Google Ads Fundamentals — How the Platform Works

The Most Powerful Advertising Platform in the World

Google processes over 8.5 billion searches per day. Every single one of those searches represents a person actively looking for something — information, a product, a service, a solution. Google Ads lets you appear at the exact moment someone searches for what you offer. This is intent-based advertising, and it is fundamentally different from social media ads.

Search Ads vs Social Ads — The Key Difference

Google Ads Campaign Types

1. Search Campaigns — Text ads that appear above Google search results. Your bread and butter. Best for capturing people who already want what you sell.

2. Display Campaigns — Visual banner ads that appear across 3 million+ websites in Google's Display Network. Best for brand awareness and retargeting visitors who did not convert.

3. Shopping Campaigns — Product listing ads with images, prices, and reviews. Essential for e-commerce businesses selling physical products.

4. Video Campaigns — Ads on YouTube (pre-roll, in-feed, bumper). Best for brand storytelling and reaching audiences where they consume content.

5. Performance Max — Google's AI-powered campaign type that runs ads across ALL Google properties (Search, Display, YouTube, Gmail, Maps, Discover). You provide assets and goals; Google's AI optimizes placement.

How the Google Ads Auction Works

Google Ads is not a simple "highest bidder wins" system. Your actual position depends on Ad Rank, which combines:

Ad Rank = Max Bid × Quality Score × Expected Impact of Extensions

Quality Score (1-10) is determined by:

• Expected Click-Through Rate (CTR) — How likely is someone to click your ad?
• Ad Relevance — Does your ad match what the person searched?
• Landing Page Experience — Does your page deliver what the ad promised?

This means a well-crafted ad with a high Quality Score can outrank competitors who bid more money. Google rewards relevance because it keeps searchers happy.

Account Structure

Google Ads Account
├── Campaign 1 (Budget: $50/day, Location: USA)
│   ├── Ad Group A (Theme: "SEO Services")
│   │   ├── Keywords: seo services, seo agency, seo company
│   │   ├── Ad 1: "Expert SEO Services — Rank #1 on Google"
│   │   └── Ad 2: "Affordable SEO Company — Free Audit"
│   │
│   └── Ad Group B (Theme: "Content Marketing")
│       ├── Keywords: content marketing agency, blog writing service
│       ├── Ad 1: "Content Marketing That Drives Traffic"
│       └── Ad 2: "Professional Blog Writing — SEO Optimized"
│
└── Campaign 2 (Budget: $30/day, Location: UK)
    └── ...

Rule of thumb: Each ad group should contain 10-20 tightly related keywords, all pointing to the same landing page. Never dump unrelated keywords into one ad group.

Setting Up Your First Campaign

1. Create a Google Ads account at ads.google.com
2. Skip the Smart Campaign — Google tries to auto-create a simplified campaign. Click "Switch to Expert Mode" for full control
3. Link Google Analytics 4 — Go to Tools → Linked Accounts → Google Analytics
4. Set up conversion tracking — This is critical. Without it, you are flying blind
5. Choose your campaign objective — Start with "Leads" or "Sales" depending on your business

Budget Planning for Beginners

Start small and scale what works:

The optimization rule: Run ads for at least 2 weeks before making major changes. Google's algorithm needs data to learn which users are most likely to convert.