OptimWise - Web Design & Digital Marketing

Have you ever Googled something and seen a result with a small "Sponsored" label above it? That's a Google Ad. Google Ads can be a fast and effective marketing channel. Let's look at how Google Ads work, where they appear, and the types of ads. We'll also compare them to SEO and AI search optimization (AEO/GEO).

How Do Google Ads Work?

Google Ads (formerly Google AdWords) is an auction-based advertising system. Every time someone searches, browses a website, or watches a YouTube video, Google instantly runs an auction among advertisers who want that placement. However, the highest bidder doesn't automatically win; Google blends two things to determine the Ad Rank (who shows up and in what order):

• Bid: the maximum you're willing to pay, usually per click (CPC), though some campaigns bid toward conversions, impressions, or views
• Quality Score: Google's assessment of how relevant and useful your ad, keywords, and landing page are to the user searching

For Responsive Search Ads, Google also considers Ad Strength: Google's assessment of how optimized your ad's headlines, descriptions, images, videos, and other ad elements are.

This means a smaller business with a well-targeted, relevant ad can beat a larger competitor with a less-targeted, less-relevant ad, even if the larger competitor has the higher bid.

It also makes Google Ads especially useful for capturing high-intent traffic from users who are actively looking for a product or service.

Most campaigns are billed on a pay-per-click (PPC) basis, meaning you only pay when someone clicks/taps on them (or, for some formats, when they call, convert, or watch).

You set a budget for each day or for the overall campaign, and Google paces your spend across the day based on when it predicts the best opportunities will appear.

Over the last couple years, Google has pushed AI-managed bidding and campaign types. With these you provide a goal, budget, and creative assets, and Google's machine learning decides where, when, and to whom your ads are shown.

Where Do Google Ads Appear?

There are multiple places where Google Ads can appear.

• Google Search results: at the top and bottom of the page, labeled "Sponsored"
• Google Display Network: banner, image, and responsive ads on millions of sites and mobile apps that have opted to show Google Ads
• YouTube: video ads that play before, during, or alongside videos, and ads in the YouTube feed
• Gmail: ads that appear in the Promotions and Social tabs of users' inboxes
• Google Discover: personalized content feed many users see on their Android phone's home screen or in the Chrome app
• Google Maps: local listings and promoted pins
• Google Shopping: product listings with images, prices, and store names, shown in search results and the Shopping tab
• AI Overviews and AI Mode: AI-generated answers and summaries may include sponsored product cards, recommendations, and links

What Are the Types of Google Ad Campaigns?

There are several types of Google Ads campaigns.

• Search campaigns: text ads based on what user types into Google
• Performance Max (PMax) campaigns: AI-driven campaign type that simultaneously runs across Search, Display, YouTube, Gmail, Discover, Maps, and Shopping from one campaign
• Display campaigns: visual, banner-style ads shown across Google Display Network
• Shopping campaigns: listings of your ecommerce products in search results
• Video campaigns: ads that run before, during, or alongside YouTube content
• Local Services Ads (LSAs): ads for local service businesses (e.g., law firms, accounting firms, real estate agencies, plumbing companies, medical offices) that appear above standard search ads and charge per lead rather than per click
• App campaigns: ads that promote app installs and in-app actions with ads across Search, Play Store, YouTube, and Display
• AI Max for Search: AI-driven campaign type similar to Performance Max, layered onto Search campaigns

Remarketing (also called retargeting) is when users who visit your site are added to an audience list so they see your ads as they browse the web, watch YouTube, check Gmail, etc., keeping your brand top-of-mind.

How Do Google Ads Compare to SEO and AI Search Optimization (AEO/GEO)?

Google Ads and search engine optimization (SEO) are both ways to bring traffic to your website, but they have different strengths and weaknesses.

• Speed: Google Ads can start running within hours or days. SEO usually takes months to build rankings and authority.
• Cost structure: With Google Ads, you pay for every click. With SEO, you pay for the optimization work up front, and you don't pay for clicks.
• Control: With Google Ads, you have a lot of control over which terms (keywords) you show up for, and which pages you send users to. This makes testing easier. With SEO, you can only influence Google and other search engines in how they rank you. This makes testing harder.
• Flexibility: You can pause Google Ads campaigns, change bids, test new ad copy, or shift budget between campaigns at any time. With SEO, you can change your optimization efforts, but it takes time for those changes to influence search rankings.
• Longevity: With Google Ads, as soon as you stop paying, your ads evaporate, along with traffic from them. With SEO, your rankings remain even if you stop SEO work, though over time you'll likely drop in rankings.
• Trustworthiness: Google Ads are clearly labeled as ads, so some users skip them or trust them less. Many users see organic (non-ad) results as less biased and more trustworthy.
• Measurability: The trackability of Google Ads makes it easy to measure their ROI/ROAS (return on ad spend). SEO involves many more factors, making it harder to measure ROI.

You don't need to choose between Google Ads and SEO; they complement each other due to their different strengths and weaknesses.

How Do Google Ads Compare to AI Search Optimization (AEO/GEO)?

AI search optimization (aka answer engine optimization [AEO] or generative engine optimization [GEO]) is another way to bring traffic to your website, through AI platforms such as ChatGPT, Meta AI, Gemini, Perplexity, and Claude.

AI search optimization is more similar to SEO than to Google Ads, and there's a lot of overlap between AI search optimization and SEO (a lot of what's needed to increase AI search visibility is the same as what's needed to increase search engine rankings).

The strengths and weaknesses of AI search optimization are similar to SEO. However, because AI searches tend to be much longer than search engine searches, and because AI search is probabilistic rather than deterministic, it's harder to track AI search visibility than search engine ranking. That makes it harder to track ROI.

Because AI search is probabilistic and models change rapidly, AI search optimization is more of a moving target than SEO.

You don't have to choose between Google Ads and AI search optimization; their different strengths and weaknesses cause them to complement each other.

Want to Grow Your Business with Google Ads?

If you want to generate leads with Google Ads but don't want to learn the ins and outs of Google's complex systems, or you're interested in SEO or AI search optimization, contact us!