What Are Google Ads?

Introduction

In today’s digital world, getting your business seen online is more competitive than ever. Whether you're a new startup or an established company, advertising online is often essential to growth. One of the most powerful tools available for doing this is Google Ads, Google’s own online advertising platform that enables you to appear in front of potential customers right when they’re searching for products or services like yours (Google Support).

But what exactly is Google Ads, how does it work, and why might it be a smart investment for your business?

This blog breaks it all down from the bidding system and ad types, to pricing models and targeting features to help you understand how Google Ads can work for you. Whether you're just starting out or exploring ways to get more visibility online, you'll gain a clear view of how this tool can fit into your marketing strategy.

At 53 Degrees North, we help small businesses like yours get online, get found, and grow. If you're considering Google Ads but not sure where to start, this guide is the perfect place to begin.

1. What is Google Ads?

Google Ads is Google’s online advertising platform that enables businesses to promote their products or services across a wide range of Google-owned and partner platforms. This includes the Google Search engine, YouTube, Gmail, Google Maps, and millions of websites and apps that are part of the Google Display Network (Google Ads Support).

When someone uses Google to search for something related to your business — like “accountant in Coventry” or “best hairdresser near me” your ad can appear right at the top of the search results. This makes Google Ads a highly targeted, intent-driven way to reach people who are already looking for what you offer.

At 53 Degrees North, we often work with service-based businesses who are just getting started online. Google Ads gives them a cost-effective and measurable way to get noticed quickly, even in competitive markets.

For those exploring whether to invest in a new website alongside advertising, you might also find our article Why Now is the Perfect Time for a Refresh, yes I know its not the new year!, a helpful companion piece.

2. How Google Ads Works

2.1 The Bidding System

Google Ads uses an auction model. When someone searches on Google or visits a site in the Display Network, an auction takes place in a split second to determine which ads are shown and in what order. As an advertiser, you set a maximum bid the most you're willing to pay for a click or impression.

But bidding alone isn’t enough to secure the top spot.

2.2 Ad Rank & Quality Score

Your ad’s position is determined by something called Ad Rank, which takes into account both your bid and your Quality Score. This score (on a scale of 1–10) is based on:

• Ad relevance to the search query
  
  

• Expected click-through rate (CTR)
  
  

• Landing page experience — how useful and relevant your landing page is for users (WordStream)
  
  

Higher Quality Scores can reduce your costs and improve your ad placement, even if you’re not the highest bidder.

2.3 Pricing Models

Google Ads offers several pricing models depending on your goals:

• Pay-per-click (PPC) – You’re charged only when someone clicks on your ad.
  
  

• Cost-per-thousand impressions (CPM) – You pay per 1,000 views of your ad.
  
  

• Cost-per-engagement (CPE) – You’re charged when a user interacts with your ad in a predefined way (Google Ads Help).
  
  

This flexibility allows businesses to tailor campaigns to their budget and objectives.

3. Types of Google Ads

3.1 Search Ads

These are the text-based ads that appear at the top (and sometimes bottom) of Google Search results pages. They're triggered when a user types in a relevant search query — making them ideal for capturing intent and driving traffic to your site (Hootsuite).

3.2 Display Ads

Display Ads are typically visual banners or image ads that appear across the Google Display Network — a vast collection of partner websites, blogs, and apps (Google Ads Support). These ads are great for brand awareness, retargeting, and keeping your business top of mind.

3.3 Shopping Ads

If you sell physical products, Shopping Ads might be the most valuable format. These ads show product images, prices, store names, and reviews directly within search results and the Google Shopping tab (SEMrush).

3.4 Video Ads

Video Ads appear primarily on YouTube, but also across other video partner platforms. These can be skippable, non-skippable, or appear as short bumper ads.

3.5 App Ads

If you have a mobile app, Google Ads can promote it across Search, Display, YouTube, and Google Play. App campaigns automate ad creation and placement to drive downloads and engagement (Google Ads Support).

4. Key Features of Google Ads

4.1 Targeting Options

Google Ads provides powerful targeting tools, allowing you to show your ads to the right people at the right time. You can target by:

• Keywords
  
  

• Location and language
  
  

• Device type
  
  

• Demographics
  
  

• Audience interests and behaviours (Hootsuite)
  
  

4.2 Budget Control

There’s no minimum spend requirement, and you can set daily or campaign-level budgets that suit your business. You’re also free to pause, adjust, or end campaigns at any time (Google Ads Support).

4.3 Performance Tracking

One of Google Ads’ most powerful features is its detailed reporting dashboard. You can track:

• Clicks and impressions
  
  

• Conversions (like form submissions or phone calls)
  
  

• Return on investment (ROI)
  
  
  

5. Pros and Cons of Google Ads

Like any marketing tool, Google Ads has both strengths and limitations. Understanding these upfront can help you make an informed decision.

✅ Pros

1. Immediate Visibility

Unlike SEO (which can take months), Google Ads can get you to the top of search results within hours of launching your campaign. Great for time-sensitive offers or new businesses looking to gain momentum fast (Search Engine Journal).

2. Highly Targeted

You can target users by search intent, location, age, interests, device, language and more. This precision helps ensure you're reaching people who are actually interested in your services (Google Ads Help).

3. Full Budget Control

You decide how much to spend per day or per campaign and you can pause at any time. It’s great for small businesses that want flexibility without long-term commitments (Hootsuite).

4. Measurable Results

Every click, impression, and conversion is tracked. This level of transparency helps you understand what’s working, and where your money is going (WordStream).

5. Scalable

Start with a modest budget and scale up as you see results. As your business grows, your campaigns can too — whether you’re targeting a small town or a global market.

❌ Cons

1. It Can Get Competitive (and Expensive)

In high-demand sectors, like law, finance, or local trades, cost-per-click (CPC) can be steep. Some keywords cost several pounds per click (Ahrefs). A poorly managed campaign can eat your budget fast.

2. Learning Curve

Google Ads can feel overwhelming at first. With dozens of campaign types, settings, and metrics, it’s easy to make mistakes if you’re not familiar with the platform. Even Google itself recommends reviewing their learning centre or working with a certified partner (Google Skillshop).

3. Clicks Don’t Always Mean Sales

Just because someone clicks on your ad doesn’t guarantee they’ll buy or get in touch. Your landing page, offer, and follow-up process need to do their job too. This is why conversion tracking and optimisation are critical.

4. Short-Term by Nature

Once you stop paying for ads, your traffic typically disappears. That’s why many businesses combine Google Ads with long-term strategies like SEO or content marketing for balance (Moz).

6. How to Get Started with Google Ads

Thinking of giving Google Ads a try? Here’s a step-by-step guide to help you take the first steps even if you're new to digital marketing.

Step 1: Set Clear Goals

Before you create an ad, ask yourself what you want to achieve. Is it:

• More website traffic?
  
  

• More phone calls?
  
  

• More online sales?
  
  

• More local visits?
  
  

Google Ads allows you to tailor your campaigns based on your goals (Google Ads Support).

Step 2: Choose the Right Campaign Type

Pick a format that suits your objective:

• Search Ads: Good for lead generation and intent-driven searches
  
  

• Display Ads: Best for building awareness and remarketing
  
  

• Shopping Ads: Ideal for e-commerce
  
  

• Video Ads: Great for brand engagement on YouTube
  (Google Ads Help)
  
  

Step 3: Define Your Target Audience

Use Google’s targeting options to narrow in on your ideal customers:

• Geographic area (e.g., just Warwickshire)
  
  

• Keywords they’re searching
  
  

• Their device or interests
  You can even create custom audiences using your own customer lists or website visitors (Google Ads Help).
  
  

Step 4: Create Your Ad

Write a compelling headline, informative description, and add a clear call-to-action (CTA) like “Book a free consultation” or “Shop now”. Make sure it matches the landing page you’re linking to — consistency helps increase Quality Score and trust (WordStream).

Step 5: Set Your Budget & Bids

Start small and test. A typical starting budget might be £5–£20 per day. You can let Google optimise bidding automatically or set manual bids yourself. Either way, keep an eye on performance and adjust as needed.

Step 6: Monitor & Improve

Use Google Ads’ reporting tools to review:

• Which keywords are performing well
  
  

• Which ads have the best CTR or conversions
  
  

• What times of day or devices are delivering results
  Don’t set and forget — even small tweaks can make a big difference over time.
  
  

📌 Bonus Tip: If you’re building a new website or landing page to support your ad campaigns, make sure it’s mobile-friendly, fast, and focused on one goal. Tools like (PageSpeed) can help you optimise your performance.

Would you like a one-page cheat sheet or checklist based on these steps?

Conclusion: Is Google Ads Right for You?

Whether you're launching a new venture or looking to grow an established business, Google Ads can be a powerful tool to connect with potential customers at the right moment — when they're actively searching for what you offer. With a flexible budget, detailed targeting options, and measurable results, it’s no surprise that businesses across all industries are turning to paid search and display ads to boost their visibility and drive conversions.

But while Google Ads offers huge potential, it can also be overwhelming — especially if you're just starting out. From choosing the right campaign type to understanding what makes an ad perform well, there’s a lot to navigate. That’s where we come in.

At 53 Degrees North we specialise in helping small businesses get the most out of their online presence — and that includes building and managing Google Ads campaigns that actually deliver results.

If you're keen to dive deeper, we’ll soon be sharing more blog articles, designed to make Google Ads feel less like a guessing game:

• Top Benefits of Google Ads for Small Businesses – Discover the key advantages and why it’s worth the investment.
  
  

• How Google Ads and Your Website Work Together – Learn how a well-built website amplifies your ad performance.
  
  

• Simple Guide to Setting Up Your First Ad Campaign – Get started with a clear, no-jargon walkthrough.
  
  

These posts will give you the knowledge and confidence to make smart, informed decisions about advertising your business online — and we’ll be with you every step of the way.

If you’re ready to take your online visibility to the next level, or just want to chat about what’s possible — get in touch.