11 Terms To Know Before Starting Google Ads

Every day, an astonishing 8.5 billion queries light up the servers at Google, a clear testament to its unrivaled role in our digital lives as of December 2023. This isn’t just a statistic; it’s a universe of opportunities waiting to be explored by businesses keen on making their mark online through understanding what to know about Google Ads.

why yoou should use google ads

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This is where Google Ads steps in – your gateway to tapping into that vast, ever-searching audience. With the right approach, Google Ads can transform your visibility online, drawing a path for those billions of queries right to your doorstep. Before you dive into the deep end, there’s a lot to learn about navigating the currents of Google Ads.

What is Google Ads?

Google Ads (formerly Google Adwords) is a platform where you pay for clicks or views on your advertisements. It operates on a pay-per-click (PPC) basis. This system allows you to connect with people who are actively looking for what you offer.

Using Google Ads, you can attract more visitors to your website, get more inquiries, and boost visits to your physical store. It targets customers who are a good fit for your business. Using Google Ads, you’ll learn how to improve your ads. This means more people seeing your ads over time.

Why You Should Consider Advertising on Google?

Imagine a giant piggy bank labeled “Digital Advertising.” In 2022, this piggy bank had $549.51 billion. People expect it to grow even bigger to $870.85 billion by 2027. That’s a lot of money going into online ads!

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Companies like Meta and Amazon made a lot more money from ads recently. Meta’s ad sales went up by 24%, reaching $38.7 billion. Amazon’s ad business grew 27%, hitting $14.7 billion. And Google, the biggest player, saw its ad business grow 11% to $65.5 billion. YouTube, part of Google, helped a lot by growing 16%.

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Google is like the popular kid in the world of search engines. Millions of people use it every day to find stuff online. Google Ads has been around for almost 20 years, making it a trusted name in ads.

Think of Google Ads as a huge billboard where lots of companies want to show their ads. Even your competitors are there and might even show their ads when someone searches for your business. This means if you’re not using Google Ads, your business might not be as visible as it could be.

How does Google Ads work?

How do some ads pop up when searching for something on Google? It’s like magic, but really, it’s Google Ads at work! Google Ads helps businesses show up on Google when people search for things they offer.

How Businesses Tell Google What They Offer

It’s like placing a bet on your favorite keywords to win the race to the top.

  • Bidding on Words (called keywords): Imagine you have a lemonade stand. You want people to find you when they search for “yummy lemonade near me.” So, you tell Google, “I want to show up for this search!” by picking those words and offering money to make it happen.
  • Setting a Budget: You decide how much money you want to spend each day on your lemonade ad. It could be a little or a lot, but Google ensures you don’t spend more than you want.
  • Everyone Can Play: Whether your lemonade stand is big or small, Google Ads lets you join in. You can stop spending money on ads anytime if you want to take a break.

When People Look for Something on Google

Like a treasure hunt, but you’re just a search away from the X that marks the spot.

  • Searching for Things: Now, imagine you’re thirsty for lemonade and search for it on Google. Google quickly looks through all the ads to find the ones that match what you’re looking for.
  • Seeing the Best Matches First: The ads that fit your lemonade search are the best and appear at the top. You’ll see them because they’re what you’re searching for.
  • How Ads Get Sorted: Google doesn’t just throw any ad at you. It picks ads based on how well they match your search and how much businesses will pay to show you their ad.


How Google Picks Which Ads to Show

In the blink of an eye, Google is like the judge at a talent show, picking the top performers.

  • Fast Decisions: Google decides which ads best fit your lemonade search in the blink of an eye. It’s super quick!
  • Ranking Ads: Google considers two factors to decide the order of ads: how much money the lemonade stands are willing to pay and how good their ads are. The best combo gets to the top.
  • The Magic Formula: Think of it as a race where the fastest and most stylish car wins. Google picks the ads that are most likely to be what you’re looking for and sorts them from best to not-so-best.

What Happens After You See an Ad

Clicking an ad is like opening a door; you never know what you’ll find on the other side.

  • Clicking on Ads: If you see an ad for the perfect lemonade stand, you might click on it to learn more or even buy some lemonade.
  • Choosing What to Do: After you click, you might buy some lemonade, look at another ad, or decide you’re not thirsty after all. It’s all up to you!
  • It’s Your Choice: Sometimes, you’ll click on an ad and find exactly what you want. Other times, you might just go back and look at other options. Google Ads is all about giving you choices.

Crucial Terms to Know Before Starting With Your Google Ads

Diving into Google Ads, you’ll encounter several terms that form the backbone of how it works. Here’s a primer:

1. Extra Goodies: Ad Extensions

Think of Ad Extensions as the cherry on top of your ad sundae. They’re extras that make your ads more appealing at no additional cost. Adding more information to your ads increases the chances of engagement. It’s like giving your ad a megaphone in a crowded room.

There are five types to choose from – Sitelink, Call, Location, Offer, and App. Each serves a unique purpose, aiming to enhance your ad’s performance by providing more paths for interaction.

2. Climbing the Ladder: AdRank

AdRank is essentially your ad’s rank in the auction. It decides where your ad gets placed. Higher AdRank equals better placement and more visibility. More eyes on your ad can lead to more clicks.

Think of it as a math problem. Your maximum bid times your Quality Score equals your AdRank. Simple, right?

3. The Art of Bidding

In the Google Ads world, you bid for ad placements. You can choose how much you’re willing to pay for a click, an impression, or an engagement. Choosing the right bid type is crucial. It’s like choosing the right tool for the job. Each one has a specific purpose.

Whether it’s CPC (cost-per-click), CPM (cost per mile/thousand impressions), or CPE (cost per engagement), each bidding strategy has its own advantage, depending on your goals.

4. Campaign Types: Choose Your Weapon

From search to display to video and beyond, Google Ads offers seven campaign types to fit your needs. Each campaign type targets a different audience and goal, whether increasing brand awareness with video ads or driving app installs. These are like having Google as your co-pilot and using AI to get the most out of your budget across various channels.

5. Click-Through Rate (CTR): Measuring Interest

CTR is the percentage of people who click on your ad after seeing it. Think of it as a measure of your ad’s attractiveness. It means your ad is relevant and appealing to your target audience. You’re speaking their language! A high CTR can lead to better ad placement and lower costs. It’s a key metric in assessing your ad’s performance.

6. Conversion Rate (CVR): The Goal Post

CVR calculates how often clicks on your ad result in the desired action, like a purchase or a sign-up. A high CVR means your ad and landing page are effective at persuading visitors to take action. It’s the ultimate measure of success. By matching your ad’s promise with your landing page’s delivery, you can boost your CVR.

7. The Display Network: Expanding Reach

The Google Display Network lets your ads appear on websites and apps, reaching people as they browse the web. With options for text or image-based ads, the Display Network is perfect for increasing visibility and brand awareness. Ads on the Display Network can be finely targeted to match your audience’s interests and behaviors.

8. Impressions: Eyes on Your Ad

Each time your ad appears, it’s counted as an impression. It’s about visibility. More impressions mean more potential for clicks. But remember, not every impression will result in a click. The goal is not just to get impressions but to turn those impressions into engagements. It’s quality over quantity.

9. Keywords: The Heart of the Matter

Keywords are the words or phrases that trigger your ad to appear. They should match what your audience is searching for. While positive keywords attract the right audience, negative keywords help you avoid the wrong ones. It’s all about precision targeting. Choosing the right keywords is like matchmaking. You want to find the perfect fit for your ad to appear.

10. PPC: Paying for Clicks

Pay-per-click means you pay each time someone clicks on your ad. It’s a direct route to generating traffic. PPC allows for precise budget control and measurable ROI. You get to see exactly where your money is going. You can tweak your campaigns in real time based on performance.

11. Quality Score (QS): The Report Card

Your Quality Score is like a grade for your ad. It reflects the quality and relevance of your ads, keywords, and landing pages.

A higher QS can lead to lower costs and better ad positions. It’s Google’s way of rewarding quality and relevance. Focus on enhancing your CTR, ad relevance, and landing page quality. It’s about creating a better experience for your users.


How Can RankHarvest Help?

Starting with Google Ads can feel like a big puzzle. But don’t worry—RankHarvest is here to help! We are a team that really cares about making your ads work. We’ve helped many big companies get noticed online because we know all the smart tricks others don’t. We’re good at finding ways to improve your ads and always coming up with new ideas in our office in sunny San Diego.

When you work with RankHarvest, you get help from people who know their stuff. We can guide you through all the important things about Google Ads, like picking the right words so people see your ads. We have special ways to do things you won’t find anywhere else.

Final Words

Entering the world of Google Ads is a strategic move to boost your online presence and drive targeted traffic to your site. Remember, success comes from understanding the platform’s nuances, continually refining your strategies, and aligning your campaigns with your business goals. Start with a clear plan, stay flexible, and watch your business grow through effective advertising.