How Google Ads Work

Google Ads is an online advertising platform that allows businesses to display paid advertisements on Google’s search results pages, websites, and apps. Advertisers bid on keywords related to their business, and when users search for those terms, Google may display their ads. This pay-per-click (PPC) model means businesses only pay when someone clicks on their ad, making it a cost-effective way to drive traffic and generate leads.

How Exactly Do Google Ads Work?

Google Ads operates on an auction system where advertisers bid on keywords relevant to their products or services. When a user searches for a keyword, Google runs an auction to determine which ads appear and in what order. The auction considers several factors:

• Bid Amount – How much an advertiser is willing to pay per click.

• Ad Quality – Google scores ads based on relevance, landing page experience, and expected click-through rate (Quality Score).

• Ad Rank – A combination of bid amount and Quality Score determines ad placement.

• Ad Extensions – Additional links, phone numbers, or location details can enhance visibility.

How Do Google Ads Charge You?

Google Ads primarily charges advertisers through different bidding models:

• Cost-Per-Click (CPC) – You pay only when someone clicks on your ad.

• Cost-Per-Thousand Impressions (CPM) – You pay per 1,000 views (used for display ads).

• Cost-Per-Action (CPA) – You pay when a user completes a specific action (e.g., filling out a form).

The amount charged depends on competition, keyword demand, and overall campaign quality.

How Much Do Google Ads Cost Per Month?

Google Ads costs vary based on industry, competition, and ad strategy. Some businesses spend £100-£500 per month, while others invest £5,000+ per month. The cost per click (CPC) can range from £0.50 to £10+, depending on competition and keyword value. Setting a daily or monthly budget ensures you don’t overspend.

Is Google Ads Worth It with a Small Budget?

Yes, Google Ads can be effective on a small budget if used strategically. To maximise a limited budget:

• Target high-intent keywords – Focus on searches that indicate strong buying intent.

• Use negative keywords – Prevent your ads from showing for irrelevant searches.

• Optimise ad copy – Write compelling ads that attract the right audience.

• Monitor and adjust – Regularly analyse performance and tweak settings for better results.

Should I Run Google Ads All Day?

Not necessarily. Running ads 24/7 can waste budget if your target audience isn’t active at certain times. Instead, consider:

• Evenings for B2C businesses – If you sell directly to consumers, evenings may perform better when people are at home.

• Daytime for B2B businesses – If your audience consists of business professionals, running ads during working hours may be more effective.

• Peak hours for local businesses – If you rely on walk-in traffic, advertise during peak business hours.

What Is the Minimum Budget to Run Google Ads?

There is no strict minimum, but a daily budget of at least £5-£10 is recommended to see meaningful results. A small budget can still be effective if you focus on well-targeted, high-intent keywords.

Are Google Ads Profitable?

Google Ads can be highly profitable when properly managed. Success depends on:

• Targeting the right audience – Reaching potential customers who are ready to convert.

• Optimising landing pages – Ensuring your website encourages visitors to take action.

• Tracking and adjusting – Using Google Analytics to measure success and refine strategies.

What Is the Disadvantage of Google Ads?

One major downside of Google Ads is that it requires ongoing spending. Unlike SEO, which builds organic traffic over time, ads stop appearing as soon as you pause your campaign. For long-term growth, investing in SEO services can provide a more sustainable traffic source.

Need Help with Google Ads?

If you need digital marketing services, including PPC campaign management, get in touch today!