As of December 2025, Google Ads remains a functional and widely used platform for Australian local businesses seeking online visibility, operating on a pay-per-click (PPC) advertising model where advertisers bid on keywords to display ads to relevant searchers.
The core mechanism involves Google’s auction system. When a user in Australia searches on Google, relevant advertisers compete in an instantaneous auction. Ad rank – determining ad position – is calculated based on a combination of the advertiser’s bid amount and the Quality Score of their keywords and ads. Quality Score, currently assessed on expected clickthrough rate, ad relevance, and landing page experience, influences cost and placement. Google Ads now includes Local Services Ads, specifically available in select Australian service categories (like plumbing, electrical, and locksmithing) which display a ‘Google Guaranteed’ badge and appear at the very top of search results. Location extensions, automatically enabled with a Google Business Profile link, allow businesses to show their address, phone number, and a map marker with their ads. Performance Max campaigns, introduced in 2022 and continually updated, leverage Google’s AI to optimise bids and ad placements across all Google advertising channels, including Search, Display, YouTube, Discover, Gmail, and Maps. Pricing is determined by auction dynamics and varies significantly by industry and location within Australia.
Google Ads functions as an auction-based system connecting businesses with potential customers actively searching for relevant products or services.
