If you're new to online advertising, one of the first questions you probably have is: “How do Google search ads actually work?”
Maybe you’ve heard of Google Ads before but haven’t tried it yourself. It can seem confusing at first — and it’s natural to worry about wasting your money if you don't fully understand the system.
Let’s break it down step-by-step. In this guide, you'll learn how search ads appear, when you pay, where the clicks go, and why some ads rank higher than others.
Where Do Google Search Ads Show Up?
When you search for something on Google, the very first few links you see often have a small label that says [Sponsored]. That label means you're looking at a Google search ad.
For example, if you search for “auto repair near me,” the top result might be an ad from a local shop. But how did that ad get there?
Google Uses an Auction System
Every time someone searches on Google, an auction happens behind the scenes to decide which ads show up.
It’s not just about who bids the most money. Two main factors determine your ad's position:
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Your bid (how much you're willing to pay per click)
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Your quality score (how useful and relevant your ad is)
Google gives every ad a Quality Score from 1 to 10, based on how well it matches the search and how likely people are to click it.
Here’s a simple example:
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Shop A bids $3 per click but has a Quality Score of 4
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Shop B bids $2 per click but has a Quality Score of 9
Even though Shop B bids less, they can rank higher because their ad is more relevant. Google prefers better ads over just higher bids.
You Only Pay When Someone Clicks
One big advantage of Google Ads is that you don’t pay just for showing up. You only pay when someone actually clicks your ad.
If 100 people see your ad but no one clicks, you pay nothing.
This model is called pay-per-click (PPC). You can also set a daily budget (for example, $10 a day), and Google will never exceed that limit.
What Are Keywords?
In Google Ads, you choose the search terms you want your ad to appear for. These terms are called keywords.
For an auto repair shop, good examples of keywords might be:
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auto repair
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brake replacement
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affordable car service
But not all keywords are equally useful. Broad terms like "auto repair" are very competitive and expensive. Plus, many searchers might not be ready to book yet — they’re just browsing.
Compare that to a more specific phrase like “affordable brake service near me.” It gets fewer searches, but the people searching are often much closer to making a decision.
This is called a long-tail keyword, and it's usually more effective for beginners.
Where Do Clicks Lead?
When someone clicks your ad, they’re taken to your landing page. This could be your website, a service page, or a booking form.
Your landing page is critical. If it’s slow, confusing, or missing important information, people will leave — and you’ve already paid for that click.
A good landing page should:
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Load quickly
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Clearly explain your service
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Show how to contact you or book an appointment easily
This is part of what’s called a sales funnel — guiding visitors from a click to becoming a customer.
Final Thoughts
Starting a Google search ad campaign is easy. Getting real results, though, requires a little strategy.
Here’s a quick recap of what we covered:
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Google ranks ads using an auction system
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You only pay when someone clicks
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Smart keyword choices can save money and improve results
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A strong landing page is key to converting visitors
Understanding these basics can save you time and money—and if you want to see what it looks like in the real world, check out this case study showing how we made Google Ads profitable for an auto repair shop.