How Google Ads Works?

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How Google Ads Works?

In digital marketing, online advertising is vital in building brands and connecting them with potential customers or target audiences. The Digital Marketing world has so many advertisement platforms for businesses and Google Ads is one of the most liked platforms because of its offerings to the advertisers. Here in this blog, we will be discussing Google Ads Mechanism, Benefits, and Strategies for successful ads.

Understanding Google Ads & Campaign Types

Google Ads, formerly Google Adwords, is an online advertising platform allowing advertisers to market their business on Google’s Search Engine Pages (SERPs), websites with Google Display Network, Apps, YouTube, and more. The core model of Google Ads is PPC (Pay Per Click), where advertisers are charged when user clicks on their advertisement.

There are different types of campaigns that an advertiser can select as per their goals. Google Ads provides varieties of campaign types such as Search Campaigns, Display Campaigns, Performance Max, Video Campaigns, Shopping Campaigns, App Campaigns, Discovery Campaigns, and Smart Campaigns. 

Each campaign type comes with its own set of features, functionalities, benefits, and best practices. 

Search Campaigns:

Mostly used, straightforward type of Google Ads. This allows you to place your text ads on Google Search Engine Pages. Google Search Ad Campaigns offer several benefits, including the ability to target specific audiences, track performance metrics, adjust campaigns in real time, and reach potential customers at the moment they’re actively searching for products or services. It’s a powerful tool for businesses to drive traffic, leads, and sales to their websites.

Display Campaigns:

Reach customers across millions of websites and apps with engaging creatives. Google Display Ad Campaigns can be effective for building brand awareness, driving website traffic, and reaching a larger audience. They offer a visually engaging way to connect with potential customers across a diverse range of online platforms. However, success depends on careful campaign planning, effective targeting, compelling ad creatives, and ongoing optimisation.

Performance Max:

You can reach the audience across all of Google with a single campaign, PMAX. 

Video Campaign:

Google Ads offers you a video campaign to reach millions of audiences on YouTube. Google Ads video campaigns offer flexibility and customization, allowing advertisers to tailor their campaigns to their specific marketing objectives and budgets. It’s important to create compelling and relevant video content that resonates with the target audience to maximize the impact of the campaign.

Shopping Campaign:

Designed for e-commerce businesses to showcase their products/services directly to the users on search engine pages. Setting up and managing a Google Ads Shopping campaign requires careful planning and optimization to ensure that the right products are shown to the right audience and that the campaign generates a positive return on investment (ROI). Advertisers need to continually monitor and adjust their campaigns based on performance data and user behavior to maximize the effectiveness of their ads.

App Campaign:

App Campaign allows you to promote apps across various platforms of Google.

Discovery Campaign:

Advertisers can promote their offerings on Gmail, YouTube, and Discovery Feed on mobile devices. 

Smart Campaign:

This campaign type is for beginners, it provides simplified options for new advertisers and Google takes major control of Ad management.

Key Components


Advertiser adds relevant keywords to their campaign ad group and makes their ad appear in front of users that are searching with similar keywords.

Ad Auction

When a user searches on Google, the algorithm works on certain factors like bid amount, ad quality, and expected click-through rate to determine which ad should appear on search results.

Ad Rank

Ad Rank determines an ad’s position on the search results page. It’s calculated based on the bid amount, ad quality, and the expected impact of ad extensions and formats.

Quality Score

This metric rates keyword, ad copy, and landing page relevancy. Try to keep your quality score above 7. Higher the quality score, the higher the chances of ad ranking at a better position at a lower cost.

Ad Extensions

These are additional details to your ad that can be added to help users with more information about your offerings.

Bidding Strategies

Google Ads provides different types of bid strategies like Maximum Clicks, Conversions, Viewable Impressions, etc. and these are usually segmented into manual bidding, and automated bidding for campaign optimisation.

User Experience in Ads

A user begins a search on Google by using keywords related to their needs.

Ad Display

Ads that are relevant to the user’s search query are displayed on the search results.

Ad Click

As per the interest of a user, he/she clicks on the ad which directs them to the specific landing page. 


On the landing page, the user performs an action that could be submitting a form, clicking on a call button, purchasing, downloading, and more.

Benefits of Google Ads

Highly Targeted

Advertisers can precisely target their audience based on keywords, location, device, demographics, and more.

Measurable Results

Google Ads provides detailed insights into campaign performance, allowing advertisers to track clicks, conversions, and return on investment (ROI).

Flexible Budgeting

Advertisers can set daily or campaign-level budgets, ensuring they have full control over their spending.

Quick Results

Unlike organic search, Google Ads can deliver immediate visibility and traffic to a website.


Local businesses can focus their ads on specific geographic areas to reach potential customers nearby.

Connect with Experts to set up a Google Ads Campaign.

For a beginner, it would be challenging to draft and launch a campaign in a short period of time. It is good to have an expert review of your campaign set up before hitting the ‘publish button’. 

Setting up a Google Ads Campaign involves several steps to ensure your campaign is set up effectively and efficiently. A campaign requires continuous learning and experiments, make sure that you are well aware of the key elements and steps involved in the creation of your campaign

Digital Squad has in-house Google Ads Certified Professionals managing clients from various industry backgrounds. We provide consultation services and all solutions to clients who have basic knowledge of Google ads. 

For more details, in the video given below, you can get an overview of all the critical steps for campaign creation. 

How to Set up Google Search Ads (2023) | Learn in 20 mins | Google Ads Campaign | For Beginners


Google Ads is a dynamic platform and a cornerstone of successful online marketing strategies. By understanding its components, you can not only target the audience as per your choice but also turn that targeting into quality traffic and qualified leads. This platform allows advertisers to have access to detailed data analysis and insightful trends to curate campaign strategies accordingly. This blog has covered all the major points under the working of Google Ads that could help you to begin with campaign strategy and ad run.

Also Read

Create Engaging Ad Copy for the Google Ads Campaign

Google Ads Strategy for Keywords Targeting

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