. Whether the text of the ad and the call-to-action meet what users expect from their search results.

  3. User experience on the landing page.

When setting up a campaign with Google Ads, the first thing you should do is focus on your Quality Score before you start increasing your bid. The higher your Quality Score, the lower your customer acquisition costs will be and the better the placement of your ads.

Google Ads campaign types: search, display, video ads, etc.

As already explained, you can use Google Ads choose between five different ad types. Whether App or shopping ads offer depends directly on the product you want to promote. How can one determine whether Search, display or video ads are the best choice for your campaign? Now let's take a close look at which type of campaign is best for which purpose.

Search ads

Search ads are text-based ads that appear in the search engine results pages (SERPs). For example, a search for "ties" will provide the following sponsored result:

The big advantage of search ads is that your ad will appear where most people look for information first - on Google. In addition, Google displays your ad in the same format as the other results - but with a little hint that it is an "ad". The users, who are already looking for the corresponding input, also click on these results.

Responsive search ads

For a traditional ad, you just create a static version with a heading and a text version that will be shown to all users. With responsive search ads, on the other hand, you can enter up to 15 different headlines and up to four different ad texts. Over time, Google will then automatically find the best combination that gets the most clicks.

Display ads

The Google Display Network (GDN) is an advertising network from Google with websites from various areas and industries that provide advertising space for display or banner ads on their pages. The advantage for the website operator is that they are paid per click or per impression on the ads. The advantage for advertisers is that they can place their advertisements for specific target groups. Mostly image ads are used for this, which draw attention from the content of the respective website to the ad.


Incidentally, one of the common misconceptions in digital advertising is that banner advertising does not work in the B2B sector. Rather, marketers in the business customer sector also benefit from the favorable budgeting and precise measurability of Google display ads.

Video ads

Video ads appear before or after a YouTube video, sometimes within the video. Keep in mind that ultimately YouTube also functions like a search engine. So with the right keyword, your video ad will appear in the right video and get people's attention.


When you create an ad, you can choose to only see it to users in a specific geographic area. If you have a retail shop, it is therefore advisable to limit this area to a radius that is not too large around your location.

If, on the other hand, you are active in e-commerce or send goods as a package, you could only show your ads to users in the regions that you supply. If you offer services or products available worldwide, there are no limits to you on Google.

The location settings play an important role in the placement of your ad. For example, if you run a yoga studio in Munich, a user in Berlin who searches for “yoga studio” will not see your ad. That's because Google's top priority is always to deliver the most relevant results to users - even if you pay to run your ad.

Keywords: The Google Ads search terms

Keyword research is just as important for paid ads as it is for organic search. Your keywords must match the search intent of the users as closely as possible, because Google delivers your ads based on the match of your keywords with the search queries of the users. Each ad group in your campaign targets just a few keywords, with one to five keywords considered to be optimal. Google then delivers your ads based on these terms.

Keyword options

Keyword options give you a little extra leeway when choosing your keywords. This allows you to define whether there must be a 100% match between your keyword and the search query for the ad to be displayed, or whether partially matching matches should also be taken into account. You can choose between the following keyword options:

  • Largely suitable is the default option, which uses each word in your keyword phrase in any order. For example, if your keyword phrase is “Goat Yoga in Munich”, your ad will also be shown to users who searched for “Goat Yoga” or “Yoga Munich”.

  • Broad match modifier make it possible to only display ads for search queries that contain the words marked with a plus sign. For example, if you specify “+ Ziegen Yoga in Munich”, your ad will be displayed for searches for “goats”, “what eat goats” or “goats and yoga”.

  • Matching phrase means that an ad will be shown on search queries that match your keyword phrase, but may have additional terms before or after them. For example, if you specified “goat yoga”, your ad would show for searches for “spotted goat yoga” or “goat yoga with puppies”.

  • Perfectly fitting means that you have to search for the exact keyword phrase in the exact same order. For example, if your keyword phrase is "goat yoga", your ad will not show for searches for "yoga with goats" or "goat yoga class".

If you're just starting out with ads and don't know exactly what terms your target audience is looking for, it's best to start with “Largely Match” and then narrow down your keyword phrases by testing the results.

Google Ads headline and description

The text of your ad can be the main factor in determining whether a user clicks your ad or a competitor's. It is important that the text of your ad matches the search intention and the corresponding keywords and that it offers potential customers a solution to their problems.

Let's explain this with an example.

This ad was shown while searching for a gym with spa. The text is used to convey the message of the ad and to build a relationship with the target audience.

The keyword phrase is repeated in the headline so we know immediately that this ad matches our search query. In the description we then learn why this offer could be the right one for us. Aspects such as the availability of parking spaces and the size of the spa area are explicitly addressed. Terms such as “fitness goals”, “premium equipment” and “exclusive atmosphere” are used to signal to the target group that they can expect an upscale offer here.

Such a text would certainly encourage many users to click on the ad. However, whether the corresponding conversions also occur depends on whether the landing page is also designed in an appealing way.

Google Ads ad extensions

If you work with Google Ads, you should use ad extensions because, firstly, they are free and, secondly, they give users additional information and thus another reason to interact with your ads. Below is an overview of the most important ad extensions:

  • Sitelink extensions allow you to add additional links to certain pages of your website to an ad so that users can click directly on certain offers or information, such as your course schedule, a special offer or a subscription overview.

  • Call extensions allow you to add your phone number to ads so people can call you instantly. Of course, you should make sure that enough employees are available for the calls.

  • Location expansions contain your location and, if applicable, further information such as your opening times. Users then see a map section with your location on Google so that they can find the way to you. This option is of course ideal for physical stores and works great with “near me” searches.