Search Ads
Paid MediaAlso: Search Advertising · PPC Ads · Google Ads Search · SEM
Quick definition
Search ads are text-based advertisements that appear on search engine results pages (SERPs) when a user's query matches your target keywords. On Google, they appear at the top and bottom of results, labelled 'Sponsored'. You pay when someone clicks your ad, not for the impression. Because users are actively searching for something relevant to your business, search ads typically produce higher purchase intent than most other digital formats.
How it varies across Australia
Search advertising tends to show strong intent-to-purchase signals. Australian businesses in competitive service categories often see cost per click and cost per lead that reflect the commercial value of that intent, with more competitive markets commanding higher prices.
Explore benchmarks →Google's formula for determining which ads appear and in what position. It uses your bid, your Quality Score and the expected impact of ad extensions. A higher-quality, lower-bid ad can outrank a lower-quality, higher-bid ad.
Google's rating (1 to 10) of the relevance of your ad, keywords and landing page. Higher Quality Scores lower your cost per click because Google rewards relevant ads with better positions at lower prices.
Google's current standard ad format. You provide up to 15 headlines and four descriptions. Google automatically tests combinations to find which perform best for each search query. Replaced the older Expanded Text Ad format.
Controls how closely a search query must match your keyword to trigger your ad. Broad match reaches the widest range of queries. Phrase match requires the keyword phrase to be present. Exact match triggers only on the precise query. Each has trade-offs between reach and relevance.
What it actually means
When someone types a query into Google or Bing, search advertising allows your business to appear at the top of the results for that query. You bid on keywords, write ads and send users to a relevant landing page. Google decides which ads to show (and in what order) based on a combination of your bid and the quality of your ad and landing page experience. You are charged only when someone clicks. The fundamental advantage of search advertising over almost all other formats is intent. A person searching 'emergency plumber Sydney' has expressed a clear, immediate need. They are in buying mode. Your ad meeting that query at that moment, with a clear offer and a fast path to conversion, is marketing at its highest efficiency.
Search advertising is the only form of advertising where someone raises their hand and says exactly what they want. Your only job is to be the clearest, most relevant answer.
The Australian context
Australian Google Ads costs vary significantly by industry. Legal, financial services, healthcare and insurance categories command high CPCs because the lifetime value of a customer is significant. Trades, retail and hospitality are typically lower. The Australian market is competitive for most established search categories, which is why Quality Score optimisation (improving ad and landing page relevance) matters more here than in less competitive markets. Microsoft Ads (Bing) has a smaller but often overlooked Australian audience that can produce lower CPCs with decent conversion rates.
Where people get this wrong
Running traffic to a homepage instead of a targeted landing page is the single most common and costly mistake. The second is choosing broad match keywords without a strong negative keyword list, resulting in budget wasted on irrelevant queries. The third is setting Target CPA too low for the algorithm to win enough auctions, causing underspend and incomplete optimisation. Search ads require ongoing management, not a one-time setup.
Related terms
Common questions
What is the difference between search ads and SEO?
Search ads are paid placements that appear at the top of search results immediately. SEO (search engine optimisation) is the practice of earning organic rankings that appear below paid ads. Search ads stop delivering results when you stop paying. SEO builds a compounding asset over time. Most businesses benefit from both: search ads for immediate visibility on high-intent terms, SEO for long-term cost efficiency.
How much does it cost to advertise on Google Search?
Costs vary by industry, keyword competitiveness and Quality Score. In Australia, cost per click can range from under a dollar for low-competition terms to well over $50 for highly competitive legal, financial or insurance keywords. Budget requirements depend on your target cost per acquisition and conversion rate.
What is a good conversion rate for search ads?
Average conversion rates vary by industry and depend heavily on what counts as a conversion. For service businesses where a conversion is a contact form submission or phone call, strong performers see rates of 5 to 15% of clicks. E-commerce purchase conversion rates are typically lower, around 2 to 5% for well-managed campaigns.
Should I manage Google Ads myself or use an agency?
Self-managing is viable with the right knowledge, time and a straightforward account structure. Agencies add value for complex accounts, competitive categories or when internal time is limited. The risk of poorly managed Google Ads is significant: incorrect bid strategies, broad match keywords without negatives and poor landing page quality can burn through budget rapidly with little return.
Keep exploring
About New Rebellion
New Rebellion is a marketing intelligence consultancy. We build tools, score Australian businesses on how their marketing actually performs, and publish Debrief every day. This dictionary is part of how we work in the open.
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