How Does Google Ads Works?

Google Ads displays your ad to potential leads or customers who are interested in your product or service. Advertisers bid on search terms, or keywords, and the winners of that bid are placed at the top of search results pages, on YouTube videos, or on relevant websites, depending on the type of ad campaign selected.

Many factors impact your ability to create effective and high-performing Google Ads. Let's cover them below.

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How Does Google Ads Work?

Cue the voice of Morpheus from the Matrix… “What if I told you that billions of auctions were happening every day? But not the kind of auctions where people stand up and shout out their offers to a man on a stage. No, these auctions are invisible and happen automatically, behind the scenes. And yet, huge sums of money in the millions are constantly flowing in thousands of different directions.” Yep. These are Google Auctions. Google Ads works off of online advertising space that is being auctioned and sold by Google.

Welcome to the 21st century!

Now getting back to Google Ads… Google Ads, formerly known as Google AdWords, are online advertisements that are based partly on keywords. Keywords are searchable words that relate to a business's products or services.

Hence the name Google AdWords = Ad Words.

Words/keywords are a big part of the equation, both in terms of how the ads are presented and how much the ads cost advertisers.

So let's get into some specifics. What does this all mean?

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What is Google Ads?

It's no secret that these days, the stronger and more focused your paid campaigns are, the more clicks you generate leading to a greater probability of obtaining new customers. This is why Google Ads has become increasingly popular among businesses across all industries.

Google Ads is a paid advertising platform that falls under a marketing channel known as pay-per-click (PPC), where you (the advertiser) pays per click or per impression (CPM) on an ad.

Google Ads is an effective way to drive qualified traffic, or good-fit customers, to your business while they're searching for products and services like the ones you offer. With Google Ads, you can boost your website traffic, receive more phone calls, and increase your in-store visits.

Google Ads allows you to create and share well-timed ads (via both mobile and desktop) among your target audience. This means your business will show up on the search engine results page (SERP) at the moment your ideal customers are looking for products and services like yours via Google Search or Google Maps. This way, you reach your target audience when it makes sense for them to come across your ad.

Note: Ads from the platform can span across other channels too, including YouTube, Blogger, and Google Display Network Over time, Google Ads will also help you analyze and improve those ads to reach more people so your business can hit all of your paid campaign goals.

Additionally, no matter the size of your business or your available resources, you can tailor your ads to suit your budget. The Google Ads tool gives you the opportunity to stay within your monthly cap and even pause or stop your ad spending at any point in time.

Discover how HubSpot can help you better manage your Google ads.

Now, onto another important question: Is Google Ads really effective?

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You will find more information about Google Ads in the following sources (title, domain, description):

  • Discover How to Use Google Ads to Reach Your Goals - Google Ads ( - Learn how to advertise on Google in just a few steps. Our easy online ads can help you meet your advertising goals by reaching the right customer at just the right moment.
  • What Is Google AdWords? How Does Google Ads Work? ( - What is Google AdWords (Google Ads) and how does Google's online advertising system work? This helpful infographic shows how Google advertising and the Google bidding auction works from top to bottom.
  • How AdSense works - AdSense Help ( - Google AdSense provides a way for publishers to earn money from their online content. AdSense works by matching ads to your site based on your content and visitors. The ads are created and paid for by
  • Google Ads: What Are Google Ads & How Do They Work? ( - Google ads are an extremely effective way of driving qualified traffic to your website. In this article, you'll learn what Google ads are, how Google ads work, and why you should run your own Google ads.
  • Google AdWords Made Simple: A Step-by-Step Guide ( - Learn how to use Google Adwords. A detailed tutorial for beginners that walks you through every step you need to follow to be successful with AdWords.
  • How Does Google Ads Work? ( - Google Ads is tough to explain. In this section, we'll tell you exactly what you can expect on Google Ads and how it works. We break down the different advertising networks, options and how you can rank your ads against competitors.
  • What is Google Ads and how does it work? – Econsultancy ( - There's no need to wait for your new site to work its way organically up the rankings. By using paid search you can see immediate results and it's not nearly as difficult or expensive as you may think. We'll be looking at Google Ads (formerly Google AdWords), how it works, and what you need to know to get started.
  • Google AdSense - Earn Money From Website Monetization ( - Earn money with website monetization from Google AdSense. We'll optimize your ad sizes to give them more chance to be seen and clicked.
  • Under attack ( -
  • The Ultimate Guide to Google Ads for 2020 ( - Learn PPC terms, bidding strategies, and best practices to create effective advertisements on Google Ads.
  • Does Google Ads Work? 4 Facts That Google Hides - Store Growers ( - Google Ads makes it super easy for new advertisers to lose money. Discover the most common pitfalls and what you can do to avoid them!
  • Click Tracking in Google Ads ( -
  • Google Ads and Data - Google Safety Center ( - Data helps Google serve more relevant ads. However, your personal information is never for sale & you can always control what ads you see. Learn more.
  • How Does Google AdWords Work? The Basics of Google Ads ( - Learn how to use Google's pay-per-click network to target new customers and grow your small business.
  • Google Ads - Wikipedia ( -
  • Advertising Privacy & Terms Google ( -
  • How Do Google Ads Work + Tips to Make Money Using Them ( - You've read an article already. You've even tried to start your own Google Ads campaign. But you're still asking "How do Google Ads work?" We'll tell you.


These topics were mentioned multiple times across various sources:

  • AdWords
  • Search results
  • results page
  • Quality Score
  • display network
  • Google AdWords
  • google search
  • search network
  • Search query
  • online advertising
  • search term
  • search engine results page
  • AdSense
  • YouTube
  • click-through rate
  • Google analytics
  • phone number
  • advertising platform
  • relevant keywords
  • pay per click
  • high quality
  • bidding strategy
  • Keyword research
  • Settings
  • paid search
  • Google shopping
  • Gmail
  • advertising campaigns
  • better position


These are some relevant questions found across sources:

  • How does Google Ads work?
  • What are Google Ads?
  • What is Google Ads?
  • What Are Google Ads (AdWords)?
  • What is Google Ads and how does it work?
  • What Are Google Ad Networks?
  • What Is Google AdWords? How the Google Ads Auction Works
  • What is Google ad rank?
  • How Does Google AdWords Work? The Basics of Google Ads
  • What is Google Ads (Formerly Known as Google AdWords)?


These are some relevant subsections found across sources:

  • Google Ads Payment Models
  • Google Ads Costs
  • The AdWords Auction
  • Click Tracking in Google Ads
  • Create your first ad
  • Responsive Search Ads
  • Ad Campaign Types: Search, Display, and Video
  • Google Ads Bidding Strategies
  • Bidding on Branded Search Terms
  • Connect your site to AdSense


These are some factual sentences found across sources:

  • According to Invoca's Call Intelligence Index, 70% of 30 million phone calls started with a digital channel. (
  • But on phones, that number is as high as 30-50% according to Invoca's data. (
  • According to statistics from Bing Ads, the Bing Network currently has a 33.9% market share in the US, and 24.7% in the UK, meaning that it reaches a not-insignificant portion of searchers who may not be reachable via Google Ads. (
  • That is, somewhere with over 246 million unique visitors, 3.5 billion daily interactions, and an estimated return on investment. (
  • Google Ads have a click-through rate of nearly 8 percent. (
  • And, according to Google, advertisers make $8 for every $1 they spend on Google Ads. (