Google Ads

Google Ads is Google's advertising platform that lets you show paid ads in search results, on websites, in apps and on YouTube. You bid on keywords, pay only when someone clicks, and determine your daily budget and target audience. For SMEs, it's a direct way to become visible to people actively searching for your product or service.

How Google Ads' bidding system works

Google Ads works with an auction system. You choose keywords you want to advertise on, write an ad and decide how much you want to pay maximum per click. When someone searches for that keyword, Google compares all advertisers bidding on that term. The winner is determined by a combination of your bid, the quality of your ad and the relevance of your landing page. This is called the ad score. A higher quality score means you have to pay less for the same position. You never pay more than necessary: the system charges you one cent more than the advertiser below you would pay. That makes the platform more accessible than many business owners think.

Why Google Ads came into being and why it still works today

Google launched AdWords in 2000 to monetize search results without compromising the user experience. The idea was simple: show ads that match what someone is searching for, so they remain relevant. In 2018, the name was changed to Google Ads, as the platform had come to encompass much more than just search ads. It still works today because it links ads to intent. Someone searching for “accounting software for freelancers” has a specific need. That makes Google Ads more effective than many other channels where you have to convince a cold audience.

What Google Ads delivers for Dutch SMEs

With Google Ads, you can be visible to your target audience within a day, without waiting months for organic rankings. You immediately measure what works: which keywords generate conversions, which ads perform best and what your cost per acquisition is. That makes the platform suitable for companies that want to grow quickly or have seasonal peaks. In practice, we see with SME clients that Google Ads works best as a complement to a well-thought-out SEO strategy. SEO builds long-term visibility, Google Ads delivers immediate traffic. Together, they cover both the short and long term. Learn more about how search ads work in the official Google Ads documentation.

Google Ads offers more than just search ads. You can use the platform for direct lead generation, brand awareness, retargeting and product promotion. Which application works best depends on your target audience, your margin and the stage your business is in. Here are four concrete scenarios from SME practice.

Search ads for direct lead generation

This is the most common use case: you advertise on high-intent keywords, such as “painter Nijmegen ” or “bookkeeper for a sole proprietorship.” Someone searching this way has a specific need and is often willing to get in touch quickly. You direct these visitors to a landing page with a clear offer and a form or phone number. In practice, we’ve found that this works best for service providers with a high order value and a local service area. Think of lawyers, consultants, installers, or B2B service providers. Your cost per click is often between 1 and 5 euros, depending on competition and industry. A well-crafted ad with a relevant landing page can achieve a conversion rate of 5 to 15 percent.

Shopping campaigns for ecommerce stores

If you have an ecommerce store, you can use Google Shopping. Your products will then appear at the top of the search results with an image, price, and store name. This works especially well for physical products with a clear need—think of furniture, tools, clothing, or electronics. You link your product feed to Google Merchant Center, and Google automatically displays the right products for relevant search queries. Our experience shows that Shopping campaigns often have a lower cost per acquisition than text ads, because the buyer sees the price and product before clicking. This filters out non-serious clicks. An ecommerce store with 500 products can generate 20 to 40 percent of its revenue this way, provided the margins are large enough to cover the advertising costs.

Display and video campaigns for brand awareness

Google Ads also offers display ads on millions of websites and video ads on YouTube. These are not direct-response campaigns, but work well to build brand awareness or warm up a target audience. You can advertise based on interests, demographics or previous website visits. An example: a furniture store in Arnhem wants to increase brand awareness in the region. It deploys a video campaign with a short tour of the showroom, targeting people within 25 kilometers who are interested in interior design. The cost per view is often between 2 and 10 cents. This type of campaign rarely delivers direct conversions, but it does increase brand recognition, which later feeds through into organic search behavior and word of mouth.

When Google Ads is the right choice and when it is not

Google Ads works best if you have a clear offer, a good margin and a well-functioning website. It is less suitable if your margin is too low to bear advertising costs, if your target audience does not actively search Google, or if your landing page does not convert. A common mistake is advertising without first having your conversion optimization in order. Then you pay for traffic that generates nothing. Also, Google Ads is not always the best choice for very niche businesses with a small target audience: then LinkedIn or direct networking can be more effective. Want to know if Google Ads is right for your situation? Check out the possibilities through our SEO and SEA services.