How Google Ads Works
Google Ads is an auction. When someone searches, Google decides which ads to show based on your bid, your ad quality and how well your landing page matches the search. You pay per click, not per view, so a well-targeted campaign can reach people who are already looking for your service.
This is the main difference from SEO. SEO builds visibility over months and costs nothing per click. Google Ads can put you on the first page within days of launching, but traffic stops when the budget stops. Many businesses use ads for quick results while their organic rankings grow. Our guide to SEO in Sri Lanka explains the slower route.
Campaign Types That Matter for Local Businesses
Search campaigns show text ads when people type a query. They suit businesses with clear intent keywords, such as "dental implants Colombo" or "wedding photographer Kandy". For most SMBs this is the right starting point.
Display campaigns show image ads across websites and apps. They are good for brand awareness and for reminding past visitors about your business, but they rarely produce the same quality of enquiry as Search.
Performance Max and Demand Gen campaigns let Google's automation choose where ads appear. They can work well once you have reliable conversion data, but they are harder to control and are not a good first campaign for a new account.
Local and Maps placements matter for shops, clinics and restaurants. A complete Google Business Profile helps both organic and paid local visibility.
Setting a Budget
Google does not charge a fixed monthly fee. You set a daily budget and Google spends up to that amount. What you actually need depends on four factors:
- Competition: Popular keywords such as property, cars, insurance and education cost more per click than niche services.
- Your conversion rate: If one in twenty clicks becomes an enquiry, you need enough clicks to get a meaningful number of enquiries each month.
- Margin per customer: A service worth a large sale can afford a higher cost per enquiry than a low-value product.
- Geography and timing: Targeting Colombo only, or only business hours, concentrates spend where it counts.
A useful way to plan is to work backwards. Decide how much you can pay for one enquiry, estimate how many enquiries you want per month, and multiply. If the number looks unrealistic against your keyword costs, narrow the targeting or choose a different channel. Management fees from agencies are separate from ad spend, so ask for both figures in writing.
Conversion Tracking Comes First
The most common reason ad money is wasted is that nobody knows which clicks produced enquiries. Before you launch, set up tracking for:
- Contact form submissions
- Phone-call and WhatsApp button clicks
- Online orders or bookings, if you take them
Without tracking, Google cannot learn which searches convert, and you cannot judge the campaign honestly. Connect Google Ads to Google Analytics and check that each event fires correctly on a test submission.
Keywords, Ad Copy and Landing Pages
Choose keywords that show buying intent. "Buy", "price", "near me" and a city name usually signal readiness. Add negative keywords, such as "free", "jobs" or "course" if you do not offer those, so you stop paying for irrelevant clicks. Review the search terms report weekly in the first month.
Write ad copy that repeats what the searcher typed, states one clear benefit and ends with an action. Test two or three versions and keep the stronger one.
Then look at where the click lands. An ad that sends people to a slow homepage loses them. Send each campaign to a page that matches the search, loads quickly on mobile, and makes the next step obvious. If your site converts poorly, fixing it will usually improve results more than raising the budget. See web design and development for what a conversion-focused page involves.
Common Mistakes
- Running broad keywords with no negative list
- Sending all traffic to the homepage
- Judging success by clicks instead of enquiries
- Changing settings daily, which resets Google's learning
- Letting an agency run the account without giving you access to it
You should always own the Google Ads account and be able to see spend and results yourself.
What to Ask a Google Ads Agency
Ask who owns the account, how often you receive reports, what conversion actions will be tracked, and how the management fee is calculated. Be cautious of anyone who guarantees a number of leads or a top position, because the auction does not allow guarantees.
FAQ
How much does Google Ads cost in Sri Lanka?
There is no fixed price. You pay for clicks, and the cost per click depends on your industry, keywords and competition. Agencies may add a separate management fee. Ask for ad spend and fees to be quoted separately.
How long before Google Ads brings enquiries?
Ads can run within days of approval. Expect the first few weeks to be a learning period while you collect data and remove wasted spend. Performance usually becomes steadier after that.
Is Google Ads better than Facebook ads?
They do different jobs. Google Ads reaches people actively searching for a service. Facebook and Instagram ads reach people who may not be searching yet. Many businesses use both. See our social media marketing service.
Can I run Google Ads without a website?
It is possible with some campaign types, but a fast, relevant website converts far better. Most advertisers should fix the site first.
Get Your Campaigns Reviewed
IT Starter builds and manages Search and Display campaigns, including keyword research, ad copy, conversion tracking and monthly reporting. Read about our SEO and Google Ads service or contact us to discuss your goals and get a quote.