Complete Guideline – How to Run Google Ads?

Google Ads Foundations

Google Ads (formerly Google AdWords) is the largest online advertising platform worldwide. Google offers this competitive tool to digital marketers for:

• Building brand awareness
• Increasing website traffic
• Reaching qualified leads
• Driving online or in-store sales

We will introduce different Google Ads formats below. For now, let’s focus on the ad ranking system.

How Google Ads Works?

When online users type queries in the search engine field, Google serves relevant content on the Search Engine Result Pages (SERPs).

Those results include:

• Organic web pages
• Paid ads

To understand how Google selects the best organic web pages, read our detailed SEO article.

For paid listings, Google charges the advertiser a fee each time someone clicks an ad. We call this a Pay-Per-Click (PPC) model. Paid ads rank higher than organic results.

Cost Per Click (CPC)

On the Google Ads platform, businesses bid on keywords to reach their target audiences. The system classifies ads competing on the same search terms based on several factors, including Cost Per Click (CPC).

Say five companies want to showcase their websites for the keyword “Google Ads Agency.” Each competitor previously defined a CPC for this keyword, which is the bidding price they are willing to pay each time a user clicks their ad.

Based on this bid, Google calculates each ad’s rank and returns the results accordingly.

The purpose of businesses is to pay the smallest CPC while ranking as high as possible.

Businesses that set their campaigns incorrectly can quickly lose money. Read our advice below to run cost-effective Google ads.

Quality Score (QS)

Besides the CPC, the ad ranking also depends on the Quality Score (QS).

To simplify, we will start with the following formula:

Ad Rank = Cost Per Click x Quality Score.

The QS is a 1-10 scale (10 being the maximum). It evaluates the ad quality based on the relevance between the keywords and the ad content. The higher the QS, the better.

If the ad content or the landing page does not comply with the Google Ads policies, the QS may be lower. If the brand bids on a relevant keyphrase, the QS may lean towards the 10 score.

Google Ads Rankings (on SERP)

To explain the Google Ads rankings, let’s update the previous formula as follows:

Actual Cost Per Click = (Ad Rank to beat / Quality Score) + $0.01

The addition of “+ $0.01” means that advertisers do not pay exactly the amount they bid. They pay the least possible to outdo their competitors.

This system works like an auction except that brands do not know how much others are bidding. So, is bidding high a good strategy to win the top Google Ads placements? We will answer this question in a minute.

This formula also says that the higher the Quality Score, the lower the companies will pay. If QS = 10, the business controls the auction because Google anticipates that this ad will provide the best user experience.

In other words, the company with the highest quality score pays the least and forces its competitors to pay the most. Even small companies with limited budgets can rank well in Google Ads, thanks to high relevance and strong QS.

The key success factors for good Google Ads rankings are:

• Pick relevant keywords matching the business products and services
• Carefully define the right bidding that will optimize your budget
• Craft top-quality ads (content and visuals) for a smooth online experience

7 Google Ads Campaign Types

To get started on Google Ads, you need the following:

• A computer with an internet connection
• A valid Gmail address
• A live website
• A credit card for payments

The first step is to create a Google Ads account. The platform makes it easy. After giving an email address and a website URL, the brand receives a customer ID.

From this point, Google invites you to set up the first campaign. There are 7 main campaign types that we will describe below.

#1 Performance Max

Performance Max is an AI-driven automated campaign type focused on maximizing conversions. It unifies ad placements across Google’s entire advertising network, instead of having separate setups for Search, Display, Video, or Shopping.

This campaign type optimizes targeting, bidding, and creative assets to deliver ads where they perform best. It is a simplified way to ensure broader visibility, smarter budget allocation, and higher-performing ads.

Even if PMax campaigns require minimal manual management, they still need to leverage data from your past campaigns. We do not recommend running Performance Max ads for conversions if you have never recorded any conversions before.

#2 Search

The search option serves text ads to users conducting Google searches. Those paid ads appear above the organic search results.

Google charges advertisers every time someone clicks on their ads (a PPC model).

To be successful, brands must anticipate what keywords people are more likely to search for. The conversion rate for search ads is typically high because user intent is high. People actively search for specific information, which makes them more engaged.

Google Search Ads are often considered the backbone of the paid platform.

#3 Demand Gen

Demand Gen is a dynamic campaign type designed to drive conversions across Google’s most visually immersive platforms, including YouTube, Discover, and Gmail. It focuses on inspiring potential customers through creative formats tailored for discovery.

Like the PMax campaign type, Demand Gen uses Google’s AI-powered audience insights. However, it differs from Performance Max campaigns in its capacity to generate demand from audiences likely to interact with the brand. Demand Gen Ads influence purchase decisions rather than capturing existing intent.

#4 Display

Google Display broadcasts visual ads (mostly banners) to online users. They appear on the Google Display Network (GDN), which includes over 2,000,000 websites worldwide.

Unlike Search Ads, advertisers target people by interest rather than keywords.

This campaign type works best for brands looking for awareness. The traffic and exposure are high, but the conversion rate is typically low.

#5 Shopping

On Google Shopping, online users view physical product information from a classic search. Shoppers get detailed preview descriptions before clicking on the ads.

This campaign type is the best option for retailers looking to promote their inventory, drive traffic to their e-commerce website, or increase visits to their brick-and-mortar stores.

The conversion rate is excellent because online users know what they are looking for (high purchase intent).

#6 Video

YouTube (owned by Google) allows advertisers to publish their promotional videos on its network and other video partner sites.

This campaign type reaches many people because videos are a popular form of online content.

Video ads work well for brand awareness or campaigns promoting products and services. However, as most people skip them, the conversion rate is low.

#7 App

Google offers services to promote mobile applications through the Universal App section. It covers Google Play, Google Search, Google Display Network, and YouTube.

This option allows advertisers to get app installs or engagements.

The Cost Per Download is low, but the huge number of competitors in the market negatively impacts the Click-Through Rate (CTR) and Conversion Rate (CR).

Google Ads Campaign Structure

Google structures its ads on 3 levels:

• Campaigns
• Ad groups
• Ads

As this architecture is crucial to understand, we will detail each level below.

Campaign Level

After choosing the campaign type, advertisers must name it. This is an important step, especially when running multiple ads. The naming convention should be descriptive to avoid any confusion later.

In the campaign settings, businesses must also pay attention to the following sections:

• Locations
• Languages
• Audience interests
• Budget
• Bidding
• Ad extensions

Locations, languages, and audience interests target users, allowing Google to deliver ads to the right people. The budget and bidding determine the reach and ad ranking.

Ad extensions allow text ads to look more relevant. Advertisers activate them depending on the business industry and campaign objectives.

To promote a local brand, we recommend considering these ad extensions as a priority:

• Sitelink extensions
• Call extensions
• Review extensions
• Callout extensions
• Location extensions

Ad extensions are a great way to differentiate from the competition in Google Ads searches. They do not increase the campaign costs. We should never ignore them.

Ad Groups Level

Campaigns are subdivided into ad groups.

With an effective ad group structure, businesses optimize their estimated conversions at a lower cost. It plays a major role in Google’s Quality Score.

Each ad group contains one or more ads and a set of related keywords. To maximize performance, 1 ad group should focus on 1 product or service. Keywords help Google evaluate the ad group’s relevancy for ranking and costs among the search networks.

Google proposes a system that limits how ads match keywords. Advertisers can use the following match types to “narrow” their keyphrases’ variations:

• Broad match
• Broad match modifier
• Phrase match
• Exact match
• Negative keywords

Broad Match

The broad match is the default type that reaches the widest audience.

Ads may appear when online users’ search queries include any word or close variations of this keyword.

When choosing this option, advertisers must make sure they will not pay for irrelevant traffic to their website.

Broad Match Modifier

We use the broad match modifier by adding a plus sign before the word (example: +keyword).

It tells Google the search query must include this term or close variations.

Additional words may appear before, after, or in between the terms of the search results.

Phrase Match

The phrase match works with quotation marks (example: “keyword”). It increases the level of control.

Google will return the ad if the search query matches the keyword or a close variation, in the same order as we entered them.

Additional words may appear before or after the terms, but not in the middle.

Exact Match

The exact match is the most restrictive option and uses square brackets (example: [keyword]).

In this case, the ad is eligible to appear only if the online user queries the same terms, words, and order.

It may comprise close variations with the same meaning.

Negative Keywords

We define negative keywords by adding a minus sign before the word (example: -keyword).

It prevents ads with those “negative terms” from showing up.

Advertisers must always consider them when running campaigns. Negative keywords make ads more relevant and optimize the media budget.

Ads Level (Text & Creatives)

The last campaign layer is the ad that will show up. The tool asks advertisers to input the following information:

• Landing page URL
• Headline
• Ad description

Brands can input several headlines and descriptions to share their messages with online users. The fields have a length limit, so it is good to plan the content.

Each ad group should have the same set of keyword clusters. We recommend creating several ad variations and A/B testing them to compare their performance.

Based on their CTR and costs, advertisers adjust their campaigns accordingly. The goal is to pay the least for the maximum impact. Businesses should never go with 1 ad text in 1 ad group. Even small word tweaks can make a huge difference.

Now that we have explained the foundations of Google Ads, we will share professional advice for growing businesses.

5 Google Ads Pro Tips

Instead of wasting time and money on Google Ads trial and error, check out these five tips below. They are worth years of practice.

#1 Plan Before Running Your Google Ads Campaign

The most important rule to follow before launching any digital strategy is to define a clear campaign objective.

Every digital campaign must have a purpose. Generic targets like “growing revenue” or “getting more customers” are unlikely to succeed.

The business objectives must be specific. Before running campaigns, advertisers should answer the following questions:

• What worked and did not work in previous digital campaigns (if any)?
• What are our current pain points?
• What do we need to achieve?
• What metrics should we follow?
• How many leads or customers do we need each month?
• What is the average revenue per customer?
• What does success look like? (in 1 month, 6 months, 1 year)
• How much advertising budget are we ready to spend to reach those targets?

To be successful, advertisers must also get insights into:

• Their competitors (benchmark)
• Their client personas (audience profiles)
• Their market trends (demand)

All those questions help brands define the best Google Ads strategy.

#2 Combine These Tools with Google Ads

Digital tools help marketers get the job done.

Here is the list we recommend:

• Google Analytics: to monitor the website performance (free)
• Google Keyword Planner: for keyword research (free)
• Google Trends: to analyze the demand trends (free)
• Ahrefs: to review the organic and paid performance of competitors (paid)
• Semrush: similar to Ahrefs, keeping in mind you only need one tool (paid)

Google Ads alone does a great job of running your campaigns. However, our experience taught us that using other cross-checking tools makes a significant difference.

For example, benchmarking your competitors with Ahrefs or Semrush provides tons of valuable information you can’t get from Google Ads alone.

All tools have a separate database source. Keyword search volume estimations may differ. Competition performance, too. Various insights, when combined, allow you to outperform.

#3 Optimize Your Google Ads

To build a cost-effective Google Ads campaign structure, brands should follow these hints:

• Segment audiences into small groups and analyze them
• Craft tailored ads suitable for each audience group
• Test ads by changing only 1 factor
• Build a remarketing list and target it
• Add negative keywords to control irrelevant traffic
• Start bidding low on keywords and increase progressively based on results
• Review keyword performance at least once a week

Being lazy results in immediate punishment when running Google ads. To be successful, advertisers must continuously optimize their ad groups and monitor their competitors.

On the other hand, brands should give their ads some time. All new campaigns must go through a learning phase. The tool algorithm needs to collect data before providing relevant results. The learning phase can last between 3 days and 2 weeks, depending on the industry.

#4 Polish Your Google Ads Text

Google Ads content is an essential component of successful digital paid campaigns.

Experienced writers make the difference between poor and cost-effective copies. Here is a list of good practices for writing optimized Google Ads:

• Use all the space available
• Be relevant between the ad text and the landing page
• Be specific (“30% discount” beats “great discount”)
• Have a strong and engaging text for the Call To Action (CTA)
• Identify which buying stage the users are in
• Check how the competitors write their ads and differentiate from them

Brands should always A/B test their content to keep running the ones that convert the best.

Sometimes, small edits result in a performance boost and better cost control.

#5 Craft Irresistible Landing Pages

Online users clicking on Google ads will land on various conversion pages. Those landing pages are crucial for the campaign’s success because potential customers will make their decision there.

Follow these guidelines to create the best landing pages for Google Ads:

• Give a strong first impression
• Have a clear and visible CTA
• Build the landing page around the CTA button
• Put the important stuff at the top of the page
• Optimize the page loading speed
• Be mobile-friendly
• Do not use the home page as the landing page

A few tricks make websites more “Google-compliant.” By following them, advertisers increase their chances of better conversions and a higher Return On Investment (ROI).

Make sure to include the following information in your landing pages:

• Physical address
• Phone number
• Email address
• Privacy policy

For e-commerce websites, landing pages must also have:

• All the above
• Shipping policy
• Return policy

Those rules are essential when running Google ads.

Google Ads Practice

Follow this guide to run efficient Google Ads campaigns. Tag this article and refer to it every time needed.

We reviewed how the platform works and how to set up a Google Ads campaign structure, and shared a few actionable pro tips to optimize.

Keep practicing to improve your Google Ads skills. There is no bulletproof, ideal formula for succeeding on this platform. The best marketers monitor their campaigns closely and continuously test their ads.

If you need Google Ads services, feel free to contact us. Prodima Vietnam is happy to share over 20 years of experience on the Google network!