
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).
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):
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.
There are multiple places where Google Ads can appear.
There are several types of Google Ads 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.
Google Ads and search engine optimization (SEO) are both ways to bring traffic to your website, but they have different strengths and weaknesses.
You don't need to choose between Google Ads and SEO; they complement each other due to their different strengths and weaknesses.
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.
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!