Advertising in Google Ads – how to set up

Google Ads contextual advertising is a key source of advertising traffic used by global giants like Amazon, Ebay, and AliExpress, as well as small and medium-sized businesses.

For example, a person typing “buy running shoes” is almost certainly ready to make a purchase, and if they land on your site, it is very likely they will buy from you!

Another important factor is the versatility of Google Ads. The platform allows you to set up both local campaigns for small cafes or shops and large-scale advertising strategies for international brands.

Competition is intensifying, and advertisers who launch campaigns without proper preparation risk simply “draining” their budget without achieving tangible results.

In this article, I, Maksym Dymura, will share a complete guide to setting up Google Ads in 2025. We will discuss:

• How to properly choose keywords and set bids.
• What types of campaigns to use for different goals.
• How automation helps save time and budget.
• The most common mistakes advertisers make and how to avoid them.

How Google Ads Works: Key Principles

To effectively set up advertising in Google, you need to understand the main principle of how the platform works.

However, the winner of this auction is not simply the one who offers the most money per click. In fact, the platform considers three key factors to determine whose ad will be shown and in what position:

• Cost per click (CPC)
  This is the maximum amount an advertiser is willing to pay for a click on their ad. However, it’s important to remember that you only pay as much as needed to outbid a competitor, not the entire specified amount.
• Quality Score
  This metric measures the relevance of the ad, keyword, and landing page to the user’s query. The higher your Quality Score, the lower your cost per click and the higher your chances of ranking at the top.

• Expected impact of the ad display
  Google’s algorithms assess how useful and appealing the ad might be to the user. Factors include the likelihood of a click, the use of ad extensions (links, phone numbers, addresses), and previous interactions with your brand.

Google multiplies your bid by your Quality Score to calculate the Ad Rank – a key metric that determines ad placement. This means that even with a low budget, you can compete with larger players if you have more relevant and high-quality ads.

Types of Advertising Campaigns in Google Ads

Google Ads is a comprehensive tool that offers a variety of advertising options for different business tasks.

In this article, I will focus on search advertising, but it won’t hurt to briefly introduce the platform’s full range of possibilities.

Search Campaigns

These are ads that appear on the search results page. They are ideal for those who are already searching for your product or service.

Google Display Network (GDN)

These campaigns place banners on websites and in apps that are part of Google’s display network. They work well for increasing brand awareness.

Video Ads (YouTube)

Video ads are a great way to engage your audience. Such campaigns allow you to showcase your products in action.

Performance Max

This is an automated type of campaign that covers all Google platforms. It is perfect for companies looking to maximize their reach.

Local Campaigns

These campaigns attract customers to offline locations: stores, cafes, salons.

Setting Up a Google Ads Account

Before launching search contextual advertising on Google, it is important to properly set up your Google Ads account. This is the foundation that determines the effectiveness of your campaigns. Here’s what needs to be done:

1. Create an account and select a currency
   

   Register on the Google Ads platform, providing your company information and advertising goals.

   Pay special attention to selecting the currency, as it cannot be changed later.

   If you operate in dollars, choose this currency – it will simplify expense analysis.

   

2. Define the account structure

   An effective structure allows you to manage campaigns with maximum precision. A Google Ads account consists of the following levels:

   • Campaigns
     This is the top level of the structure. At this stage, you set the budget, goals (e.g., “increase conversions” or “site traffic”), and campaign type (search, display, video, etc.).
   • Ad Groups
     Each campaign is divided into ad groups, which group keywords and ads by topic. For example, for an online clothing store, one ad group could focus on “winter jackets,” while another could target “summer t-shirts.”
   • Keywords
     These are terms that determine which search queries trigger your ad. It is important to carefully select keywords to attract relevant audiences. Additionally, use negative keywords to exclude irrelevant traffic.

   

   • Ads
     At this level, you create the ad texts and visuals that the user sees. They should be as relevant and appealing as possible to encourage clicks.
Example structure for a dental clinic:
• Campaign: “Teeth Whitening”
  Goal: Increase the number of inquiries.
  Budget: $30 per day.
• Ad Group: “Professional Whitening”
  Keywords: “teeth whitening price,” “professional teeth whitening.”
  Ad:
  Headline: “Teeth Whitening in 1 Visit – 20% Discount.”
  Description: “Get a Hollywood smile in 60 minutes. Sign up now for a free consultation!”
• Ad Group: “Home Whitening”
  Keywords: “home teeth whitening,” “teeth whitening gels.”
  Ad:
  Headline: “Home Whitening – Results in 7 Days.”
  Description: “Professional teeth whitening solutions. Free consultation and selection!”
3. Avoid common mistakes:
   • Using one campaign for all products or services. This complicates management and reduces relevance.
   • Skipping the step of adding negative keywords. For example, a dental clinic could waste its budget on irrelevant queries like “free at-home teeth whitening.”
   • Ignoring geotargeting. Ensure your ads are shown only in regions where you provide services.

How to Choose Keywords: Analyzing User Intent

Keywords are the foundation of a search advertising campaign. They determine which user queries will trigger your ad. Proper keyword selection helps attract relevant audiences, lower the cost per click, and increase conversions.

Types of Keywords by Intent

To make contextual advertising truly effective, it is important to understand the intent behind user queries. Here are the main types of keywords to consider when creating campaigns:

1. Generic Keywords (Head Terms)

   These are short, broad terms, such as “TV,” “sneakers,” or “smartphone.”

   • High competition: These queries are popular, making it difficult to compete with major brands.
   • Low relevance: Users entering generic queries are usually in the early stages of research, comparing options, and not yet ready to purchase.

   Recommendation: Use generic keywords to increase brand awareness or as part of a broad strategy. For instance, if you are launching a new product, such keywords can help you reach a wide audience.

2. Branded Keywords

   These queries are associated with searching for a specific brand, company, or website. Examples: “Nike official site,” “Apple Store New York.”

   • Advantages:
   • High likelihood of driving traffic to your brand’s site.
   • Boosts brand awareness and trust, especially if competing against well-known players.

   Recommendation: Protect your brand by adding your own name to campaigns to prevent competitors from intercepting your traffic with their ads.

3. Informational Keywords

   These queries are entered by users seeking knowledge or solutions to specific problems. Examples: “how to choose a TV,” “best running shoes for a marathon.”

   • These queries rarely lead directly to sales.
   • Users are in the research phase, preparing to make a purchase.

   Advantages: Advertising for informational queries allows you to attract an interested audience while showcasing your brand’s expertise and value. For example, an electronics store might run an ad “Tips for Choosing a TV 55 Inches or Larger” linking to a blog post with recommended products on the page.

   Recommendation: Use informational queries as part of a content marketing strategy or to warm up your audience before a transaction.

4. Location-Based Keywords

   These queries include location details or imply a local search. Examples: “cafes in downtown Chicago,” “car repair near me.”

   • These queries are often entered on mobile devices, signaling readiness to act.
   • They are great for attracting customers located near your business.

   Recommendation: Localize your ads. Add addresses, phone numbers, and links to Google Maps. For instance, a pizzeria owner could use the query “order pizza in Downtown” to attract local customers.

Types of Keyword Match

Google Ads offers several types of keyword matching, which determine when your ad will be displayed:

• Broad Match
  Your ad will appear for any search queries related to your keyword, even if the wording differs.
  Example: The keyword “running shoes” could trigger queries like “shoes for running,” “comfortable sports shoes,” etc.
  Recommendation: Use cautiously, as broad match may lead to irrelevant impressions.
• Phrase Match
  Your ad is shown if the user’s query includes your keyword phrase in the exact order.
  Example: The keyword “running shoes” could trigger queries like “buy running shoes” or “women’s running shoes,” but not “shoes for running.”
  Recommendation: Use for more precise targeting of queries closely related to your product.
• Exact Match
  Your ad will only be shown for queries that exactly match your keyword or its close variations.
  Example: The keyword [running shoes] will only trigger the query “running shoes.”
  Recommendation: Use for campaigns with a limited budget and clearly defined goals.

Using Negative Keywords

Negative keywords are queries you do not want your ads to appear for. They help exclude irrelevant traffic and reduce costs.

1. Campaign-Level Negative Keywords
   Negative keywords that apply to all ads within a single campaign. For instance, if you sell only new cars, negative keywords could include “used,” “second-hand,” and “cheap.”
2. Ad Group-Level Negative Keywords
   Negative keywords specific to certain ad groups. For example, in a “Samsung Smartphones” ad group, negative keywords might include “Apple” and “iPhone” to avoid displaying ads for irrelevant queries.

Tools for Selecting Keywords and Negative Keywords

• Google Keyword Planner: For finding new keywords, analyzing search volume, and competition.
• Ubersuggest: For getting keyword suggestions used by your competitors.
• Chat GPT: A great tool to help generate keyword ideas.

Negative Keyword Lists: Build them based on reports in Google Ads (Search Terms section) and by regularly analyzing irrelevant traffic.

How to Create Effective Ads in Google Ads

An ad is the first thing a user sees when interacting with your campaign. Its task is to grab attention, explain the value of your offer, and prompt action.

The better you execute this, the higher your CTR (Click-Through Rate) will be – a key metric that directly impacts ad effectiveness.

Why CTR Matters

• Affects Ad Rank: Google considers click-through rate as an indicator of ad quality. The higher the CTR, the better the position and the lower the cost per click (CPC).
• Shows ad effectiveness: A low CTR indicates that the ad text or offer needs to be revised.

Components of an Effective Ad

Headline: Capturing Attention

The headline is the key element of the ad. It should be concise, relevant to the user’s query, and contain a unique value proposition.

Principles for Creating Headlines:

• Include the keyword (this increases relevance).
• Use numbers, discounts, or urgent offers.
• Focus on the benefit for the client.

Description: Explaining Your Offer

The description complements the headline and provides detailed information about the offer. It’s important to include:

• Benefits (why choose you).
• Call to action (e.g., “Order today”).
• Trust elements (guarantees, reviews, free shipping).

Visible URL: Building Trust

Use a clear and user-friendly display URL that relates to the user’s query. Even if your real URL is long, use a displayed format, such as:

This creates an impression of relevance and professionalism.

Use Ad Extensions

Extensions make your ad more noticeable and informative. They also increase CTR and positively affect Ad Rank.

Main Types of Extensions:

• Sitelinks: For example, “SUV Tires,” “Passenger Car Tires.”
• Callouts: “2-Year Warranty,” “Free Returns.”
• Contact Information: Phone number, address.
• Price Extensions: Display the cost of a product or service.

Example of an Effective Ad

Query: “sushi delivery in Kyiv”

Headline: “Sushi Delivered in 30 Minutes – From $5!”

Description: “Fresh rolls from top chefs. Delivery across Kyiv. Order now and get a 10% discount!”

Displayed URL: example.com/sushi-delivery

Extensions:

• Sitelink: “Menu of Rolls.”
• Callout: “Hot Dishes – Free Delivery.”
• Contact: “Call Us Now.”

How to Manage Bids and Advertising Budgets in Google Ads

Effective budget management and bid strategies allow you to control expenses, attract your target audience, and achieve desired results. Google Ads offers several bidding strategies, each suited for specific goals.

Main Bidding Strategies in Google Ads

1. Maximize Clicks

   This strategy is designed to increase the number of website visits. Google automatically adjusts bids to get the maximum number of clicks within your budget.

   When to Use:

   • For new campaigns to quickly attract traffic.
   • If your goal is to increase website visits.

   Features:

   • Suitable for campaigns with broad targeting.
   • Less focused on traffic quality and conversions, so monitoring performance metrics is essential.
   Example: A company launches a new online store and wants to attract more users. A daily budget of $50 is set, and Google automatically optimizes bids to get the maximum clicks.
2. Target CPA (Cost Per Acquisition)

   This strategy allows you to pay only for specific user actions, such as purchases, form submissions, or phone calls. Google uses past conversion data to optimize bids and keep them within your target CPA.

   When to Use:

   • If you want to pay only for results (e.g., orders or form submissions).
   • For campaigns with clear conversion goals.

   Features:

   • Requires existing conversion data for the algorithm to learn.
   • Suitable for experienced advertisers with a clear understanding of conversion costs.
   Example: An electronics online store sets a target CPA of $15. This means Google Ads will optimize the campaign so that each customer acquisition costs $15 or less.
3. Target ROAS (Return on Ad Spend)

   This strategy focuses on return on investment (ROI). You specify the percentage of revenue you want to earn for every dollar spent, and Google automatically adjusts bids.

   When to Use:

   • If your goal is not just to attract customers but to maximize profitability.
   • For e-commerce stores with high average order values.

   Features:

   • Works best for campaigns with substantial sales data.
   • Ideal for niches where revenue per conversion can be easily tracked.
   Example: A furniture store sets a target ROAS of 400% (i.e., $4 revenue for every $1 spent). Google Ads will show ads to users most likely to make purchases of the required amount.
4. Maximize Conversions

   Google automatically adjusts bids to get the highest number of conversions within your budget.

   When to Use:

   • For campaigns focused on generating leads or increasing sales.
   • Suitable for advertisers who do not want to set bids manually.

   Features:

   • Requires pre-configured conversion tracking.
   • May require a higher budget for algorithmic learning.
   Example: An online school runs a campaign to recruit students for a course using the “Maximize Conversions” strategy to get the highest number of form submissions on their website.



5. Maximize Conversion Value

   This strategy aims to maximize the total value of conversions, focusing on the profitability of actions.

   When to Use:

   • If you want to prioritize not just the quantity of conversions but their value (e.g., high-margin orders).
6. Manual CPC (Cost Per Click)

   This strategy allows advertisers to set bids manually for each keyword or ad group.

   When to Use:

   • If you want full control over expenses.
   • For campaigns with limited budgets.

   Features:

   • Requires time and analytics for monitoring and adjustments.
   • Works well at the initial stage if you lack data for automated strategies.

• Start with testing: Launch campaigns with a small budget to understand which strategies and keywords work best.
• Monitor performance: Regularly check metrics like CTR, CPC, conversions, and ROI. This will help you make timely adjustments.
• Use combined strategies: For example, combine “Maximize Clicks” to increase traffic and “Target CPA” to improve conversions.
• Set daily and total budgets: Define how much you’re willing to spend per day and for the entire campaign period to avoid overspending.
• Optimize for devices and locations: For instance, increase bids for mobile users or certain regions where conversions are higher.

Analyzing Campaign Performance in Google Ads

Launching a Google Ads campaign is just the first step. Regular analysis of key performance indicators (KPIs) helps you understand how effectively your budget is being used and identify ways to optimize. Here are the main metrics to track:

1. CTR (Click-Through Rate)

   CTR shows how effectively your ad grabs users’ attention. It is calculated as the ratio of clicks to impressions, expressed as a percentage.

   Example Calculation:

   If your ad was shown 1,000 times and received 50 clicks:
   CTR = (50 / 1,000) × 100% = 5%

   Why It Matters:

   • A high CTR indicates that your ad is relevant and engaging for the audience.
   • CTR impacts Ad Rank and Quality Score: the higher the CTR, the lower the cost per click (CPC).

   How to Improve CTR:

   • Use keywords in headlines and descriptions.
   • Add extensions (sitelinks, callouts, contact details).
   • Conduct A/B testing for ad texts.
   Example: A food delivery service runs a campaign with the headline “Hot Sushi Delivered in 30 Minutes – 20% Off.” A clear call-to-action and an attractive offer boost the CTR to 6%.
2. CPC (Cost Per Click)

   CPC is the amount you pay for each click on your ad.

   Why It Matters:

   • It helps you understand how much it costs to attract one visitor.
   • It indicates whether you’re staying within your budget.

   How to Reduce CPC:

   • Improve Quality Score (optimize ads and landing pages).
   • Use negative keywords to filter out irrelevant queries.
   • Focus on low-competition keywords.
   Example: An advertiser launches a campaign for the query “sushi delivery in Kyiv.” The initial CPC is $1.20. After adding negative keywords, optimizing headlines, and improving the landing page, the CPC drops to $0.80.
3. Conversions and Conversion Rate (CR)

   A conversion is a target action performed by a user after clicking your ad, such as a purchase, registration, form submission, or phone call.

   Conversion Rate Formula:

   CR = (Number of Conversions / Number of Clicks) × 100%

   Example Calculation:

   If 10 out of 100 clicks result in purchases:
   CR = (10 / 100) × 100% = 10%

   Why It Matters:

   • A high conversion rate shows that your audience is motivated to perform the desired action.
   • It helps evaluate the relevance of your ad and landing page.

   How to Improve CR:

   • Optimize landing pages: ensure fast loading times, clear design, and strong calls to action (CTAs).
   • Target narrow audiences.
   • Include CTAs in your ad texts (“Order now and get 10% off”).
   Example: An online electronics store adds a loan calculator and a “Buy in 1 Click” button to its landing page. This increases the conversion rate from 5% to 8%.
4. ROAS (Return on Ad Spend)

   ROAS measures how much revenue you earn for every dollar spent on advertising.

   Formula:

   ROAS = (Campaign Revenue / Advertising Spend) × 100%

   Example:

   If you spend $500 on advertising and generate $2,000 in revenue:
   ROAS = (2,000 / 500) × 100% = 400%

   Why It Matters:

   • It helps determine whether your advertising is profitable.
   • If ROAS is below 100%, your campaign is operating at a loss.

   How to Improve ROAS:

   • Focus on high-intent keywords.
   • Eliminate unprofitable campaigns.
   • Use automated bidding strategies like Target ROAS.
5. Search Terms Report

   This report shows the actual queries that triggered your ads.

   Why It Matters:

   • Helps identify new relevant keywords.
   • Shows queries to exclude with negative keywords.
   Example: An advertiser discovers that the query “free pizza delivery” generates irrelevant traffic. After adding “free” as a negative keyword, the campaign becomes more effective.
6. Audience and Device Reports

   Google Ads allows you to analyze who interacts with your ads: age, gender, location, and devices.

   Why It Matters:

   • Enables bid adjustments for specific audiences.
   • For example, increasing bids for mobile users if they generate more conversions.

Best Practices for Analyzing Google Ads Campaigns by BUSINESS SITE

• Track key metrics regularly: Analyze data in Google Ads and Google Analytics at least once a week.
• Test different approaches: Use A/B testing for ad texts, targeting, and landing pages.
• Make adjustments: Pause underperforming keywords or ads, and reallocate budgets to successful campaigns.
• Link Google Ads to Google Analytics: This provides access to extended data on user behavior after the click.

Effective campaign analysis is an ongoing process. By regularly reviewing key metrics and optimizing your settings, you can not only reduce costs but also achieve better results.

Conclusion

Advertising on Google Ads is a powerful tool that can transform your business if used correctly. However, success is only achieved through a thoughtful approach that includes detailed setup, regular analysis, and continuous optimization.

Quality over quantity. Relevant keywords, proper account structure, effective ads, and optimized bids will help reduce costs and increase ROI.

The path to successful advertising is a process that requires knowledge, expertise, and time. If you want to save your resources and achieve maximum results, entrust your advertising setup to professionals. At BUSINESS SITE, certified Google Ads specialists work to create campaigns that drive profits.