Introduction
Small & medium-sized businesses (SMBs) face a constant challenge: how to reach customers effectively without draining marketing budgets. Google Ads offers a solution that levels the playing field, allowing businesses of any size to connect with potential customers at the exact moment they’re searching for products or services. However, many SMBs struggle to achieve meaningful returns because they don’t fully understand the different types of Google Ads available or how to match each format to their specific business goals.
The different types of Google Ads span several distinct formats; each designed for different marketing objectives and customer behaviors. Search Ads capture high-intent customers actively looking for solutions. Display ads increase brand visibility across millions of websites. Shopping ads display products immediately in search results. Video Ads engage audiences on YouTube. Each format serves a unique purpose in the customer journey & choosing the right combination can dramatically improve your Return on Investment (ROI).
This journal explores the core types of Google Ads, explains when & how to use each format and provides practical guidance for SMBs seeking to maximize their advertising effectiveness without wasting resources.
Understanding Search Ads: Capturing intent at the right moment
Search Ads represent the foundation of Google’s advertising platform. These text-based advertisements appear at the top and bottom of Google search results when users enter relevant queries. For SMBs, Search Ads offer an unmatched advantage: you’re reaching people who are actively looking for what you offer.
The mechanics are straightforward. You select keywords related to your business, write compelling ad copy and set a maximum bid you’re willing to pay when someone clicks your ad. When a user searches for your chosen keywords, Google’s auction system determines which ads to display based on bid amount, ad quality and expected impact.
Search Ads work exceptionally well for businesses with clear service offerings or products that people actively search for. A plumbing company, dental clinic, or accountancy firm can catch customers at the exact moment they require assistance. The intent is already there. You’re simply making sure your business appears as a solution.
However, Search Ads require careful keyword selection & ongoing optimization. Broad keywords can drain budgets quickly with irrelevant clicks, while overly specific keywords may generate too little traffic. The Google Ads Help Center provides detailed guidance on keyword matching options and campaign structure to help businesses find the right balance.
Display ads: Increasing brand recognition across the web.
Display Ads generate new demand, whilst Search Ads grab existing ones. These visual advertisements appear across Google’s Display Network, which includes over two (2) million websites, videos and apps. Display Ads use images, graphics and sometimes animation to catch attention as people browse content online.
For SMBs with limited brand recognition, Display Ads serve a different purpose than Search Ads. They introduce your business to potential customers who may not yet know they need your product or service. A local fitness studio might use Display Ads to reach people reading health and wellness content, even if those readers aren’t currently searching for gym memberships.
The targeting capabilities of Display Ads make them particularly valuable. You can reach audiences based on demographics, interests, browsing behavior and even specific websites they visit. Remarketing (showing ads to people who previously visited your website) proves especially effective for SMBs, keeping your business top-of-mind as potential customers move through their decision-making process.
Shopping Ads: Showcasing products directly in search results
For product-based businesses, Shopping Ads represent one of the most powerful types of Google Ads available. These ads display product images, prices, business names and other details directly in search results, giving potential customers essential information before they even click.
Shopping Ads appear when users search for specific products or product categories. Unlike traditional Search Ads that require manual keyword selection, Shopping Ads pull information from your product feed (a structured data file containing details about your inventory). Google then matches your products to relevant searches automatically.
The visual nature of Shopping Ads provides SMBs with a competitive advantage. A small retailer can display product images alongside major brands, creating a level playing field based on product appeal and pricing rather than pure brand recognition. Customers can compare products, prices and retailers at a glance and those who click your ad have already expressed clear interest in what you’re selling.
Setting up Shopping Ads requires more technical work than other types of Google Ads. You need to create and maintain a product feed through Google Merchant Center, ensuring all product information remains accurate and complete. The Google Merchant Center Help offers step-by-step instructions for feed creation & management.
Video Ads: Engaging audiences on YouTube
Video Ads reach audiences on YouTube and across Google’s video partner network. As the second-largest search engine globally, YouTube offers SMBs access to massive audiences actively consuming video content. Video Ads come in several formats: skippable in-stream ads that play before or during videos, non-skippable ads that viewers must watch completely and bumper ads limited to six (6) seconds.
The storytelling potential of Video Ads surpasses other types of Google Ads. You can demonstrate product features, share customer testimonials, explain complex services or build emotional connections that static images and text cannot achieve. A home renovation company might show before-and-after transformations, while a software provider could screen-record their platform in action.
Budget concerns often prevent SMBs from considering Video Ads, assuming video production requires expensive equipment and professional crews. However, effective Video Ads don’t demand Hollywood production values. Authentic, straightforward videos shot with smartphones often perform better than overproduced content because they feel genuine and relatable.
The challenge with Video Ads lies in capturing and maintaining attention. You have only a few seconds to convince viewers not to skip your ad. Successful Video Ads hook viewers immediately with compelling visuals or questions, deliver value quickly and include clear calls-to-action that guide viewers toward next steps.
App Ads: Driving downloads and engagement
For SMBs with mobile applications, App Ads simplify the promotion process across Google’s properties. These ads appear in Google Search, Google Play, YouTube, Discover and within other apps. App Ads promote app installations or encourage existing users to take specific actions within your app.
Google automates much of the App Ads process. You provide text ideas, images, videos and bid amounts, then Google’s machine learning creates and tests different ad combinations across placements. The system optimizes toward your goals, whether driving installs, encouraging in-app actions or targeting users likely to make purchases.
App Ads work best when you’re clear about your objectives. Are you trying to build a user base or are you seeking users who will engage deeply with your app? The targeting and bidding strategies differ significantly between these goals. Many SMBs waste budgets acquiring users who install the app but never open it which is a result of optimizing for installs rather than quality users.
Local Ads: Connecting with nearby customers
Local Ads help businesses with physical locations drive foot traffic and local awareness. These ads appear across various types of Google Ads formats (such as Search Ads, Display Ads and Maps) but include location extensions showing your address, phone number, directions and business hours.
For SMBs serving local communities, Local Ads provide exceptional value. A restaurant can capture nearby lunch searches, a hardware store can reach homeowners tackling weekend projects and a salon can connect with people searching for nearby hair services. The intent is high, the competition is typically lower than national campaigns and the results are immediately measurable through foot traffic and phone calls.
Google’s location extensions integrate with Google My Business profiles, making accurate, complete profile information essential. The Google Business Profile Help explains how to optimize your profile for better ad performance and local visibility.
Budget allocation across ad types
SMBs face a critical question: how should you divide limited budgets across different types of Google Ads? No universal formula exists, but several principles guide smart allocation.
Start with ad types that match existing demand. If people already search for your products or services, prioritize Search Ads and Shopping Ads. These formats typically deliver faster returns because you’re capturing intent that already exists.
Once you’re efficiently capturing existing demand, expand to awareness-building formats. Display Ads and Video Ads require more budget and longer time horizons to show results, but they expand your potential customer base beyond people who already know to search for you.
Monitor performance constantly and shift budgets toward what works. Google Ads provides detailed conversion tracking, allowing you to see which types of Google Ads generate the best returns for your specific business. The Google Ads Campaign Manager Help offers guidance on tracking and measurement.
Measuring success across different ad types
Each type of Google Ads requires different success metrics. Comparing formats using identical metrics leads to poor decisions and wasted budget.
Search Ads and Shopping Ads should focus heavily on conversion metrics: cost per conversion, conversion rate and return on ad spend (ROAS). These formats capture high-intent traffic, so immediate conversions are the primary goal.
Display Ads and Video Ads need broader measurement approaches. View-through conversions (purchases that occur after someone sees but doesn’t click your ad) matter significantly for these awareness formats. Brand lift studies, assisted conversions and engagement metrics provide fuller pictures of performance.
Local Ads require tracking phone calls, direction requests and store visits in addition to website conversions. Google provides tools for tracking these offline conversions, though the setup requires additional effort.
Conclusion
The various types of Google Ads offer SMBs unprecedented opportunities to reach customers efficiently and compete with larger competitors. Success requires matching ad formats to business goals, customer behaviors and campaign objectives rather than randomly selecting formats or blindly following industry trends.
Search Ads capture existing demand from high-intent searchers. Display Ads build awareness across the web. Shopping Ads showcase products visually in search results. Video Ads engage audiences through storytelling. Local Ads drive foot traffic to physical locations. Each format serves distinct purposes in comprehensive marketing strategies.
SMBs maximize ROI by starting focused, measuring carefully and expanding strategically. Master one or two types of Google Ads before adding complexity. Track the metrics that matter for each format rather than applying universal standards. Continuously test, learn and refine based on actual performance data rather than assumptions.
Key Takeaways
- The right types of Google Ads for your business depend entirely on your specific goals, resources and customer journey.
- Search Ads work best for capturing active demand, while Display and Video Ads excel at creating awareness. Shopping Ads provide visual product discovery and Local Ads drive nearby customers to physical locations.
- Budget constraints don’t prevent SMB success with Google Ads, poor strategy does. Focused campaigns in one or two ad formats typically outperform scattered efforts across many formats. Start where customer intent is highest, measure what matters for each ad type and expand gradually as you develop expertise and see results.
Frequently Asked Questions (FAQ)
Which types of google ads work best for local businesses?
Local businesses benefit most from Search Ads with location extensions and Local Ads that appear in Google Maps and local search results. These formats capture nearby customers actively searching for products or services in their area. Display remarketing ads also work well for local businesses to stay visible with people who have already visited their website or physical location.
How much budget do you need to start with different types of google ads?
You can start with as little as ten dollars ($10) per day, though fifty dollars ($50) to one hundred dollars ($100) daily provides better data for optimization. Search Ads and Shopping Ads typically require smaller budgets to see results compared to Display and Video Ads, which need larger budgets to achieve sufficient reach and frequency. Start with the ad types that match existing customer demand to stretch limited budgets further.
Can you run multiple types of google ads simultaneously?
Yes, you can and often should run multiple types of Google Ads together as part of a full-funnel strategy. However, SMBs with limited budgets and experience should master one ad type before adding others. Running too many campaign types simultaneously without adequate budget or expertise typically leads to poor performance across all formats rather than strong results in any single area.
What types of google ads generate the fastest ROI?
Search Ads and Shopping Ads typically generate the fastest ROI because they capture people actively searching for products or services. These high-intent users are closer to making purchase decisions compared to audiences reached through Display or Video Ads. However, businesses without established brand awareness may need to combine multiple ad types to build recognition before seeing strong conversion performance.