Small business guide to Google Ads

Google Ads is an advertising platform that allows businesses to create and display ads across Google’s network and partner sites. It serves various platforms and functions: 

• Search Ads – appearing at the top and bottom of Google search results when users search for related products or services.
• Display Ads – displaying visual banners, images, or interactive content online, in Gmail, or when using apps.
• Shopping Ads – showcasing product images and prices in product listings when users are browsing similar offerings.
• Video Ads – playing before, during, or after content on YouTube. App Ads– appearing in the Play Store when users search for similar applications to yours.² (external link)

Unlike traditional advertising channels, which can require substantial upfront investments, Google Ads can be a more cost-effective alternative, accommodating various budgets and business sizes. Many small business owners consider it an accessible and scalable approach to digital advertising.³ (external link) 

Google Ads can be appealing for many reasons, including: 

• Budget flexibility – Advertisers can set daily spending limits and adjust budgets based on performance or business needs.
• Targeted reach – Ads can target specific locations, demographics, and search behaviours.
• Measurable results – The platform can provide detailed analytics on performance, including clicks, impressions, and conversion tracking.
• Quick implementation – Ads can appear within hours of launch.
• Accessibility – Small businesses can compete for the same search terms as larger companies.

It uses an auction-based system where advertisers bid on keywords relevant to their business, and advertisements appear when users search for those terms or visit related content. The advertiser pays Google when users interact with these ads, typically through clicks. For this reason, these types of ads are called Pay-Per-Click (PPC) advertisements. 

Google considers various factors to determine which ads are displayed and in what order, including:

The auction process uses both bid amounts and advertising quality to determine which ads achieve the best positions, so higher-quality adverts at lower costs can be favoured over poorly optimised campaigns with higher bids. This way, advertisers are encouraged to create valuable, relevant content – whatever their budget. 

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Many small businesses use Google Ads to establish visibility and recognition in the market. By positioning a business name and offering in front of potential customers online, brands can create familiarity and increase awareness to support customer acquisition. 

Using display campaigns, small businesses can showcase their brand across relevant websites for their target audience. These visual ads can introduce new businesses to local markets or help established small businesses grow into new areas.⁴ (external link) 

Shopping campaigns can be particularly valuable for product-based businesses. By displaying products directly within search results beside competitors – making it easy for users to compare offerings – small businesses can boost brand exposure while users are in the research stage of their journey.⁵ (external link)

Finally, local businesses may benefit from location-based targeting that concentrates their visibility within specific areas, ensuring their ads reach the most relevant audience.⁶ (external link)

Aside from awareness, small businesses use Google Ads to prompt users to act.  

Google Ads has conversion tracking, letting you measure specific outcomes from your advertising spend. For example, you might see how many visitors submit forms, book appointments, or make online purchases after clicking on your Google Ad. This allows you to identify which campaigns and keywords generate the most customer engagement.⁷ (external link)

Different business types might use Google Ads to encourage different customer actions. Service-based small businesses often use location-specific searches and service keywords, capturing local customers who are ready to purchase. Meanwhile, product-based businesses often drive traffic to e-commerce platforms or physical stores by showcasing inventory and promotions.

Google Ads’ quality-based ranking system means well-optimised campaigns with relevant content can outperform larger competitors with bigger budgets but lower-quality campaigns. 

Small businesses can have advantages over larger corporations, such as local market knowledge and specific geographic focus. Local search terms are often less competitive, which can enable small businesses to boost their visibility within their target market on a smaller budget. 

Google can also accommodate various budget levels, with relatively low entry-level costs and flexible spending controls, meaning small businesses can start with a modest budget and scale sustainably. 

For example, you might start by setting a £5 daily limit, bidding for low-cost, geographically targeted clicks to achieve limited but focused visibility. Then, having developed local awareness and a dedicated customer base, you might target higher-cost, competitive keywords to gain a larger market share. 

A small business using a strategic approach to Google Ads may be able to generate better returns than larger businesses using broader, unfocused campaigns.