[2025 Edition] The Correct Setup and Optimization Methods for Google Ads That Drive Results

Introduction: Are You Getting Lost in Google Ads “Settings”?

“I want to start using Google Ads, but I don’t know how to configure it.” “I’m kind of running ads, but will this really generate results?” If that sounds like you, you’re far from alone.

There’s a flood of information online, but much of it is outdated or fragmented, and there are few places where you can learn correct settings and optimization in a systematic way. There’s also no shortage of cases where advertisers fail after taking Google’s free support or agency sales talk at face value.

This article thoroughly explains the must-not-miss configuration points in Google Ads and the improvement methods professionals actually use, for advertisers who feel lost. By reading to the end, you’ll learn how to dramatically cut wasted spend and grasp everything from the basics to advanced tactics for running ads that truly drive results.

1. Understand the Big Picture of Google Ads

Google Ads includes many ad formats, but beginners should start with these three:

• Search Ads (Listing Ads) Ads shown in Google’s search results, triggered by the keywords users type. Example: show an osteopathic clinic ad to people who search “Shibuya osteopathic clinic.” The strength is reaching users with high purchase intent.

• Display Ads Image or banner ads that appear across Google partner websites, blogs, and news sites. High visibility; great for awareness and remarketing.

• Discovery (Find) Ads Ads shown within Google’s own platforms such as YouTube, Gmail, and Google Discover. Strong visuals and useful for reaching potential (latent) audiences.

💡 Tip: For beginners, these three are enough. Depending on your industry and goals, you can already achieve solid results with Search + Display + Discovery (Find).

2. The “Expert Mode” Every Beginner Should Switch To

When you create a Google Ads account, you’ll be presented with Smart Mode (guided setup), which is not suitable for beginners. In practice, it causes issues like these:

Why is Smart Mode risky?

• Auto-delivery that doesn’t match your industry or business goals
• Budgets consumed on unintended placements or keywords
• Little control over bids and ad copy

This leads to your budget evaporating, without even being able to evaluate ROI.

How to Switch to Expert Mode

Just click “Switch to Expert Mode” at the bottom of the screen. This unlocks detailed settings such as:

• Geographic and dayparting settings
• Keyword match type selection
• Choosing bidding strategies (manual/automated)
• Conversion tracking
• Remarketing setup

✅ Important: The moment you switch to Expert Mode, your operational precision ticks up a level.

3. Seven Basic Settings You Must Do First

Initial setup is critical to maximizing Google Ads effectiveness. If you get it wrong, ads will be delivered to unintended users and your budget will be wasted.

Here are seven basic settings beginners often overlook:

① Uncheck “Include Display Network” for Search

When creating a Search campaign, “Include Display Network” is ON by default—turn it OFF. Run Display in a separate campaign with a clear objective; mixing it with Search leads to unintended delivery and inconsistent data.

② Optimize Location Targeting

For example, to attract students to a “certification school,” limiting the radius to within 10 km of the classroom is reasonable.

Also beware of the setting that includes “people interested in your target area.” It’s often too broad. In many cases, restricting to people actually in the area yields better results.

③ Set Audiences to Observation (Monitor)

For Search, set audiences to Observation. If you select Targeting, Google restricts delivery based on its interest assumptions, causing missed opportunities where your ads should have shown.

④ Skip Goal Setup

In Expert Mode, choose “Continue without setting a goal.” Selecting a goal only changes the navigation; you can freely configure goals later.

⑤ Choose the Right Bidding Strategy

At launch, “Maximize Clicks + set a CPC limit” or Manual CPC (individual) is a safe bet. Always set a cap to prevent runaway CPCs in the thousands of yen per click.

⑥ It’s OK to Add Extensions Later (Skip at First)

You can add extensions later per ad group. Prioritize launching your campaign smoothly at the start.

⑦ Be Cautious with Google Support Suggestions

Google’s free support may feel convenient, but suggestions can be off the mark. Staff are often outsourced, not Google employees.

4. Don’t Over-Split Campaigns: Why Fewer Is Better (and the Exceptions)

A common beginner mistake is splitting campaigns too finely.

Why consolidate campaigns?

• Aggregate conversion data
• Hit the CV thresholds for automated bidding faster
• Simpler management and easier iteration

✅ Principle: If the product and objective are the same, manage within a single campaign.

Exceptions (5 patterns):

1. Different budgets by service
2. Different delivery hours
3. Different targets (e.g., B2B vs B2C)
4. Completely different regions
5. Want to split clearly by gender, etc.

When these apply, separate campaigns enable more accurate optimization.

⚠️ With limited experience, it’s more efficient to start consolidated, then split later.

5. Don’t Melt Your Budget with Keyword Mistakes: Picking Match Types

Keyword settings can make or break your campaign.

What are match types?

Beginners should start with Phrase or Exact. Broad is too expansive and risks delivery to unintended queries.

Notes on Negative Keywords

If you exclude "Shibuya Programming" as a phrase negative, “Programming Shibuya” is not excluded. Reverse word order is treated as a different negative keyword.

💡 Keep a negative keyword list to reuse across future campaigns.

6. Ad Groups & Ad Copy: Organize by Search Intent

Inside a campaign, ad groups are crucial. If they’re not designed properly, your messaging won’t match user intent, killing CVR.

Split ad groups by “intent.”

Example: for a certification school

• Ad Group A: Programming School
• Ad Group B: Web Design School

When offerings differ, separate ad groups.

Why split?

• Intent differs by query → People who want programming vs. web design have distinct needs.
• You can tailor the copy → For programming, appeal with “job placement support,” “Python available,” etc.

Bad example: Shoving all keywords into one ad group. It seems easier, but weakens copy–keyword relevance and drags down CTR and CVR.

💡 Ideally, each ad group should contain keywords that share the same underlying intent.

7. RSA Downsides & How Pros Test Them

Responsive Search Ads (RSA) are now standard. They’re convenient but can turn your operations into a black box.

How RSAs work

• Up to 15 headlines and 4 descriptions
• Google automatically generates and serves combinations

Problem: You can’t see which headline + description combos drove CVs.

Some research also indicates Google’s optimization leans heavily on CTR, not CVR.

A “pro-level” testing trick

1. Create 2–3 RSAs in an ad group
2. Keep all descriptions identical and pin their positions
3. Change only the headline sets across RSAs

This reveals which headline set contributes to CVR.

✅ If you prioritize CVR over CTR, this method is the only reliable way to judge RSAs.

8. Should You Bid on Your Own Brand? Five Reasons Yes

“ We rank #1 organically for our brand—no need to run ads.” Actually, bidding on your brand is one of the highest ROI strategies.

Five reasons to run brand (navigational) keywords

① Full control over titles & descriptions

Organic changes are slow; ads can be updated in real time.

② Send users directly to the most relevant page

The #1 organic link isn’t always the best page to convert.

③ Block competitor conquesting

If you don’t advertise, competitors can capture your brand traffic by bidding on your name.

④ See competitor behavior

Running brand ads lets you analyze who’s bidding on your brand terms.

⑤ Lower cost

Competition is lower, so CPCs are often just a few yen to a few dozen yen. ROI is excellent.

💡 From a brand defense perspective, brand bidding is essential.

9. Dynamic Search Ads (DSA): How to Use—And What to Watch

DSA lets you deliver ads without manually setting keywords. Google crawls your site and generates ad titles and landing pages dynamically based on user intent.

Where DSA shines

• Large keyword sets (job boards, ecommerce)
• Sites with frequently updated pages
• When you want to mine new demand

Benefits

• No manual keyword setup
• Captures long-tail queries
• Flexible delivery by page/category

Cautions & downsides

• Titles and URLs are auto-generated; may be off-message
• Mismatch to intent can depress CVR
• If your LPs are thin, ads may not show properly

How to use effectively

• Create DSA-only ad groups
• Target specific categories/URLs, not “all pages”
• Promote converting queries into standard ad groups to sharpen targeting

✅ DSA isn’t a silver bullet, but as a complementary channel it can deliver big wins.

10. Remarketing Basics & How to Avoid Setup Mistakes

Remarketing shows ads to users who’ve already visited your site. It tends to convert well and lower CPA.

Why it works

• Targets users who already showed interest
• Re-exposes your offer and nudges to conversion
• Segment messaging can boost revisits

Common mistakes

• Only building coarse lists like “last 30 days”
• Not segmenting by days since visit
• Not excluding converters

A pro segmentation example

• List 1: Within 1 day of visit (high intent)
• List 2: 2–3 days (comparison phase)
• List 3: 4–7 days (research phase)
• List 4: 8–14 days (decision phase)

Also exclude users who already converted to avoid waste.

Campaign types to use

• Display
• Discovery (Find) (requires lists of 5,000+)

💡 Success hinges on segmentation and tailored creatives per segment.

11. Display vs. Discovery (Find): Use by Objective

Both are highly visual, but placements and traits differ.

Display characteristics

• Placements: news sites, blogs, apps
• Targeting: highly customizable (age, gender, interests, browsing history, etc.)
• Volume: relatively large
• Creatives: banners (images + text)

Best for:

• Awareness
• Remarketing
• Visual promotions (sales, campaigns)

Discovery (Find) characteristics

• Placements: YouTube, Gmail, Google Discover
• Targeting: AI-driven auto-optimization
• Bidding: automated only (no manual bidding)
• List requirement: 5,000+ (for certain remarketing uses)

Best for:

• Awareness to latent audiences
• Light conversions (e.g., LINE sign-ups, newsletter sign-ups)
• List-based remarketing (when conditions are met)

Tips for performance

• For Display, start granular manual tuning → then consider auto bidding
• For Discovery (Find), leverage volume and automation
• In both, images heavily impact CTR/CVR—test relentlessly

✅ Think “Display = aggressive targeting” and “Discovery = broad diffusion.”

12. Why You Should Use All Ad Extensions

Ad extensions directly impact CTR and Quality Score, yet many accounts ignore them. Bolstering extensions alone can significantly move results.

What are extensions? Additional info displayed with your ad. They expand your footprint in the SERP and boost visibility.

Key types & examples

① Sitelink Extensions (Must-use)

Display multiple deep links under your ad.

Examples:

• “See Pricing”
• “Book a Free Trial”
• “Alumni Voices”
• “Q&A”

⚠️ If you reuse the exact same URL, they may not show. Differentiate with anchor links (#) where needed.

② Callout Extensions

Short snippets of benefits.

Examples:

• “Open Weekends”
• “1-on-1 Mentoring”
• “LINE Support Available”

③ Structured Snippets

List categories/services.

Example (Services):

• “Job Placement,” “LMS,” “Post-Graduation Support”

④ Call Extensions

On mobile, enable one-tap calling.

💡 To measure calls, connect this extension with conversion tracking.

⑤ Promotion Extensions

Highlight limited offers/discounts.

Examples:

• “20% Off Now,” “Limited Campaign Until End of October”

⑥ Location Extensions

Link with your Google Business Profile to show maps/address.

⚠️ Effective for in-person businesses; not always ideal for every industry.

⑦ Image Extensions (availability varies)

Show an image next to your text ad. Boosts visual appeal and CTR, but may raise unqualified clicks; test before scaling.

13. Conversion Setup & GTM Fundamentals

Serving ads isn’t enough. Without conversion tracking, you can’t improve or run smart bidding properly.

Required tool: Google Tag Manager (GTM)

GTM lets you centrally manage ad and analytics tags so even non-engineers can configure conversions flexibly.

Basic steps for conversion setup

① Install GTM

1. Create a GTM account
2. Place the provided tags in your LP’s <head>
3. Enable Conversion Linker in the admin

② Create conversions in Google Ads

Example: count phone tap as a CV

• Conversion type: Phone click
• Count: First click only
• Attribution model: Data-driven recommended (use Linear if unavailable)

Record the Conversion ID and Label.

③ Configure the tag in GTM

• Tag type: Google Ads Conversion Tracking
• Trigger: clicks on tel: links, or the thank-you page URL, etc.

If there’s no TY page, use events like “submission complete message displayed” as a trigger.

Benefits of accurate CV data:

• Smart bidding works properly
• Understand ROI by ad
• Improve CVR by service

✅ Accounts without CV tracking are like driving in the dark. Make this your top priority.

14. Three Metrics You Must Check Early in Delivery

Within a few days to a week after launch, check these to prevent major waste:

① Dayparting skew

E.g., spending your entire budget by daytime and not showing at night. If your service converts better at night, that’s a huge lost opportunity. → Fix: adjust CPCs to balance delivery.

② Search terms (Search Term Report)

Ensure you’re not showing on irrelevant queries.

Example:

• Intended: “Shibuya programming school”
• Actual: “Shibuya programmer jobs” → mismatch; won’t convert

→ Fix: add negative keywords

⚠️ For phrase negatives, word order matters. “Shibuya Programming” and “Programming Shibuya” are different.

③ Auction insights (Competitor comparison)

If you have poor delivery or weak results, review competitors.

• Low top impression share → raise bids
• High impression share but no CVs → revisit ad copy and LP

✅ Establish a rapid loop of Analysis → Hypothesis → Action → Verification.

15. How to Improve: Smart Bidding, Copy, and Keyword Hygiene

The improvement phase is where the real gains happen. Don’t “set and forget”—iterate based on data to drive ROI up.

① When to use Smart Bidding

Start with Manual CPC or Maximize Clicks. Once you’ve collected 15+ conversions, consider switching to smart bidding.

Recommended strategies:

• Maximize Conversions
• Target CPA

⚠️ Don’t over-rely. Smart bidding is great at optimizing within interested audiences, but it won’t create interest where there is none.

② Improving ad copy (RSA-aware)

Google’s RSA rating (“Excellent,” “Low,” etc.) leans on CTR, not CVR.

Correct improvement steps:

1. Create 2–3 RSAs per ad group
2. Keep descriptions identical and pinned
3. Change only headlines and compare CVR
4. Rebuild around high-CVR headline sets
5. Use Ad Variations for A/B tests

✅ Improve not only CTR, but especially post-click CVR.

③ Keyword hygiene

With broad match, one keyword can trigger many queries. Don’t pause hastily just because CPA is high.

Right approach:

• Add converting queries as Exact keywords
• Exclude underperforming queries
• Exclude queries with 30+ clicks & 0 CVs

💡 Improve keywords with the trio: prune, polish, and cultivate.

16. Improving Display & Discovery (Find)

These differ from Search. Images matter more, so judging only by CPC is risky.

① Revisit bidding

Discovery (Find):

• Early: Maximize Conversions
• After enough CVs: switch to Target CPA

Display:

• Start with Manual CPC for fine control
• Consider automation once you have data

② Analyze results by creative

• CTR
• CVR
• CPA

Tip: Images dominate performance. Keep text constant and compare by image.

③ Refine remarketing lists

Identify which days-since-visit segments perform best; pause or exclude weak lists.

Additionally:

• Use similar audiences (where applicable)
• Turn Optimized Targeting ON if volume is low

④ Placement analysis (Display only)

Examine websites/apps where your ads appear.

Actions:

• Exclude low-performing apps
• Build new ad groups focusing on top placements, bid up
• Review site context and adjust banners/messages

✅ Placement analysis is a connoisseur’s lever—often overlooked by competitors.

17. Site Improvements & the Must-Install Tool “Clarity”

No matter how much traffic you buy, weak LPs won’t convert. You need to visualize user behavior.

Recommend the free tool Microsoft Clarity

Clarity features:

• Completely free heatmaps & session recordings
• See behavior just before exit
• Visualize scroll depth & click hotspots
• GDPR-compliant privacy design

Benefits of Clarity:

• Instantly spot LP improvement points
• Identify form abandonment points
• Verify alignment between ad messaging and LP content

Easy via GTM If you already use GTM, just add one tag. Search “Clarity setup” for step-by-step guides.

✅ Advertisers who deliver results almost always visualize user behavior.

Conclusion: There’s No Magic Setting—Continuous Improvement Wins

To succeed with Google Ads, you don’t need a perfect one-shot setup.

What matters more is:

• Nailing the easily misunderstood initial settings
• Iterating flexibly based on data
• Nurturing copy, bids, and keywords over time

Also remember: Google’s free support and agency sales pitches won’t always prioritize your profit.

That’s why building your own knowledge and making your own sound decisions leads to the biggest results.

✅ Put today’s configuration tips and improvement mindset into practice in your Google Ads account. Reduce wasted spend and build up results step by step.

Frequently Asked Questions (FAQ)

Q1. Can Smart Mode deliver decent results?

• A. Not recommended for beginners due to many traps. Detailed settings in Expert Mode mitigate misdelivery and wasted spend.

Q2. I’m bad at writing ad copy. Where should I start?

• A. First, dig into the searcher’s true objective.
• Favor concrete benefits and problem-solving copy over abstractions.

Q3. Is brand bidding really worth it?

• A. It’s critical as brand defense to prevent competitors from leapfrogging you.
• Spending a few dozen yen per click can prevent major opportunity loss.

Q4. We’re not getting conversions. What could be the cause?

• A. Misaligned LP messaging, mismatched keywords, poor delivery hours, etc., often combine.
• Visualize user behavior with tools like Clarity to pinpoint bottlenecks.

Q5. When should we switch to smart bidding?

• A. Consider switching once you have 15+ conversions.
• However, it won’t always improve results—A/B compare against manual control.