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Google Ads: How It All Works

“Ads are the Cave Art of the Twentieth Century.” – Marshall Mcluhan. 

Does anyone remember the days when we used yellow pages, encyclopedias, and books to search for information? With instant access to all the info we need, why would we do it the traditional way? Studies show that Google processes more than 40,000 searches per second, which averages to around 3.5 billion searches a day. 

So here’s the real question, what is stopping you from using Google Ads for your business when your product/service is most likely being searched through the web? 

Now before we completely sell you on this incredible and absolutely necessary marketing initiative, it’s important to understand Google Ads, why it’s vital that you promote your business through search engines.

What are Google Ads? Should I Google it? 

Let’s start with the simple question running through your head right now: What exactly are Google Ads? 

Google Ads is a paid advertising platform that uses a pay-per-click (PPC) in which you pay for each click or impression your ad receives. The more traffic you receive, the more $$ you’ll pay as an advertiser. The good news is these leads are well-qualified, good-fit customers who were served your ad most likely during the exact moment they were searching for information on your product or service.  These ads are both desktop and mobile-friendly and can be displayed through the Google Search Network or through the Google Display Network. (we’ll talk about the two later.) The benefit of using Google Ads is simple. Google’s advanced technology allows you to serve ads to your ideal customer at the time they’re wanting to know more info… so you can avoid being that annoying person behind the ad that no one wanted to see come across their phone (We’ve all been there.)

Let’s Break It Down.

Bear with us…there’s more. To really understand the importance of using Google Ads for your business, you must understand all aspects of the platform and how to measure success with certain metrics.

So we already know that Google Ads displays your ad to your potential audience or customers who are interested in your product at the time. But what you might not have known, is that Advertisers actually bid on certain keywords or search terms, and the winners are placed at the top of search result pages. 

“ Wait, so you’re telling me I have to compete with other ads to get ideal traffic.” – You when you read the paragraph above. 

It should be no surprise that with business comes competition. But with the right tools, you can become a competitive player in your field. Now let’s open the toolbox: 

AdRank and Quality Score.

AdRank, in a nutshell, is the determination of the order of competing ads on a Search Engine Results Page. (SERP) The ad with the highest rank gets the top position, the second ad gets the second-highest position, so on and so forth. It’s basically a popularity contest. The popular kids get noticed more, while the less popular kind of fly under the radar. (Damn, this one hit home.) To learn more about how to improve your AdRank, read this article.

Your Quality Score is one of the factors that determines your AdRank. This score is based on … you guessed it… the quality of your ad and how relevant it is to your target audience. Google measures this by how many people click on your ad. This is called a click-through rate or CTR. Essentially, the more relevant your ad is, the better it will perform. Although, having a high CTR does not necessarily mean that your ad is performing well on the back end. It’s also the user experience of the landing page your ad directs your audience to. For example, You can go on a date with someone because they’re good-looking, but if their personality is horrible you’ll most likely have an underwhelming experience. 

Focusing on your Quality Score involves making sure your ad copy and CTA is exactly what the prospect expected. 


When creating your Ad, it’s important to use a location that is geographically strategic to ensure you’re reaching the correct audience. For example, If my product is golf clubs, I will most likely pick a radius around a popular golf course. For better results, it’s vital that you don’t serve ads in locations not relevant to your product. Google actually hates this, and your AdRank will absolutely suffer. 


Let’s pretend we’re still on this horrible date with the person who had a bad personality. Maybe it was their choice of words? If they had used the correct keywords, maybe you wouldn’t have left abruptly leaving them the bill due to a horrible match.

Keyword research is extremely vital to ensure that you’re matching your content with the searcher’s intent as much as possible. Google is basically the Bumble of ad platforms, meaning they will match your ad with your prospects’ search queries based on certain keywords you had selected for your ad. 

If you’re still selling golf clubs, you probably don’t want to use the keywords “dog treats” when selecting a set of phrases. (We know this is a reach, but you get the point.)

Match Types

So how do I find the perfect match? Using match types when creating your ad gives you some room to pick either the most ideal candidate possible or the person who may not have all the qualities you need, but are still a good choice. 

Match types tell Google whether you are looking for an exact match or anyone who has searched your keyword that’s a semi-related match. You can learn about the different match types here. 

Ad Extensions

Looking for more bang for your buck? Ad Extensions are free and give prospects more reason to interact with your ad.  These extensions include extra site links, a call button, maps, offers and promotions, and pricing. These give your prospects more reason to click on your ad compared to your competitors, who may not be utilizing extensions. 

Now that we’ve emptied the toolbox, let’s move on to what you SHOULDN’T do. 

Do not search your own ad…I repeat…

Of course, you’re going to want to see your beautiful ad, but doing so can actually hurt you.

Google ads use artificial intelligence that studies the behavior of the prospect and serves Ad at the most ideal time. So, what someone may see 1 minute, will not be what someone else would see 5 minutes later. Remember that advertisers are bidding against each other using the same keywords, so different ads may pop up in different rankings at any given time. 

This is why it’s essential to look at reports on a monthly basis, allowing data to aggregate so you can look at trends, versus making decisions on small factors of your campaign. 

Another reason you shouldn’t search your own ad is if you do happen to come across yours,  the likelihood of you clicking on it is slim, and if you don’t, you’re telling Google that your ad isn’t relevant, which will impact your Quality Score. If you have a low Quality Score, it gets more expensive for you to run ads since your Cost Per Click will increase. 

And lastly, if you repeatedly search your own ads without clicking, you’re eventually going to be ghosted by your own ad. Google will block your IP address in response to you desperately trying to find a way to look at your ad. Let Google do its magic and consult with your marketing experts at LMH, who can provide a report on how your campaign performs. 

The Final Chapter

Whew… now that we’ve completed a few chapters of information, you should feel more comfortable about Google Ads and how it can benefit your business. It’s important to remember that we live in a world where you have to pay to play. However, if you play your cards right, you’ll be able to increase your business and make yourself a key competitor in your industry. 

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