How to Set Up Google Ads for a New Business (First Campaign Guide)

Never run Google Ads before? This step-by-step guide walks you through creating your first campaign, from account setup to your first converting click.

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You’ve decided to try Google Ads. Someone told you it works. You’ve heard businesses make money from it. But you’ve never run an ad campaign in your life, and the Google Ads interface looks like it was designed by people who hate simplicity.

This guide walks you through creating your first Google Ads campaign step by step. No jargon without explanation. No assumed knowledge. Just the practical steps to get from “I have a Google account” to “my ads are running and I can measure results.”

Before You Start: What You Need

  1. A Google account (Gmail works)
  2. A website with a clear page for what you’re advertising (a product page, service page, or landing page — not just your homepage)
  3. A credit card or bank account for billing
  4. A budget you’re comfortable spending ($10-30/day is a reasonable starting point)
  5. A goal — what do you want people to do? Buy a product? Call you? Fill out a form?

Step 1: Create Your Google Ads Account

  1. Go to ads.google.com
  2. Click Start now
  3. Google will try to walk you through a “Smart Campaign” wizard. Skip it. Smart Campaigns are simplified but give you almost no control. Click “Switch to Expert Mode” at the bottom.
  4. Enter your business information and billing details

Important: Always select Expert Mode. Smart Campaigns hide the controls you need to optimize performance. You can still set up a simple campaign in Expert Mode — you just have more visibility into what’s happening.

Step 2: Set Up Conversion Tracking First

This feels backwards. You haven’t created a campaign yet, and we’re talking about tracking. But here’s the truth: if you don’t set up conversion tracking before your first campaign, you’ll spend money with no way to measure results. And Google’s bidding algorithms can’t optimize without conversion data.

What to Track

Business TypeTrack ThisIt Means
EcommercePurchasesSomeone bought a product
Lead genForm submissionsSomeone filled out a contact form
Local businessPhone calls + form submissionsSomeone called or contacted you
SaaSSign-ups or trial startsSomeone created an account

How to Set Up

  1. In Google Ads, go to Goals, then Conversions, then Summary
  2. Click New conversion action
  3. Select Website
  4. Enter your website URL — Google will scan it
  5. Choose to create a conversion action manually
  6. Configure the conversion:
    • Category: Purchase/Sale (or Lead, depending on your business)
    • Value: Set a value per conversion (order total for ecommerce, estimated lead value for lead gen)
    • Count: Every (for ecommerce) or One (for lead gen — you don’t want to count the same person submitting twice)
  7. Install the tag using Google Tag Manager or by pasting the code directly on your conversion page

For the detailed walkthrough, see our Google Ads conversion tracking setup guide.

Step 3: Choose Your Campaign Type

For your first campaign, there are really only two options worth considering:

Your ads appear when people search for specific words on Google. This is the best starting point because you’re reaching people who are actively looking for what you sell.

Best for: Local services, professional services, products people search for, lead generation.

Option B: Shopping Campaign (Ecommerce Only)

Your products appear with images and prices in Google Shopping results. Requires a Google Merchant Center account with your product feed.

Best for: Ecommerce stores with a product catalog. Usually added after you have a successful search campaign running.

Skip Performance Max for now. Google will push you toward Performance Max campaigns. They can work well but they’re a black box — you can’t see which searches triggered your ads or how your budget is allocated. Start with Search so you can learn how things work, then experiment with PMax later.

Step 4: Campaign Settings

Create a new Search campaign:

  1. Click New campaign
  2. Select your goal (Sales, Leads, or Website traffic — match your business type)
  3. Select Search as the campaign type

Settings to Configure

Campaign name: Something descriptive. “Google Search - Standing Desks” is better than “Campaign 1.”

Networks: Uncheck “Google Display Network” and “Search Partners.” These expand your ads beyond Google Search and typically waste budget for new advertisers. You can test them later.

Locations: Target only the geographic areas you serve.

  • Local business: Your city + surrounding area (e.g., 25-mile radius)
  • National business: Your country
  • Important: Under location options, select “Presence: People in or regularly in your targeted locations.” The default “Presence or interest” shows ads to people who aren’t in your area but searched for it.

Language: Select the languages your customers speak.

Budget: Set your daily budget.

  • Minimum viable: $10-15/day ($300-450/month)
  • Recommended starting: $20-30/day ($600-900/month)

Use our ad budget calculator to estimate costs based on your industry and keywords.

Bidding: For a new campaign with conversion tracking set up, select Maximize conversions. This tells Google to optimize for the conversion action you defined in Step 2. Don’t set a Target CPA yet — let it run for 2-4 weeks to establish baseline performance first.

Step 5: Choose Your Keywords

Keywords are the search terms that trigger your ads. This is the most important part of your campaign.

Finding Keywords

  1. Open the Keyword Planner (Tools menu in Google Ads)
  2. Click “Discover new keywords”
  3. Enter 3-5 phrases your customers would search for
  4. Review the suggestions, focusing on:
    • Relevance: Is someone searching this actually looking for what you sell?
    • Search volume: How many people search for this per month? (100+ is a reasonable starting point)
    • Competition: Low to medium competition keywords are cheaper

Match Types

Each keyword has a match type that controls how broadly Google matches your ad to searches:

Match TypeSyntaxWhat It MatchesExample
Broad matchrunning shoesAny related search”best sneakers for jogging,” “athletic footwear”
Phrase match"running shoes"Searches containing the phrase or close variations”buy running shoes,” “running shoes for flat feet”
Exact match[running shoes]Only the exact search or very close variants”running shoes,” “running shoe”

For your first campaign: Use phrase match for most keywords. Broad match is too loose (you’ll pay for irrelevant clicks). Exact match is too restrictive (you’ll miss valid searches). Phrase match is the sweet spot.

How Many Keywords

Start with 10-20 keywords per ad group. Organize them into tightly themed ad groups (groups of related keywords that share ad copy).

Example for a standing desk company:

Ad Group 1: Standing Desks

  • “standing desk”
  • “stand up desk”
  • “adjustable standing desk”
  • “electric standing desk”
  • “standing desk for home office”

Ad Group 2: Standing Desk Converter

  • “standing desk converter”
  • “desk riser”
  • “sit stand desk converter”
  • “desktop standing desk”

Add Negative Keywords

From day one, add basic negative keywords to prevent irrelevant clicks:

  • free
  • diy
  • how to
  • jobs
  • salary
  • used
  • cheap (if you sell premium products)

These prevent your ads from showing for searches like “free standing desk plans” or “standing desk assembly jobs.”

Step 6: Write Your Ads

For each ad group, create at least 2 responsive search ads (RSAs).

Headlines (Up to 15, 30 Characters Each)

Write headlines that:

  • Include your main keyword (“Standing Desks”)
  • State a benefit (“Work Pain-Free All Day”)
  • Include a differentiator (“Free Shipping Over $100”)
  • Include social proof (“4.8 Stars, 2K Reviews”)
  • Include a CTA (“Shop Now” or “Get a Free Quote”)

Descriptions (Up to 4, 90 Characters Each)

Expand on your headlines:

  • What you offer and why it’s good
  • What makes you different from competitors
  • A clear call-to-action
  • Any promotions or guarantees

Display URL Paths

Add keyword-rich paths:

yoursite.com/Standing-Desks/Shop-Now

Ad Extensions (Now Called Assets)

Add these — they’re free and improve your ad’s visibility:

  1. Sitelinks — Links to other pages (e.g., “Our Products,” “Customer Reviews,” “About Us,” “Contact”)
  2. Callouts — Short highlights (e.g., “Free Shipping,” “24/7 Support,” “No Setup Fee”)
  3. Structured Snippets — Lists of features (e.g., Types: Standing, Adjustable, Corner, L-Shaped)
  4. Call extension — Your phone number (if you take calls)

Step 7: Launch and Monitor

Set everything live. Then:

First 24-48 Hours

  • Verify your ads are approved (check the Ads tab for approval status)
  • Verify conversion tracking is working (check Goals, then Conversions for a “Recording conversions” status)
  • Check the search terms report for any obviously irrelevant searches

First Week

  • Check daily spend vs. budget
  • Review search terms report and add negative keywords for irrelevant searches
  • Don’t change bids or targeting yet — Google’s algorithm needs data to learn

First 2-4 Weeks

  • Look for keywords with spend but no conversions — consider pausing them
  • Look for keywords with strong conversion rates — these are your winners
  • Check Quality Scores (add the column in the Keywords tab)
  • Review ad performance — which headlines/descriptions drive the most conversions?

After 4 Weeks

Now you have enough data to optimize:

  • Pause underperforming keywords
  • Increase budget on winning campaigns
  • Consider setting a Target CPA bid strategy based on your actual CPA data
  • Test new ad copy variations
  • Expand keyword lists based on the search terms report

Common First-Campaign Mistakes

Starting Without Conversion Tracking

Without it, you’re flying blind. You can see clicks but not sales. Set it up before spending a dollar.

Targeting Too Broadly

Targeting the entire US for a local plumbing business wastes budget on people you can’t serve. Be specific about your geography.

Too Many Keywords Per Ad Group

An ad group with 50 unrelated keywords can’t have ad copy that matches every search. Keep ad groups focused around a single theme.

Setting and Forgetting

Google Ads isn’t a “set it and forget it” platform (no matter what Google’s automation suggests). Check in weekly, review search terms, and make adjustments.

Sending Traffic to Your Homepage

Your homepage is designed for everyone. Your ad is targeting someone searching for something specific. Send them to a page that matches their search — a product page, a service page, or a dedicated landing page.

The Bottom Line

Setting up your first Google Ads campaign isn’t complicated — it just has a lot of steps. The most important things to get right: conversion tracking (so you can measure results), keyword selection (so you reach the right people), and ad copy (so they click). Everything else you can learn and optimize as you go.

Start with a modest budget, monitor closely for the first month, and let the data guide your decisions. Most successful Google Ads accounts weren’t perfect from day one — they were improved over time based on what the numbers showed.

Want to make sure your conversion tracking is set up correctly before you start spending? Run a free scan — it takes about a minute and saves you from wasting budget on unmeasured campaigns.