How Do Google Ads Work?

January 1, 2023

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From the very beginning, Google Ads has been a popular marketing tool for businesses of all sizes. But what do you know about it? Maybe there are some things that could make your campaigns more effective and less stressful.

Google Ads is a great way for small businesses and entrepreneurs alike to make their voices heard in the digital marketplace. With so many guides available, it can be hard not to find what you need without getting overwhelmed with information overload! That’s why we decided to create this comprehensive guide – because there are still tons of questions left unanswered by other guides or FAQ pages on Google itself. Our goal? Keep things simple while also explaining every little detail about how these ads work…

Here is a concise description of the mechanisms behind Google Ads and the main indicators you will use.

The Basic Idea behind Google Ads

Google Ads is a service provided by Google to advertisers who wish their business or individual page be shown in search engine results for certain keywords. The more you pay, the higher chance your ad will show up on SERP (search engine result page). However, there are other variables that influence where it’ll appear too such as competition level and placement preferences among others.

It’s no surprise that you have many other options for getting your brand seen. Google shows its ads just about everywhere these days and with all the different places they can show up, this should be another way to get more eyes on what we do.

The Google Search Network

You can publish text ads on the Search Network, and they will show up on Google’s results page as well as other platforms such as Maps or Shopping. When you enter a keyword into your browser’s search bar – you might notice that there is an ad marked with a green box atop each result page.

You can also get a Google Shopping carousel of ads at the top of your page. Getting listed there requires submitting products or services that you are selling, and detailed information about them to make sure people know what they’re buying from who! Rich content is very important for reaching out with ease.

Advertisers bid on certain keywords to make it to the top of Google Search Network. An ad or group of ads that will appear when these selected terms are entered in a search engine is called an “ad group.” This type of classification can be very useful for your campaign, helping you maximise results by extending keyword collection which triggers them.

Google uses this network to show you their ads. They use a system called cost-per-click, which influences how well your ranking on certain keywords will be when they trigger an ad group and also offers the chance for paying with impressions instead of clicks if desired by advertisers.

Google Search

The Google Display Network

The Google network for paid ads is the Display Network. Pages, channels, and other spaces on these websites are sponsored by Google in order to attract potential customers who will most likely click through their ad thereby ending up buying something from that company’s website or app store page.

The Conversion Rate on the Display Network is not as big, but still important to have ads here. You might get clients you didn’t even look for.

Google Ads Remarketing

This is where Google ads get really interesting. You can use remarketing to reach out and encourage people who have already interacted with your page in the past. If they visited but didn’t buy anything, you might target them specifically through Google Ads so that when there is an opportunity for conversion on their end (a call-to-action), it will be more successful than usual.

Google Ads

Ranking on Google Ads

With Google Ad Ranking, you can stand out among the other businesses that pay for their ads. You need to know what makes them show an ad first and how to increase your ranking by being more relevant than any competitor.

The indicators that will influence your ad’s ranking on Google ads are:

  • The Bid Amount: While it is important, it cannot perform as a stand-alone factor
  • Ad Quality: Learn more about the quality score below
  • Relevance: Make sure your ad matches the search query

You can rank higher on Google Ads if you know how to optimize for keywords, but don’t rely solely upon a certain formula. Always check your campaign performance and adjust as needed based on statistics provided by the company.

Google Ads Quality Score

Google Ads provides you with a way to check your ad’s performance. Click on “quality score” in the dashboard, and it will tell which rating system applies to that particular campaign or Ad group.

An ad’s quality score takes various indicators into account, which are compressed into three main categories:

  • The Expected Click-Through-Rate: Your page will have an average CTR based on how many times an ad was clicked on, versus how many times it was shown.


  • The Ad’s Relevance: A relevant ad will increase the quality score by offering the correct information to any individual who is viewing it.


  • The Landing Page Experience: If the information in the ads and landing pages is not consistent, your quality score will suffer. Make sure the landing page is consistent with the information in the ad.

The more relevant your content is, the better chance you’ll have at ranking high on Google. It all comes down to providing accurate information that helps people find what they’re searching for – which in turn will increase traffic and revenue.

We want to help you dominate Google with Australian Internet Advertising’s Adwords services and expertise. Become a better advertiser by learning how we can create more successful ads that will make your business skyrocket in the search engine rankings!

Get in touch with us and let us develop an effective Google Ads strategy or review yours and make it profitable.


Billy P.

About The Author

William Polson founded Australian Internet Advertising in 2013 and has over 12 years of experience immersed in Digital Marketing.

With an in-depth level of digital marketing knowledge, William has been sort after by and worked for, many large national brands including Subaru, Blooms The Chemist, and Nova 96.9.

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