How to Set Up and Optimize Google Ads Campaigns

Why it matters: Many small businesses waste ad spend because their campaigns are too broad, poorly structured, or untargeted.

 Choose the Right Campaign Type

Overview of Campaign Types for Local SMBs:

Campaign Type
Best Use Case
Search Ads
Show text ads on Google search results
Display Ads
Show banner ads on websites in Google Display Network
Local Ads
Drive store visits with Maps & Search placement
Automate ads across all Google channels
AI Max (experimental)
Next-gen PMax powered by AI content generation
Discovery Ads
Reach users on Gmail, YouTube, Discover feed

For most SMBs, start with Search + PMax and move to AI Max.

Master Keyword Match Types

Use the right match types to control which searches trigger your ads:

Broad match:

shows for related terms (very wide reach, lower intent)
Example: “plumber” shows for “pipes leaking”

Phrase match:

shows for queries that include your phrase
Example: “plumber near me” matches “24/7 plumber near me”


Exact match:

shows only for your exact keywords
Example: [emergency plumber] only shows for “emergency plumber”

Use phrase and exact match to target local intent, not just traffic. A board match may bring irrelevant traffic to your ads

Smart Bidding vs Manual CPC

Smart Bidding:

Google’s AI adjusts bids based on the likelihood of conversion

Manual CPC:

You set the max cost-per-click for each keyword

Start with Maximize Clicks, then move after a week to maximize conversions and try different types of bidding like Target CPA, target ROAS, or maximize conversion value if they apply to your case, but monitor closely.

Build a Strong Negative Keyword List

Negative keywords block irrelevant clicks that waste your budget.

Examples for local service providers:

“free”

“DIY”

“jobs” or “career”

“wholesale”

Use Google Search Terms Report and Keyword Planner weekly to find and add new negatives.

Geo-Targeting and Ad Scheduling

Local Ad Settings to Use:

Use call extensions and location extensions to boost local engagement.

Final Thoughts & Next Steps

Combining Local SEO and Google Ads is one of the most powerful strategies for small business growth in 2025. SEO builds long-term visibility. Paid ads give you immediate traffic and leads.

Frequently Asked Questions

Results from Google Ads can vary, but usually, Google Ads can bring leads within days.

Yes. Ads bring traffic now; SEO compounds over time, rewarding your patience with long-term benefits and strategic growth.

$500–$3,000/month is a starting point, depending on industry and competition.

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