How Google Ads works
When someone searches, Google runs an auction to decide which ads appear and in what order. It isn't just about who bids the most. Google combines your bid with the quality and relevance of your ad and landing page. A highly relevant ad can outrank a bigger bidder and pay less per click.
With search campaigns you usually pay per click (PPC). You only pay when someone clicks your ad, not when it's shown.
The main campaign types
- Search: text ads on Google search results. The best starting point for most small businesses because people are actively looking.
- Performance Max: uses Google's automation to show ads across Search, YouTube, Display, Gmail and Maps. Powerful, but it needs good conversion tracking and enough data.
- Display: image ads on websites across the web. Better for awareness and remarketing than for immediate leads.
- Video: ads on YouTube.
- Shopping: product listings for e-commerce stores.
Step 1: Set up conversion tracking first
Before running ads, make sure you can track what matters: form submissions, calls and bookings. Without tracking you can't tell which keywords bring customers, and Google's bidding can't optimise for results.
Step 2: Choose keywords with buying intent
Focus on searches that show someone is ready to act: "emergency electrician Cape Town", "accountant for small business", "book teeth whitening". Avoid broad research terms early on, such as "how to fix a light switch".
Understand match types: broad match reaches the widest range of related searches, phrase and exact match give you more control. Many small accounts start with phrase and exact match and expand once they have data.
Step 3: Add negative keywords
Negative keywords stop your ads showing for irrelevant searches. Common examples include "free", "jobs", "salary", "course" and "DIY", depending on your business.
Step 4: Write ads that match the search
Use the keyword in your headline, state your main benefit, add proof (reviews, years trading, guarantees) and finish with a clear call to action. Add assets such as sitelinks, callouts and a call button.
Step 5: Send clicks to a focused landing page
Your landing page should match the ad and make one action easy. Sending everyone to your home page is one of the most common reasons ads don't convert. See landing page vs website.
Step 6: Set a budget and location
Target only the areas you serve and set a daily budget you're comfortable testing with. Our guide on how much to spend on Google Ads explains how to work out a sensible starting figure.
Step 7: Review and improve weekly
Check the search terms report for irrelevant searches, pause keywords that spend without converting, and test new ad copy. Google Ads rewards ongoing attention.
Common beginner mistakes
Skipping tracking, targeting too broadly and ignoring search terms are the big three. We cover more in Google Ads mistakes that waste your budget.
We set up and manage Google Ads for small businesses, with tracking and landing pages included. See our Google Ads service or book a free call.
Frequently asked questions
Is Google Ads worth it for a small business?
It can be, especially for service businesses where people search when they're ready to buy. Success depends on tracking, tight targeting, relevant ads and a landing page that converts.
How quickly does Google Ads work?
Ads can start showing within a day of approval. Expect a few weeks of data and adjustments before results stabilise.
Do I pay for Google Ads if nobody clicks?
With standard search campaigns, you pay when someone clicks your ad, not when it's shown.