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Google Ads

How to Advertise on Google: A Step-by-Step Starter Guide

How the Google Ads auction works, how to structure an account, which campaign type to choose and what to check before launching your first campaign.

4 min readMoon Workshop
Contents

Advertising on Google means bidding on selected keywords through a Google Ads account so your business appears as a paid result in search and across Google’s other surfaces. Google Ads is one of the most widely used digital channels for expanding reach, finding new customers and growing a business, and when it is set up properly it can put your business in front of a very large audience.

Illustration representing advertising on Google

How does advertising on Google work?

Google Ads acts as an auction, but unlike a regular auction it is not just your bid that matters: the auction also takes into account the quality and relevance of your advertising campaigns. This means the playing field is comparable for everyone, not only for advertisers with the deepest pockets.

The Google Ads auction is built around the concept of keywords. Advertisers identify keywords relevant to their business that searchers are likely to use, then bid by stating how much they are willing to pay each time a user clicks their ad. This is where the term “pay-per-click advertising” comes from. For a closer look at the model, see our what is PPC article.

When a user types a query, an auction runs in a fraction of a second among the eligible ads. Three components decide the outcome: your bid, the quality signals of your ad, and the expected impact of your ad assets. Strengthening the quality side is usually a more sustainable approach than simply raising bids.

Digital marketing illustration showing how advertising works

What does an optimal Google Ads account structure look like?

The first step is to consider your account structure. There are many ways to organise a Google Ads account, such as mirroring your website’s structure or following your product categorisation, but the most effective accounts share the same characteristics when it comes to hierarchy.

Diagram showing an optimal Google Ads account structure

The hierarchy has three layers:

  1. Account: the top level, where billing, access permissions and general settings live.
  2. Campaign: each account holds one or more campaigns. Budget, location targeting, language and bidding strategy are set at campaign level. Some advertisers run a single campaign, others run many at once.
  3. Ad group: each campaign hosts several ad groups, each with its own keywords, ad copy and attached landing pages.

Your account may not mirror this hierarchy exactly, but organising it this way keeps the factors that influence PPC metrics such as Quality Score tidy and tightly themed. A practical test: when you look at an ad group, you should be able to see that its keywords share a single search intent and that the ad copy answers that intent directly.

Which campaign type should you choose?

Google Ads offers several campaign types serving different goals:

  • Search: text ads shown while the user is actively looking for something. The most direct option when demand already exists. If you want to understand how those results are produced, our what is a search engine article is a good starting point.
  • Shopping: product listings with image, price and store name, driven by your product data. Built for e-commerce.
  • Display: visual ads for broad reach and remarketing.
  • Video: awareness and consideration campaigns on YouTube.
  • Performance Max: combines Google’s inventory into a single automation-driven campaign.

Most advertisers start with a search campaign, because that is the channel where intent is clearest and easiest to measure.

What should you check before launching?

Where the campaign sends people matters as much as how it is built. The landing page receiving that traffic should make a clear promise, load fast and focus on a single action. When the message in the ad and the message on the page drift apart, cost per click rises and conversion rate falls.

Before you launch, also complete the following:

  • Conversion tracking must be set up and tested. You cannot judge a campaign you are not measuring.
  • Negative keyword lists should be built so irrelevant queries are filtered out from the start.
  • Match types should be chosen deliberately: broad match brings more queries, exact match gives more control.
  • Ad assets such as sitelinks, callouts and call extensions should be added so the ad uses its space efficiently.
  • Budget and bidding strategy should follow the goal. Setting aggressive automated targets before conversion data accumulates makes the learning phase harder.

What happens after launch?

Advertising is not a one-off task. In the first weeks you need to review the search terms report regularly and grow the negative keyword list, refresh underperforming ad copy and verify that conversion data is accurate. Basing decisions on a meaningful body of data rather than on daily fluctuations produces far more reliable results.

If you would like help structuring a new account or reviewing an existing one, you can reach us through our contact page.

Published: · Updated: · Author: Moon Workshop

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Frequently Asked Questions

Frequently Asked Questions

How does the Google Ads auction work?
When a user searches, an instant auction runs among the ads eligible for that query. Ranking is determined not only by your bid but also by quality signals such as ad relevance, expected click-through rate and landing page experience. That is why the highest bidder does not always appear first.
Is there a minimum budget for advertising on Google?
You set the daily budget yourself and can change it at any time. For meaningful results, however, the budget has to be consistent with the cost per click and conversion rate in your sector. A budget that is too small can push you into making decisions before enough data has accumulated.
How many keywords should an ad group contain?
There is no fixed number; the criterion is thematic coherence. Keywords that share the same search intent belong in one group, and the ad copy and landing page should answer that intent. Grouping unrelated keywords together makes both copywriting and measurement harder.
What does Quality Score affect?
Quality Score is an indicator of how relevant your ad is, and it can influence both your ad rank and your cost per click. The most direct way to improve it is to strengthen the alignment between keyword, ad copy and landing page.
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