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Google Ads. What are They and How do They Work?

You know Google Ads are an integral part of any full marketing strategy, but perhaps you’re wondering, what is Google Ads? And how does it work?

We’ve provided a preliminary overview to answer your questions about Google Ads to dispel any confusion so you can advertise on Google confidently!

What Are Google Ads?

Did you know that every second there are 2.3 million searches performed on Google? While all 2.3 million searches may not be relevant to your business, some will be! People are searching for companies that provide your products and services. 

When someone Googles “find a plumber near me,” or “best real estate agents” chances are, they’re ready to talk to someone about their needs at that moment. If they need their overflowing toilet fixed ASAP, they’re not going to scroll to page 17 (or even page 2!) to find the best plumber. 

What if you’re a new company with a site that is only showing up on page 20? How do you make sure you’re actively showing up in front of your ideal clients at the right time, at the top of Google’s results? 

It’s simple, Google Ads. 

Google Ads is the quickest way to ensure your business shows up at the top of Google’s rankings to the right people at the right time. 

SEO (efforts to raise your site’s ranking organically) are still essential, but it’s a long-term game. It can take months to build the trust and confidence from Google needed to rank on the first page. Google Ads allows you to appear on page one instantaneously.

Typically, the top two or four listed results on Google are paid ads. For example, when typing in ‘Kelowna Mortgage Brokers’ you might see something like this:

Caption: Boxed in green are the paid ad results for the query “Kelowna Mortgage brokers”

Alt text: Google Ads example

The results at the top of the page (in the green box) are all paid ads. Paid ads always appear above organic results, making this one of the most effective strategies for businesses to increase their online visibility.

How Does Google Ads Work?

Google Ads can be thought of as a sophisticated auction. When you decide to run an ad on Google, you enter the auction by choosing to bid on keywords relevant to your business. (But don’t worry, we always provide the keyword research to help you find your business’s most profitable keywords!)

Let’s go back to our plumber example. Imagine you have a plumbing company in Kelowna. Let’s also say Patrice has an overflowing toilet issue. She needs to find a plumber near her ASAP. She whips out her phone and Googles “find a plumber near me.” 

Patrice’s search query (“find a plumber near me”) is now up for auction. First, Google takes notice of Patrice’s location. If she’s in Kelowna, Google then auctions off her query to every company bidding on keywords related to that query. That’s you! There’s a myriad of factors that contribute to whether your ad actually shows up, which position it’s in, and whether Patrice is actually inclined to click on your ad. And that’s where we come in. We provide all the expertise in the nitty-gritty details of Google Ads by continually evaluating your ads and optimizing to make sure you show up at the top of Google’s results at the right time, for the right people. 

When Does Google Ads Charge Me?

Google always charges per-click. If a user sees your ad but doesn’t click, you’ll never be charged. However, if they decide to click through to your site, you will be. (Another reason it’s so important to have a boss website that’s optimized for users’ experience!)

While you won’t be charged based on conversions, keeping an eye on your cost-per-conversion lets you know how many clicks you paid for before someone contacted your business. Cost per conversion is calculated by taking your total spend divided by the number of conversions over a particular date range. 


Advertising on Google doesn’t have to be complicated, especially when you’re working with a boss agency. We always provide the expertise to ensure your ad account runs as smoothly and efficiently as possible. Every month, you’ll receive an ads report from us breaking down just how your ads budget was spent. We strive to provide you with the highest level of transparency – after all, it’s your marketing budget going to work for you! 

If you have more questions about how Google ads work or are wondering how to demystify your ads report, we’re always here to help!

Filed In General, Marketing

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