What is Google Ads and what is it used for?

What Is Google Ads

Content supervised by Claudio Heilborn

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Imagine for a moment that you have a physical store in the center of a bustling city. Every day, thousands of people pass by your storefront, but many of them don’t even notice you exist. Now, what if you could display a bright sign at the exact moment someone is looking for exactly what you sell? That is, in essence, the magic of Google Ads.

Google Ads is the world’s most powerful online advertising platform, developed by Google to allow businesses of all sizes to display their ads to the right people, at the right time. This tool revolutionizes digital marketing because it allows you to appear in Google search results, on YouTube, and across millions of partner websites, connecting your business with users who are already looking for what you offer.

In a world where over 90% of online searches happen on Google, understanding what Google Ads is and what it’s used for has become essential for any successful digital marketing strategy. It’s not just about creating ads—it’s about building bridges between the needs of your potential customers and the solutions your company can provide.

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What is Google Ads? Is it the same as Google AdWords?

To answer what Google Ads is, we first need to clear up a common confusion. Many people still wonder if Google Ads is the same as Google AdWords, and the answer is both yes and no. Google AdWords was the original name of the platform since its launch in 2000, but in 2018, Google decided to change its name to Google Ads as part of a broader rebranding strategy.

The name change wasn’t just cosmetic. Google wanted to reflect the evolution of its platform, which had grown far beyond simple “advertising words” (AdWords) to become a complete digital advertising ecosystem. Today, when we talk about Google Ads, we’re referring to a comprehensive platform that includes search, display, video, shopping, and mobile app advertising.

This transformation also marked a turning point in how businesses can leverage Google Ads Services to reach their audience. It’s no longer just about bidding on keywords—now you have access to artificial intelligence tools, automation, and advanced targeting that make every advertising dollar more effective and measurable.

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How does Google Ads work?

Understanding how Google Ads works is like understanding the rules of a very sophisticated auction that happens millions of times per second. Every time someone performs a search on Google, an automatic process is triggered where different advertisers “compete” to have their ad shown in the top results.

The core of the system is keywords. When you set up a Google Ads campaign, you choose specific terms related to your business. For example, if you sell athletic shoes, you might choose keywords like “running sneakers” or “sports footwear.” When a user searches for these terms, your ad has the opportunity to appear. But here’s the interesting part: Google doesn’t just consider how much you’re willing to pay, but also the quality and relevance of your ad.

The organizational structure is key to success. Your account is divided into:

  • Campaigns, each with a specific goal.
  • Ad groups, which group related keywords.
  • Individual ads.

The budget is controlled at the campaign level, allowing you to allocate your investment based on your business priorities. The payment model is flexible: you can choose to pay per click (PPC), per impression, or per conversion, depending on your specific goals.

Main goals and benefits of Google Ads

The question “what is Google Ads used for?” has multiple answers, because this platform is a Swiss army knife of digital marketing. Its versatility allows both a startup with a limited budget and a multinational company to find value in its tools, though obviously with different scales and strategies.

The main goals include driving qualified traffic to your website, capturing quality leads, increasing online sales, boosting brand visibility, and promoting products and services.

But the benefits of Google Ads go far beyond these basic objectives. Targeting is so precise that you can show your ads only to people of a certain age, geographic location, specific interests, or even past buying behaviors.

Budget control is another key advantage. You can start with as little as $10 pesos per day and scale gradually based on results. The results are fully measurable: you know exactly how many people saw your ad, how many clicked, how many became customers, and how much each conversion cost you. This transparency allows you to continuously optimize your advertising investment, something unthinkable with traditional media like radio or television.

👉 What is lead generation and what does a lead generation agency do? We explain it in our latest blog post!

Types of campaigns and ads available on Google Ads

The variety of Google Ads campaign types may seem overwhelming at first, but each type has its specific purpose and ideal use case. Think of each type as a different tool in your digital marketing toolbox.

Types of campaigns in Google Ads

Here’s a list of the main types of campaigns in Google Ads so you can identify which best suits your goals:

  • Search Campaigns: Ideal for capturing purchase intent. Your text ads appear in Google search results when users look for terms related to your products or services. For example, if someone searches for “buy flowers online”.
  • Display Campaigns: Perfect for branding and remarketing. Your graphic ads (banners, images) are shown across a vast network of websites, apps, and Google properties (like YouTube and Gmail).
  • Video Campaigns (YouTube): Great for storytelling and generating engagement. Your video ads appear before, during, or after videos on YouTube, or in YouTube search results.
  • Shopping Campaigns: Essential if you run an e-commerce store. These show your products directly in search results with an image, title, price, and store name.
  • Discovery Campaigns: Designed to reach audiences in Google feeds (Discover), YouTube’s homepage, and the Promotions and Social tabs in Gmail, using visually rich ads.
  • Performance Max Campaigns: Leverage Google’s AI to access the entire Google Ads inventory from a single campaign, optimizing toward your conversion goals.
  • App Campaigns: If you have a mobile app, these campaigns help promote downloads and in-app engagement across Search, Google Play, YouTube, Display, and Discover.

Types of ads and supported formats

The types of Google Ads range from simple text ads to immersive multimedia experiences. Text ads are the foundation: headline, description, and URL—ideal for search campaigns. Responsive ads automatically adjust to the available space, optimizing performance based on context.

Image and banner ads allow for visual creativity, while video ads leverage the power of audiovisual storytelling. Shopping ads display products with images, prices, and ratings, making quick purchase decisions easier. Each format has its ideal time and place within the customer journey.

Types of keyword match types

When setting up a Search campaign, the keyword match types in Google Ads are essential. They determine how closely a user’s search must match your keywords for your ads to show. Choosing the right match type directly affects your ad reach and cost per click (CPC). Here are the main types:

  • Broad Match: This is the default option and offers the widest reach. Your ad may appear for searches that include synonyms, misspellings, related searches, and other relevant variations. For example, if your keyword is [women’s sneakers], your ad might show for [buy female athletic shoes]. It’s useful for discovering new keywords, but it requires close monitoring and the use of negative keywords.
  • Phrase Match: Your ads can appear for searches that include the meaning of your keyword. There may be words before or after, but the implied meaning must be preserved. In your campaign setup, these keywords are marked with quotation marks: [“running shoes”]. For example, your ad could be triggered by [“buy blue running shoes”] or [“best running shoes on sale”]. It offers a good balance between reach and control.
  • Exact Match: This provides the highest control and usually the highest relevance. Your ads only show for searches that have the same meaning or intent as your keyword. In campaign setup, these keywords are marked with square brackets: [red sneakers size 7]. For example, the ad would trigger for “red sneakers size 7” or “size 7 red sneakers.” It’s ideal for high-performing keywords.
  • Negative Keywords: These aren’t a match type per se but a tool to prevent your ads from showing for irrelevant searches. In campaign setup, these keywords are marked with a minus sign: [-free]. If you sell professional software, you might add [-free] or [-course] to avoid showing up in searches for free versions or tutorials.

How to create an effective campaign in Google Ads?

Creating a successful Google Ads campaign is like building a house: you need solid foundations, a well-planned structure, and attention to detail. The process starts long before opening the platform. It begins with a clear definition of your business goals and a deep understanding of your target audience.

The first step is to set SMART goals (specific, measurable, achievable, relevant, and time-bound). Do you want to generate 50 new leads per month? Increase online sales by 30%? Boost brand awareness in your city? Each goal requires a different strategy. Then, define your monthly and daily budget, keeping in mind that Google Ads can fluctuate up to 20% above your daily budget on high-demand days.

Your demographic and geographic targeting must align with your ideal customer. If you sell pet products in Buenos Aires, there’s no point in showing ads in Mendoza. Likewise, keyword research is crucial: use tools like Google’s Keyword Planner to identify relevant terms with good search volume and manageable competition.

Create compelling ads with clear calls to action, use ad extensions to occupy more space and provide extra information, and set up conversion tracking from day one to measure the real ROI of your investment.

👉 In our latest blog post, we explained step by step how to pay for Google Ads.

Frequently Asked Questions about Google Ads

Before we wrap up, let’s address some common questions that often come up when considering advertising on Google Ads.

Is Google Ads suitable for all types of businesses?

Yes. Google Ads is designed to suit both small businesses and large corporations. The key lies in setting up the campaign properly based on each business’s goals, budget, and target audience.

How much does it cost to advertise on Google Ads?

There is no mandatory minimum amount. You can start with low budgets and adjust based on results. Google Ads management allows you to pay per click, impression, or conversion, and spending control is entirely in the advertiser’s hands.

How quickly can you see results with Google Ads?

Results can start to appear within a few days. However, continuous optimization is essential to maximize performance over the medium and long term.

What is the difference between SEO and Google Ads?

This is one of the most frequently asked questions in digital marketing, and the answer isn’t “one or the other,” but rather “when to use each one.” SEO (Search Engine Optimization) focuses on getting free organic traffic by optimizing your website to appear naturally in search results. It’s a long-term strategy that can take 3 to 6 months to show significant results, but once established, it can generate consistent traffic with no direct cost per click.

Google Ads, on the other hand, is paid advertising that generates immediate results but requires ongoing investment. Each click has a cost, but you have full control over when, where, and to whom your ads are shown. While SEO may be more cost-effective in the long run, Google Ads offers immediate scalability and predictability.

The ideal strategy for most businesses combines both approaches: SEO to build sustainable organic presence, and Google Ads for immediate results and specific promotions. They’re not competitors—they’re complementary.

How is Google Ads paid in Argentina?

In Argentina, you can pay for Google Ads using credit, debit, and prepaid cards, as well as platforms like Mercado Pago. It’s important to consider tax aspects such as IVA, AFIP withholdings, and the PAIS tax, which can increase the final cost. To optimize your budget, it’s recommended to plan your targeting carefully and monitor performance regularly.

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Your next step with Google Ads

Google Ads is much more than just an advertising platform—it’s a digital transformation tool that can take your business from online invisibility to prominence in search results. Throughout this article, we’ve explored what Google Ads is and what it’s used for, discovering that its true value lies not just in generating clicks, but in creating meaningful connections between businesses and consumers at the exact moment of purchase intent.

The versatility of advertising with Google Ads enables businesses of all sizes to find growth opportunities—from local shops looking to attract neighborhood customers to national companies planning international expansion. With campaign types ranging from basic search to complex multimedia experiences, and flexible payment options to fit various budgets, Google Ads democratizes access to audiences that were once reserved only for big corporations with million-dollar budgets.

As an essential part of an effective digital marketing strategy, Google Ads works best when combined with strong SEO, quality content, and an optimized user experience. Success doesn’t come automatically—it requires strategic planning, skilled execution, and ongoing optimization. That’s why many successful businesses choose to work with a Google Ads agency to maximize ROI and avoid costly mistakes.

If you’re considering implementing Google Ads in your digital marketing strategy, remember that every peso invested should be measurable and every campaign should have clear objectives. At MD Marketing Digital, we understand that every business is unique and requires a personalized approach to fully harness the power of this platform. Are you ready to take your business to the next level with Google Ads?

Eugenia Villegas

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