Which Google Ads Type Is Right for Your Business?

If you’ve ever logged into Google Ads and felt overwhelmed by the number of campaign options, you’re not alone.

Search Ads, Display Ads, Video Ads, Performance Max, Shopping Ads, Demand Gen campaigns… the list seems to grow every year. The challenge isn’t finding ways to advertise on Google. The challenge is knowing which type of ad aligns with your business goals, budget, and audience.

Choosing the wrong campaign type can waste valuable marketing dollars. Choosing the right one can help you connect with customers at exactly the right moment, whether they’re actively searching for your services, researching solutions, or simply discovering your brand for the first time.

The good news is that each Google Ads campaign type is designed to accomplish a specific goal. Understanding how they work can help you invest your marketing budget more effectively and connect with customers at different stages of the buying journey.

Let’s look at the most common types of Google Ads and when you should consider using them.

Types of Google Ads

Google offers several ways to reach your ideal audience. Here are five of the most common ad types.

1. Search Ads (including local search ads)
2. Display Ads (including an ad type called Demand Gen)
3. Video Ads
4. Shopping Ads
5. Performance Max Ads

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#1: Google Search Ads

Search ads show up in Google search results, and if enabled, Google’s Search Partner network which includes other search engines that display Google Ads.

Search Ads are all about being in the right place at the right time, with the right message. These ads are a way to get in front of potential clients or customers when they are actively looking for your product or service.

Advertisers select a list of words (called keywords) that potential customers search for. You then decide how much you’re willing to pay for a click on your ad. This is why Google Ads is sometimes referred to as pay-per-click (PPC), because the advertiser is charged every time someone clicks on their ad. Because of this, it’s very important to understand how many of those clicks turn into customers, and exactly how much that customer is worth. Knowing those two things will help you understand how much you can pay for a click in order to be profitable.

Local Search Ads

You may have noticed that when you search for something like “movie theatre near me” Google provides the top three local listings nearest you that fit the search. When you run Search Ads, they can also appear for these local searches, helping them reach people who are searching for a local option on Google Search or Google Maps. These ads can be an excellent way to bring people to your business when they’re ready to call, get directions, or visit your location.

You can connect your Google Business Profile and use local assets to display additional details such as your address, phone number, and directions. These local assets can make it easier for nearby customers to find and contact you.

Note: Don’t get this confused with Google’s “Local Services Ads” (LSAs). This is an entirely different type of ad only available to a select few types of service businesses that are not discussed in this article.

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#2: Google Display Ads

Display ads are image ads (and sometimes text ads or video ads) that can be seen on web pages throughout the internet.

The main thing to understand is that many website owners sell additional unused ad space to Google, and then Google fills it with an ad. You can place an ad on many websites or apps through the “display network”. Whenever you are on a site and you see an ad with a little blue triangle in the corner, you’re seeing it as part of the Google display network. Display ads can also show on various mobile apps on your phone or tablet.

These ads can either be charged by the click or by the impression, depending upon your needs and goals. Like the search ads, quality plays a huge part in what you will be charged.

In contrast to buying a banner ad on a specific website where your ad is shown to nearly every visitor that comes to that site, display ads through Google allow you to place ads on many different websites and show them only to the people that you know have the best potential to be your customer. They’re also generally very affordable.

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#3: Video Ads

These are the ads that play on YouTube, or on other placements within the Google Display Network. On YouTube, they can run before a video that you are trying to watch, or as a suggested video in the sidebar area. When placed around the display network on other websites, they can play in many of the same banner ad spaces where your display ads would typically show.

Video ads are similar to display ads because you are able to target based on content, demographics, topics, or other criteria and pay for views or impressions. With video ads, you can have video content as short as just 5 seconds long! It’s important to capture attention quickly to get your point across effectively or convince your audience not to press the “skip” button.

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#4: Shopping Ads

Shopping ads can only be used for items that are available online for purchase. To run ads, you must create what’s called a “feed” to provide product information to Google. The feed is basically a data file that Google will use to access key information about all of your items, such as images, price, descriptions, special offers, brand, etc.

When someone searches, Google tries to match that search to items advertisers have made available and displays key information to help them compare and make a decision. When the user clicks, they are taken to the page where they can purchase that item.

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#5: Performance Max Ads

Performance Max (PMax) campaigns allow advertisers to reach potential customers across all of Google’s advertising channels from a single campaign. Instead of creating separate Search, Display, Video, Shopping, and other campaigns, Performance Max uses Google’s AI to determine where your ads should appear based on your goals and the likelihood of generating results.

Performance Max can show ads across Google Search, YouTube, Display, Gmail, Discover, Google Maps, and Shopping. By combining your images, videos, headlines, descriptions, and other assets, Google automatically creates and serves the most relevant ad for each person. While this automation can help advertisers reach more potential customers, it’s still very important to provide high-quality creative assets and regularly monitor campaign performance to ensure you’re meeting your business goals.

Note: PMax generally performs best when an account has strong conversion tracking, significant conversion data for Google’s AI to learn from, and a larger budget. For many smaller budget accounts, other campaign types may provide greater control and results.