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Effectiveness of Google AdWords for Small Businesses

Effectiveness of Google AdWords for Small Businesses

We always have clients ask us if it’s a good idea or not to implement social media or Google ad campaigns into their current strategy with marketing. Our answer has always been the same and, hopefully, you will gain some insight into this article as to why that is.

For many years in the digital marketing industry, we have watched trends and particular methods for increasing a business’s revenue and customer acquisition come and go. But over time, there’s a single powerful system that dramatically changed its algorithm that made it not so cost-effective or not really effective at all. And that’s Google AdWords.

It’s still true though that Google AdWords, as a science, can do a lot when done wisely and strategically. It is imperative that one must continuously watch the campaign as it is running in order for anyone to make the necessary changes as far as geography, promotions, target market, etc. until you find that precious something we, as digital marketers, are all looking for.

Now, pay-per-click (PPC) ads that appear on Google search results pages are extremely beneficial when it comes to generating traffic, which in return converts into customers and then sales by pushing your business to the top items of the search results.

That said, we would like to say that there is an even playing field for small businesses when it comes to PPC — but we’ll be lying. The harsh truth is that Google AdWords campaigns can actually blow through your budget in a blink of an eye before you even get to see any results.

First, you must find the best relevant keywords to invest your dollars into, but even that does not guarantee you immediate success. Having the big dogs (corporations and large companies) paying the big bucks to lock in those same keywords with their willingness to pay a higher cost to solidify them and rank well beyond your means — blocks any small business’s way to the top.

Which brings us to the tactic we hate the most, the “alternative”, with most marketing companies giving you the “bright idea” to simply lower your CCP or cost per click? But that really isn’t a solution either nor is it that bright; it’s quite irritating in fact.

We always remind small business owners to keep in mind that there are at least over a million advertising companies globally fighting for the top spot on Google. You can assume then that any keyword relative to your business has been used and is being used.

Moreover, lowering your CCP puts you in a precarious state of constant war for high ranking keywords. You’ll be continuously competing for the top spot without ever having the funds nor leverage to achieve that goal. Being settled on the thought that lowering your CCP will “benefit” you will be detrimental to your campaign and ego. In the end, you will be wasting your time, effort, research, and resources on a pointless strategy that really won’t bring you any business at all.

We would like to take the time to say our intentions are not to throw dirt on my industry, rather just point out that there are a lot of rip-offs, hack jobs, and frauds out there that are eager to take your hard-earned money knowing they are really not qualified, educated, nor experienced enough in the field of running Google or social media ad campaigns.

Before deciding to hand your money to a freelancer or marketing agency out there who might just make a huge mess of things, do your diligent research on them at the very least. Go do a quick google search and look for reviews, run through their website, and see what they have accomplished. Look for some of the big names they have worked for. Check what services they offer exactly and check for real results. Request some analytics of campaigns they have successfully run in the past that you can check — preferably relative or relevant to your business, if possible.

Google AdWords as a Science and as an Art (It’s harder than it seems)

It’s not as simple as it may look like to just place your hope on Google and start running ad campaigns that will actually bring an R.O.I. It takes a lot of talent, experience, and skill. Belonging to the long list of “requirements” is having the fine attention to detail, as well as the ability to analyze and predict where things are heading and modify things as necessary.

For now, a quick real talk is needed: if Google and social media ads campaigns were actually easy as it sounds, corporations and big companies wouldn’t be outsourcing help and paying agencies millions and billions of dollars to do it for them. They would just have some random office employees throw out an ad here or there at a base salary.

Small Business can still benefit from Google AdWords

So after all the downside points that we discussed just now, I’d like to take Google AdWords back up just a bit. In terms of a small business’s budget, every cent down to the penny must be accounted for in order to bring the best result.

What we do know now is that really getting to know a small business’s needs and target market can go a long way. Which of their products or services sells the most? What’s the average ticket sale per customer? What drives the most revenue for the business? What are the slow days like? And more. When it comes to running a successful social media or Google ad campaign, these key components are extremely valuable.

Getting to know and understand your competition — what they are doing and how do they run their business. This would still be the most profitable information to us. Imagine this, the more you understand, know and learn about what your competitors are doing, the better you can execute a strategic plan to get rid of them, move ahead of them and potentially take their customers.

As an example, if you own a small cafe and Mark’s Coffee Brewery is a direct competitor within a 3 mile radius let’s say, and they are running a weekend special of a BOGO (buy-one-get-one) coffee, well you could put out an ad promoting a BOGO coffee weekend special and outdo their promotions thus drawing their customers in to your location in hopes of keeping them long term.

Keep in mind though that there are two types of customers: loyal ones and bargain shoppers. You’re going to want to put your best foot forward to identify the bargain shoppers. They are only looking for the businesses that offer the best deals out there and won’t mind switching over to your competitors at a moment’s notice.

Implementing an opt-in loyalty rewards program that provides you strong analytics on each customer will give one solution to the need for weeding out of bargain shoppers. A rewards program that will have a database of mobile numbers you can collect that allows you to get in touch with your customers in real-time. The great thing about rewards programs is that it shows you your customers’ habits, their rate of visitation, etc. Thus, allowing you to focus on and reward the ones who are loyal to your business.

Conclusion

We do hope you learned something out of this article and realize that the short answer is yes, Google AdWords, with enough diligence, can really work for small businesses.

There’s a long (even unlimited) list of benefits, pros, and cons of utilizing Google ads for your business. But the end result will always come down to the marketing agency you will be choosing to represent you. They will be the one going into an ad campaign for you and will give you the best possible bang for your buck. Just make sure to do your own part and search for a legitimate professional for your business.

Always strive for the best but more importantly make sure to plan for it! Do not blindly rush in thinking you have the best products or services so people are going to run to your store. If you need any help or have any questions about Google AdWords, we’ll be eager to help you. Reach out anytime.

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How much Should I spend on Google AdWords?

How much should I spend on Google AdWords?

Some of us are familiar with this online advertising platform — Google AdWords, a powerful channel for advertising and selling your products and services online. The cost of Google AdWords depends on several variables. Advertising on search engines is far from traditional offline advertising. You would, of course, think that you’ll need a lot of money to advertise on Google. Thankfully, that is not entirely true.

Here are some tips on how you should allocate budget for Google ads.

Cost of keywords
You can hardly calculate your test budget by multiplying the number of keywords you want to test by the CPC (or cost per click) at a minimum of 100 clicks. As a general rule, you’ll want to get at least 100-200 clicks on a keyword to see whether it converts for you. For example, if you’re going to test let’s say 10 keywords with a $1 cost per click, we’ll suggest you plan on a test budget of $1,000 to $2,000. Also, some would recommend budget ranges from $1,000 to $10,000 per month. Depending on your industry, the final number of CPC that you’ll find and how likely you are to succeed varies.

Minimum amount
There isn’t an official minimum ad spend on Google AdWords, but it doesn’t mean that you should be contented to start working with $2 or $5 as a daily budget. The logic here is: that the small, inexpensive ad has to produce results to buy the more expensive and more efficient ad is flawed at its core, right? So, the more expensive something is (especially when the pricing is auction-based), the higher the value it should have.

AdWords Price
To give you an idea, the average cost per click on Google Ads is between $1 and $2 on the search network or for Google search pages. Some people pay over $50 per click for some niches who promise a high Return On Investment (ROI). In other words, how much you should spend on Google Ads varies widely. You can spend as little as $50 per month or upwards of $10,000 or More.

Focusing on EPC
Many advertisers just focus on getting their CPC down, but minimizing CPC is NOT the real deal here. You shouldn’t just focus on Cost per Click (CPC). Rather, you should focus on the real leverage here, which is increasing your Earnings Per Click (EPC).

EPC is your most valuable metric because focusing on Earnings per click right away and straightforwardly gives you the exact amount of money you can expect to receive for every click you paid for based on historic performance.

Remember
Don’t get frustrated. It is normal for you to test, fail, learn, and optimize within the first few months. As a wise man once said, “Sometimes we have to fail in order to succeed.” However, your budget shouldn’t just be a random number you happened to like. Above all, remember that being competitive in advertising on Google can be profitable.

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Introduction to Google AdWords – Beginner’s Guide Before Starting

Introduction to Google AdWords – Beginner’s Guide Before Starting

Innovation in the ads industry — that’s what Google AdWords is. With it, your ads will be seen by multitudes of searchers specifically looking for what you offer, and it costs nothing until a click has been made to your ad to visit your website. Improve your business’s exposure by knowing if Google AdWords work well with your business; familiarize yourself with the Google AdWords lexicon; take a look at some of the free online resources and tools we recommend.

Google AdWords Lexicon

Rich in specialized and insider language, Google AdWords is not something a beginner can easily learn. But you may see that it’s useful to have a resource for the AdWords terms that you will commonly encounter.

Here are a few online marketing terms to know, and what they mean according to the Google Ads Beginner’s Guide.

Bid
This is how much you’re willing to spend each time a potential customer clicks your ad or calls you.

Calls
The total number of calls you’ve had from people seeing and interacting with your ad if you enable users to call your business directly from the ad.

Keywords
These are the search terms or phrases that trigger your ads to appear in the results. Advertisers bid against each other, and the ads are ranked based on how high you bid and how relevant your ad is, among other factors.

Organic results
These are results not paid for by advertisers.

Paid results
These are results that advertisers pay to show whenever a user runs a search containing certain words or phrases (known as ‘keywords’).

Product or service
When first setting up your campaign, the type of products or services you offer will influence the keywords—or search phrases—that will trigger your ad to appear.

Targeted location
These are the towns, cities or countries your ads will appear.

Traditional advertising
These are “non-digital” placements, like newspapers, radio, TV, or billboards.

Visitors
The total number of times people have been to your website or app as a result of clicking your ad.

What can Google Ads do for my business?

Do you use Google to search for something online? If you’re thinking “yes,” then you belong to the majority. Most people go online first to find information, read reviews, and evaluate products or services before getting in touch with a business.

With Google as the most used search engine worldwide, it’s the intelligent thing to do to use Google’s advertising platform.

Google Ads Website

Google AdWords provides a variety of benefits to advertisers and is just one of the many essential digital marketing techniques companies are using to maintain a competitive edge. A few of the benefits of Google AdWords include:

  • Immediate exposure – Your ad can be in the uppermost results on a Google SERP (Search Engine Results Pages).
  • Reach – Be able to use effective, targeted ads when customers search in Google for your products, services or business.
  • Geotargeting – Using the right geographic locations of your target market, local or otherwise.
  • Reporting – Keywords effectivity is detailed and the click-through-rate of your ads is included along with many more.
  • Budgeting – Manageable budgeting for all types of budgets and bidding capabilities.

Free Google AdWords Tools and Resources

IMPORTANT LINKS

AdWords Homepage – To sign up for AdWords and to log in to your account.

AdWords Help Center – For answers to frequently (and not-so-frequently) asked questions.

TOOLS

Explore additional tools that can make your Google Ads strategy even more effective.

Keyword Planner – Choose the best keywords for your ads

Google Ads Editor – Make changes across your campaigns with ease

Reach Planner – Reach the YouTube audiences that matter most

Manager Accounts – Control multiple accounts from a single dashboard

CAMPAIGN TYPES

Google Ads offers a number of advanced advertising strategies, allowing you to choose the ones that work best for your business.

Search Campaigns – Show up when people search for what you offer

Display Campaigns – Capture attention with banner ads and images

Video Campaigns – Bring your business’s story to life with video

Shopping Campaigns – Show off your online and local inventory

App Campaigns – Promote your app to the right people

Conclusion

Now that you have an idea about Google Ads or AdWords as a beginner, you may now venture out and explore its various functionalities and how it can you and your business.

If you have any questions or need any help, don’t hesitate to reach out to us! We’ll be glad to assist you in starting your own Google Ads campaign.