Google Ads and PPC for beginners: how it works and how much to spend.

Pay-per-click (PPC) advertising means you pay when someone clicks your ad rather than when it is shown. Google Ads is the largest PPC platform, placing your ads on Google Search, YouTube, Gmail, and partner sites. For businesses that need leads quickly, it is one of the few channels that can send ready-to-buy visitors to your website on the same day you launch.

How Google Ads works

Each time someone searches, Google runs a fast auction between advertisers. Your position and cost depend on your bid and on your Quality Score, which reflects how relevant your ad and landing page are to the search. This means a better ad and page can win more clicks at a lower price than a competitor who simply bids more.

Main Google Ads campaign types

• ▸Search: text ads shown when people search for specific keywords. Best for high-intent leads.
• ▸Shopping: product listings with images and prices, essential for e-commerce.
• ▸Performance Max: automated campaigns across Google channels, driven by your goals and assets.
• ▸Display and YouTube: visual and video ads for awareness and remarketing.
• ▸Local campaigns: ads that promote store visits and calls.

How much should you spend on Google Ads?

Start from your numbers, not a round figure. If your average sale is worth $1,000, you close one in five leads, and you are willing to spend up to $200 to win a customer, then you can pay about $40 per lead. If keywords in your market cost $4 a click and 10% of visitors enquire, each lead costs about $40. Multiply the leads you want by that cost and you have a monthly budget with a logic behind it.

Set up conversion tracking first

Google's algorithms optimize toward the conversions you tell them about. Track form submissions, phone calls, bookings, and purchases through Google Tag Manager or Google Analytics 4. Without that, you are paying for clicks and guessing at results.

Mistakes that waste ad spend

• ▸Sending all traffic to the homepage instead of a focused landing page. See landing page vs homepage for PPC.
• ▸Using broad match keywords with no negative keywords, which attracts irrelevant searches.
• ▸Ignoring search terms reports, where wasted spend hides.
• ▸Not separating brand and non-brand campaigns.
• ▸Judging results after three days instead of allowing for a learning period.

Google Ads or SEO?

They are complementary. Ads are fast and controllable but stop when the budget stops. SEO is slower but keeps paying after the work is done. Most businesses benefit from starting with ads while SEO matures. Our comparison of Google Ads vs SEO helps you choose where the first dollar should go.

We manage Google Ads, Meta Ads, and LinkedIn Ads for businesses worldwide with fixed management fees. Request a free ads audit and we will show you where your budget is leaking.