Google Ads (formerly Google Adwords) is a heavily used traditional channel within digital marketing.
Since the spending can reach considerable amounts, our clients rightfully ask us many common questions. That’s why we decided to come up with a Google Ads FAQ!
Let us shed some light on the topic, starting with some background on Google Ads.
Google Ads: The Essence
Google is mainly a search engine — a very trusted one. When you search for a query, it returns results based on its complex algorithm.
Each search results page lists ten highly relevant websites, along with Google My Business listings and Google search ads. Google typically places three ad spaces at the top of organic results.
Publishing a Google search ad for a given keyword puts your business in one of those ad spaces on the search results page, depending on the competition.
From a consumer perspective, ads are effortless — they look sharp and the experience is smooth. From a business owner’s and advertiser’s point of view, though, things get complex.
Business owners want results without spending a fortune. Advertisers, for their part, need significant theoretical knowledge and experience just to publish an ad.
Google advertisers complete three to six certification courses, sit exams, and renew their ad certificates. The process takes about a month, even for an experienced advertiser.
Google Ads FAQ
Now that we’ve covered some background on Google Ads, let’s move into the Google ads FAQ.
Questions from our clients and prospects range from budgeting to lead quality and ad effectiveness. Here are our answers.
1. How Much Does Google Ads Cost?
To understand how your daily budget gets spent, you need to know at least two terms: CPC and CPM.
CPC stands for cost per click or what you pay each time someone from your target audience clicks on your ad.
Say you’re selling organic cotton t-shirts and we set up your ads to maximise clicks to your product page. In that case, you’d be paying $0.84 per click, as shown in the screenshot. We call that your CPC.
To work out your Google Ads spend, we need to figure out how many of those clicks will convert into a sale. If 20 clicks produce one t-shirt sale, you’d want a daily budget of around $20.
If your goals sit higher up the funnel and you’re more awareness-oriented, CPM becomes the relevant metric.
CPM tells you how much you pay per 1,000 impressions, typically across Google’s display or video ads.
In Australia, a $20–$30 daily budget is a reasonable starting point for a CPC campaign, especially for small businesses. Aim for around $100 a day if you want to see results faster.
2. What Are the Different Types of Google Ads?
Another Google ads FAQ worth discussing is its different types. Google offers three main ad types: search, display, and video. Mobile app ads are also available.
Search ads are reactive. They appear when someone searches for your target keywords, and the goal is to get them to click through to your webpage.
Display ads are banner ads placed across Google’s network of partner websites — content sites in various niches that have enabled Google AdSense for advertising income. With developments like responsive ads, display can work well across the top and middle of your funnel.
Video ads, or YouTube ads, appear while your target audience watches content on YouTube. These ads carry strong impact, but they do require professionally produced video creative.
3. How Does Google Ads Work?
Google serves ads through an auction system. If ten advertisers bid for the same keyword, the highest bidder serves first.
Google does offer a “top of results” option for advertisers, but the system gets complicated when all advertisers select it. In practice, the top position is never guaranteed.
A relevant landing page and well-written ad copy will keep your ads highly visible on Google, even without the top spot.
4. Can You Get Quality Leads?
Consider this related Google Ads FAQ first: Can inbound marketing methods produce good leads in general? Yes.
Google Ads follows the same logic. Lead quality comes down to targeting. Get the targeting right and you can attract excellent leads, even with a standard ad copy and creative.
Google Ads targeting can feel complex for beginners. As an expert Google Ads company, we can laser-target your ideal prospects so you can focus on converting them into customers.
If you plan to manage your own ads, we strongly recommend studying the different targeting options covered in Google Ads certification courses.
Solid targeting is the foundation of solid results.
5. Why Do You Have To Pay Service Fee To Your Agency?
A great question for any Google Ads FAQ.
At Olivetree Marketing, we follow a four-step process to run Google Ads:
- Understanding the core business and conducting research
- Developing an initial strategy
- Setting up the ads and measurement
- Ongoing ad maintenance and performance optimisation
Most people think of running ads as step three, but that’s the most straightforward part of the process.
Our team invests significant time in understanding your business and industry, building strategy, and lifting performance.
Like any expert digital advertising agency, we charge a service fee for that work, and when you factor in our ROAS, it’s excellent value.
If you have more questions, visit Google Ads FAQ page, or call us on 1300 168 311. We’d love to help.
