The complete guide to Google Ads types in 2025
If you’ve ever searched for something on Google and seen an ad at the top of the results, you’ve already encountered Google Ads in action.
Millions of businesses worldwide of all sizes rely on Google’s advertising platform to reach customers, drive traffic, and boost sales - and for good reason 💡
But did you know that Google Ads isn’t just one type of ad - it’s an ecosystem of different campaign types, each designed for specific marketing goals.
In 2023, Google's advertising revenue reportedly soared to around $238 billion dollars, highlighting the platform's dominant presence in the digital advertising world, according to Statista.
Whether you want to appear in search results, show product listings, run video ads, or target users across Google’s vast Display Network, there’s an ad format that fits your needs ✅
However, with so many options, it’s easy to get overwhelmed with questions like 'How do I know which type of ad is right for my business?' or 'What should I be spending?'.
That’s exactly what we’ll breakdown in this guide:
By the end of the article, you’ll have a clear understanding of which Google Ads format best aligns with your marketing goals, so you can create high-performing campaigns that drive real results.
Let’s dive in! 🚀
Google Ads campaign types explained
Google Ads offers a range of campaign types, each tailored to different marketing objectives. In this section, we’ll explore each ad type in detail, how it works, which businesses benefit most, and the key advantages and challenges to keep in mind.
Let’s start with one of the most popular and widely used options:
Search Ads
Search Ads allow businesses to display ads when users search for specific keywords. These ads appear on Google search results pages and are ideal for capturing demand and driving conversions directly from user queries.
They are a great option for businesses that want to target high-intent users who are actively searching for products or services. Ideal for eCommerce, local businesses, B2B lead generation, and service-based industries.
The basics of Search Ads 📖
- Advertisers bid on keywords using Google’s auction system.
- Ads appear when users search for those keywords.
- You only pay when someone clicks on your ad with a PPC (pay-per-click) model.
Understanding Search Ads costs 💵
Back in 2023, the average cost per click (CPC) for Search Ads was around $4.22, but this varies depending on your industry.
For competitive sectors like legal services, dentistry, and home improvement, CPCs can exceed $9, while industries like arts & entertainment and real estate typically see lower costs, ranging from $1.55 to $1.63.
Factors like keyword competition, geographic targeting, and market demand can all influence CPC, with more competitive keywords driving higher costs, so thorough research is key to maximizing your ad spend efficiency.
Performance Max Ads
Performance Max (also referred to a PMax) is an AI-driven campaign type that runs ads across multiple Google properties: Search, Display, YouTube, Gmail, and Discover - all within one campaign.
PMax replaced Local and Smart campaigns back in 2022 and continues to evolve as a more comprehensive and automated solution for advertisers looking for a one-stop-shop for advertising.
PMax Ads are ideal for businesses that want a hands-off approach with broad reach and is perfect for eCommerce, local businesses, and lead generation, helping you get your ads across multiple platforms without the hassle of managing each one separately, saving you time and effort you can spend on other things.
The basics of PMax Ads 📖
- You provide creative assets (text, images, videos), and Google’s AI optimizes your campaign.
- Ads automatically appear on various Google properties based on user intent and behavior.
- Performance Max automatically adjusts bids and placements to achieve your campaign goal.
Understanding PMax Ads costs 💵
Performance Max campaigns can range significantly, with CPCs starting around $2.50, but costs can spike based on your targeting and industry competition. Sectors like retail and eCommerce may experience slightly higher costs, while service industries like transportation or healthcare may see lower costs.
Display Ads
Display ads are visually engaging image-based ads that appear across millions of websites within Google’s Display Network (GDN), reaching users while they browse content relevant to your business - this network includes YouTube and Gmail as well as a host of other third-party websites and mobile apps that integrate with Google Ads via AdMobs or similar.
Display Ads are perfect for businesses looking to boost brand awareness, retarget visitors, or drive top-of-funnel engagement. They’re a great fit for eCommerce, SaaS, and content-driven brands looking to stay visible and keep potential customers in the loop.
The basics of Display Ads 📖
- You create banner ads, images, or videos.
- Your ads appear on Google partner sites, apps, and YouTube based on targeting options like demographics, interests, or browsing history.
- You pay when users click your ad or view it (depending on the bidding model).
Understanding Display Ads costs 💵
Display ads typically range from $0.50 to $3.00 per click, depending on your industry and specific targeting settings. More precise targeting, such as demographic-based or interest-based audiences, can drive costs higher, while broader campaigns tend to be much cheaper.
Your CPC can also vary based on ad formats, such as static banners, responsive display ads, or rich media placements, as well as where your ads appear. These are all important cost factors to consider when aiming for maximum impact.
Shopping Ads
Shopping ads display product images, pricing, and store names at the top of Google search results, giving users a quick visual overview to compare options and drive immediate sales before a potential customer lands on your website.
Shopping Ads are ideal for eCommerce businesses that want to drive direct sales from Google search results. This format is perfect for businesses aiming to capture high-intent traffic and accelerate purchases with visual, detailed product listings.
The basics of Shopping Ads 📖
- You upload a product feed (a file that contains detailed information about the products you sell, such as product titles, descriptions, prices, and images) to Google Merchant Center.
- Your products automatically appear as ads when users search for relevant items.
- Google pulls the product data from your feed and shows it in the ad to the potential customer.
Understanding Shopping Ads costs 💵
Shopping ad CPCs typically range from $0.40 to $1.50, but costs can vary significantly based on product category and competition.
Everyday consumer goods often see lower CPCs, while high-ticket items like luxury fashion, electronics, and premium home goods tend to have higher costs due to stronger competition and higher profit margins.
Additionally, factors like product feed quality and bidding strategies can influence overall ad spend.
YouTube Ads (Video Ads)
YouTube Ads are video-based ads that appear before, during, or after YouTube videos are a great way to get adverts in front of the millions of DAU (or daily active users).
This ad type is ideal for brands that want to captivate audiences through visual storytelling and are especially effective for building brand awareness, showcasing products in action, or delivering compelling product demos.
Video ads allow brands to connect with viewers in a more dynamic way, making them an ideal choice for those looking to engage users emotionally or creatively.
The basics of Video Ads 📖
- You create video ads, and they run on YouTube before or during a video.
- The ads can be skippable or non-skippable, depending on the format.
- You pay when someone clicks or views your ad, based on the ad type and bidding model selected.
Understanding Video Ads costs 💵
YouTube ads generally have a CPC range of anywhere between $0.10 to $0.30 for TrueView ads (a YouTube ad format where advertisers are charged only when a user watches the video or engages with it).
Costs can increase with more competitive keywords or targeting specific audiences. For CPM (cost-per-thousand-impressions) campaigns, expect to pay between $3 and $10, depending on the set targeting and the ad’s relevance to the audience.
Placement Ads
Placement ads let you choose specific websites, apps, or YouTube channels to display your image, video, or text ads. You select the exact locations where your ads will appear, allowing for more control over the ad's environment and audience.
These are perfect for businesses that want full control over where their ads appear, whether on specific websites, apps, or YouTube channels. They’re especially effective for targeting niche audiences, boosting brand awareness, and running retargeting campaigns.
The basics of Placement Ads 📖
- You choose specific placements on Google’s Display Network (GDN) or YouTube where you want your ads to show.
- Ads are shown on the selected placements, targeting users based on demographics, interests, or behaviors.
- You can also target topic categories or interests to reach your desired audience.
The costs overview of Placement Ads 💵
Placement ads on the Google Display Network can have CPCs ranging from $0.50 to $2.00, but prices can vary based on the selected placements and competition. More premium placements on high-traffic websites or specific YouTube channels may cost more, while broader placements on lower-traffic sites may be more affordable for businesses looking to get an ad foothold.
App Campaigns
App campaigns are designed specifically for driving app installs and in-app actions. Instead of manually selecting placements or targeting options, Google automatically handles everything through machine learning to deliver your ads across Search, YouTube, Google Play, and the Display Network.
This ad type is perfect for app developers and businesses looking to drive installs or boost in-app conversions. It works great for both mobile apps and games, helping to reach the right users at the right time.
The basics of App Campaigns 📖
- You provide the app's details, including its name, description, and assets like text, images, and videos.
- Google Ads automatically generates and shows ads for your app in various placements based on user behavior and intent.
- You bid for installs or specific in-app actions (like purchases or sign-ups) and only pay when the user performs the desired action.
The costs overview of App Campaigns 💵
For App campaigns, the CPI (or cost-per-install) can range from $1 to $4, depending on the app category and target market.
Competitive app categories like gaming or finance can see higher CPIs, while apps in less saturated categories may cost less.
In-app conversion bids can significantly impact pricing, as advertisers competing for high-value actions, such as purchases, subscriptions, or sign-ups, may need to bid more aggressively to secure placements.
Understanding the click fraud risks in Google campaigns
So you’ve explored the various Google Ads formats and maybe settled on a type that works for you, but it's crucial to be aware of the risk of click fraud that could be silently associated ⚠️
Some campaign types, like Display ads and PMax campaigns, are more vulnerable to fraud because of their broad targeting and automation. For example, Display ads can attract bot traffic or click farms, ultimately wasting your ad spend. PMax campaigns, which adjust bids and placements automatically, may end up targeting unqualified clicks or areas with higher fraud.
When keyword costs or CPCs creep up, especially for competitive industries like legal services or eCommerce, every single one of your hard earned dollars counts - it’s crucial to protect your ad budget from click fraud 💰
By using click fraud protection software like Hitprobe, along with strategies such as device fingerprinting, IP blocking, and real-time alerts, your business can ensure that your ad spend is spent wisely, reaching genuine potential customers instead of being wasted on fraudulent clicks.
The key takeaways
So we've covered the different Google Ads campaign types, now it's time to focus on the key strategies that can help you make the most of your campaigns.
These takeaways will guide you in choosing the right approach, optimizing performance, and protecting your ad spend. Here's what you need to keep in mind:
Choose the right ad type for your goals: Select the campaign format that aligns with your businesses marketing objectives for the best results 🎯
Understand your budget and bidding strategy: Tailor your budget and bidding to your campaign type and industry competition to maximize ROI 💰
Monitor automated campaigns: While automated campaigns like Performance Max can save time, they still require monitoring to avoid overspending 🔍
Test and optimize: Regularly test and fine tune your ads to improve performance and ensure you're getting the most value from your ad spend 🪛
Protect against click fraud:Use fraud protection tools like device fingerprinting and IP blocking to safeguard against fraudulent clicks and prevent wasted ad spend 🔒
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