How Can Google Ads Benefit Your Business?

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Digital marketing has evolved from a niche form of advertising used mostly by innovative start-ups to a vital part of any marketing strategy. And that is in no small part thanks to Google, a company that has really changed the game. For more than a decade, Google has been the market leader in online advertising, with approximately a 30% share of worldwide digital ad expenditure.

Their Google Ads platform is regarded as a trusted advertising service that delivers on its promises. Just last year, the platform generated $147 billion.

That’s because few other platforms even come close to Google Ads in terms of generating leads and increasing sales. Digital marketing is all about reaching the right audience, at the right time, and with the right message. An advertising platform can help you do this, but it can also be a major waste of money if your campaign targets the wrong audience or uses irrelevant keywords.

Google Ads lets you capitalize on the massive number of searches that go through Google on a daily basis.

If you’ve never used Google Ads before, there really isn’t much that you need to know to get started. It’s a very straightforward pay-per-click (PPC) advertising tool that allows you to create, publish, and track advertisements for your business.

Let’s jump right in and take a closer look at how Google Ads works and how it can benefit your business.

What is Google Ads?

Google Ads is a Google-owned online advertising platform. It was originally called Google Adwords, but in 2018 the company rebranded it under the current name. Using this platform, you can advertise your business on two of the most popular search engines in the world: Google and YouTube.

How It Works

The way it works is pretty simple: When users perform a search query by entering a keyword into the search engine, their results are shown on search engine results pages (SERPs). Among these results, they’ll also see paid advertisements targeting that specific keyword.

According to PPC Perth, the best way to reach out to potential customers is when they search for products or services related to your business. With Google Ads, advertisers can bid on keywords so their websites can appear among the paid advertisements.

Google Ads is based on the pay-per-click (PPC) model of digital advertising. In other words, marketers target a specific keyword on Google and place bids on that keyword along with other marketers that they compete with and need to outbid. Your bids are “maximum bids,” or the most you’re willing to pay for an advertisement.

If your maximum bid is $4 and after calculating Google finds that your cost per click is $2, you’ll get that ad spot! But if it turns out that it costs more than the $4 you’re willing to pay, you won’t get the spot.

You can also set a daily spending limit for your ad. You’ll never spend more than a certain amount per day on that ad, which can help you figure out how much money you should set aside for your digital advertising campaign.

You have three options when it comes to these bids:

  • Cost-per-click (CPC) – How much you’re willing to pay when a user clicks on your advertisement;
  • Cost-per-thousand or cost-per-mille (CPM) – How much you’re willing to pay for one thousand views of your advertisement;
  • Cost-per-engagement (CPE) – The user doesn’t just have to view or click on the link in your ad but also perform a specific action like watch a video or sign up for something.

The bid amount is then combined with a Quality Score, a rating given to your ad by Google. As the name suggests, Quality Score is a quantitative assessment of your adverts, keywords, and landing pages. If your Quality Score is high, you can get better ad positions at lower prices.


One of the biggest advantages digital marketing has over traditional marketing is that the results are measurable. This means you can see if a strategy is effective or not before you invest too much capital in it.

Google Ads includes a robust set of PPC metrics and analytics tools that operate in the background, retrieving your analytics results without you having to do anything at all.

Google Ads is also very versatile. It features a lot of customizable options for you to use in your campaigns, as well as a lot of changing parameters.

Because Ads are now one of Google’s key sources of revenue, they are always striving to improve the platform. For example, based on results, Google realized that product ads and videos on YouTube, as well as in-video sponsored adverts, have a higher conversion CTR (Click-through-rate).

The more engaging and appealing Google’s advertisements are, the more cash they generate both for Google and its clients, so everyone is happy.

Another major benefit is that it’s totally up to you how much money you want to spend each day, and you’ll get an accurate estimate of how well your ad is expected to work. You can also see how well it performs in comparison to your competitors.

With this information, you’ll know how to budget your campaign and calculate your ROI. You can go dig deep into the inner workings of your advertising and determine the true cost of the investment, plus you won’t have to worry about going over budget because the ad will turn off as soon as your quota is met.

The platform’s scalability is a welcome bonus, especially if you need a large number of leads in a short period of time. It’s possible to set your parameters high for a short time – for example, you choose to pay more per click but only for a week. Once you start getting some traffic and leads, so things are moving in the right direction, you can reduce your expenses because, at this point, your organic traffic has increased as well.

With numerous campaign settings and bidding possibilities, businesses that use Google Ads can get results on a range of budgets.

Let’s say you’re a small business owner operating on a tight budget, so you’re skeptical about investing in digital marketing. With Google Ads, you can start with as little as a couple of dollars per month. Obviously, this won’t generate as much traffic and leads as a higher budget, but it’s enough to get an idea of how to use the platform, so you get as much ROI as possible.