Paid search and Google Ads
Paid search puts your business at the top of search results when someone is looking for exactly what you sell. Done well, it brings in customers at a cost you can predict. Done badly, it burns money fast. This guide covers how search ads work and how to set up a small campaign that pays its way.
In short
- Search ads show when people search for terms you choose, and you usually pay only when someone clicks.
- Start small - a few tightly focused keywords, a local area and a daily budget you're comfortable losing while you learn.
- Send clicks to a page that matches the search and makes it easy to call, book or buy.
- Track conversions such as calls, forms and sales, or you'll never know if the ads work.
- Ad claims must be accurate under the Australian Consumer Law, and the platforms have their own ad policies.
How paid search works
When someone searches, search engines show a mix of paid ads (labelled “Sponsored” or similar) and organic results. With paid search:
- You choose keywords: the searches you want your ads to appear for.
- You set a budget and how much you’re willing to pay for a click.
- When someone searches, an auction decides which ads show and in what order, based on your bid and how relevant and useful your ad and landing page are.
- You usually pay when someone clicks (pay-per-click).
Google Ads is the biggest platform in Australia. Microsoft Advertising shows ads on Bing and other partners. The principles are the same.
Paid search suits businesses where people search for what you sell when they need it: emergency trades, local services, specific products, professional services. It suits less well things nobody knows to search for yet.
Before you start
- Know your numbers. What’s a customer worth to you? If an average job is worth $500 profit and one in five enquiries becomes a job, you can afford to pay up to $100 per enquiry to break even. (Example only.)
- Have a page ready that matches what people are searching for (see below).
- Set up conversion tracking so you can see which keywords bring calls, forms and sales.
- Decide a test budget you’re comfortable spending while you learn, often a few weeks of a modest daily amount.
Step 1: Choose keywords
Think like a customer who’s ready to buy:
- Service + location: “electrician Ballarat”, “dog groomer Northcote”
- Problem + urgency: “burst pipe plumber”, “emergency locksmith”
- Specific products: brand, model and size.
Use the platform’s keyword tool to see search volumes and suggestions.
Match types control how closely searches must match your keywords. Start with closer matching (phrase or exact) to keep spending focused, and broaden only once you know what works.
Negative keywords stop your ads showing for searches you don’t want: “free”, “jobs”, “DIY”, “course”, or services you don’t offer. Check the search terms report every week and keep adding negatives. This is one of the biggest money-savers.
Step 2: Set targeting and budget
- Location: only where you can serve customers. Check the settings so ads show to people in your area, not just people interested in it.
- Schedule: show ads when you can answer the phone, or adjust bids for after-hours.
- Devices: many local service searches happen on mobiles; make sure your page works well on a phone.
- Daily budget: start modest. You can increase spending on what works.
- Bidding: automated bidding strategies can work well once you have conversion data. Until then, keep control of costs.
Step 3: Write ads that match the search
- Put the keyword or service in the headline. People click ads that echo what they typed.
- Give a reason to choose you: fast response, local, licensed, upfront pricing, guarantees, reviews.
- Include a call to action: “Call now”, “Book online”, “Get a free quote”.
- Use assets (extensions): phone number, location, sitelinks to key pages, extra details.
- Test different versions and keep the ones that perform best.
All claims must be true. Prices must be accurate, “from” prices must be genuinely available, and words like “cheapest”, “best” or “No. 1” need evidence. The ACCC says claims must be accurate and based on reasonable grounds, and that applies to ads as much as anything else. Search platforms also have advertising policies, with extra restrictions on some industries (such as health, finance and alcohol).
Step 4: Send clicks to the right page
The page someone lands on matters as much as the ad.
- Match the search: someone searching “blocked drain Penrith” should land on a page about blocked drains in Penrith, not your homepage.
- Make the next step obvious: a clickable phone number, a short form or a booking button near the top.
- Show proof: reviews, photos of real work, licences, guarantees.
- Be fast and mobile-friendly.
See Building a small business website and Copywriting basics.
Step 5: Track conversions
Without tracking, you’re guessing. Set up conversions for:
- calls from ads and from your website
- form submissions and bookings
- online sales
- (for some businesses) importing offline sales from your CRM.
Tell visitors how you use tracking and advertising tools in your privacy policy, and respect their cookie choices. See Measuring marketing.
Step 6: Review weekly, improve monthly
Each week:
- check the search terms report and add negative keywords
- pause keywords that spend without converting
- check budget pacing and cost per conversion.
Each month:
- compare cost per lead and per customer with your target
- test new ad copy and landing page changes
- shift budget towards the keywords, locations and times that work.
Common mistakes
- Broad keywords with no negatives, paying for irrelevant clicks
- Sending all traffic to the homepage
- No conversion tracking
- Targeting too wide an area
- Accepting every automated suggestion without checking whether it suits your business
- Giving up too early, or keeping a losing campaign running too long
- Not answering the phone when the ads are running.
Doing it yourself or getting help
Many small businesses run a simple campaign themselves. If you hire an agency or freelancer:
- make sure the ads account is in your business’s name, and you have admin access
- agree how they’re paid (fixed fee or a percentage of spend) and what they’ll do each month
- ask for plain-English reports on leads, costs and sales, not just clicks and impressions.
Compare paid search with other channels in Advertising options for small business compared, and build long-term free traffic with SEO and GEO.
Common questions
How does Google Ads work?
You choose keywords, set a budget and bids, and an auction decides which ads show based on your bid and how relevant your ad and landing page are. You usually pay only when someone clicks.
How much should a small business spend on Google Ads?
Start with a test budget you’re comfortable spending while you learn, often a few weeks at a modest daily amount. Work out what a customer is worth first, so you know what you can afford to pay per enquiry.
What are negative keywords?
Words that stop your ads showing for searches you don’t want, such as ‘free’, ‘jobs’, ‘DIY’ or services you don’t offer. Check the search terms report weekly and keep adding them; it’s one of the biggest money-savers.
Why should my ads go to a specific landing page?
People are more likely to call or book when the page matches what they searched for, makes the next step obvious, shows proof such as reviews and works fast on a phone. Sending everyone to your homepage wastes clicks.