Google Ads Guide : Types, and Cost for Maximum ROI

Every second, billions of searches take place on Google, and most search result pages display Google Ads. Businesses pay for these ads as one of the most effective ways to drive targeted traffic based on users’ search intent. If someone searches for keywords related to your business, product, or service, your website can appear at the top of Google’s first page almost instantly. As one of the most impactful digital marketing methods, Google Ads provides quick visibility for your business. However, it comes with costs determined largely by keyword competition. The shorter and more competitive the keyword, the higher the ad cost. Many businesses are still unsure how Google Ads works and how it can benefit their marketing strategy. This article will explain what Google Ads is, how it works, the different ad types available, and why you should consider using it to grow your business.

What is Google Ads?

Google Ads is a pay-per-click (PPC) advertising platform developed by Google to help businesses increase visibility and reach potential customers. The most common form is search ads, which appear on Search Engine Results Pages (SERPs) when users search for terms related to your products or services — a strategy also known as Search Engine Marketing (SEM). Beyond search ads, Google Ads also offers display ads, shopping ads, YouTube ads, and more.

Types of Google Ads

Google Ads offers more than just search campaigns. Here are the primary types of ads you can run:

Google Search Ads

Search ads appear at the top and bottom of Google’s SERPs. Paid results are displayed above and below the organic listings, making them highly visible to searchers ready to take action.

Google Display Ads

Display campaigns appear across Google’s Display Network, which includes third-party websites partnered with Google. These ads can be in text, image, video, or rich media format and can be targeted by audience segments or remarketing. While display ads are less common than before, many brands use them on high-traffic websites or choose Facebook Ads for more precise audience targeting.

Google Shopping Ads

Shopping ads appear both in regular search results and in the dedicated Shopping tab. Instead of targeting keywords directly, you upload a detailed product catalog, and Google matches your products to relevant searches. You can, however, specify negative keywords to avoid irrelevant impressions. Learn more about Google Shopping Ads.

YouTube Ads

As a Google-owned platform, YouTube ad campaigns are managed through Google Ads. You can run video, text, or display ads that appear before, during, or alongside YouTube videos. Targeting works similarly to display campaigns, allowing precise audience segmentation.

Why Google Ads Appear on SERPs

Google Ads operates on keyword targeting. Advertisers create campaigns with specific offers and relevant keywords. When a user searches for those terms, Google checks if advertisers are bidding on them. If yes, those ads enter an auction to determine placement.

In Google Ads auctions, higher bids and better Quality Scores can secure top positions on the SERP.

Google assigns each keyword a Quality Score (1–10) based on relevance and other factors, then multiplies it by your maximum bid to determine Ad Rank. The ad with the highest Ad Rank appears in the top position. Related reading: Why Every Business Should Use Google Ads To win Google Ads auctions and appear for relevant keywords, you need to optimize both your bid and your Quality Score. Factors affecting Quality Score include:

• Ad relevance to the search query
• Keyword relevance to the ad group
• Landing page relevance and quality
• Historical click-through rate (CTR)
• Overall account performance

Benefits of a high Quality Score include:

• Lower costs – Google rewards high-quality ads with lower cost-per-click (CPC), improving ROI.
• Better visibility – High scores increase ad impressions and placement on the SERP without increasing bids.
• More clicks and conversions from top ad placements.

How Google Ads Works

Google Ads uses a PPC model where advertisers bid on specific keywords and compete with others targeting the same terms.

Your bid is the maximum amount you’re willing to pay for a click — your “max CPC.”

For example, if your max CPC is 50 THB and Google determines your actual CPC is 30 THB, your ad will display. If the CPC exceeds 40 THB, you may lose the top position. You can also set a daily budget cap to control spending. Google offers three main bidding strategies:

• CPC (Cost Per Click) – Pay when someone clicks your ad.
• CPM (Cost Per Mille) – Pay per 1,000 ad impressions.
• CPE (Cost Per Engagement) – Pay when users interact with your ad (e.g., sign up, watch a video).

Google factors your bid and Quality Score to determine Ad Rank. High-quality ads can achieve better positions at lower costs.

Google Ads Cost

The cost of Google Ads varies based on keyword competition, industry, location, and campaign quality. Businesses can work with a digital marketing agency to run optimized campaigns, ensuring higher visibility, better targeting, and stronger ROI. At Asia Search, our goal is to help every business succeed with effective Google Ads strategies as part of a complete digital marketing plan.