How to Set Up Google Ads for a New Business in 2026

Google Ads remains one of the fastest ways for a new business to get in front of potential customers. But the platform has gotten more complex over the years, and throwing money at it without a plan is a reliable way to waste your budget. If you are setting up Google Ads for the first time in 2026, here is a practical, no-nonsense guide.

Start with Search Campaigns, Not Display

Google will try to steer you toward broad campaign types that spread your budget across search, display, YouTube, and more. Resist this. For a new business with a limited budget, start with a Search campaign only. These are the text ads that appear when someone actively searches for what you offer. That intent is gold.

Display and video campaigns have their place, but they are awareness tools. When you are new and need leads or sales, search is where the money works hardest.

Choose the Right Keywords

Keyword selection makes or breaks a Google Ads campaign. Here are three rules for new advertisers:

Use specific, intent-driven keywords. “Emergency plumber Denver” is far better than “plumber” or “plumbing services.” The more specific the keyword, the more likely the searcher is ready to buy.

Start with phrase match and exact match. Broad match keywords let Google show your ads for loosely related searches, which burns through budgets fast. Stick to phrase match and exact match until you understand which searches convert.

Build a negative keyword list immediately. Add terms like “free,” “DIY,” “jobs,” “salary,” and “how to become a” to your negative keyword list from day one. These prevent your ads from showing to people who are not potential customers.

Set a Realistic Budget

New businesses often make one of two mistakes: spending too little to gather meaningful data, or spending too much before knowing what works. A good starting point for most local businesses is $20-40 per day. This gives you enough click volume to see which keywords and ads perform while limiting your risk.

Do not set a monthly budget and walk away. Check your campaign performance at least three times per week during the first month. Look for keywords that are spending money but not converting, and pause them quickly.

Write Ads That Match Search Intent

Your ad copy should directly answer what the searcher is looking for. If someone searches “affordable tax preparation small business,” your ad headline should say something like “Small Business Tax Prep — Starting at $199” rather than a generic “Professional Accounting Services.”

Include a clear call to action: “Call Now,” “Get a Free Quote,” “Book Online Today.” Tell people exactly what to do next.

Set Up Conversion Tracking Before You Spend a Dollar

This is the single most important step that new advertisers skip. Without conversion tracking, you have no way to know which clicks are turning into phone calls, form submissions, or purchases. You are flying blind.

At minimum, set up tracking for:

Phone calls from your ads
Contact form submissions
Online bookings or purchases (if applicable)

Google’s conversion tracking setup has gotten significantly easier, and there are step-by-step guides directly in the Ads interface.

Use Ad Extensions Generously

Ad extensions (now called “assets” in Google’s interface) add extra information to your ads at no additional cost. Use all that are relevant:

Sitelink extensions — link to specific pages like pricing, services, or contact
Call extensions — show your phone number directly in the ad
Location extensions — show your business address (connect via Google Business Profile)
Callout extensions — highlight features like “Free Estimates” or “24/7 Service”

Ads with extensions take up more space in search results and typically get higher click-through rates.

Track Leads After the Click

Getting clicks is only half the equation. You need to track what happens after someone contacts you. A CRM like SMBcrm helps you log which leads came from Google Ads, track your follow-up, and ultimately measure whether your ad spend is producing real revenue — not just clicks.

Common Mistakes to Avoid

Not using negative keywords — you will waste 30-50% of your budget on irrelevant clicks
Sending all traffic to your homepage — create dedicated landing pages that match each ad’s message
Changing everything at once — test one variable at a time so you know what actually improved performance
Ignoring mobile — over 60% of local searches happen on mobile, so your landing pages must load fast and work perfectly on phones

Google Ads is not a set-it-and-forget-it channel. But with the right setup and regular attention, it can be the most predictable and scalable source of new customers for your business in 2026.