Google Pay-per-Click Ads: Comprehensive Guide [2022]

Google Pay-per-Click Ads: Comprehensive Guide [2022]
Article by DesignRush DesignRush
Last Updated: November 13, 2022

63% of online users click on Google pay-per-click ads. This is a promising number for business owners who run pay-per-click advertising on Google.

The main goal of Google pay-per-click advertising is to get more people to view your website and ensure that they take action once they click your ads. A business can make $2 on average for every $1 spent on Google pay-per-click ads.

Traditionally, advertising was considered an expense instead of a good starting place for return on investment (ROI). However, this assumption is shunned nowadays, especially with the proliferation of the internet and digital marketing.

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What Are Google Pay-per-Click Ads?

Google pay-per-click (PPC) advertising is an online advertising model wherein the search engine charges you a fee for every click on a promotion linked to your website.

Pay-per-click advertising on Google gives you an ad placement within the display campaign or a banner ad. This placement can rank higher on search results pages (SERPs) or appear on affiliate web pages. You also have the option to display your ads at the bottom of SERPs.

How Google Ads Pay-per-Click Model Works

The Google Ads pay-per-click model is anchored on keywords. Hence, you should perform extensive keyword research and analysis to find the most applicable to your products or services. Studying related keywords will help result in a higher click-through rate and, expectantly, more profits.

Your Google pay-per-click ads or sponsored links only appear on search engines when an online user looks up keywords relevant to the offers you are promoting.

Google Ads Pay-per-Click Payment Schemes

Google pay-per-click advertising rates are determined using the following pricing models:

Flat Rate

In the Google Ads pay-per-click flat rate scheme, the publisher or search platform charges you a fixed fee for every click or website visit.

They may offer a lower fixed price if you agree to a higher-value or longer-term contract. You may negotiate with Google regarding the price.


In the Google Ads pay-per-click bid-based model, you will make a bid at the maximum amount you are willing to spend on an advertising position. Then, Google will proceed with an automated auction that runs when a user triggers the advertisement spot.

The auction winner will be based on the amount offered and the content quality. These two factors are equally important for the bidding.

Google Pay-per-Click Ads Search and Display Networks

There are two channel options for your Google PPC ads. They are as follows:

Google Display Network

Through the Google Display Network, your brand can reach, attract, convert, and retain your target audiences using compelling copy and engaging visuals. Plus, your ads can appear on multiple formats and devices.

Here are the locations where advertisements crafted for Google Display Network are displayed:

  • Google
  • Gmail
  • YouTube
  • Affiliate websites
  • Mobile apps

The Google Display Network ad types are as follows:

  • Animated graphics
  • Static images
  • YouTube videos
  • Optimized ad copy and logos

The benefits businesses gain from advertising via Google Display Network include:

  • Communicating ideas and evoking an emotional response instantly from audiences
  • Capturing the attention of online users
  • Remarketing to or reconnecting with people to remind them of a previously abandoned intent to purchase
  • Targeting buyers on the different phases of the marketing funnel

Google Search Network

Within the Google Search Network, your enterprise can target potential customers while they search and browse the results on both Google and non-Google websites (also called search partners).

These are the covered locations of the Google Search Network:

  • Google Search
  • Google Maps
  • Google Video
  • Google Images
  • Google Shopping
  • Google Play
  • Search partner web pages

Types of Google pay-per-click ads in the Search Network include:

  • Basic text ads featuring the URL, a headline, and a site description
  • Dynamic search ads using your website content to reach people performing searches
  • Call-only ads directing calls to your business contact instead of rerouting the click to your business page
  • Shopping ads endorsing your eCommerce site and online inventory to shoppers

Here are the reasons why a company may prefer Google pay-per-click advertising on Google Search Network:

  • Access to various ad types
  • Business promotion via regular text ads
  • Highlighting product or services offers with a shopping ad
  • Leveraging interesting image ads to catch the attention of target users
  • Versatility in terms of ad placement

5 Google Pay-per-Click Advertising Strategies

Follow these best practices for optimizing your PPC campaign performance:

1. Target the Right Audience

Identify and set the attribute of your target market. If you use local targeting, specify the area wherein your prospective customers reside. You can also use the local language to narrow down your potential clients.

Other qualities you can assign to your target audiences are:

  • Interests
  • Recent website visitors
  • Search queries related to your business

2. Allocate Your Budget Correctly

Ensure you do not spend more than your bottom line allows. Neither should you overspend on clicks from people outside your target market.

Google pay-per-click ads offer two ways you can set a budget:

  • Daily budgeting lets you set a limit to your everyday ad spending.
  • Total budget setting allows you to regulate how much you intend to spend on an advertisement throughout its campaign life cycle.

3. Create Effective Ad Copy and Images

Incorporate relevant targeted keywords into your well-formulated ad text. This will help reach people who are interested in your offers. Also, it will keep you from being labeled spam.

Use strong call-to-action (CTA) phrases, like “get free trial.” This will encourage prospective clients to find out more about your brand.

4. Track Your Google Pay-per-Click Ad Performance

Regularly monitor your Google pay-per-click ad performance via your account to check if you are meeting your goals.

This involves keyword reporting and conversion tracking. Both can assist you with assessing which areas of the ad campaign are working and which ones need improvement.

5. Modify Campaign as Needed

Changing your Google pay-per-click advertising campaign when necessary is a vital aspect of managing it effectively. You should constantly adjust your targeting and setting to ensure you are getting results.

Tracking Google Pay-per-Click Ads

PPC conversion tracking lets you know which advertisements drive the most conversions. This way, you can adjust your keyword choices, bidding, and budget to optimize those effective campaigns. You can also apply the effective tactics of your successful ads to the ones that require adjustment.

Keeping tabs on all completed conversions assigned to your Google Ads account, PPC tracking empowers you to trim ad expenses while maximizing profits.

These are the five main conversion types you can set up and monitor on your account:

  • Website actions include a button click, form-fill, adding to cart, email subscription signup, and purchase.
  • Phone actions are conversion actions that originate from your ads and are taken on a mobile device. This is critical because 95% of ad clicks are made on smartphones.
  • Application installations and in-app conversions, only applying to brands with PPC ads on app, count the app downloads and other interactions.
  • Imported conversions are tracked actions that happen offline, such as a successful phone sale or an in-person action.
  • Local conversions, actions related to your business’s physical location, refer to interactions like getting directions or viewing a menu.

Benefits of Pay-per-Click Advertising on Google

Google has a massive reach and dominates the search market. And its pay-per-click advertising gets you the most beneficial spots on search results.

Besides prime ad locations, the advantages of Google PPC include the following:

Advanced Targeting Technology

With Google PPC, you can reach audiences easily based on specific interests and demographics—such as location, habits, hobbies, and parental status.


Google pay-per-click advertising is an excellent opportunity to harness an impressive return on investment (ROI) at costs within your means.

Maximum Utilization of SEO

SEO is a valuable companion to Google pay-per-click ads for these reasons:

  • You can use your PPC reporting data for your SEO tactics.
  • SEO can help decrease your PPC expenses by performing well on the organic search results page.
  • It boosts your online visibility as your business website and other information will appear on both organic and paid search results.

Full Control Over Ad Campaigns

Maintain complete, thorough control over your campaigns and budget at all times. Google Ads pay-per-click program enables you to decide your spending daily and monthly based on performance analytics and insights.

Invest more in ads that are performing well and increase the expected results. In contrast, you can lower the ad spend on underperforming advertisements and stop running them entirely to avoid bigger losses.

Key Takeaways on Google Pay-per-Click Ads

You can launch a Google Ads pay-per-click campaign in less than an hour and get your website to appear instantly under sponsored search results. Investing enough in pay-per-click advertising on Google is the quickest way to get to the top results.

Set up Google pay-per-click advertising by conducting extensive keyword research, formulating a compelling copy, and participating in ad auctions.

Rather than being pressured to shell out huge amounts on your campaign, choose to start small. You have the option to pause your campaigns depending on their performance.

Follow the best practices in Google pay-per-click advertising, track results, and you will be in the right direction to boost your website traffic with paid search strategies.

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