Google Ads belongs to search engine advertising (SEA) and works on an auction principle. Several advertisers bid on each search term; who is shown and in which position depends not only on the bid but also on the quality score – that is, how relevant the ad and landing page are to the query. You usually pay only on the click (pay-per-click), not for the mere impression.
Besides the classic search ad there are other formats: display ads on partner websites, ads on Google Maps, shopping ads with product images for online shops and video ads on YouTube. For local businesses, search and Maps ads are especially relevant because they appear exactly when someone is actively searching for a service in the region.
The big advantage is speed: unlike SEO, Google Ads works immediately and can be controlled precisely – by region, time of day, device and budget. The downside: as soon as the budget is used up or the campaign stops, visibility disappears again. Success is measured by metrics such as cost-per-click (CPC), click-through rate (CTR) and the cost per enquiry or sale (cost per conversion).
In terms of budget, two items are separated: the ad budget that flows directly to Google, and the agency's management fee. In Switzerland, SME campaigns often start from around CHF 500 to 1,500 ad budget per month; agency management frequently costs a monthly flat fee of CHF 300 to 1,000 or a percentage (about 10 to 20 percent) of the ad budget. Click prices range from a few centimes to several francs depending on the industry (without guarantee).