Posted on by Bob Ottaway

5 Essential Things to Know About Google Ads in 2026

Buying keywords on Google Ads can generate a great number of leads. Google Ads is essential if you are looking to generate leads.

Data insights firm Demandsage reports that around 7 million businesses and marketing agencies use Google Ads. In 2025, Google Ads led the pay-per-click market with a 39.37% share. Google Ads has a 3.17% conversion rate for searches. Google says that 63% of people click on ads in its search results.

So paying for keywords on Google makes sense in 2026. But be aware: It requires constant nurturing.

Success means regular monitoring, testing and optimization. Campaigns can require several hours of attention each week, especially in the beginning.

Google Ads is a serious marketing channel. A “set and forget” approach won’t bring you the results you seek.

If you are planning to enter the pay-per-click market in 2026, here are a few things you should know:

You’ll Need To Budget More Than You Think

Plan your budget based on your goals. If you need 10 new customers per month and typically 2% of clicks convert, work backwards from there.

You’re bidding on keywords in an auction system that determines when and where your ads appear in search results.

Every time someone searches Google, an instant auction happens. Google reviews all advertisers bidding on related keywords and decides which ads to show and in what order.

Your ad placement depends on two factors:

  • Your bid amount: The maximum you’ll pay per click
  • Your Quality Score: Google’s 1-10 rating of your ad’s relevance and quality

These combine to create your Ad Rank, which determines position. You can outrank higher-bidding competitors if your ad is more relevant and of higher quality.

Experts recommend spending $500- $1,000 per month initially to gather data.

Cost per click varies wildly. In competitive fields like legal services and home services, you may pay $20 to $100 or more per click. In contrast, less competitive terms can cost just a few cents.

Even if just 2-5% of clicks convert, you need sufficient budget to generate leads. Your first few weeks will be a paid education as you learn which keywords, ads and landing pages convert.

Hiring professional management services will help guide you through the system. Their fees can range from 10-20% of your total ad spend.

Your Landing Page Is as Important as Your Ad

A common mistake is to spend all your effort on advertising. This often leads to successful ads that send traffic to a generic homepage or a poorly designed landing page.

Even perfect ads fail if your landing page doesn’t deliver on the promise. Google tracks the performance of the landing page through bounce rates and conversion rates. How your landing page performs will directly impact your Quality Score.

A dedicated landing page should match your ad’s message, load quickly, perform well on mobile and include a clear call to action.

The page should make clear what you expect from the visitor and make it easy for them to take the next step. Can the visitor make a direct purchase? Can the visitor fill out a form? Is there a number to call?

Test your landing page before spending ad budget. Ask colleagues to review it and confirm they understand the next steps.

If You Can’t Measure Results, You’re Flying Blind

Before launching ads, set up:

  • Google Ads conversion tracking to see which keywords drive actual business
  • Google Analytics to understand user behavior on your site
  • Call tracking if phone calls are important to your business
  • Form submission tracking

Without conversion tracking, you only know how many clicks you got, not whether those clicks turned into customers.

Negative Keywords Are Your Best Friend

Negative keywords are terms you add to prevent your ads from appearing for irrelevant searches. This can save you a significant amount of money.

Research common irrelevant variations before launching. Then review your search terms report weekly to identify new irrelevant searches that trigger your ads.

Common negative keywords many businesses add include:

  • “Free”
  • “Jobs” or “careers” (if you’re not hiring)
  • “DIY” or “how to” (if you provide services, not instructions)
  • Competitor names (usually)
  • “Cheap” (if you’re not the budget option)

This simple step can reduce wasted spend by 20-40% in many campaigns.

Start Small and Scale What Works

The biggest mistake novices make is launching too broad, too fast.

It’s best to start with 5-7 exact-match keywords and 5-7 phrase-match versions of your most important services. Then monitor search terms reports weekly. Do not explore broad-match keywords until you have data on the other two types.

  • Exact match captures people searching for precisely what you offer, without extra qualifiers or related topics.
  • Phrase match captures people searching for your service with additional details or qualifiers, but the core meaning stays intact.
  • Broad match shows your ad for any search that Google thinks relates to your keyword. This includes synonyms, related topics, and variations that may not include your exact keyword. This gives you maximum reach but can include many irrelevant clicks.

Once you know what keywords and phrases are converting, you can start testing broad matches. You will also want to aggressively add negative keywords.

  • Focus on one geographic area if you’re local
  • Run one or two ad variations to test
  • Give it 2-4 weeks to gather data

You’ll learn faster which keywords convert without spreading your budget across dozens of keywords. Once you identify winners, you can slowly expand with confidence.