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How Google Adwords works: Google Ads Step by Step Guide for Beginners

BY  gayathridevi  |  AUGUST 06.

how google ads works

Pay-Per-Click advertising has been essential for nearly every business over the past decade, regardless of industry or size. Even the smallest companies and startups can get involved in digital advertising.

If you are a small business just starting to get into PPC advertising, you will likely be managing your Ads account yourself for a while. It may seem daunting to run advertisements. That’s why a rough google ads introduction is indeed required for you.

However, Google Ads is an excellent platform for small businesses and the benefits of Google Ads are just great.

The Adwords, now known as Google Ads, was introduced by Google in October 2000.

I am sure you have heard about them before. This is why you’re here. It can be challenging to manage if you are very new to Google ads.

This article will explain

(1) how Google Adwords works
(2) Google ads step by step guide for beginners.

This is all you need to know on how to use Google ads and get started.

How Google Adwords Works?

 how google ads works

his complete thing is based on an auction system, and this happens every time a user does a keyword search.

To “win” google Ads auctions, optimize your Quality Score, bid amount, and keyword search. Your ad placement will improve the more you optimize your Quality Score and your bid amount.

Few factors affect your Quality Score:

✔ Ad and search query relevance

✔ The significance of keyword to your ad group

✔ Ad and its landing page relevance

✔ Click-through rate (CTR) of Ad and Ad Group

✔ Overall performance of the account

So, why Google Ads?

GL ads allows companies to bid on keywords to get their website at the top of search results.

The highest bidder doesn’t always win. And many of these biddings are done by people who often wonder how to make advertisements the right way.

Google will combine the bid amount and a quality score to determine how the website is related to the keyword. The bidder with the highest quality score or the most considerable amount of money wins.

Google ads benefits are incredible to any business, regardless of its size.

Some of the benefits of Google Ads are it allows you to:

➩ Take advantage of Google

➩ Advertise within the budget

➩ Target the right audience

➩ Faster results using SEO

Many websites still use search engine optimization. However, it can take months for your results to be indexed by the search engine. While SEO is still recommended, these Ads can help you get organic traffic quicker than traditional SEO. And that’s the main reason companies are vigorously looking for search engine marketing in Kerala, and all-around India to get help to create better google Ads.

This article will help you with a beginner-friendly Google Ads tutorial to get started with the Google Ads campaign.

Free ebook complete and updated version

How Google Adwords works: Google Ads step by step guide for beginners

google ads step by step guide

Step #1: Setting up Google Ads Account

Now you know the basics of Google Ads. It’s now time to start using Google Ads.

First, create a Google Ads Account. To do this, go to ads.google.com and click “Get started.” You will be taken to a page where either you need to sign in to your Google Account or create one.

After you have signed in, you will be prompted to enter your main advertising goal.


Google Ads Account

However, you will find a link at the bottom of the screen that says “Switch To Expert Mode.

Once you click that, we will get started setting up your first campaign.

And you will reach this page here.


how Google Adwords works

Your Google Ads account has been created and is available for use.

Step #2: Create a Google Ads campaign

Now it’s time to create a Google ads campaign.

Note that you can also access this page from the main dashboard. Click on campaigns in the left column. You will then see a blue button with “+” Click the blue button to click “New campaign. “

The next page will show the variety of options to help you achieve your “goal.


➤ Campaign Goal

You will see that you can set up your Google campaign using a variety of goal-based options.
You have the option of creating an ad campaign with no goal or guidance as well.

However, as we mentioned earlier when we discussed how Google Adwords works, almost all businesses will want to convert website traffic into leads. This area allows Google and us to track the time of an event so we can track your ROI better.


➤ Types of Campaign

Below you’ll find different types of campaigns.


Google Ads campaign

Next, choose the type of campaign you want to create.

There are six types of campaigns available: Search, Display Shopping, Video, Shopping, Video App, and Smart campaigns.

➩ Search

These ads are activated by search queries. These search queries can be targeted by you choosing keywords that are related to your product/service.

➩ Display

Display campaigns offer many targeting options, including audiences, keywords, placements, and more. Display campaigns can be used to increase brand awareness and re-engage past visitors who browse the internet.

➩ Video

You can use your Google Ads account to create video advertising campaigns that will show your YouTube videos.

➩ App

App campaigns are fully automated and can be used for promoting an app with Google Ads. App campaigns will allow you to promote your app across many Google properties.

➩ Smart

Smart campaigns are a great way to add value to your account when used correctly, they are not the best place to begin.

You also have the option of Shopping or Discovery. However, these types are not available if your account has just been created.

You can check out this article on Shopping ads to find out how Google showcase Shopping Ads.

Today, this guide on how Google Adwords works – step by step guide for Google Ads, we will focus on setting up a Search campaign. A search campaign is the best place to start if you are new to PPC advertising.

Clicking on “Search” will bring up a window asking you to select how you want to track your conversions.

Traffic and phone calls will be recorded as we want people to visit our website, fill out forms, or call us directly.

You will be directed to another page if you click “Continue“.


Step #3: General Settings

The Google Campaign Settings section is broken down into three sections:

➤ Targeting and Audiences

Google campaign

To make sure your ads reach your target audience, you can choose the geographic location that you would like to select. There will be a default option already selected for you.

However, by clicking on “Enter another location”, you can be very specific about the location and target the right audience like we discussed how Google Adwords works. You can also choose who you want to target and whether you want to exclude.

➤ Budget and Bidding 

how to use google ads

➩ Budget

You set the daily budget for your Goggle campaign, and it is effortless to set a Google ads budget.

You can start by dividing that amount by how many days your ads will run each month.

E.g., Divide by 30 if you intend to run your ads every day. Depending upon your budget, you can set it accordingly.

➩ Bidding

You can set your bidding strategy in the Bidding section. Google will help you select a smart bidding strategy. It asks you what type of result you want to concentrate on.

The default choices for you are Conversions, Conversion Value, Clicks, and Impression share.

After you have chosen your bid strategy, click the Show More Settings link below the Google Ads bidding section. You will be able to see additional settings before you move on.

Conversions can be ignored for now, but you’ll want to ensure that conversion is set up before launching your campaigns.

➤ Ad Extensions 

Ad Extensions

Ad Extensions is the last section of the campaign settings screen. It is important to configure all three primary extension types.

➩ Sitelink Extensions

Sitelinks allow you to add up to four additional links to your ads. Customers can use these links to direct them to other pages on your site that might be useful in their education about your business. Sitelinks need a URL and these links directly to your website.

➩ Callout Extensions

Callout Extensions can be used to highlight competitive advantages, discounts, and promotions. It cannot be linked and will appear above any site links. It should be based on the benefits of working together.

➩ Call Extensions

A Call Extension is necessary if your business generates calls or sales by telephone. This allows your phone number to be displayed with your ads. For mobile users, it gives them the option to call you directly from your ad without navigating to your website.

After setting all the necessary information, click on “save and continue.”


Step #4: Set up Ad Groups & Keywords

Next, create an ad group to help you set up your Google Ads campaign. Ad groups are sets that contain relevant keywords and share one or more ads.

Start with your core products or services first before you choose which keywords to use. I suggest creating just one ad group here and then building out the rest of your campaign using Google Ads Keyword Planner tool – if we look back on how Google Adwords works.

It is quicker and easier to search for keywords and then organize them into ad groups using the Keyword Planner.


Step #5: Create Ads

After you have created your first ad group you need to create an ad. Let’s take a look at each part of an ad, and discuss some best practices.


Create Ads

➩ Final URL

The final URL is the page to which your Google ad will link and this must be relevant to your Google Ad. If you don’t have a landing page that matches your ad, your homepage is the best alternative.

➩ Headlines

Google allows you to display up to three headlines in your ad. You have 30 characters for each headline to deliver the message to the audience. This should focus on the product or service you are advertising with visible call to action.

➩ Display Path

Display path is a part of the URL that will be displayed with your ad and it does not need to match the Final URL. This gives customers an idea about the page they will land on when they click on your ad.

➩ Descriptions

You can add up to 2 descriptions, each of 90 characters. This section allows you to explain to your audience what your product or service is about in depth.

You can also change from mobile view to desktop view and check everything looks perfect. Once you finish creating the ad, click on “save and continue.”

Step #6: Set up Billing

Your billing information is the last step to create your account and start your first campaign.

You will now need to enter your billing information and publish your first campaign.

It is very simple.

Google allows you to fund your account using a debit or credit card or a bank account. You can also enter a Google promotion code here.


optimize Google ads campaign

Congratulations! You have successfully created your first Google Ads campaign.

This is all you need to build a solid foundation for your campaign and understand how Google Adwords works.

You are now ready to grow your business using the most powerful advertising tool available.


To speak to the right audience, you must use the data that is given to you. Your competition must be outdone and you have to stand out.

Once you’ve got the campaign up and running, you can start with Google ads campaign optimization to achieve peak performance.

You need to begin gathering data in order to optimize Google ads campaign and your site.

You can start by eliminating keywords that are not relevant. You can add these keywords to your list of negative keywords.

Monitor your results and ensure that they are aligned with your overall Digital Marketing Strategy. The use of measurement tools like Google Analytics is an absolute necessity.

And also optimizing landing pages is crucial to decrease bounce rates and increase conversion rates. You can check out the landing page providers to get started with that.

You can also refer to this step by step article on Google Ads conversion tracking guide to track your conversion.

I hope this helped you understand how Google Adwords works and get started with Google Ads today.

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