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How does Google Ads work? A plain‑English guide

Written by James
Project Simple – September 2026
Google, SEO & AI | 6 min read
Small business owner smiling at a new customer enquiry on her phone in a café
The short answer

Google Ads puts your business at the top of Google when people search for what you do. You only pay when someone clicks your ad. There are three costs: a one‑off campaign setup, a monthly management fee if someone runs it for you, and the ad clicks themselves, which you pay directly to Google.

What is Google Ads?

Google Ads is Google’s advertising system. When someone searches for something like “emergency plumber Belconnen”, the first few results marked “Sponsored” are ads. Businesses pay to appear there for the searches they care about.

It’s different to showing up in the normal results below, which is what a search‑optimised website helps with over time. Ads put you at the top straight away.

How you’re charged

You don’t pay to be seen. You pay when someone clicks your ad and visits your website or calls you. The cost of each click depends on your industry and how many other businesses are competing for the same searches.

You set a daily or monthly budget, and Google never spends more than that. You can pause, increase or reduce it any time.

The three costs, explained

This is the part most people aren’t told upfront, so here it is plainly.

Campaign setup: a one‑off cost to research your keywords, write the ads and build the campaign properly.
Management: a monthly fee for someone to watch the campaign, cut wasted spend and improve results. No contract, month to month.
Ad spend: what Google charges for the clicks. This is paid directly from your card to Google, and you choose the budget.
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Why give it three months?

Google needs time to learn which searches, times and areas bring you real enquiries. The first few weeks are a learning period. By around 90 days, a well‑managed campaign has settled and you can judge it fairly.

Is Google Ads right for my business?

It works best when people are actively searching for what you do, like tradies, clinics and local services. It also works best when your website makes it easy to call or enquire, so every click has the best chance of turning into a job.

If you’re not sure, talk to us. We’ll give you an honest answer, even if that’s “not yet”. You can also read more about our Google Ads management.

Written by James
Founder of Project Simple. Building websites for Canberra small businesses since 2010.

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