Dixit Prajapati
Written By Dixit Prajapati SEO Manager

The Ultimate Google Ads Handbook: A Comprehensive Guide

post date
September 15, 2023
Reading Time: 15 minutes

Google is a digital giant, handling an astonishing 8.5 billion searches every day. It’s very likely you’ve seen a Google ad, and maybe even clicked on one. If you’ve found your way to this blog post, it’s probably because you’re eager to tap into the power of Google Ads for your business. You’ve come to the right place!

Google Ads, known by various names like Google AdSense, AdWords, or just Ads, are those ads you see mixed in with Google’s search results. While getting your ads up and running is a critical first step, the real skill comes in managing them over time to get the best results.

In this detailed guide, we’ll show you the strategies to follow once your ads are live. Whether your Google ad is already performing well or could use some improvement, these practices should be a core part of your advertising approach.

What is Google Ads?

Google Ads, previously named Google AdWords, stands as Google’s online advertising platform. It allows advertisers to display various types of advertisements, primarily text ads, on Google’s search engine and across its vast network of partner websites and platforms. These ads appear when users enter specific search queries that match the keywords selected by advertisers.

11 Key Google Ads Terms to Know

1. Keywords:

Keywords serve as the signposts of the internet, helping users find what they’re looking for amidst the vast digital landscape. Think of them as the road signs that guide travelers on their journey.

Imagine you’re on a road trip and encounter signs that point you to interesting destinations. Keywords work in a similar way, except in the digital world. They are the words or phrases that connect what people type into a search engine to the information or products they seek.

Your choice of keywords is akin to selecting the right road signs for travelers. Just as a well-placed sign ensures travelers find their desired route, advertisers pick keywords that closely match their offerings. These keywords act as the guiding lights, leading potential customers to your ad when they’re searching for what you provide.

However, it’s not merely about selecting any keywords; it’s about choosing the right ones. Think of it as curating a menu for a restaurant. Search engines, like Google, evaluate how well your chosen keywords align with what users are searching for, the quality of the content they lead to, and how often users engage with your ad. This evaluation results in your ad’s “Quality Score,” which plays a pivotal role in determining its visibility and success.

Match Types are like filters for your keywords in Google Ads, determining how closely a user’s search query must align with your chosen keywords for your ad to display. Here are the four match types, explained with new examples:

  • Broad Match: Think of it as a catch-all. If your keyword is “affordable hotels,” your ad might appear for searches like “budget accommodations” or “cheap lodging.”
  • Modified Broad Match: This adds precision. If your keyword is “+luxury +resorts,” your ad may show for “luxury beachfront resorts” or “top-rated luxury resorts.”
  • Phrase Match: It’s like a phrase in quotes. If your keyword is “boutique hotels,” your ad could be triggered by searches like “best boutique hotels” or “boutique hotels in Paris.”
  • Exact Match: This is as specific as it gets. If your keyword is [family vacations], your ad will only appear when someone types “family vacations” exactly, without variations.

Choose your match type wisely to control the reach of your ads and ensure they connect with your intended audience effectively.

2. Bidding:

In the domain of online advertising, “bidding” is akin to attaching a price tag to where your ad appears. Picture it as an auction. When someone conducts a search on Google, multiple advertisers may vie for their ads to feature. Bidding is the method they employ to decide who secures the top position.

Imagine this: you’re at an auction, and there’s a rare comic book on offer. You and other bidders raise your hands to declare the maximum amount you’re willing to pay for it. In Google Ads, advertisers carry out a similar process. They inform Google of the highest sum they’re prepared to spend when someone clicks on their ad.

Now, when a search is performed, and your ad is relevant, Google assesses all the bids. The bidder offering the most secures the privilege of exhibiting their ad prominently on the search results page. But here’s the ingenious aspect: you’re solely billed when someone actually clicks on your ad, not just for its display.

So, think of bidding as your way of stating, “I’m ready to offer this much to ensure my ad gets noticed and clicked.” The more competitive your bid, the better the chance your ad has of grabbing attention. It’s similar to winning that coveted comic book at the auction – the highest bidder takes the spotlight.

3. Quality Score:

Quality Score is like a report card for your ads in the world of online advertising. It’s a measure of how well your ads match what users are searching for, and how relevant and useful they are. Google uses Quality Score to decide where your ad appears on the search results page.

Imagine this as a grading system in school. Your ad gets a score based on factors like how closely your keywords match the search, the quality of your landing page, and how often people click on your ad. The higher your Quality Score, the better chance your ad has of appearing in a top position on the search results page.

So, Quality Score is like Google saying, “Your ad is highly relevant and helpful to users,” or “Your ad needs some improvement.” It’s a crucial metric because a higher Quality Score can mean lower costs and better ad placements, giving you more bang for your advertising buck.

4. AdRank:

AdRank is like a scorecard that determines where your ad appears on Google’s search results page. It’s a vital metric in online advertising, and it’s influenced by a combination of factors, including your bid amount, the quality of your ad, and the expected impact of ad extensions.

Think of it as a ranking system, similar to a sports league table. Just like in sports, where teams are ranked based on their performance, your AdRank is calculated based on how well your ad competes with others. A higher AdRank means your ad has the potential to show up in a more prominent position on the search results page.

Here’s how it works: your bid amount represents your willingness to pay for a click, and the quality of your ad reflects how relevant and engaging it is to users. Additionally, ad extensions, like extra points in a game, can boost your AdRank by providing additional information to users.

So, AdRank is like Google saying, “Your ad deserves to be seen in this spot because it’s relevant, engaging, and offers valuable information to users.” It’s a key factor in determining your ad’s visibility and effectiveness in the competitive world of online advertising.

AdRank is the compass guiding your ad’s position in Google Ads. It’s a formula that considers two essential elements: Quality Score and your keyword bid.

Quality Score revolves around ad quality and relevance, measured by your Click-Through Rate (CTR). CTR depends on:

  • Keyword relevance
  • Alignment of ad copy and user intent
  • Landing page experience

Focus on boosting your Quality Score before raising bids. A higher Quality Score means lower costs and better ad placement, without breaking the bank. AdRank is your path to cost-effective visibility in Google Ads.

5. Click-Through Rate (CTR):

Click-Through Rate (CTR) is like the cheering and applause that greet a stellar performance at a sports event. It’s a crucial metric in online advertising, and it reveals how well your ad engages and connects with its audience.

Think of your ad as a star player on the field, and CTR as the measure of how many fans are excitedly responding to their performance. A higher CTR indicates that your ad is not only capturing attention but also inspiring viewers to take action by clicking on it.

Much like a sports team’s performance can energize the crowd and boost their rankings, your CTR is a reflection of how well your ad competes in the digital arena. It signifies the percentage of users who not only see your ad but actively choose to engage with it.

Here’s how it works: A high CTR shows that your ad resonates with the audience, much like a team that scores well and captures the fans’ enthusiasm. It means your ad is not just seen but also convincing users to make a move, whether it’s visiting your website, learning more, or making a purchase.

So, CTR is like the crowd’s response at a game, telling you, “Your ad is captivating, and people are excited to see more.” It’s a key indicator of your ad’s effectiveness in drawing users’ attention and encouraging them to take action in the competitive world of online advertising.

Average Click Through Rate by Industry

6. Conversion Rate:

Conversion Rate is like the scoreboard at a sports event, displaying the number of goals scored. In the world of online advertising, it’s a critical metric that measures how effectively your campaign is achieving its objectives.

Think of your campaign as a team in a sports match, and Conversion Rate as the tally of goals they score. A higher Conversion Rate indicates that your campaign is not only playing well but also consistently achieving its goals, whether it’s sales, sign-ups, or other desired actions.

Similar to how sports teams aim to win matches, your campaign’s goal is to convert visitors into customers or leads. Conversion Rate is the percentage of visitors who make that winning move—taking a desired action that contributes to your campaign’s success.

Here’s how it works: A high Conversion Rate signifies that your campaign is performing strongly and efficiently. It means that your strategy is resonating with your audience and motivating them to take the actions you want them to take.

So, the Conversion Rate is like the final score of a sports match, telling you how well your campaign is performing in achieving its objectives. It’s a vital metric that helps you gauge the success of your digital efforts and make strategic decisions to improve your performance.

7. PPC (Pay-Per-Click):

PPC, or Pay-Per-Click, serves as the performance currency of your digital advertising strategy. It’s like the applause and rewards you receive based on how well your ad resonates with your audience.

Think of your ad as a live performance, and PPC as the way you measure the audience’s response. Each click represents an enthusiastic clap from an engaged viewer, indicating their interest in what you have to offer.

Here’s how it works: With PPC, you set a specific amount you’re willing to pay for each click on your ad. It’s like deciding how much your audience’s appreciation is worth. When someone clicks on your ad, you pay a small fee, signifying that they found your ad compelling enough to take action.

Much like a standing ovation at the end of a remarkable performance, a high PPC signifies that your ad is not just seen but also admired and acted upon by your target audience. It’s a reflection of how well your ad performs in the competitive arena of online advertising.

So, think of PPC as the applause and rewards your ad receives for its outstanding performance. It’s a metric that showcases the resonance and impact of your ad in captivating your audience and motivating them to engage with your brand.

8. Campaign Type:

Campaign Type is like the formation a sports team adopts before a game, determining how they’ll play and what tactics they’ll use to win. In the realm of digital marketing, it’s the strategy you select to achieve specific advertising goals.

Imagine your advertising campaign as a sports team preparing for a match, and Campaign Type as the formation they choose for that particular game. Each Campaign Type represents a different formation, tailored to accomplish distinct objectives—whether it’s scoring more goals, defending, or counterattacking.

Just as a sports team adapts its formation based on the opponent and the game’s context, advertisers choose Campaign Types that align with their goals and target audience. It’s like having a versatile playbook, allowing you to strategize and adapt your tactics for different situations.

The flexibility of Campaign Types empowers you to stay agile in the dynamic field of digital marketing. It’s like being able to switch formations during a game to respond to changing circumstances and seize opportunities.

So, think of Campaign Type as your digital battle formation, defining how you’ll approach the game of online advertising. It’s a strategic choice that enables you to align your tactics with your objectives and stay competitive in the ever-evolving world of digital marketing.

9. Impression:

Impression is like the footprint your ad leaves behind in the digital world. It’s the metric that tells you how many times your ad has been seen by potential customers, akin to footprints in the sand indicating the number of people passing by.

Imagine you’re on a serene beach, and you leave footprints as you walk along the shore. Each impression is like a footprint your ad makes in the sand of the digital landscape. It signifies that your ad has been displayed to a user, even if they haven’t necessarily taken action by clicking on it.

Just as the number of footprints on the beach can reveal how many people have strolled by, the number of impressions indicates how often your ad has been exposed to your target audience. It’s a vital metric for measuring the visibility of your ad campaign.

Impressions can help you gauge the overall reach of your ad and understand how effectively it’s capturing attention. While impressions alone don’t tell the whole story, they provide valuable insights into how often your ad is making its mark in the digital sands.

So, think of an impression as the digital footprint that signifies your ad’s presence in the vast online landscape. It’s a way to measure the exposure and visibility of your ad campaign, offering clues about its potential impact on your target audience.

10. Ad Extensions:

Ad Extensions are like the additional chapters in a book, enhancing the story your ad tells to potential customers. They’re essential tools in online advertising that go beyond the basic ad to provide valuable information and encourage engagement.

Imagine your ad as the cover of a book, and Ad Extensions as the chapters that delve deeper into the narrative. Each extension adds layers of information, much like chapters in a book unveil new aspects of a story.

Here’s how it works: Ad Extensions allow you to include extra details like phone numbers, links to specific pages, or location information in your ad. They provide users with more options to interact with your business, making it easier for them to take action.

Much like a book with well-crafted chapters keeps readers engaged, ads with relevant Ad Extensions keep users interested and motivated to explore further. These extensions are like the extra content that adds value to your ad and helps it stand out in the competitive digital landscape.

So, consider Ad Extensions as the chapters that expand your ad’s story and provide users with a richer experience. They’re a crucial tool for enhancing your ad’s visibility, engagement, and effectiveness in online advertising, allowing potential customers to connect with your business more easily.

Running Google Ads? You shouldn’t overlook Ad Extensions for two compelling reasons: they’re free and boost your ad’s appeal. Ad Extensions come in five types:

  • Sitelink Extensions: Extra links to your site, expanding your ad’s reach and user engagement.
  • Call Extensions: Include your phone number in your ad for instant connections with potential customers.
  • Location Extensions: Put your business on the map, with an address and map display for local searches.
  • Offer Extensions: Promote discounts or special offers to stand out from competitors.
  • App Extensions: Provide a direct mobile app download link, simplifying the user journey.

Ad Extensions enhance your ad’s attractiveness and user experience without added costs. Don’t miss out on this Google Ads advantage!

11. Display Network

The Display Network is like the art gallery that showcases your ad to a diverse online audience. It’s a dynamic platform that extends the visibility of your ad beyond search results, allowing it to be featured on various websites and apps.

Imagine your ad as a masterpiece painting, and the Display Network as the prestigious gallery that exhibits it. Each website and app within the network serves as a unique display wall, presenting your ad to a wide range of viewers who may be interested in your offerings.

Here’s how it works: With the Display Network, your ad gains the opportunity to appear on websites and apps that partner with Google, much like an artwork displayed in different galleries. This expanded reach allows you to connect with potential customers in various digital spaces.

Much like how an art gallery amplifies an artist’s exposure to art enthusiasts, the Display Network amplifies your ad’s exposure to a broader online audience. It’s a powerful tool for enhancing brand awareness, engaging with potential customers, and expanding your digital presence.

So, consider the Display Network as the digital art gallery for your ad, where it can be admired by a diverse and extensive online audience. It’s a crucial component of online advertising that empowers your ad to reach new heights and captivate potential customers across the digital landscape.

Average Click Through Rate by Industry

How does Google Ads work?

Google Ads is like a finely tuned game with three key players: searchers, advertisers, and the Google Ads platform. Here’s a simplified playbook that explains how it all comes together:

  • Advertisers Choose Keywords: Think of advertisers as players selecting the best cards in a game. They pick keywords (words or phrases) they want their ads to show up for when people search on Google. They set a budget to control how much they spend.
  • Searchers Make a Move: Searchers, like players making a move in the game, type a keyword into Google’s search bar. This sets the game in motion.
  • Google’s Ranking Game: Google quickly ranks the ads behind the scenes based on two things: how much advertisers are willing to pay (their bid) and the quality of their ads. A greater bid and improved ad quality lead to a higher ad placement.
  • The Click, Winner Takes All: When the searcher sees the ads, they might click on one they like. It’s like scoring a point in the game. From there, they can decide to buy or explore more.
  • Repeat or Exit: The game can continue with more clicks and purchases, or the searcher can decide to end their search without making a move.

That’s how Google Ads works in a nutshell. Advertisers and searchers play their parts, and Google keeps the game fair by ranking ads. It’s a win-win, with businesses reaching customers and customers finding what they need in the online game of advertising.

Types of Google Ads Campaigns

Google Ads offers a diverse range of campaign types, each tailored to specific advertising goals and targeting methods. Understanding these campaign types is essential for crafting an effective online advertising strategy. Here’s a comprehensive guide to the types of Google Ads campaigns:

1. Search Campaigns:

  • Objective: Drive website traffic and conversions.
  • How They Work: Ads appear in Google search results when users enter relevant keywords. Advertisers bid on keywords and create compelling ad copy.
  • Key Features: Ad Extensions, Keyword Targeting, Location Targeting.

2. Display Campaigns:

  • Objective: Enhance brand recognition and expand the target audience reach.
  • How They Work: Ads are displayed across the Google Display Network, comprising millions of websites, apps, and platforms. Advertisers can use various ad formats, including text, image, and video.
  • Key Features: Targeting by Interests, Placements, and Remarketing.

3. Shopping Campaigns:

  • Objective: Promote e-commerce products and boost online sales.
  • How They Work: Product listings appear in Google search results, showcasing product images, prices, and details. Advertisers use Google Merchant Center to create product feeds.
  • Key Features: Product Listings, Showcase Shopping Ads, Dynamic Remarketing.

4. Video Campaigns:

  • Objective: Engage and captivate audiences with video content.
  • How They Work: Video ads are displayed on YouTube and the Google Display Network. Advertisers can use various ad formats, including TrueView, Bumper, and Discovery ads.
  • Key Features: In-Stream Ads, Video Remarketing, Custom Audiences.

5. App Campaigns:

  • Objective: Promote mobile apps and drive app installations.
  • How They Work: Ads appear across Google Search, YouTube, Google Play, and the Google Display Network. Advertisers set a target cost per installation (CPI).
  • Key Features: Automated Targeting, Ad Creative Testing, Universal App Campaigns.

6. Smart Campaigns:

  • Objective: Simplify online advertising for small businesses.
  • How They Work: Google’s automated campaign type. Advertisers provide basic information, and Google handles the rest, optimizing ad delivery for maximum results.
  • Key Features: Automated Ad Creation, Local Campaigns, Goal-Based Campaigns.

7. Discovery Campaigns:

  • Objective: Showcase products and services across Google’s Discover feed, Gmail, and YouTube.
  • How They Work: Utilizes a mix of image and carousel ads to reach users during their online exploration. Advertisers set a budget and targeting preferences.
  • Key Features: Visually Engaging Ads, Audience Targeting, Cross-Platform Reach.

8. Local Campaigns:

  • Objective: Drive foot traffic to physical stores.
  • How They Work: Advertisers provide store locations and ad creatives. Google uses machine learning to deliver ads to users likely to visit stores.
  • Key Features: Location Extensions, Local Inventory Ads, Store Visit Tracking.

9. Remarketing Campaigns:

  • Objective: Re-engage previous website visitors and past customers.
  • How They Work: Target users who have interacted with your website or app before. Advertisers can create customized messaging to encourage conversions.
  • Key Features: Dynamic Remarketing, Customer Lists, Cross-Selling.

10. Call-Only Campaigns:

  • Objective: Drive phone calls to your business.
  • How They Work: Designed for mobile devices, these ads prominently display your phone number. Users can click to call directly.
  • Key Features: Click-to-Call, Bid Adjustments for Calls, Conversion Tracking.

Choosing the right campaign type depends on your advertising goals and target audience. Effective campaign management, regular monitoring, and optimization are crucial for achieving desired results in the dynamic world of Google Ads.

Average Cost Per Click by Industry

Google Ads Tips

1. Thorough Keyword Research:

Start by conducting extensive keyword research to identify relevant and high-performing keywords for your ads. Utilize keyword research tools to discover valuable keywords that match your business goals.

2. Craft Compelling Ad Copy:

Create attention-grabbing and concise ad copy that clearly communicates your value proposition. Emphasize the unique qualities that distinguish your products or services from the competition.

3. Utilize Ad Extensions:

Enhance your ads with extensions like site links, callouts, and structured snippets to provide additional information to users and increase click-through rates.

4. Set Clear Campaign Goals:

Define specific campaign objectives, whether it’s increasing website traffic, generating leads, or boosting sales. Well-defined objectives will steer your campaign strategy.

5. Optimize Landing Pages:

Make certain your landing pages align with the ad content and deliver a smooth user experience. An optimized landing page can have a considerable effect on conversion rates.

6. Test Multiple Ad Variations:

Run A/B tests with different ad variations to determine which elements resonate most with your audience. Continuously refine your ad creatives based on performance data.

7. Implement Negative Keywords:

Incorporate negative keywords to avoid displaying ads for irrelevant searches. This allows for a more targeted allocation of your budget to the most pertinent traffic.

8. Monitor and Adjust Bids:

Frequently assess your keyword bids and modify them according to performance. Allocate additional budget to keywords generating conversions, and fine-tune bids for those that are not meeting expectations.

9. Leverage Audience Targeting:

Take advantage of audience targeting options, such as demographics, interests, and remarketing lists, to reach specific groups of potential customers.

10. Stay Informed About Trends:

Stay current with Google Ads trends, algorithm shifts, and industry advancements. Remaining well-informed enables you to adjust and enhance your strategies accordingly.

11. Use Ad Scheduling:

Schedule your ads to appear at specific times of the day or week when your target audience is most active and likely to convert.

12. Monitor Competitors:

Monitor your competitors’ advertisements and tactics closely. Evaluate their keywords, ad text, and landing pages to pinpoint areas for enhancement.

13. Implement Conversion Tracking:

Establish conversion tracking to gauge campaign efficiency. This information provides insights into the keywords and advertisements responsible for driving valuable actions.

14. Regularly Review Performance:

Arrange regular performance assessments to spot areas that need enhancement. Scrutinize metrics such as click-through rates (CTR), conversion rates, and return on ad spend (ROAS).

15. Budget Wisely:

Allocate your budget strategically across campaigns and adjust spending based on performance. Prioritize campaigns that deliver the best results.

By incorporating these Google Ads tips into your strategy, you can optimize your campaigns, increase ROI, and reach your advertising goals more effectively.


In summary, this guide provides a comprehensive understanding of Google Ads, covering essential topics such as keyword selection, ad creation, bidding strategies, and performance optimization. As you begin your journey with Google Ads, keep in mind that success in online advertising requires continuous learning and adjustment. Stay vigilant, test new strategies, and adapt to changing trends to maximize the potential of your campaigns. For personalized insights and expert guidance tailored to your business, consider consulting with our digital marketing experts. With dedication and strategic planning, you can fully utilize Google Ads to achieve your marketing goals and drive growth for your business online.

Dixit Prajapati
Written By Dixit Prajapati SEO Manager

Popular Categories

Get In Touch


Consult With Our Experts Today!

Your Benefits!

  • Professional Project Consultation
  • Detailed Project Proposal
Skype Skype Whatsapp WhatsApp