What is Google Ads?

Google Ads (formerly known as Google AdWords) is Google’s advertising platform that lets you pay to have your ads shown on Google Search, YouTube, Maps, and more. You set a budget and target audience, then Google shows your ads to people who are likely to be interested—charging you only when someone clicks or engages.

How does Google Ads work?

Google Ads runs on an auction system: when someone searches or browses, advertisers bid for ad placement. You choose targeting options (keywords, location, audience) and set a maximum bid. Google also considers your Quality Score—a rating based on how relevant your ad, keyword, and landing page are—which can lower your costs and improve placement.

The platform also uses AI-powered tools like Smart Bidding and Performance Max to optimize results across Search, Display, Video, Shopping, and App campaigns—all from a single account.

Why is Google Ads important?

Google Ads helps you:

  • Reach the right people: Ads show up when people are actively searching or watching videos about what you offer.
  • Control your budget: You only pay when someone clicks (PPC model).
  • Measure performance: You get clear data (clicks, conversions, cost-per-click) to refine your strategy.

It’s powerful because Google Ads drives over three-quarters of Alphabet’s revenue and remains central to online advertising.

What’s the difference between Google Ads and Google AdSense or Ad Manager?

  • Google AdSense is for publishers who want to earn by showing Google-served ads on their sites.
  • Google Ad Manager is for managing ad space if you run a website or app, offering more control over inventory and revenue.
    Google Ads is focused on advertisers creating and bidding for their own ads—not managing publisher inventory.

How do you use Google Ads in marketing?

  1. Choose campaign type: Pick Search (text ads), Display (images), Video (YouTube), Shopping (product listings), Performance Max (multi-channel), etc.
  2. Set goals: Define what you want—sales, leads, brand awareness.
  3. Pick your audience: Target by keywords, location, interests or behaviors.
  4. Write compelling ads: Tailor ad copy and visuals to fit your audience.
  5. Set your budget: Choose how much you’re willing to spend daily or per click.
  6. Measure and optimize: Use Google’s tracking tools to monitor clicks, conversions, and tweak bids, keywords, or creative as needed.

Tips for using Google Ads effectively

  • Focus on Quality Score: Better quality = lower costs and higher placement. Keep your ads relevant to keywords and landing pages.
  • Try automated bidding: Tools like Smart Bidding save time and optimize for conversions.
  • Use different campaign types together: For example, combine Search campaigns for intent with Display or Video for awareness.
  • Track conversions: Install Google Tag or Analytics to see which ads drive actions.
  • Test and iterate: Run A/B tests on ad copy, visuals, or targeting to boost performance.

Example scenario

Say you’re launching a new online yoga studio. You might:

  • Run a Search campaign targeting “online yoga classes”
  • Use Shopping ads to showcase your subscription plans
  • Try a YouTube video ad demonstrating a flow
  • Set a daily budget and let Smart Bidding find you the best customers

You’d track sign‑ups via Google Tag, tweak headlines or bid strategy, and focus spend on what’s working—leading to better results over time.

Bottom line: Google Ads is your toolkit for reaching people who are actively seeking what you offer, with flexible budgets, powerful targeting, and detailed performance tracking. Whether you’re new to paid media or want to level up, following best practices around Quality Score, campaign mix, and analytics will help you get the most from your investment.