Are Google Search Ads Worth it for your Businesss?
October 23, 2020 | Category: Digital Marketing, Tips for your Business
Google Ads is an online advertising network that businesses use to promote their products and services on Google Search, YouTube and other websites. One of the great things about Google Search Ads is that it allows advertisers to choose specific objectives for their ads.
Google Ads drives website visits and phone calls from potential customers by displaying your ad when people search online for the products and services you offer.
Ad budgets are like a running faucet where you can adjust the flow of advertising dollars at any time. By leveraging smart technology with a Google Ads account, advertisers can customize their budgets and targeting. You can control which search queries you’d like your ads to appear. You can also determine how much you’re willing to pay per click.
Despite growing competition in some industries on Google’s advertising platform, it is still a viable option for most businesses looking for new customers. When comparing it to traditional marketing options, it is easier to get in front of your ideal customers with Google’s targeting capabilities. It’s also easier to track if you’re getting a good return on your marketing dollars.
If you’ve never invested in Google advertising for your business, you might be missing out. Let’s discuss what you need to know to determine if Google advertising could be a profitable marketing investment for you.
Google ads put you in front of your ideal customer
How well do you understand your customers? If you have a strong understanding of them with your business, you can determine the best way to get your ads in front of them. For example, if you own a roofing company in London, Ontario, you might want to attract people looking to replace their home’s roof. With Google Ads, you can set your company’s ads to only appear in searches within London.
You can also choose the “search queries” for which you would like your ads to appear. More broad search queries like “roofing company London” will likely be more competitive and require you to bid higher. These are just a couple of the targeting capabilities you can use to make sure your ads are being shown to the right audience.
Calculating your return on your investment (ROI)
An important step is calculating the return on your investment. You need to know, on average, how much one new customer is worth to your business in profit. This is called customer lifetime value. You’ll also want to track what your Closing Rate is for new marketing leads. These numbers will give you an idea of how much your monthly budget should be for Google Ads.
Each business is unique, so it’s essential to consider everything. For example, let’s say that one new customer is worth $100 profit on average, and your closing ratio on new marketing leads is 50%. That means if your monthly budget is $1000, you need at least 20 leads to break even.
Measure your ad results regularly
Google Ads tracks and gathers data for you to review anytime. We recommend spending at least 2 hours each week studying how your ads have been performing. You may need to rewrite sales copy, create graphics or create new landing pages.
A wide variety of metrics are provided, such as Clicks, impressions, and click-through rate (CTR). Attribution models can also give you a better understanding of how your ads perform and optimize them. The goal of your Google Ads campaign will play a big part in determining which metrics to which you should pay attention. Google works automatically around the clock to optimize your ads and compare them to each other for performance.
Besides looking at metrics, another way to measure results is by asking customers how they heard of your business. Although this information isn’t always accurate, it helps paint the picture of how much attention you’re getting from your various marketing efforts.
Like other digital marketing avenues, you won’t know how Google Ads will work for your business until you try. Hire an employee or agency with experience and wait at least 1-2 months from the date you launch your ads. That leaves some time for Google to optimize your ads and make any changes that may be needed.