Rental Marketing

Ultimate Google Adwords Guide for Rental Businesses

We created a comprehensive Google Ads guide to help rental businesses to increase their revenues quickly.

We created a comprehensive Google Ads guide to help rental businesses to increase their revenues quickly. 

Google gets over 3.5 billion searches every day. You will be able to garner a significant number of bookings if you can attract some of that traffic to your site.

We previously talked about how to do it through SEO.

This time we will show you how to do it using Google Ads.

After reading this guide, you should know:

Why Google Ads is so powerful?

Previously known as Google Adwords, Google Ads is a pay-per-click advertisement platform that allows business owners to display their ads to their target population. 

Result-oriented model

Unlike TV and poster ads, Google Ads is result-oriented. You will not be charged to show your ads, you will only pay per click, even if ads are displayed millions of times.

Google Ads also comes with keyword research tools and historical data that help you increase the effectiveness of ads.

Better customer targeting

Google Ads shows products and services to those genuinely interested in them.

It tries to reach people with purchase intent and not just browsing for general information.

Predictable results

Since Google Ads has been around for many years, the business can predict the results of their marketing campaign based on previous records. 

For example, when they spend specific money on ads, they can expect a certain margin based on the previous PPC conversion rates. 

Protection against invalid clicks

Some publishers are using dark schemes to maximize the number of clicks. They make money through fraudulent clicks. Such negative circumstances drain your marketing budget and lead to poor ad conversions. Luckily, Google prevents invalid traffic by following measures:

For more specifics, visit Google’s Traffic Quality page. 

Case Study

Mr. Smith rents RVs to overnight campers who visit Yellowstone National Park. 

He has 4 RVs, which he rents for $145 per night. Lately, he has seen a gradual drop in his customers. 

He investigated the matter and found that most campers rent RVs from his new competitor, not because it is better but because it diverts the area's potential customers to its website using Google Ads.

Now, Mr. Smith is ambitious to beat his competitors and to show them how to do business in a real way (rivalry is not a bad thing when done ethically).

First, he creates a new rental website with online booking and other convenient self-serve features such as automated quotes, availability calendar, customer accounts, live chat, and more. 

Secondly, he adds all the RVs to his new website with amazing photo galleries and clear descriptions.

Third, he added reviews and testimonials from previous customers to make his business social proof.

Fourth, he linked his new website with social media, Google Business Profile page, search engines, business directories, and more. 

Fifth, he set a $1,250 marketing budget to get near-instant results with Google Ads.

Action plan

We found that the average RV rental price around Yellow Stone National Park is about $145, so Mr. Smiths prices are reasonable. 

Screenshot of Google Maps with RV Rental Locations

Then, we used Google Keyword Planner to check the keyword: “Yellow Stone RV rentals” to determine:

  1. Keyword validity
  2. Monthly search volume (100-1K)
  3. Keyword competition (low)
  4. Top of the page (low-range $1.09)
  5. Top of the page (high-range $5.23)
Screenshot of Google Keyword Planner

How much profit can Mr. Smith generate with $1,250?

If we assume Google Ads charges $1.25 per click, 1000 clicks will cost Mr. Smith $1250. 

The average Google Ads conversion rate on the search network is 4.40% for that specific keyword.

If an ad gets 1000 clicks, it will generate 44 orders.

Calculate the return on ad spend (ROAS)

Total spending: $1250

Received clicks: 100

Completed bookings: 44

Average revenue per order: $145

Total revenue: $6380 (44 X $145)

Please note: Revenues can be higher, assuming some renters may book the RVs for more than one night and some will return for more business later.

Where to display Google Ads?

You have to determine where you want to display your ads. Google shows your ads in two places:

1. Search Engine Results Pages (SERPs) 

Ads will appear at the top and the bottom of the search results. Google shows no more than 4 ads in each position to preserve a better customer experience. It gives a fair chance for organic and paid ads to be displayed harmoniously on SERPs. 

Some sources claim that 50% of internet users can’t differentiate paid ads from organic search results. It is because Google is good at masking the ads, making them look similar to organic ads since more clicks are profitable for both Google and advertisers.

Check the example below:

Google Ads on the SERPs

Red arrows: Sponsored ads

Green arrow: Organic search result

Please note: Google’s search ads may change over time as Google modifies its ad styles regularly. For example, Google ads were pretty noticeable in the early days, but now they perfectly blend in with organic search results. 

The Cons: 

2. Google Display Network

You can also display your ads on millions of websites, apps, and videos, collectively known as Google’s Display Network.

Ads that appear in the network are called Display Ads. You can modify the places where you want to show them based on target groups, their interests, income levels, locations, etc. 

In other words, your ads will be displayed on the websites or apps relevant to your business to avoid invalid traffic. 

Example of Google Display Network ads

The Cons: 

So which one is ideal for the rental business?

We recommend the search ads because people search for services and products with purchase intent.

It is reflected in actual conversion statistics. 

The average conversion rate of search ads is 4.4% while display ads convert 0.57% of total clicks into paying customers.

However, you should not completely ignore the display ads because they are effective in running awareness campaigns as they show your ads on a wide range of websites.

Creating a landing page.

It is the first page users see when they click on your Google Ads.

You can create a landing page specifically for Google Ads visitors or use a product categories page so the customers can instantly view a wide selection of products.

Poor or misleading landing page = Low Conversion and Quality Score.

Landing pages should be functional, clear, and convenient for visitors. And it should be consistent with your ad and keywords.

If they are designed poorly, harder to navigate, or irrelevant to what people see on your ads, visitors are more likely to bounce off and Google will penalize your Ads account with a low low-quality score.

Use the Landing page with product choices.

People like to explore their options independently! Do not force a single product onto customers' throats.

We encourage you to avoid sending customers to a single product page unless you have only one product in an advertised category. 

For example, if your ads target people looking for inflatable bounce houses, direct them to the general category of bounce houses instead of directing them to the booking page of a single bounce house type.

You may read more about landing page optimization here.

Setting Target Locations. 

Google Ads has an option to configure location targeting. It allows you to show your ads to your preferred locations. 

You can target:

Examples

if you are renting gardening equipment in Austin, TX, you may want to target residents of that city and surrounding areas. You can use radius settings or hand-select cities for inclusion and exclusion.

However, target locations may seem somewhat complicated for businesses getting clients from all over the nation or the world. 

Let's assume you rent a remote cabin near a famous national park, and the majority of your clients are international and out-of-state tourists. 

In this case, showing your ads only to locals may not be effective.

You can address this challenge in three ways:

For instance, Google Analytics shows the countries and towns most of your visitors are coming from. You can use that data to set your Google Ads location. 

Google Analytics overview

Once again, if you do not focus on out-of-town clients, you can make your ads appear only in local search results.

Analyzing Location Reports.

To see how ads in each location (country, state, city, or neighborhood) convert, you can view location reports on the Ads dashboard. 

If certain places are not performing well, you can exclude them from the list. And possibly, increase bid adjustments for the areas that produce better conversions. 

Language settings.

The default language is English so your ads will appear in search results when queries are in English.

If you are targeting other languages, you need to set your language accordingly. 

For instance, let's say you rent a bounce house in El Paso, TX.

Since  81.6% of its population are Hispanics, you may want to make your ads in Spanish.

The same suggestion applies to rental businesses located in non-English-speaking countries. If a majority of your clients are locals, you have to set your language to local language.

Setting a Budget

We recommend starting with a smaller budget. That way, you can experiment with different ads and locations.

Ads with smaller budgets can help you gather valuable data for future campaigns. 

For example, if visitors from towns more than 50 miles away are not converting well, you can shrink the radius and display ads to only people from nearby locations. 

The actual steps of setting a budget are not too complex. Google Ads dashboard asks you to input your daily budget and automatically estimates the number of conversions you may obtain with that budget (check the example below).

Google Ads budget settings

Scheduling ads

Google gives you control over when to display your ads.

If you specifically target weekend searchers, you can set your ad schedule for Fridays, Saturdays, and Sundays.

Google Ads schedule settings

Tip: Pull up the monthly, daily, and hourly reports on Google Ads, and assess what part of the month, which day of the week, or which hour of a day your ads perform well. Google has a convenient tool to obtain that data.

Choosing Objective

Did you know that Google Ads functions like an auction?

Whoever pays more per click, and maintains good quality score, their ads appear in the most favorable spots. 

Google lets you choose a bidding strategy to make your ads serve the purpose.

Since the ultimate goal of a rental business is to make a profit by increasing rental bookings, we will focus on conversions.

Google Ads conversions

Setting Google Assets for Bolder Ads

Google Ads enables several extensions, now called “assets”, to add more info and features to your ads.

You can use them to make your ads bigger, bolder, and attractive. And the best part is the assets do not cost you anything. 

Google Ads assets

The following are 10 primary Google Ads assets you can use:

1. Location Assets

Displays your business address, contact details, directions, and more.

You can activate the feature by linking your Google Ads account with your Google Business Profile account. 

Location extensions are good because:

2. Call Assets

Call assets ads direct call button to your ads.

However, only mobile users can call your business directly from the ads by pressing the “call now” button. Desktop users will only see your phone number on your ads. 

Google Call Asset

If you do want to receive calls during the off hours, you can schedule the call assets to the times that you are available. 

Note: set up the correct phone number to get the desired results. Google considers “call now” button clicks as an actual click even if your phone number is wrong.

3. Site Links

It adds direct links to specific pages of your website.

For example, link to the About Us page, prices, categories, galleries, etc.

It allows ad clickers to choose their preferred landing page.

Google Ads extensions for better ads

Note: You can use Google Analytics to find the most popular pages of your website and assess which ones produce more conversions. Then, add your site links accordingly. Read the comprehensive guide on the site link extension. 

4. Price Assets

Yes, you guessed it. Price assets ads prices to your ads. It makes your ads look more transparent and credible.

Google price assets in action

People searching for a specific rental item can see your rates directly from your ads. If they like your price, they will click, otherwise they will ignore the ads. 

5. App Assets

You can also allow customers to download your app directly from your ads by displaying the “Install Now” button.

Do not have an app for your rental business? Build it with Reservety.

6. Callout Assets

Text features primary selling points and offers.

For example, special holiday discounts, free trial, best-rated rental business, free delivery & setup, or anything that will interest potential renters!

You may add 10-12 callouts and Google will rotate them to fit the ads.

7. Rating Assets

This extension displays your business rating directly on your Google Ads. 

If you have 5 5-star ratings it is a good place to use it to grab the instant attention of searchers. 

8. Lead Form Assets

It is the perfect extension to get leads directly from ads.

The ad will feature a fillable form as shown below and users do not have to go to the landing page. 

9. Image Assets

You may not be able to add images to all ads unless your ads meet certain criteria.

However if approved for the image assets, your text ads may be more attractive to users. Thereby, increasing your click-through rate. 

10. Promotion Assets. 

The promotion assets display your current promotions, discounts, and other attractive offers in your Google Ads.

It is the perfect way to grab instant attention and give customers a good reason to click on your ads.

Also, showing your price on ads will save you from paying for clicks of those that only want to want to know your prices.

Please note: Do not try to use all extensions, use the ones that will suit the purpose of your ads. 

Use Ad Rotations

This feature is optional but can be handy in some cases. 

Let's say you have created multiple ads for your rental business and can’t decide which one will produce the better results. 

In this case, you can add all your ads to your campaign, and activate the ad rotation feature. Google will display different ads based on the schedule settings. 

Optimize your ads for different devices

People use various devices to access the internet. So setting device targets on Google ads will play a pivotal role in achieving greater conversions. 

Mobile Ads are a must

You know the reason! 63% of Google searches occur on mobile devices. 

However, before enabling mobile ads on Google, you must ensure that your website is mobile-friendly. Otherwise, you will waste your money referring mobile users to non-responsive pages. 

If your rental website is not responsive on mobile devices, Reservety will help you innovate it. 

Desktop vs Mobile Conversion

Although mobile ads may attract greater visitors, the actual conversion rate of mobile ads (2.25%) is significantly lower than that of desktop ads (4.81%).

Here are possible reasons:

Structure Your Ad Groups

What are the ad groups? 

When you create a Google Ads account, you create Ad campaigns, and you can break down the campaign into several ad groups, each containing similar keywords, and targets.

Generally speaking, ad groups are subsections of an ad campaign.

Let's demonstrate it with an example.

You have a bike rental business in Moab, Utah (a famous mountain biking destination).

You created a campaign specifically for mountain bikes in Google Ads.

Now, you want to create different ad groups under that campaign, focusing on specific brands, types, and offers.

Your campaign name: Rental Mountain Bikes in Moab Utah

We do not have to indicate the place in your target keywords as Google takes care of it after you set the target locations.

Ad Groups

The sample is only for demo purposes. You may enhance the keywords and structure based on your creativity and data assessments. 

Creating ad groups is also good for gathering data.

Assessing the data from Google Ads, you can see which ad group performs better, and based on that, you can make calculated decisions for your future ads.

Write Ads that Convert

Now, we are moving away from setup processes and getting into creating actual ads.

Not all ads are created equal. Some ads produce good results while others are a waste of money. Creativity and keyword research are two primary ingredients for killer ads.

Google Ads Rules

Google sets certain rules to make their ads look in standardized styles and make them more appealing and safe for internet users. So, your ads will go through a review process.

Tips to Improve Google Ads Content

Highlight why your rental business is unique.

You may say things like: 

Describe features more than benefits.

To explain this, let's put ourselves in the shoes of a consumer. 

You are looking for a rental trailer to move boxes from your garage to a local self-storage unit.

You did a quick search on Google and the results came back with several local listings, including 4 sponsored ads.

You will start reading each ad to find the one that meets your needs.

In this case, which of the following ads would you click?

Ad 1: Rent trailers with adjustable hitches; includes dolly & straps, fully insured & inspected; Load capacity over 3000lbs, ready for pickup 24/7.

Ad 2: Rent various trailers and move your heavy loads fast. Fully maintained. Let our trailers do the heavy lifting, while you enjoy the smooth rides. 

We assume Ad #1 will do better considering the following:

Include prices, brands, and quality.

If you are advertising several inflatables with varying prices, we recommend displaying the cheapest prices.

For example, you can say something like “Top-brand inflatable castles starting from $35/day”

Mentioning your brand and quality also turns some heads as parents may want safe and reputable brands. 

Make your descriptions consistent with your landing pages.

Info on your landing page must be the expanded version of your Google Ads.

In other words, when people click on your ads to get more info, your landing page should give them that info. 

When your ad content and landing page are incompatible or disconnected, your conversion rate will be low.

Plus, a discrepancy between an ad and a landing page will drop your quality score, which will increase your CPC rate, and drop your ad rank.

Mention the credibility of your business. 

People like to do business with companies backed by large organizations. For example, BBB accredited, Microsoft Certified, etc.

Activate location & call assets on mobile ads. 

We talked about various Google Ads assets above. Two of them are:

Pack maximum info to a headline.

According to studies, most people pay attention to headlines more than descriptions. 

Make your headlines attractive enough so the reader may want to explore more about your ads.

Improving Conversion Rate with Research

Good results require hard work. We all know that.

But not all hard work produces the desired results. 

For example, why cut stacks of logs with a handsaw, when you can simply use a chainsaw?

In research, you do not have to collect data manually, technology can do it for you in seconds.

First, determine what features customers are interested in most.

If you have been in the rental business, you should know what customers are concerned with the most when they are interested in a specific item. 

For example, if you rent generators to construction companies, what are the somethings that they ask about the generators?

Are they concerned with its fuel efficiency? Output capacity? Price? Brand? Warranty? Or something else?

If they ask all the mentioned, you may structure your ad something like:

“Rent super-quiet Honda generators starting at $30/day. Capacity 120v/2200W. Insured, Free delivery & setup” 

Keyword Research is a Must. 

We do not want to create an ad without hard data and keyword research is one way to get it.

Keyword research specifically focuses on:

Keyword Research Tools

As mentioned, keyword research is vital for a successful Google Ads campaign. However, manual research will take time and prone to errors.

So, use the following tools:

Google Suggestions

Google Suggest is also known as Autocomplete. When you start typing something into Google’s search bar, the system suggests the rest of the queries as shown below:

Please note: Google Ads system has a keyword suggestion tool different from Google Searches autocomplete. 

Ubersuggest

It helps to find highly searched keywords and view their volume. Also, suggests relevant keywords that can be used to increase traffic.

Soovle

The platform displays highly searched keywords relevant to your target keywords across popular sites such as Google, Bing, Yahoo, Youtube, Amazon, eBay, Answers.com, and others.

The results will give you an idea of which keywords you need to add to your negative keyword list to avoid your ads showing up under not preferable search queries.

Google Keyword Planner

Keyword planner is Google’s free tool that gives you access to Google’s valuable search data.

By searching for specific keywords, you can get its monthly search volumes, popular regions, competition, bid price, and more.

SimilarWeb 

It is perfect for finding your competitors and learning about their ad campaigns and other marketing strategies.

More about Google Keyword Planner

It is free, reliable, and data from the largest search engine in the world.

The rest of the keyword research tools use Google’s database to generate their reports. So why not use it? 

How to use it?

Go to https://ads.google.com/home/tools/keyword-planner/

Click the Go to Google Keyword Planner button.

On the planner page, you have two options:

volumes to better forecast keyword performances.

You can get the keyword ideas by typing in your URL or inputting keywords you are interested in.

Make sure you set your region and language to get accurate monthly reports and forecasts. 

By default, your language and country will be set based on your current location.

For example, if you are located in France, and your target location is the USA. You have to set the keyword planner to USA and set the language to English.

Top-of-Funnel Keywords vs Bottom-Funnel Keywords.

Top-of-funnel keywords are used for awareness or the initial stage of a customer journey. 

For example:

Assume you plan to rent electric scooters in downtown Dallas to run your errands. But first, you want to know the price to decide whether it is affordable.

So you will search something like “How much to rent an electric scooter in Dallas, TX” - that is the top-of-funnel keyword.

You are just starting to get interested in renting but not fully committed. 

If you plan to rent a scooter, you probably search keywords like “Electric scooter rental in Dallas, TX” - It is a bottom-of-funnel keyword because you search with the intent to rent.

How is it relevant to Google Ads?

Most marketers target bottom-of-funnel keywords because they convert well. In other words, you are targeting people with commercial intent. 

The downside of bottom-of-funnel keywords is cost. Companies are aggressively bidding on those keywords, increasing CPC. 

On the other hand, top-of-funnel keywords are saturated, have less competition, and are cheaper to bid. However, the conversion will be lower.

If you target top-of-funnel keywords in your ads, you can direct your clients to content or pages that answer their questions and fulfill their needs. At the same time, your content should encourage or motivate them to shop from your business through organic Call-to-Action (CTA) actions. 

If you decide to target bottom-of-funnel keywords, your ads should direct customers to product pages or sales pages where they can select the items they desire and book them online without wasting time. 

Target Multiple Keywords

Some people think that one target keyword will bring fortunes. Unfortunately, it is not that easy. 

High-level marketers suggest targeting tens of keywords in each campaign to determine keywords that perform well over time.

Then, doubling down on the ones that produce more conversions. 

Keyword Match Settings

Before explaining what keyword matching is, we have to sort the difference between the keywords and search queries.

Search queries are phrases and words people type into Google or other search engines

Keywords are phrases and words we target in our ads and websites to bring in a specific group of audience.

Example:

You are renting electric guitars. So, you will target the keyword: “electric guitar rentals”.

In reality, not everyone will type that exact phrase in the search bar.

People will use different search queries but the search engines are smart enough to match the queries with relevant keywords. 

You have control over match settings. 

According to Google, “The keyword match types dictate how closely the keyword needs to match with the user’s search query so that the ad can be considered for the auction

Four Keyword Match Options

Broad Match - Triggers your ads when relevant search queries are searched.

Your ad is “Rental Inflatable Castles”

Broad search terms that trigger your ad:

Phrase Match - triggers your ads when phrases or meanings of search queries match your target keywords.

Exact Match - triggers your ads when people search for exact phrases or words. The option gives Google less flexibility to serve your ads in relevant queries. 

Negative Match - It prevents certain words from triggering your ads. You can put a (-) minus sign in front of the words or terms that you do not want. 

For example, if you do not offer inflatable sliders, you can exclude the word "slider" and Google will not show ads when search queries include that term.

Learn more about Keyword Matching Options here

Traffic Sculpting

Traffic sculpting is a keyword organization method that aims at increasing the efficiency of ads by redirecting traffic to the right ads, using negative keywords.

Let's assume you have a bike rental business. You created two ad groups under your Google Ads campaign.

  1. Electric bike rentals
  2. Mountain bike rentals

Each ad group targets different users.

Electric bikes may be for those wanting to ride a bike with minimal physical labor, while physically active people will search for mountain bikes to experience the thrill of the outdoors. 

Google may direct traffic to both of your ads when keywords “broad search keywords” are used. 

It means that if anyone searches bike rentals in your area, both of your ads may show up. So, you have to command Google which ads to show and not show under certain queries. To do that, you need to add negative keywords at the ad group level.

In this case, you can add the word “electric” as a negative keyword for mountain bike ads (unless you offer electric mountain bikes). That way, you can avoid electric bike ads showing up when someone searches for mountain bikes.

Similarly, you can add the word “mountain” as a negative keyword to electric bike rental ads not show them to people searching for electric bikes.

Generally, traffic sculpting directs users to more relevant landing pages, which in turn, increases the conversion rate. 

Please note: Optymzr is one of the notable tools for traffic sculpting. It automatically pulls up the keywords that trigger your ads, through which you can apply negative keywords to the right ad groups. 

Creating Ad Groups

Ad groups are subcategories of campaigns. They are vital to getting quality traffic. 

Let's say you own a construction equipment rental business. 

Since you have various types of tools, you want to create a campaign for each category separately.

A single ad for general construction equipment will not win you quality traffic because people may be looking for specific tools to rent.

For example, you created a campaign for construction lifts. Since you have more than one type of lift, now you need to create ad groups under the campaign.

First, find the popular keywords that are relevant to your inventory.

In this case, we found the following keywords are highly searched:

Assuming you offer all three types of lifts, we recommend you create ad groups for each type. 

When you create an ad group, select the “text ad” option as it would be the most preferred and the most effective for your rental business.

Once you select the option you will see the following input fields:

Headline

It should be no more than 25 characters and include keywords with catchy info. 

For example: “Rental Forklifts from $50”

Description 1

Write benefits and features. Make it precise, and say your message with fewer words as you have only 45 characters to work with.

For example: “Top brands starting from 50/hr”

Description 2 

The second line of description is for you to tell more about your products and services. Again, be specific and write the info that will make the most impact on the users.

For example: "Free delivery & pickup. Book Online."

Display URL

It is a link that will be displayed under your headline and visible to users. It does not have to be a valid link, but it must be professional and informative.

For example, www.yoursite.com/forklift-rentals

Final URL

The final URL should be a valid link that directs your users to your landing page. 

For example, www.yoursite.com/rentals-categories-forklifts

Please note: we encourage you to double-check your final URL so as not to send your clicks to waste.

Add Keywords

Add keywords from your keyword research. When you enter the keywords follow the following format:

How to set Max CPC 

This is probably the most important question. Knowing its answer will help you determine whether your ads are successful or dragging you into a black hole.  

Step 1: Find Revenue per click.

The formula is very simple. 

Let’s say over one month you generated $4500 from ads.

The total of clicks that helped you generate that revenue is 1,350 

Now, you can divide 4500 by 1350 and you get the revenue per click, which is $3.33.

Step 2: Determine conversion rate.

What percentage of clicks end up with purchase or booking?

Keep in mind, that conversion rates may vary based on keywords. As mentioned earlier, if you are targeting top-of-funnel keywords, your conversion rate will be a lot lower.

How to estimate the conversion rate?

The total number of conversions divided by ad clicks equals the conversion rate. 

Example: 57 conversions / 1350 ad clicks = 0.0422 which is 4.2 %

Step 3: Calculate your break-even ROAS.

Let's say you generate $78.9 in revenue per conversion on average.

Your profit margin is 60%. That means you make $47.34 in profit per conversion. The rest ($31.56) goes to your operational costs, cost of goods, and shipping costs. 

Formula:

1/0.60=1.66  It means that for every dollar you spend, you need to generate $1.66 in revenues to break even. 

Step 4: Calculate Max CPC

The previous steps helped us to determine the following:

Now, input them into a simple formula: Average Order Value / ROAS X Conversion Rate

78.9 / 160 X 4.2 =$2.07 is your Max CPC

What is Google Ads Auctions?

Google Auctions works differently than auctions we see in real life. When you set a max bid for ads, Google automatically makes a bid on your behalf just to beat the bidder right below you.

But the max bid is not the only thing that makes you a winner in Ad auctions. Google also cares about the customer experience so they do not sell their spot to the highest bidder. It considers relevancy levels and ad rank scores. 

How it works?

Let's say you created an ad for the keyword: “utility trailer rentals”. And your max bid is $3

For the same keyword, the following entities and individuals place bids:

Mr. Smith bids $4

Roe’s Trailers bids $2.50

Mrs. Jacob bids $6

If Google were to care about only the max bid, it would rank Mrs. Jacobs's ads above everyone else's. 

Instead, it assigns a relevance score after analyzing their ads and landing pages. If a landing page is inconsistent with the ads, it assigns a lower number. 

It means lower bids with higher relevancy scores can outrank the ads with higher bids with lower relevancy scores. 

What is Google Ads Quality Score?

Google gives you scores based on the quality of your ads compared to other advertisements. The higher you score, the more likely your ads will be displayed in better positions. 

As mentioned in previous sections, Google cares about its users and helps them to find products, services, and info they need.

The company does not want to risk its reputation by displaying paid ads that do not bring value to customers. Therefore, Google introduced quality scores in 2005.

Key points to note:

How quality score is calculated?

To calculate the quality score Google Considers the following components:

The click-through rate is an indicator of how well your ads perform on specific keywords.

The higher the CTR, the more likely your ads to be accepted well by people who search your target keywords.

For example,

Your ad’s target keyword is “Camping tent rentals”

Total impressions received: 25,750

Total ad clicks: 1,438

CTR formula: Clicks / Impressions X 100 = CTR

1438 / 25,750 X 100 = 5.58%

It means your ads displayed 25,750 times and 1,438 (or 5.58%) resulted in actual clicks.

Keyword and ad relevance are indicators of how well your ads match your target keyword. If discrepancies exist between ads and target keywords, Google will penalize the ads.

For instance, if your target keyword is “rental travel trailers” but the ad content mainly talks about utility trailers, your ads will receive bad impressions from users and Google. 

Keyword and Query relevance is another factor that influences your quality score. You should understand the difference between keywords and queries.

Keywords are the phrases that you target. Queries are words or phrases people type to the search bars. 

In the context of Google Ads, keywords trigger ads. Therefore, keywords that trigger ads must align with the search queries. 

Landing page relevance must be maintained to earn a higher score from Google. No user will like your ads when they talk about “rental wedding decorations” and refer clickers to a page about wedding tables and chairs. 

So, make your ads relevant to your landing pages or vice versa. 

Qualities of an ideal landing page:

Factors that impact the Quality Score:

CTR 65%

Relevancy 25%

Landing Page 10%

What does each score mean?

QS is rated between 1 and 10.

1. Means your ad is not good enough, you should kill it.  Otherwise, your CPC will be astronomical, and risk overall account QS. 

2 - 3. means your ads are salvageable. Your CPC will be high. And there is still a risk to the overall health of your account.

4-5-6. means your score is mediocre but some TLC will will help you a lot. 

7-8-9 should be your target QS. Anything below will either increase your CPC or lower your ranking on search results.

10 is a jackpot because you are doing everything right in the eyes of Google. The highest score means you are paying less for the perfect ad position.

How to Calculate Ad Rank?

First, let's define ad rank and explain why it is important.

Ad rank is the value given by Google which determines the eligibility of your ads and the positions they will be displayed.

Ad Rank Formula

Google calculates your Ad Rank by multiplying the Max CPC bid by QS.

For example: 

When your QS is 7, and Max CPC is $3, your ad rank 7 x 3 = 21

To demonstrate this more broadly, we created a table.

A table shows how to calculate Ad Rank

As you can see in the table, the highest CPC bid does not guarantee you a good ad position. 

In this case, Mark’s ads will not be even displayed since his quality score is so low, and his $9 bid is not enough to secure him an ad position.

On the other hand, ads with excellent quality scores earn you a good rank at a cheaper CPC rate. Look at Laura, she secured the second position with just a $2.25 bid.  

Please note: Ad ranks are not stationary, the positions will change when advertisers lower or increase their bids, or when Google updates quality scores.

How to calculate your actual CPC? 

Most of you will ask this question instantly because we care about how much our Google Ads will cost us.

It depends on Google Ad Auction. Each time someone searches something on Google, a new auction takes place. It means your CPC rate will vary on each search.

We know that our Max CPC bid is not the actual CPC we are going to pay. Meaning, you won't be charged $5 even if your max bid is $5. It simply means your max bid is the highest price you are willing to pay.

How much are we going to pay per click? 

The short answer is just enough to beat the advertisers directly below you. 

CPC Formula

Ad rank score of advertiser directly below you divided by your quality score

Table demonstrates how to calculate actual CPC

Let's assume!

Your quality score is 8 and the advertisers below you have an ad rank score of 13, So, 13 divided by 8 is 1.62. It means your actual CPC will be $1.62.

Step-by-Step Guide to Create a New Google Ads Campaign.

The process is straightforward.

  1. Go to your Ads dashboard. Click the “Create” button on the left-hand sidebar.  
steps to create Google Ads campaign

2. Choose “campaign” from the dropdown menu.

creating google ads campaign

3. Select the Purpose. If you can’t decide, select “Create a campaign without a goal’s guidance.” 

Google Ad campaign purposes

4. Select a campaign type. We recommend the “Search Network” option as we are focused on featuring our ads on SERPs. Because it converts better than display ads. 

Types of Google Ads networks

5. Select the results you want to get. You should select the “Website Visits” option because we want to get customers to visit our website and book rental items online. Do not have an online booking feature on your website? Get it with Reservety

Google ads result target

6. Name your campaign. Do not overlook this section. You have to organize your campaigns by name.

naming Google Ads campaign

7. Indicate what your campaign focuses on. We recommend selecting “conversions” because it is our primary target. 

Google Ads bid purpose

 8. Select where you want your ads to appear. Since we want to display our ads in SERPs, we will select “Google Search Partners Network”. And untick the “Google Display Network” option.

Google Ads Search Network

9. Select the location for your campaign. Another words,  let Google know in which areas or radiuses you want to show your ads. 

By default, the location is set to All countries and Territories. However, it is not suitable for your rental business. Because your coverage area may be your town and surrounding areas. So, hand-select the areas to maximize the efficiency of your ads.

You can either set radiuses to cover your service areas. 

Google Ads location settings

Or you can include and exclude the locations based on your preference as shown in the screenshot below.

Including and excluding areas for Google Ads

10. Set your language. Your ad language has to coincide with your target language. By default, your language is set to English. If you are targeting locals of certain countries, you have to change the language accordingly.

Google Ads language settings

11. Set Keyword Match Types. We recommend avoiding broad matches as they may show your ads under undesirable search queries, which may waste your money. Instead, do your homework with keyword analysis and select the keywords that match your objectives. 

Google Ads match settings

12. Set Ad Rotation. The feature allows you to rotate your ads when you have several ads for the same ad group. Plus, you can optimize the rotations by instructing Google to display only the best-performing ads. 

Google Ads -ad rotation settings

13. Specify the Campaign’s start and end dates. Once set, Google will automatically schedule your ads. If you do not specify an end date, your ads will continue.

Google Ads start and end date

14. Schedule your hours. Google allows you to run and stop your ads at certain times of the day. For example, you can schedule your ads from 8 am to 11 pm on Fridays, and  1 pm to 12 pm on weekends. The choice is yours but do research what time of the day, your ads produce the most favorable results.  

Google Ads schedule settings

15. Enter keywords manually or let the AI do it. We recommend doing it manually because you can add keywords based on your research and avoid the keywords that do not hold value for your business. 

If you want to use AI, just enter your domain, write a brief description of your rental business, and hit “Generate”. 

To do it manually, press the “skip” button. 

Google Ads AI generation

16. Create Ad groups to organize your ads around a common theme. 

The steps are simple. First, name your ad group. Then start adding the keywords that you target as shown below.

Google Ads keyword settings

17. Enter the Final URL and Display URL. Your display URL should be accurate and direct users to your landing page. If you put the wrong URL, clicks will go to waste but you will still be charged per click. Display URL is the link that you show in ads and it doesn’t have to be the same as the final URL.

Assigning URLs for Google Ads

18. Add headlines. This is the most important step because your headlines are the first thing potential clients will see in your ads.  

Google Ads headline settings

19. Add descriptions. Descriptions should give the most amount of info with the least amount of words. Because Google imposes character limits for both headlines and descriptions to make the ads compact. Also, make sure your ad description is consistent with the ad headline and a landing page. 

Google Ads description settings

20. Add Google Assets. Those include call assets, price assets, site links, callouts, call assets, and more. When you add them to your ads, your ads become bigger and bolder and stand out in SERPs. All assets are free to use. 

Google Ads- asset settings

Examples from Google Assets.

Price assets. It displays the price of products or services. In your case, it will display your rental rates.

Google Price Assets

Site links. It displays several clickable pages at the bottom of your ads as shown in the screenshot.

It lets viewers select their preferred landing pages. For example, you can add an “about us” page, “inventory”, or “photo galleries” as a site link.

Google sitelink assets

Callouts. It features catchy phrases about your business. For example, free delivery & setup; Satisfaction guarantee; On-time deliveries; Comes with Insurance; etc.

Google callouts

Call Assets. It lets mobile users directly call you through an ad. However, the feature is available for mobile users. On a desktop, call assets will display your phone number without a call feature. 

Google Call Asset

App Assets. If you have a mobile app for your business and want your visitors to download your app, you can activate the App asset in the dashboard. It lets users download the app directly from the ad.

Google App assets

Please note: Call and download clicks are also considered as a conversion. So, you will be charged per action.

21. Set your daily budget. We recommend starting with smaller budgets to experiment with your ads. We do not want to spend lots of money on ads that do not convert. 

The process is simple. Enter your daily budget and Google will calculate everything and indicate how many clicks you will receive with that budget. 

Google Ads budget settings

Review, Publish, and Wait for approval

Once you set your budget, you will be directed to the review page where you should confirm everything you entered is correct. If everything seems OK, click publish.

However, publishing does not mean your ads are live instantly. You have to wait for Google’s approval. Once approved, you will get a notification, and you will be able to track the performance of your ads from the Google Ads convenient dashboard. 

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