How to Make a Google Ad: The Step by Step Guide

In 2025, more people are turning to the internet to discover, research, and buy—making a strong digital presence non-negotiable. If you’re running a business, you can’t afford to stay invisible when potential customers are searching. That’s where Google Ads comes in. Knowing how to make a Google Ad isn’t just useful—it’s essential for staying competitive. 

This Google Ads tutorial walks you through everything from campaign setup and keyword bidding to conversion tracking, so you can increase visibility, drive clicks, and grow your revenue with confidence.

Overview of Google Ads

Google Ads is the king of PPC advertising. It’s the platform that puts your message directly in front of users who are already searching for what you offer.

• As of January 2025, Google owns 78.83% of the global desktop search market (Statista).
• Over 58.5 million websites display Google Ads through AdSense (Fast Company).
• Google estimates that advertisers earn $8 for every $1 they spend on Google Ads (Google Economic Impact).
• 33% of users click on Google ads because they provide exactly what they’re searching for (Newswire).
• For brick-and-mortar stores, Google Ads can increase offline sales by 40% (Gitnux).
• Google’s U.S. search ad market share was 69.3% in 2024 and is projected to reach 70.5% by 2026 (Statista). 

The platform operates on an auction system. You bid on keywords you think your audience is searching for. Google ranks your ad based on your bid and your Quality Score (how relevant your ad and landing page are). The better your score, the less you pay per click. And the more often you’ll show up in front of the right people.

How to Make a Google Ad: A Step-by-Step Guide

Creating your first Google Ad can feel overwhelming. But don’t stress—we’ll walk you through every major step.

Step 1: Create a Google Ads Account

• Head over to ads.google.com and hit “Start now.”
• Sign in with your existing Google account or create one.
• Choose Expert Mode (not Smart Mode). Smart Mode sounds easier, but it limits your control over targeting, bidding, and creative—basically, the stuff that actually makes your ad work.

Step 2: Campaign Setup

Start with a descriptive name. Example: “Spring_Sale_Shoes_Search” so it’s easy to track results later.

Select Campaign Type

Each campaign type fits a different goal:

• Search Ads: Text-based ads on Google Search. Best for getting leads and sales.
• Display Ads: Visual ads on millions of partner sites. Ideal for brand awareness.
• Shopping Ads: Great for eCommerce, showing images and prices directly in search results.
• Video Ads: Appear before or during YouTube content.
• Performance Max: Google automates everything—great for businesses with broad goals.
• App Promotion Ads: Drive installs and engagement for your mobile app.

If you’re just getting started, go with a Search Campaign. People searching are usually ready to act, so your conversion potential is higher. Got a promo or limited offer? Add an end date so you’re not spending money after it’s over.

Targeting & Audience Selection

1. Geographic Targeting: Choose where you want your ads to show:

• City-specific – Target just New York City, for example.
• Radius – Show ads within 10 miles of your business.
• Country-wide – Target the whole U.S. if you’re selling nationally.
• If you’re a local business, avoid wasting your budget on areas you don’t serve.

2. Language Targeting: Stick with English unless you’re running ads in multiple languages. In that case, create separate campaigns for each language group.
3. Audience Targeting: You can go beyond geography with behavior-based targeting:

• In-market audiences: People actively researching what you sell.
• Custom intent audiences: Users who’ve searched your chosen keywords.
• Remarketing: Re-engage people who visited your site but didn’t convert.

Define Budget and Bidding

1. Budget Setup:

Google works on a daily budget system. Here’s a quick formula:

• Monthly budget ÷ 30 = daily budget
• Example: $600/month = $20/day

Choose a Bidding Strategy:

You’ve got a few options:

• Manual CPC: You control your cost per click. Ideal if you want full control.
• Maximize Clicks: Google optimizes to get the most traffic.
• Maximize Conversions: Focuses on generating leads or sales.
• Target CPA (Cost Per Acquisition): You set a cost-per-acquisition goal.
• Target ROAS (Return on Ad Spend): Google adjusts based on your revenue goals.

If you’re new, go with Maximize Clicks to get traffic fast. Switch to Maximize Conversions once you’ve set up tracking.

2. Keyword Bidding Strategy

Your keywords are the bridge between you and your customers. You want to bid on search terms that people are actually using.

Use Google’s Keyword Planner to find high-volume, low-competition terms. Group related keywords into ad groups so your ads are highly relevant.

Your bids should reflect the value of those keywords. Competitive phrases might cost more, but they could be worth it if they convert well.

Step 3: Ad Creation

This is your chance to shine. Think of your ad like a billboard—except you only pay when someone’s interested.

1. Ad Copywriting Best Practices

• Relevance matters – Match your copy to the keywords and search intent.
• Use your keywords in headlines – It helps your ad show up and makes it feel more relevant.
• Highlight benefits – Free shipping? Local service? Say it.
• Call to action – Tell people what to do: “Book Now,” “Get a Free Quote.”

2. Use Ad Extensions: Extensions give your ad more space and make it more clickable:

• Sitelinks: Send people to specific pages like your Contact or Deals page.
• Call Extensions: Show your phone number so users can call you directly.
• Callout Extensions: Mention things like “24/7 Support” or “No Hidden Fees.”

Step 4: Create Ad Groups

Think of ad groups like mini-folders. Each one should be focused on a specific theme or product.

Ad Group Best Practices:

• Granular Ad Groups: Break campaigns into small groups focused on one product or service.
• Try SKAGs – Single Keyword Ad Groups help with ultra-specific targeting.
• Use negative keywords – Block irrelevant searches (like “free” if you don’t offer freebies).

Step 5: Conversion Tracking

You’re running ads to get results, right? So you need to track what’s working.

Google Ads makes this easy with conversion tracking. Whether you’re getting form submissions, phone calls, or purchases—track it all.

Here’s how you can track:

• Website conversions: Add a simple tag to your site to track button clicks, signups, or purchases.
• App conversions: If you’ve got an app, track installs or in-app actions.
• Phone call conversions: Know when someone calls after seeing your ad.
• Offline conversions: Got a sale in your CRM? Import that data into Google Ads.

And if each conversion has value—like a $200 lead or a $50 sale—assign it. That way, you can measure your ROAS (Return on Ad Spend) and scale what’s working.

Step 6: Setup Billing

Last step—Google needs to get paid.

Enter your billing info so your ads can go live. Google accepts most major credit cards, debit cards, or even direct bank transfers. Got a promo code? Pop that in before you hit “Save.”

Common Google Ads Mistakes and Pitfalls

Google Ads is a powerful way to grow your business—but only if you run your campaigns the right way. The truth is, it’s easy to burn through your budget and see little to no return if you’re not paying attention to a few key areas.

Poor Keyword Research & Matching

If you’re only using broad match keywords and ignoring negative keywords, your ads could show up for completely unrelated searches. That means wasted clicks and wasted spend. And if you’re not thinking about the intent behind the keyword—why someone is searching—it’s easy to miss the mark entirely.

Ineffective Ad Copy & Landing Pages

You can’t afford to be vague. If your ad doesn’t clearly explain what makes your offer different, people won’t click. And if they do click but land on a page that doesn’t match the ad, they’ll bounce. A good ad and landing page should feel like part of the same conversation.

Budget & Bidding Issues

A tiny budget limits your reach and gives you almost no room to test or improve. On the flip side, a poorly managed campaign can blow through your money fast—especially if you’re spending on low-performing keywords. Fun fact (or not-so-fun): 33% of Google Ads budgets are wasted because of sloppy campaign management.

Tracking & Measurement Neglect

If you don’t have conversion tracking in place, you’re flying blind. You won’t know what’s working, what’s not, or how to improve. Without data, you’re guessing.

Automation Misuse

Google’s automation tools are helpful—but they’re not magic. Relying on automated bidding or smart campaigns without checking in is risky. If you’re not monitoring performance, you could be overspending without even knowing it.

Maximize Your Conversions with Data-Driven PPC Strategy

LMH Agency is your go-to partner for expert-level Google Ads account setup, smart campaign planning, and ongoing optimization. Our PPC management services are built around your goals, not guesswork.

Here’s what you get with LMH:

• Strategic Campaign Planning
• Advanced Keyword Bidding Techniques
• Professional Ad Copywriting Services
• Robust Conversion Tracking Implementation

Our team is made up of Google-certified pros who stay on top of the latest updates and algorithm shifts. We’re proactive, data-obsessed, and laser-focused on getting you real results. Whether you’re launching your first campaign or scaling a high-volume strategy, we’ve got you covered.

Book a free consultation to get expert guidance or a custom PPC plan tailored to your business goals.