How often do you search on Google? If you’re like most people, it’s many times a day. Your customers are doing the same thing, which makes search engines one of the best places to put your business in front of people who are ready to buy.
At first glance, Google Ads seems simple enough. Just pick a few keywords, create an ad, and sit back while the business rolls in! Unfortunately, it’s not that simple. Choose the wrong campaign type or weak keywords, and you’ll waste a lot of time and money on ads that don’t pay off.
In this guide to Google Ads for small business, we’ll cover what search engine advertising is, how it differs from SEO, the types of Google Ads you can run, how Search ads compare to Display ads, and how to strengthen your keywords so every dollar works harder.
What We’ll Cover
- What Is Search Engine Advertising?
- SEA vs. SEO: What’s the Difference?
- Where Search Engine Ads Show Up
- Google Ads Terms to Know
- Types of Google Ads Campaigns
- Google Search Ads vs. Display Ads: Which Is Right for You?
- How to Strengthen Your Google Ads Keywords
- Getting the Most From Google Ads
1. What Is Search Engine Advertising?
Search engine advertising (SEA) is paying to show your ads on search engines like Google and Bing. Your ads appear when people search for words related to your business, usually at the top or bottom of the results, with a “Sponsored” label.
SEA is one of the fastest ways to get your product or service in front of potential customers and boost your online visibility. It does take some setup and ongoing management, but you can start with a small budget and only pay when someone engages with your ad.
2. SEA vs. SEO: What’s the Difference?
Search engine advertising and search engine optimization both help people find you on Google, but they work very differently.
- SEO (search engine optimization) is how you earn organic, unpaid rankings by improving your website, content, Google Business Profile, and reputation. It takes time to build, but the results are long-lasting and great for brand awareness.
- SEA (search engine advertising) puts you at the top of the results right away, but only for as long as you’re paying. When your budget stops, your ads stop.
SEA also gives you more targeting control. You can choose exactly which searches, locations, times of day, and devices your ads show for. The two work best together: ads bring in leads now, while local SEO builds the long-term visibility that keeps them coming.
3. Where Search Engine Ads Show Up
In the U.S., the two main search advertising platforms are:
- Google Ads: Shows ads on Google Search, Google Maps, YouTube, and millions of partner websites and apps.
- Microsoft Advertising: Shows ads on Bing, Yahoo, and other Microsoft partner sites. It’s smaller than Google, but clicks are often cheaper.
Where your ad appears isn’t just about how much you bid. Google uses something called Ad Rank, which looks at your bid, the quality of your ad and landing page, the context of the person’s search (like their location and device), and the expected impact of your ad assets, like your phone number and sitelinks. That’s why a well-written, relevant ad can outrank a competitor who’s bidding more.
4. Google Ads Terms to Know
Here are the basic terms you’ll see when running search engine ad campaigns:
- Pay per click (PPC): The type of advertising where you pay each time someone clicks your ad. Google Ads is the most common PPC platform.
- Cost per click (CPC): The actual amount you pay for each click. PPC is the model; CPC is the price.
- CPM (cost per thousand impressions): You pay for every 1,000 times your ad is shown. This is mostly used for Display and Video ads, not Search. On Google, Display campaigns use viewable CPM (vCPM), so you only pay when your ad actually had a chance to be seen.
- Impressions: The number of times your ad was shown.
- Click-through rate (CTR): The percentage of people who saw your ad and clicked it.
- Quality Score: A 1 to 10 rating Google gives each keyword based on how relevant your ad and landing page are and how likely people are to click.
- Conversion: The action you want people to take, like calling, filling out a form, or booking.
5. Types of Google Ads Campaigns
Google offers several campaign types. Depending on what you’re advertising, some will fit your business better than others.
- Search: Text ads on Google search results. Best for reaching people actively searching for what you offer.
- Performance Max: One campaign that uses Google’s AI to show your ads across Search, Maps, YouTube, Display, Gmail, and Discover.
- Display: Image ads on websites and apps across Google’s Display Network. Best for building awareness and retargeting past visitors.
- Video: Video ads on YouTube.
- Demand Gen: Visual ads in YouTube (including Shorts), Gmail, and Discover feeds.
- Shopping: Product listings with photos and prices, for businesses that sell products online.
- App: Ads that promote downloads of your mobile app.
For local service businesses: Local Services Ads are a separate Google program for businesses like plumbers, HVAC, lawyers, and cleaners. They show at the very top of the results, you pay per lead instead of per click, and they pull reviews from your Google Business Profile.
6. Google Search Ads vs. Display Ads: Which Is Right for You?
Search ads and Display ads are both part of Google Ads, but they reach people at very different moments. Knowing the difference is one of the most important parts of using Google Ads for small business. The best strategy for most businesses uses both.
Search Ads Reach People Who Are Ready to Buy
Search ads show up based on what people type into Google. Someone searching “emergency plumber near me” needs help now, so a Search ad puts you in front of them at exactly the right moment. That’s why Search ads usually bring in the most calls and leads for local businesses.
Display Ads Build Awareness and Bring People Back
Display ads use images to reach people while they browse websites, read the news, use apps, or watch YouTube. They’re not usually in “shopping mode,” and that’s okay. Display ads help you:
- Build brand awareness, so people already know your name when they need you
- Retarget people who visited your website but didn’t call or buy
- Complement your other advertising, from print to social media, with eye-catching creative
How You Pay
Search ads are usually paid per click (CPC). The price depends on your bid, your ad quality, and how competitive the keyword is. Display ads can be paid per click or per 1,000 viewable impressions (vCPM). Display clicks are typically much cheaper than Search clicks, but they also tend to convert at a lower rate, because people aren’t actively searching.
Reach
Google’s Display Network includes millions of websites, apps, and YouTube channels, so Display ads can reach a huge audience. Search ads reach fewer people, but those people are actively looking for what you offer.
The bottom line: start with Search ads to capture people who are ready to buy, then add Display ads to build awareness and retarget visitors who weren’t ready yet. If you want Google to manage both for you, Performance Max combines them in one campaign.
7. How to Strengthen Your Google Ads Keywords
If you’re running Search ads, your keywords make or break your results. Weak keywords mean wasted clicks and money. Here’s how to make them stronger.
Make Your Keywords Relevant
Your keywords need to match your service or product. People are most likely to click on an ad when they’re searching for something specific, so your keywords should be specific, too.
Let’s say you run a carpet cleaning business. If you use “cleaning” as a keyword, your ad might show to people searching for cleaning supplies or dry cleaning. Neither is likely to call you. Instead, use specific phrases like “carpet cleaning service” or “carpet cleaners near me.” Make sure your keywords match the page your ad sends people to, so there’s no confusion.
You’ll also choose a match type for each keyword:
- Broad match: Shows your ad for searches related to your keyword. It reaches the most people, and Google recommends pairing it with automated bidding.
- Phrase match: Shows your ad for searches that include the meaning of your keyword.
- Exact match: Shows your ad for searches with the same meaning as your keyword. It gives you the most control.
On a small budget, phrase and exact match give you more control over where your money goes. If you need help finding keywords, Google Keyword Planner is free with your Google Ads account.
Use Negative Keywords
Negative keywords stop your ads from showing for searches you don’t want. Our carpet cleaner might add “jobs,” “DIY,” “rental,” and “how to” as negative keywords, so they don’t pay for clicks from people looking for work or trying to clean their own carpets. Check your search terms report regularly and add new negative keywords as you spot wasted clicks.
Use Filters to Find Weak Keywords
Filters in your Google Ads account make it easy to spot underperforming keywords:
- Status: Filter for keywords marked “Low search volume.” These rarely trigger your ads, so try a more common variation.
- Quality Score: Find keywords with a Quality Score of 3 or less. Improve the ad and landing page for those keywords, or replace them.
- Click-through rate (CTR): Compare each keyword’s CTR to your account average. Keywords well below average may need better ad copy or a more relevant match.
- First page bid estimate: If you set bids manually, this shows about how much you’d need to bid to appear on the first page of results. Raise bids on your most valuable keywords if they’re falling short.
Include Keywords in Your Headlines and Descriptions
Once you’ve chosen your best keywords, use them in your ads so searchers know right away that your ad matches what they’re looking for. Today’s Search ads are responsive search ads. You write up to 15 headlines and 4 descriptions, and Google mixes and matches them to find the best combinations.
For example, a carpet cleaning business targeting “carpet cleaning service” should include that phrase in several headlines and at least one description. If you want a headline with your main keyword to always appear, you can “pin” it to the first position. Just don’t pin too many, since that limits Google’s ability to test what works best.
8. Getting the Most From Google Ads
Google Ads for small business is a powerful tool when it’s set up the right way. Pick the right campaign types, target the right areas, choose strong keywords, and keep testing.
For more ways to stretch your budget, check out our guide to geotargeted advertising and optimizing your local ads. And remember, there’s more to winning customers than ads alone. Reviews, SEO, and your Google Business Profile all play a part, because many people will check your online reputation before they click.
We at RebelFish Local are here to help your business thrive. Schedule a call with us today to learn more about the services we offer!
Robert & Liz, RebelFish Local CoFounders, doing local volunteer work.
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