Google Ads provides diverse ways to connect with your audience. Each ad type targets a different goal and engages customers in varying phases of the customer journey.

Understanding the various Google Ad types can help PPC marketers maximize their budgets while experiencing the greatest ROI.

Google Ad Types Explained

We help businesses of all types unpack the seven key ad types for the ultimate success with Google Ads.

1. Demand Gen

Before a consumer begins searching for a product, Demand Gen ad campaigns help build their interest. These ads leverage Google’s AI capabilities to deliver personalized, visually engaging ads throughout Google’s network of services, including YouTube, Gmail and the Discover feed. 

Strengths

• Combines visual storytelling with audience intent data
• Uses Google’s audience signals to target users with incredible precision
• Tests have shown that Demand Gen ads gain a 3x click-through rate compared to traditional campaigns
• Think of these ads as Google's "social media" style ads.

Use cases:

• Product launches to help showcase new products that a consumer might not know to search for yet
• E-commerce businesses looking to promote products to visitors who didn’t convert to increase return visits
• Lead generation, especially for highly visual products that lend themselves to visual ads
• Any client - eComm, lead generation or other, that has captivating video and image assets.

2. AI Max

AI Max is a feature you can enable within Google Search Ads. Using this tool, you can expand keyword targeting quickly, create ad assets with a button click or build landing-page routing. The tool helps advertisers tailor their ads faster and with greater precision.

Strengths

• AI-driven matching could help brands better reach their audience, even using keywordless matching to find relevant search queries related to a product or service. Note: This campaigns is typically used as an expansion type of campaign from your general Search campaign, and can be better for advertisers with larger budgets to experiment and grow demand.
• Automated ad updates and landing page optimization based on URLs or existing ad creatives that you upload for the AI to analyze and optimize
• Expanded metrics that show details like AI Max expanded matches so advertisers have more insights into ad performance
• Greater feature set to be more granular with ad targeting, such as using locations of interest at the ad-group level

Use cases:

• Ads that use a Smart Bidding strategy, as these tools are only available on these ad types
• Existing ad campaigns that you want to see greater reach and improved conversion on through additional relevant search queries
• Advertisers with detailed conversion data and well-structured sites, as Google’s AI relies on these details to glean insights and optimization from
• Brands looking for greater efficiency through testing headlines, descriptions and landing-page variants without building a host of ad sets. However, you must be careful in terms of the types of headlines and descriptions they end up utilizing to ensure it still makes sense.

3. Search Ads

This type of ad is displayed on Google search results pages when a user searches a relevant query. When it comes to search-related pay-per-click ads, this is the most common form and the type that most people think of.

Use these ads when you are aiming to capture users researching questions related to your products or services. These people are higher intent users, as they have pre-qualified themselves as having an interest in your product or services. They are "actively" searching for what you are promoting.

Local service businesses, B2B organizations, and highly transactional search terms are ideal for this ad type, and really any business with a defined demand for a product or service.

Strengths

• WordStream’s 2024 benchmarks found that the average conversion rate for search ads is 3.75%. When you compare that to display ads, which averages just .77%, search ads look quite attractive for bringing in leads and high-value traffic.
• For ecommerce, Google search ads offer high value in the form of impressive conversion results. The average click-thru rate is 2.69%, according to Store Growers.

Use cases:

• Reach customers actively searching for products or services you offer
• Target local audiences
• Promoting a limited time offer
• Capturing high-intent traffic
• Gain quality web traffic fast
• Typically a lower funnel Google Ads strategy

4. Display Ads

If you’ve ever felt like a product you viewed on a website was following you all over the internet, you’ve probably experienced a Google Display ad (in this example, a remarketing ad). These ads use an image or banner and are displayed on third-party websites, apps and partner sites.

These ads are good for brand awareness, retargeting, reaching audiences who are early on in their exploration of products and services, or to reengage users who have visited your site but didn’t convert.

Strengths

• Although display ads tend to have lower click-thru rates and conversions (.59%, according to Store Growers), they also tend to have a lower cost-per-click (CPC). 
• A lower CPC enables brands to cast a wider net, meaning more brand awareness and visibility. 
• Combining with strategic audience targeting, can help make Display campaigns a good option for user acquisition campaigns.

Use cases:

• Increase brand awareness
• Target a desired audience
• Use as a part of a full programmatic advertising campaign
• Reach customers with varying ad sizes and formats
• Expand reach and generate more conversions
• Retarget customers

5. Google Shopping Ads

When your goal is to sell a physical product, shopping ads can be an ideal solution. This puts your product with an image, name, price and your company info at the top of search result pages for queries with high commercial intent. 

Ecommerce businesses benefit from this Google ad type the most. It puts your product front and center for customers in an attractive format.

Strengths

• While the click-thru rate for shopping ads tends to be low at around 0.86%, the conversion rate is 1.91%. 
• Displays reviews below the product (when available) to build customer trust and buying confidence.

Use case:

• Products with strong visual appeals
• Higher return on ad spend
• Brand awareness, especially in new product categories
• Qualified traffic
• Displayed at the top of the search engine results page (SERP)

6. Video Ads (YouTube)

The most common place for video ads to run is on YouTube. These can be in-stream, bumper or out-stream ads. Outside of YouTube, ads can appear on the Google network. Ads can be skippable or non-skippable. 

Use video ads to tell stories, build brand affinity, reach audiences long before they think to search for your product or service, demonstrate products, or make an announcement.

Strengths

• Highly visual to connect with your audience on a different level
• Can display emotion in a way other ad formats cannot
• Effective in building recall, even when click-thru rates are low

Use case:

• New product releases that are better shown than explained
• Highlighting past customer experiences to offer a real view of those customers
• Effective in crowded industries where cost per click is high due to competition

7. Performance Max

This is a goal-based campaign type that uses AI and automation to serve ads across multiple ad types. So in a sense, it’s like maximizing the benefits of other types of Google ads with one campaign - search, display, Gmail, YouTube and Discover.

Google will use an advertiser’s budget and creative assets to optimize for conversions based on the information you provide.

This can take some of the guesswork out of when to use each ad type. But it also puts you at the mercy of an AI engine’s decision-making, as you have less control on which networks your ads will be shown.

Strengths

• Brings together the benefits of all Google ad types into one campaign
• Uses smart bidding to maximize performance
• Some advertisers see improved results from Google’s automated optimization

Use cases

• Complex ad campaigns where advertisers can benefit from a variety of Google ad formats
• Companies who have seen disappointing numbers historically for their ad performance and are looking for a solution
• Brands ready to optimize for cost-per-acquisition (CPA) or ROAS goals.

Selecting or Combining Google Ad Types Strategically

While each ad type has a unique use case it is best for, you might still feel challenged to decide the best format for you. Here’s a simplified guide on how to choose or combine Google ad types.

1. Match your ads to the right funnel stage. Search and shopping ads are ideal for high-intent customers while display and video ads are good for awareness, education, and retargeting. Performance max combines the benefits of all ad types.
2. Test what works best for your business. Use pilot campaigns with lower budgets to see what works best for your organization before settling on an ideal campaign. Compare your results to industry standards from organizations like WordStream to set realistic expectations.
3. Tap into your pre-built audiences with remarketing or retargeting ads. You know who your ads are ideal for because these customers have already shown an interest. Close the deal by remarketing to those who have visited your site.
4. Ensure consistent branding. You want your prospects to know without a doubt when an ad is from you. Do that through consistent branding and messaging across ad types.
5. Monitor performance. Click-through rates are just the beginning of the metrics you should be tracking. Monitor your ads' value by tracking customer acquisition costs, lifetime value and Return on Ad Spend.

Skip the Guesswork and Bring in the Experts

Even after reviewing the various Google ad types available to you, knowing when and how to use them can feel like guesswork. Bring in the experts from Two Wheels Marketing. We understand the use cases and strengths of each ad type deeply. We’ll guide you in capturing prospects and converting them into customers. Schedule your free consultation now to get started.