How Does Google Ads Work?


20 May 2021
Sonja Pototzki-Raymond

If you own or manage a business, you’ve probably considered trying Google Ads at one point or another.  In Australia, Google makes up 94.45% of the search market share, so it makes sense that you should use Google Ads for your business. According to Forbes, 75% of people never scroll past the first page in a Google Search.  

Whether you’ve tried Google Ads before or you are entirely new to the concept, here are some of the things you need to know to be successful using Google Ads.  

What is Google Ads?

Essentially, Google Ads is an online advertising platform created by Google, where advertisers worldwide can bid to display advertisements throughout Google Search and Google Display network.   

How Does Google Ads Work?

Google Ads works by performing an auction process to decide which ad should appear each time a user searches. When an ad is eligible to appear in a search, it goes through the auction process, which determines whether the ad will appear and, if so, which ad position on the page.  

Just remember the auction process isn’t just about the highest bidder. Even if your competition bids higher than you, your ad may still appear in a higher position if Google deems your ad to be more relevant to the searcher.  

There are the main types of Google Ads: Search Network Campaigns, Display Network Campaigns and Video Campaigns.  

  • Search Network Campaigns are usually a text-based ad that shows on Google Search results when a user searches for a product or service.  
  • Display Network Campaigns are usually in image form and appear on websites or apps that your customers are likely to use.  
  • Video Campaigns are usually 6 or 15-second videos, that appear right before or during YouTube Content.  

There are many factors associated with a successful Google Ads campaign. Here are some key terms you need to know.  

Quality Score:

Google gives your ads and landing pages a 1-10 score based on the overall user experience they provide when users search for your keyword(s).   


No matter what type of campaign you decide to run on Google Ads, you will be able to target specific groups of people using interests, intents, and demographic information.  


Words or phrases that best describe your product or service you are trying to advertise. They help determine when and where your ads can appear.  

Is Google Ads Worth the Money?

If you wondered how much Google Ads cost, there isn’t exactly a one size fits all answer. The cost of Google Ads changes dramatically between different industries and keywords you may be bidding on. Google is known for its pay-per-click model (PPC), where you pay for clicks on your ad or per impressions (CPM).  

If your website is struggling to gain organic rankings, using Google Ads will allow you to reach the first page of search results without months and, in some cases, years of search engine optimisation (SEO) work. It ensures your business is being viewed by potential customers when they are searching for your product or service.  

Google Ads gives you complete control of your budget, making it an excellent tool for small to medium-sized businesses that don’t have high marketing spend. If you create a Google Ads campaign on a low budget, don’t spread yourself too thin. Create one clear goal you wish to accomplish and focus on that.  

If you have heard of pay-per-click (PPC) protection, you have probably wondered if you need it or not. Pay-per-click (PPC) protection is performed by a third-party service to eliminate any potential click fraud that may be associated with your account.

Click fraud is a technique in which advertisers sabotage their competitors by clicking on their ad multiple times, driving up the cost and meeting their budget caps early in the day. However, we usually do not recommend purchasing PPC protections as search engines already go the extra mile to stop this from happening as it puts their reputation at risk. 

Conversion Tracking 

In our opinion, conversion tracking is probably the most crucial aspect of EVERY Google Ads campaign. Sometimes we forget exactly why we are advertising. The answer should always be conversions!  

Depending on what your business is trying to achieve, what is considered a conversion may be different. For example, if you run an e-commerce business, one of your conversions would be an online sale. For a hairdresser, a conversion may be an online booking or a call to the store. 

Always be mindful when tracking conversions that you track the closest thing related to a sale relevant to YOUR business.   

Google Ads Specialists Australia wide

Over time, you will need to review, manage and tweak your campaign based on its performance. If you don’t, your campaign time will slowly become less successful and increase your cost-per-click. Regularly optimising your campaign is essential to its long-term success. If you are unable to do this on your own, it may be time to invest in a Google Ads Specialist.  

At The Marketing Republic, we focus on providing results-based campaigns for our clients. Our specialists work hard to achieve outstanding results in all areas of search, including Google Ads, Google Display, Google Remarketing, Bing Ads, Yahoo Ads, SEO (Google, Bing Yahoo, Duck Duck Go).  

With help from our SEO specialists in Perth, Melbourne, Sydney or Brisbane, we are confident you’ll see real results. Contact us today to learn more about Google Ads and how we can help improve Search Engine Marketing (SEM) Strategy. 

Get In Touch Today