How does Google Ads work?

How does Google Ads work? Every day, Irish businesses like yours use it to attract customers and grow online. This guide will break things down step by step to make it simple for you.

Key takeaways

• Google Ads works using an auction system. It picks which ads to show based on bids, ad quality, and relevance to user searches.

• Pay-per-click (PPC) means you only pay when someone clicks your ad. This makes it cost-effective for small businesses.

• Different ad types fit different goals: Search Ads for leads, Display Ads for visual reach, Shopping Ads for products, and Video Ads to engage viewers.

• Tools like Keyword Planner help find the best keywords with good search volume and low competition to improve campaign results.

• Features like geo-targeting and remarketing let businesses target local audiences or reconnect with past website visitors effectively.

How Google Ads works: key concepts

Google Ads connects your business to people searching for products or services. It uses a smart system to show ads that match user intent.

What is the auction system in Google Ads?

Google Ads uses an auction system to show ads. Each time a user searches, an auction decides which ads appear and in what order. Advertisers bid on keywords that match their business.

Higher bids can increase your chances of winning, but it's not the only factor.

Ad quality also plays a big role. Google looks at how relevant and useful your ad is for users. A good Quality Score combined with a smart bid gets better placements. This helps small businesses compete fairly without spending too much on clicks.

How do Ad Rank and Quality Score affect ads?

Ad Rank decides where your ad appears on a search results page. A higher Ad Rank means your ad shows up in better spots, like the top of the page. This depends on your bid amount, Quality Score, and how relevant your ad is to users’ searches.

Quality Score measures how good and helpful your ad, landing page, and keywords are. Ads with high scores cost less per click but still appear higher.

As Google explains, "Better ads create better user experiences." Make sure your content matches what people need.

What is the Pay-Per-Click (PPC) model?

PPC means you pay only when someone clicks on your ad. It is a cost-effective way to get traffic to your website. You set a budget and bid for keywords that match user searches.

Google Ads uses this model to show ads at the top of search results.

Say, you sell shoes in Dublin; your ad might appear if someone searches "buy men’s shoes Ireland." This can help Irish small businesses reach their target audience quickly without overspending.

Types of Google Ads campaigns

Google Ads offers many campaign types to meet different goals. Each type helps businesses reach their target audience in specific ways.

What are Search Ads and how do they work?

Search ads show at the top of Google search results. They appear when people search for specific words or phrases, also known as keywords.

These ads work on a pay-per-click (PPC) model. You bid on keywords related to your business, and you pay only if someone clicks your ad.

For example, if you sell handmade candles in Limerick, you might bid for "buy scented candles Limerick."

How do Display Ads reach audiences?

Display ads use visuals like images, videos, or banners. They appear on websites or apps that your potential customers visit often. Google Ads places these based on user behaviour, interests, and browsing history.

These ads also work with audience segmentation tools. Small businesses across Ireland can target specific groups by age, location, or hobbies.

Retargeting (or remarketing) is another smart feature. It shows your ad to people who visited your site but didn’t act, bringing them back to complete a purchase.

What are Shopping Ads?

Shopping ads show products with pictures, prices, and business names. They appear on Google search pages when people look for items to buy.

These ads help ecommerce businesses reach customers searching online.

For example, if someone searches "running shoes," your shop can display its product in the results. This makes it easier to drive sales and attract buyers ready to purchase and allows you to compete fairly with large ecommerce brands.

How do Video Ads engage viewers?

Video ads grab attention with sound and motion. They are short, engaging, and easy to watch on mobile devices. Bright visuals or catchy music can make a big impact.

They target specific audiences through keywords or user behaviour. This means the right people see your ad at the right time, boosting interest and conversions.

What are App Promotion Ads?

App promotion ads help promote mobile apps. They aim to increase app downloads and encourage user engagement.

These ads show on Google Search, YouTube, Google Play and across other apps or sites in the Display Network. Irish small businesses that market their products or services through an app can target specific groups based on location, interests or devices.

This ensures your ad reaches people likely to download your app.

What are Performance Max campaigns?

Performance Max campaigns help you show ads across all Google platforms. This includes YouTube, Gmail, Search, and more. These campaigns use AI and machine learning to optimise your ads.

They work by letting you enter goals, such as getting more website visits or calls. The system then chooses the best placements and formats for your ads. You can target specific audiences while saving time on manual settings.

Key features of Google Ads

Google Ads offers tools and features that help improve your campaigns. Learning how to use them effectively helps making the most of your Google Ads budget.

How to use the Keyword Planner tool?

Google Ads Keyword Planner helps find keywords for your ads. It also shows how often people search for those words and the competition.

1. Sign in to your Google Ads account. Go to "Tools", then pick "Keyword Planner".

2. Choose either "Discover new keywords" or "Get search volume and forecasts".

3. Enter ideas related to your business, like products or services. For example, if you sell shoes online, type "running shoes" or "buy men's trainers online".

4. Check the results list with suggested keywords, their average monthly searches, and cost per click (CPC).

5. Pick keywords with good search volume but low competition for better chances to rank higher.

6. Use filters to narrow down options, like location (Ireland) or language preferences.

7. Save the best-performing keywords into a new ad group for future use in Google Ads campaigns.

8. Regularly revisit the tool as trends change; staying updated improves campaign management and targeting.

What are ad extensions and how do they help?

Ad extensions add extra details to your Google Ads. They show things like phone numbers, website links, or reviews with your ad. These make ads stand out and give users more ways to interact.

They help Irish small businesses by improving click-through rates without extra cost.

For example, a shop can use location extensions to guide local customers or call extensions for direct contact.

Ad extensions also improve Ad Rank, helping you compete better in the auction system.

How do Remarketing tools work?

Remarketing tools help you reconnect with people who visited your website. They show your ads to these users on other sites or platforms, keeping your business in their mind.

Google Ads uses cookies to track visitors on your site. Later, it shows personalised ads to those users while they browse the internet.

For example, a customer browses for shoes but doesn’t buy any; they may see an ad for that same shoe later while reading news online.

Remarketing keeps your brand noticeable and can increase sales effectively.

What are negative keywords and why use them?

Negative keywords block ads from showing for certain search terms. They help you avoid wasting money on irrelevant clicks.

For example, if you sell luxury shoes, adding "cheap" as a negative keyword stops your ad from appearing in searches like "cheap shoes".

This improves targeting and increases your budget's effectiveness. By focusing on the right audience, negative keywords can boost conversion rates. Use tools like Google’s Keyword Planner to find terms that don’t match your products or services.

Best practices for Google Ads

Crafting effective Google Ads takes planning. Every detail matters. The strategies outlined in this section can lead to better clicks and more leads or sales.

How to structure Google Ads campaigns effectively?

Structuring your Google Ads campaigns the right way can save money and get better results. A clear setup will help reach your target audience and improve ad performance.

1. Start with one campaign per goal to keep things simple. For example, create a campaign for sales and another for website visits.

2. Choose a specific target audience. Focus on location, age, or interests suitable for small businesses in Ireland.

3. Use Ad Groups within campaigns to organise ads by theme. For instance, promote different product categories like clothing or services.

4. Write clear and simple ad copy that matches keywords. This helps attract clicks from interested users.

5. Select relevant keywords using Google's Keyword Planner Tool. Pick terms potential customers are likely searching for online.

6. Set up a budget you can afford daily or monthly without overspending. Adjust as needed depending on campaign results.

7. Test multiple ad formats like text ads (also known as dynamic search ads or DSAs), display ads, or video ads to see what works best for your goals.

8. Use negative keywords to avoid showing ads on unrelated searches where clicks won’t lead to sales or leads.

9. Include ad extensions such as phone numbers or links to important pages on your site for more visibility.

10. Track performance with conversion tracking tools to measure which ads drive results like purchases or sign-ups effectively!

What are budgeting and bidding strategies?

Budgeting and bidding are key parts of running Google Ads. They help control costs and improve results.

1. Set a daily budget. This is the amount you want to spend each day on your ads. Spread your marketing money wisely to cover all campaigns.

2. Choose bidding strategies wisely. Options include manual bidding or automated bidding. Manual gives you more control, while automated uses Google's algorithm to decide bids based on goals.

3. Focus on cost-per-click (CPC). This shows how much you pay for every click. Lower CPC can save money without hurting performance.

4. Use target cost per action (CPA). This helps if your goal is conversions like sales or sign-ups. You set how much you're willing to pay per conversion, and Google adjusts bids for this outcome.

5. Test different bid limits. Start small to see what works best for your audience and budget size, then adjust as needed.

6. Track campaign performance often. Use conversion tracking tools to monitor spending versus return on investment (ROI).

7. Align bid strategies with business goals. For example, focus on maximum clicks if traffic is a priority or CPA if conversions matter most.

8. Set limits in campaigns like Search or Display Ads to keep control of ad spend.

How to optimise ad formats for your goals?

To make your Google Ads work better, you need to match your ad formats to your goals. Each type of ad does well for specific outcomes.

1. Choose search ads for leads or sales. These ads show on Google search results and target users searching for your keywords.

2. Pick display ads to boost awareness. These use images and text across websites, grabbing attention visually.

3. Use video ads on YouTube to engage. They tell a story or explain services in an eye-catching way.

4. Try shopping ads for ecommerce products. They highlight items with prices and pictures above search results.

5. Advertise apps with app promotion ads if growing downloads is the goal.

6. Link campaigns to goals like visits, calls, or purchases using conversion tracking tools.

7. Include ad extensions where suitable, such as call buttons or extra links.

8. Test different headlines and descriptions regularly, finding what gets the best clicks.

9. Target local audiences using geo-targeting if aiming for nearby customers in Ireland.

10. Analyse performance metrics often like CTR (click-through rate) and ROI (return on investment). Adjust settings based on these numbers to improve results further.

How to use geo-targeting and Local Ads?

Geo-targeting and local ads help local businesses reach nearby customers. They make sure your ads show up for people in the right places.

1. Choose specific locations to target your ads. Focus on towns, cities, counties, or a set radius around your shop.

2. Use location keywords in your ad text. For example, write "best bakery in Dublin" or "plumber near Cork."

3. Set up location extensions to add your address or phone number to the ad. This helps people contact you easily.

4. Adjust bids based on areas where customers are more likely to buy. Spend more on high-performing regions.

5. Run special offers for local events or holidays. Highlight something like "20% off this weekend in Galway."

6. Track location-based performance using Google Ads reports. Check where most leads or clicks come from.

7. Exclude areas that don’t bring results or are far from your service zone. Save money by skipping unprofitable zones.

8. Enable call tracking if you have a business phone number listed in the ad. See how many calls came directly through it.

9. Use custom audiences combining geo-targeting and behaviours like recent searches about services near them.

10. Test different messages for different locations over time to find what works best with each audience group nearby!

Is Google Ads worth It?

Google Ads can bring new customers and boost sales. Its value depends on your digital marketing strategy and business goals.

How to evaluate Google Ads ROI for different businesses?

Track your ad spend carefully. Check how much money you are earning from the ads compared to what you spend on them. For example, if your store spends €100 on an ad and makes €300 in sales, the return on investment (ROI) is good.

Use Google Ads tools like conversion tracking to see which clicks turn into leads and sales.

Different businesses will have different results. A local bakery may value more foot traffic, while an online shop might focus on product sales. Set clear goals for your campaigns at the very start, like boosting visits or increasing purchases.

Measure these outcomes regularly to know if the ads work well for your business size and type.

Things to consider if you are in a highly competitive industry

Focus on standing out in your niche. Use strong keyword targeting to reach the right audience. Choose long-tail keywords as they are less competitive and more specific. This can help small businesses compete with larger ones.

Set clear goals for each campaign. Watch your budgets and bidding strategies closely to avoid overspending. Test different ad copies, formats, and audiences often to see what works best.

What are the costs of Google Ads?

Google Ads costs depend on your budget and goals. You set a daily limit for spending, so you control how much to pay. Small businesses in Ireland often start with budgets as low as €5-€10 per day.

The cost per click (CPC) varies based on competition and the keywords you choose. For highly competitive terms like "local electrician", CPC might range from €1 to €3 or more.

Less competitive words can cost under €1 per click. Careful keyword targeting helps save money while reaching the right audience.

Final thoughts

Understanding Google Ads may seem tricky at first, but it is worth it. It helps businesses reach the right people and grow online even without a big advertising budget. Learning its tools and strategies helps you manage your campaigns better.

Start small, test ideas, and watch your Google Ads results improve over time.

FAQs about Google Ads

1. What is Google Ads, and how does it work?

Google Ads is an online advertising platform that helps businesses show ads on Google search results and other websites. It works by using keywords to match ads with what people are searching for, charging advertisers only when someone clicks their ad.

2. How do I decide on the right keywords for my campaign?

Start by researching terms your audience might use to find your products or services. Use tools like Google's Keyword Planner to identify relevant, high-traffic words that align with your goals.

3. Can Irish small businesses benefit from using Google Ads?

Yes, Irish small businesses can gain visibility even with a limited budget. By targeting specific locations or audiences, they can attract customers who are actively looking for their offerings.

4. How does bidding impact my ad performance in Google Ads?

Bidding determines where your ad appears compared to others competing for the same keyword. Higher bids increase visibility but balancing cost per click with return on investment ensures better results over time.

5. How do Google Ads work for beginners?

Google Ads lets you show text, visual, or video ads to people searching for your products or services. You choose keywords, set a budget, and pay when someone clicks your ad.

6. Is €10 a day enough for Google Ads?

Yes, it can be a practical starting budget for testing. It allows for a few clicks per day in a targeted, low-competition niche, helping you learn what works before scaling.

Is €500 a month enough for Google Ads?

Yes, €500 per month is a viable budget for many small businesses. It provides enough volume to generate leads or sales in many sectors, provided targeting and campaigns are well-structured.

Do Google Ads really pay?

Yes, when managed correctly. Profitability depends on your cost per click, conversion rate, and customer value. Proper tracking and optimisation are essential to ensure a positive return.

How to claim ad credit from Google Ads?

Sign in to your Google Ads account, click the tools icon, and navigate to "Billing & Payments." If a promotional offer is available, you'll see an "Enter code" button to apply it.

Offers for new advertisers In Ireland often start at €400 typically spread over two months.

What is a realistic budget for Google Ads?

A realistic budget starts by determining your target cost per lead or sale, then calculating the clicks needed to achieve it. For many Irish SMEs, a starting test budget of €300-€700 per month is common.

Need help getting started with Google Ad Grants?

If you’re a small business owner in Ireland who wants more leads and sales online, but finds Google Ads complex, time-consuming, or just not delivering the results you expected, I can help.

As a Google Partner and freelance PPC consultant with over 20 years of experience, including time on Google’s own Search Quality team in Dublin, I work with Irish SMEs and startups to build Google Ads campaigns that drive leads and sales.

I can help you:

• Set up your first campaign properly

• Fix underperforming ads and improve ROI

• Structure accounts for better results and lower costs

• Implement tracking so you know what’s working and what's need improving

Book a 20-min consultation and let’s review your account or discuss a new campaign.

About the author

Alessandro Boscolo Conway — Hello Digital

I'm a Dublin-based freelance SEO and digital marketing consultant with over 20 years of experience, including time on Google Ireland’s Search Quality team.

I run Hello Digital, a consultancy that helps startups and small businesses across Ireland grow online through clear strategy, expert delivery, and practical support.

I've worked with over 50 Irish companies to improve their visibility, generate better leads, and grow sustainably through SEO and digital marketing.

I'm a certified Google Partner and a trusted advisor to e-commerce brands, local services, and fast-growing startups.

• Based in Dublin, 20+ years of experience

• Former Googler, certified Google Partner, SEO strategist, and performance marketer

• Trusted by 50+ Irish startups, e-commerce brands, and local businesses

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