Google ads unlike a traditional advertising platform is not just about handing over money to an advertiser, and expecting them to do the rest. Many people lose money on google ads because they don’t know how to go about this, while the ones that do know how to use it make tons of business revenue.

Below we will try to cover the basics about the inner workings of google ads. Once you familiarize yourself with these basic concepts, you will never look at google ads the same way again.

What is google ads?

Google ads is a paid advertising platform that displays relevant ads when users search for related keywords on google search or maps. Google uses its entire array of digital platforms like YouTube,Google,Blogger and millions of other websites to display the ads. It works on a pay per click strategy, where the advertiser pays per click or impression of an ad.  With 246 million unique visitors, 3.5 billion daily interactions, and an estimated 700% return on investment according to Hubspot, Google ads is a good place to park your ad money. Driving website visits, getting more potential business calls and increasing shop visits would be the ideal results of an ad campaign with google.  

Lets go over a bit of stats to see if google ads really work. Google ads have a click through rate of close to 8 percent. Display ads yield over 180 million impressions each month. 43 percent of consumers buy something that they have seen on a YouTube Ad. Once you understand the principles behind the inner workings of google ads and its nuances ,you will be capable of taking advantage of this platform to generate leads. 

How google ads work ? 

First , lets understand some google ad jargon in this segment to build the structure of a google ad undertaking.

AdRank – This determines the placement of your ads, its visibility and the probability of the ads being clicked. AdRank is determined by bidding amount multiplied by quality score.


CPC – cost per click, the amount paid when a user clicks on an ad.

CPM – cost per mile , is the amount paid for one thousand ad impressions or when one thousand people view the ad. 

CPE – cost per engagement , when a user undertakes a predetermined action with an ad.

CTR – click through rate

A higher click through rate signifies a quality ad that matches the intent of the search and has targeted relevant keywords.

CVR – Conversion rate

Conversion rate is the measure of lead submissions as a proportion of the total number of visits on the landing page. If the landing page delivers a fluid transition from the ad promises, this would result in a high conversion rate. 


When a user types in a search query, Google returns a set of search results that match with the user’s query. Google also tries to show relevant ads to these search queries. For this objective they use keywords, which are words or phrases that align with searcher’s want and satisfy their searches.

Quality score (QS)

This is a measure of the quality of an ad taking into account the CTR- click through rate, relevance of keywords and the quality of your landing page. 

Types of Ad Campaign 

Search ,display and video are the main three modes of ad campaign  

Search ads are the text ads that are displayed when you search for something on google. The ads are designed to have relevance to your search query. This increases the chances of having a higher click through rate, because the ads are displayed when the user is searching for information about a particular topic.

Display Ads are played out through the google display network, where they have an army of millions of websites to display the ads. 

Video ads. YouTube is the world’s second most used search engine. The ads come usually at the beginning or end of a video , and sometimes in the middle of a YouTube video. Disrupting the user’s rhythm to grab his attention to your offering is the objective of these ads, which as expected is no easy task.

4 effective principles to use Google Ads 

There are lots of factors that come into play when creating an effective and high powered google ads campaign.

Focus on quality 

AdRank and Quality score (QS) together determines the placement of your ads on google display platforms. Quality and relevance of your ad determines the quality score. Google measures this by finding out how many people click on your ad when it is displayed, CTR (click through ratio). CTR in turn depends on how well the intention of the search matches with your ad copy, call to action and landing pages.

Customer demand 

Before you get into advertising on google, you should know if customers are actually looking for  what you are offering. After making sure there are people looking for what you are advertising, get into a three part questioning process.  How do they get information on what you offer, what will grab their attention and what will make them visit your website will be the questions you need to think about to better understand your customer.

A good landing page 

The relevance of a good landing page can not be stressed enough number of times. After all this effort if you lead them to a dungeon,where they have no idea where to go or what to click, then they will leave in seconds. After all the money and effort you have spent on getting them here to you, it would be wise to take them through to conversion. Understand good landing page practices and employ them to entice your users to take the next step in the sales process and to convert them to a potential customer. Dedicated landing pages that are compatible with the keyword and ad copy will ensure that the user achieves a smooth flow from the search inquiry to customer engagement that could lead to a potential business opportunity.

Convert them all

So you have done it all right now. But do you know what works and what doesn’t? Which keywords and ads generated sales for you and which were not effective. Track the conversion of sales from the ad campaigns to choose which the successful campaigns and to gain an understanding of which campaigns have worked and why they have worked. Using google ads to engage users and converting them to customers is a process. Keeping track of the conversion metrics, noting which ad campaigns and landing pages ensured successful client acquisition will help in re-producing valuable lessons from this in future campaigns.