What Is Google Ads & How Does It Work in 2024?

In today’s competitive landscape, having a well-executed Google Ads campaign is crucial for attracting customers. Digital advertising, once a luxury, is now indispensable, particularly for new businesses aiming to establish themselves.

But what specific types of Google ads are most effective? What objectives should you aim for beyond simply increasing sales? And how can you assess the performance of your campaign, along with estimating the costs involved?

Grab a hot beverage, and let’s delve into the comprehensive guide to mastering Google Ads in 2024.

What is Google Ads?

Google Ads is Google's platform for online advertising, allowing businesses to create ads that target potential customers at the right moment. With Google Ads, you can promote your products or services, boost brand awareness, and drive traffic to your website.?

This flexible tool enables you to manage your ad campaigns online, adjust settings, text, and budget according to your preferences, with no minimum spending requirement.?

You have full control over where your ads appear and can easily track their effectiveness.

How do Google ads work?

Google Ads operates on a pay-per-click (PPC) model, where advertisers bid on keywords relevant to their target audience. When users conduct Google searches using these keywords, Google runs an auction to determine which ads will appear on the search engine results page (SERP) and in what order.

Advertisers set a maximum bid amount they are willing to pay for each click on their ad, and Google considers this bid, along with ad relevance and other factors, when determining ad placement.

When a user's search query triggers an auction, Google looks at all eligible ads bidding on the keywords and selects a set of winners to appear on the SERP. The position of each ad is determined by its Ad Rank, which is calculated based on the bid amount, ad quality, and the expected impact of ad extensions and other ad formats.

Advertisers are charged based on the maximum bid they set for that keyword when a user clicks on an ad. This pay-per-click model allows advertisers to control their spending and target their ads to users who are actively searching for products or services related to their business.

In addition to search ads, Google Ads also offers various other ad formats, including display ads, video ads, shopping ads, and app ads, which appear across Google's network of partner websites and platforms such as YouTube and the Google Display Network.

These ads work similarly, with advertisers bidding for ad placement based on relevant targeting criteria and paying when users interact with their ads.

Types of Google ads

Google Ads offers various ad types to suit different marketing objectives:

1. Search Ads: Text-based ads that appear on Google search engine results pages (SERPs) when users search for relevant keywords. They typically include a headline, description, and link to the advertiser's website.
2. Display Ads: Within the Google Display Network, visual ads appear on websites, apps, and YouTube videos. Marketers target them based on audience interests and demographics, incorporating images, videos, and interactive elements.
3. Video Ads: promotional videos that appear before, during, or after YouTube videos, as well as on other Google partner sites. Advertisers can choose from different ad formats, including skippable and non-skippable ads.
4. Shopping Ads: Product-based ads that appear on Google search results pages and the Google Shopping tab. They feature product images, prices, and store information and are linked to the advertiser's online store.
5. App Ads: Ads that promote mobile apps across various Google properties, including search, display, YouTube, and the Google Play Store. They encourage users to download or engage with the advertiser's app.
6. Local Ads: Ads that promote local businesses and services, appearing in Google Maps and local search results. They include location information and directions to the advertiser's physical storefront.

These ad types cater to different marketing goals, such as driving website traffic, generating leads, increasing brand awareness, and driving app installations or engagements. Advertisers can choose the ad formats that best align with their objectives and target audience.