603-573-9289Do Google Ads For Small Businesses Work?
It can seem overwhelming for a small business to achieve a spot on the all-important first page of Google’s search results the organic way. Getting your business on the front page of Google can result in a steady flow of quality web traffic to help potential customers discover your business. To do so requires you navigating Google’s not-clear-at-all path through its constantly changing top-secret algorithm. And even if you did know exactly what to do, you would still need to take the steps to get there. However, there is an easier pathway. I mean, it’s easier in a sense, but it does require an investment (money). So, do Google Ads work for small business? Is Google Ads worth it? Well, it depends. Let’s dive in and I will share my take.
It can seem overwhelming for a small business to achieve a spot on the all-important first page of Google’s search results the organic way. Getting your business on the front page of Google can result in a steady flow of quality web traffic to help potential customers discover your business. To do so requires you navigating Google’s not-clear-at-all path through its constantly changing top-secret algorithm. And even if you did know exactly what to do, you would still need to take the steps to get there. However, there is an easier pathway. I mean, it’s easier in a sense, but it does require an investment (money). So, do Google Ads work for small business? Is Google Ads worth it? Well, it depends. Let’s dive in and I will share my take.
The Old-Fashioned Route To Getting To The Top Of Google
First, it’s important that we further look at the old fashioned way of getting your business’ name out there: organically. Organic traffic, also known as SEO or Search Engine Optimization.
The main positive feature of this method is that it’s trusted by users. One of the reasons why just 12% of clicks are on links in the 11th spot and later is because users trust Google to present them with the most useful options at or near the top. If you can get yourself as high up on the page as possible, that’s great. However, getting into that rarefied air is a challenge. It doesn’t help that Google is constantly changing the rules of the game either.
You will need to either be especially studious of SEO or outsource that type of work to someone who is, and even that might not be enough. Plus, it’ll take, in most cases, a considerable amount of time (6 months to a year plus just to start ranking for keywords you want to show up for).
First, it’s important that we further look at the old fashioned way of getting your business’ name out there: organically. Organic traffic, also known as SEO or Search Engine Optimization.
The main positive feature of this method is that it’s trusted by users. One of the reasons why just 12% of clicks are on links in the 11th spot and later is because users trust Google to present them with the most useful options at or near the top. If you can get yourself as high up on the page as possible, that’s great. However, getting into that rarefied air is a challenge. It doesn’t help that Google is constantly changing the rules of the game either.
You will need to either be especially studious of SEO or outsource that type of work to someone who is, and even that might not be enough. Plus, it’ll take, in most cases, a considerable amount of time (6 months to a year plus just to start ranking for keywords you want to show up for).
Also, even if you get that coveted top spot, which results in 28.5% of the click-throughs, you will still be sitting below organizations that paid their way above you through Google Ads. Not to mention, depending on what kind of business you are in the change of beating out very established national website may be near impossible.
How To Guarantee Yourself A Premier Place On The Front Page
Do you know how at some otherwise free concerts, the organizers will sell access to spaces next to the stage while allowing 99% of the concertgoers free access to everywhere else? That front row access is a great place to be.
That's how Google Ads for small business works with keyword searchess. It offers a way for businesses and others to not only purchase access to the event – i.e. concert or search-engine results listings – but to also sit right in front of the stage and ahead of everyone else, in the case of some results listings, billions of those behind them.
However, as is so often the case in business, the concern is whether or not the sacrifice is worth the reward.
How To Guarantee Yourself A Premier Place On The Front Page
Do you know how at some otherwise free concerts, the organizers will sell access to spaces next to the stage while allowing 99% of the concertgoers free access to everywhere else? That front row access is a great place to be.
That's how Google Ads for small business works with keyword searches. It offers a way for businesses and others to not only purchase access to the event – i.e. concert or search-engine results listings – but to also sit right in front of the stage and ahead of everyone else, in the case of some results listings, billions of those behind them.
However, as is so often the case in business, the concern is whether or not the sacrifice is worth the reward.
When To Use Google Ads For Small Businesses
Those looking for an answer to the question, “Is Google Ads worth it?” or, as it relates to Google Ads’ name prior to 2018, “Is Google Ads worth it?” should also know under what circumstances Google Ads for small businesses are used as they aren’t utilized for all Google searches. They’re only used when a keyword search is deemed to have “commercial intent” as opposed to what’s viewed as a simple search for information. As a result, “Is Google Ads worth it?” may not even apply to your situation if your most relevant keywords are not deemed to have “commercial intent.” There won’t be any ad space to purchase.
If there is no “commercial intent” in your case, that can be good news as that likely means that your business is unique or nearly unique and might fit a virtual nook in a way that meets a not-yet-met need. Conversely, if there is “commercial interest,” that means that the Google users who typed in that keyword are likely looking to purchase what you’re offering now or in the near future.
Those looking for an answer to the question, “Is Google Ads worth it?” or, as it relates to Google Ads’ name prior to 2018, “Is Google Ads worth it?” should also know under what circumstances Google Ads for small businesses are used as they aren’t utilized for all Google searches. They’re only used when a keyword search is deemed to have “commercial intent” as opposed to what’s viewed as a simple search for information. As a result, “Is Google Ads worth it?” may not even apply to your situation if your most relevant keywords are not deemed to have “commercial intent.” There won’t be any ad space to purchase.
If there is no “commercial intent” in your case, that can be good news as that likely means that your business is unique or nearly unique and might fit a virtual nook in a way that meets a not-yet-met need. Conversely, if there is “commercial interest,” that means that the Google users who typed in that keyword are likely looking to purchase what you’re offering now or in the near future.
Some Factors To Determine If Google Ads Is Right For Your Business
Google Ads are great to “cut the line” and get your business showing at the top of the search engine listings. It isn’t necessarily a fit for all businesses however. Here are some of the key criteria we look at to determine if it is a good advertising tool for your business.
Are You Looking To Grow Your Business?
One of the key factors to take into account when deciding if Google Ads is a good fit for your business is the question of “Am I looking to grow my business?” If you are maxed out in your business or can’t handle any new customers then launching a Google Ads lead generation campaign may not be the best option to lead with.
Provided you are looking to grow your business, can handle more business, then Google Ads is a phenomenal tool to help grow your business.
Are You Looking To Grow Your Business?
One of the key factors to take into account when deciding if Google Ads is a good fit for your business is the question of “Am I looking to grow my business?” If you are maxed out in your business or can’t handle any new customers then launching a Google Ads lead generation campaign may not be the best option to lead with.
Provided you are looking to grow your business, can handle more business, then Google Ads is a phenomenal tool to help grow your business.
Does The Math Make Sense?
A big determining factor of whether Google Ads is a good fit for your business is a simple question of math. Does the math make sense for your business? Google Ads for some businesses just doesn’t make sense. For others, it makes perfect sense. A big factor is in determining if it is a fit for your business is how expensive your products and services are.
For example, if you are a restaurant owner and your margins are razor thin, then Google Ads likely wouldn’t be a great option for your business. On the other hand, if you are a landscaper, a paving company, a lawyer, water treatment company, etc and you sell products or services that are expensive then this strong evidence that running a targeted Google Ads campaign would work for your business.
For businesses that sell expensive products or services if you can acquire customers at a reasonable cost per lead and the customers are worth enough to you the math typically makes sense.
Does The Math Make Sense?
A big determining factor of whether Google Ads is a good fit for your business is a simple question of math. Does the math make sense for your business? Google Ads for some businesses just doesn’t make sense. For others, it makes perfect sense. A big factor is in determining if it is a fit for your business is how expensive your products and services are.
For example, if you are a restaurant owner and your margins are razor thin, then Google Ads likely wouldn’t be a great option for your business. On the other hand, if you are a landscaper, a paving company, a lawyer, water treatment company, etc and you sell products or services that are expensive then this strong evidence that running a targeted Google Ads campaign would work for your business.
For businesses that sell expensive products or services if you can acquire customers at a reasonable cost per lead and the customers are worth enough to you the math typically makes sense.
Are Your Competitors Running Google Ads?
One quick way to determine if Google Ads might be a good idea for your business is to open up a Google browser, and type in some keywords that your prospective customers might type in to look for a business like yours. As an example, if you are a landscaper someone might type in:
- “Landscaper near me”
- “paver patio installer”
- “retaining wall contractor”
- “outdoor kitchen contractor”
Now if you type in some of those keywords and you see competitors running Google Ads (look for the ad at the top of the page) then there is a strong chance it might be a good idea. Especially if that competitor it has been running Ads for many months or years. Most smart business owners wouldn’t be running Google ads for that long a period of time if it wasn’t profitable for them.
My team and I have special tools where we can “spy on you competitors” for clues as to how much they are spending and what strategies they are using.
Are Your Competitors Running Google Ads?
One quick way to determine if Google Ads might be a good idea for your business is to open up a Google browser, and type in some keywords that your prospective customers might type in to look for a business like yours. As an example, if you are a landscaper someone might type in:
- “Landscaper near me”
- “paver patio installer”
- “retaining wall contractor”
- “outdoor kitchen contractor”
Now if you type in some of those keywords and you see competitors running Google Ads (look for the ad at the top of the page) then there is a strong chance it might be a good idea. Especially if that competitor it has been running Ads for many months or years. Most smart business owners wouldn’t be running Google ads for that long a period of time if it wasn’t profitable for them.
My team and I have special tools where we can “spy on you competitors” for clues as to how much they are spending and what strategies they are using.
What Is Your Customer Lifetime Value?
Picking up on the Math of Google Ads another contributing factor to consider is what is the lifetime value of a customer for your business.
As an example, we run ads for many E-commerce or Software as a Service (SAS) businesses that can acquire a customer from Google Ads. The real goal of an effective paid ads campaign is to acquire a customer. For well-run businesses that know their customer lifetime value, it can make complete sense to break even or even lose a little money on that front end sale as long as they know the average customer lifetime value makes acquiring those customers worth it.
For instance, if it costs $40 in Google ads to acquire a customer but a business knows the recurring component or backend sales equal hundreds of dollars over the course of a year it can make perfect sense to invest in Google Ads.
What Is Your Customer Lifetime Value?
Picking up on the Math of Google Ads another contributing factor to consider is what is the lifetime value of a customer for your business.
As an example, we run ads for many E-commerce or Software as a Service (SAS) businesses that can acquire a customer from Google Ads. The real goal of an effective paid ads campaign is to acquire a customer. For well-run businesses that know their customer lifetime value, it can make complete sense to break even or even lose a little money on that front end sale as long as they know the average customer lifetime value makes acquiring those customers worth it.
For instance, if it costs $40 in Google ads to acquire a customer but a business knows the recurring component or backend sales equal hundreds of dollars over the course of a year it can make perfect sense to invest in Google Ads.
Google Ads For E-Commerce Business
As mentioned above, we run very effective Google Advertising campaigns for many E-commerce business. People can’t buy from your e commerce store if they don’t know that you exist.
With Google text based ads, Google Product ads, and Remarketing ads this can be a very effective strategy to get your brand on the home page and attract new customers to your store.
Google Ads For E-Commerce Business
As mentioned above, we run very effective Google Advertising campaigns for many E-commerce business. People can’t buy from your e commerce store if they don’t know that you exist.
With Google text based ads, Google Product ads, and Remarketing ads this can be a very effective strategy to get your brand on the home page and attract new customers to your store.
Running Effective Google Ads For Small Businesses - Bidding And Paying
If you’ve decided that you would like to dip your toes into Google Ads or even dive right into the deep end, you’ll be taking part in an automated bidding process that is auction-like in its style. You would then pay per click. This will usually cost you around $1 to $12, generally towards the lower end but sometimes reaching as high as $50. I want to stress that that’s the cost per click. That doesn’t necessarily mean that you’ll receive a lead or a conversion. The quality of what you show them after they arrive on your landing page will influence those decisions.
As a result of those reasonably high costs, you do have the potential to spend quite a lot of money in a short period of time, so it’s important to be careful and analytical before deciding if this is the right step for you and, if it is, just how much of your marketing budget you want to devote to it. You’re also going to want to ensure that you understand the specifics of how Google will deploy your Google Ads budget.
Google Ad Strategies To Use
When you consider which keywords to pay for ad space on, the first thing that you want to take into account is how common they are. For example, “baseball tickets” would likely entail you paying a significant amount per click while a keyword search that’s focused on a local minor league team would result in a lower cost. It would also lead to a significant percentage of users on that page looking for exactly what you have to sell.
You Could Also Target Your Competitors.
If your baseball team has a rival club in the same metropolitan area, you could pay for keywords related to that other team in an attempt to steal their fans. However, do note that there is some risk here as clickers who want tickets to the other team’s games may immediately leave your web page after arriving and realizing their mistake, leaving you with the cost of paying for that click and nothing else.
Regardless of what type of organization yours is, using a geographically based keyword is a great strategy to use if it applies to your situation – i.e. you’re not selling to a national or worldwide audience. In fact, this should be viewed as a must for you if you’re solely focused on a local audience. For example, a dentist’s office will not usually look to attract customers from hundreds or thousands of miles away (more like a 10-15 mile radius).
You Could Also Target Your Competitors.
If your baseball team has a rival club in the same metropolitan area, you could pay for keywords related to that other team in an attempt to steal their fans. However, do note that there is some risk here as clickers who want tickets to the other team’s games may immediately leave your web page after arriving and realizing their mistake, leaving you with the cost of paying for that click and nothing else.
Regardless of what type of organization yours is, using a geographically based keyword is a great strategy to use if it applies to your situation – i.e. you’re not selling to a national or worldwide audience. In fact, this should be viewed as a must for you if you’re solely focused on a local audience. For example, a dentist’s office will not usually look to attract customers from hundreds or thousands of miles away (more like a 10-15 mile radius).
Also Take Note Of Keywords That Do Not Apply To You At All.
Are you running a Paving company that does not offer Line striping? You may want to list “line striping” as a negative keyword so that your ad isn’t triggered for a keyword that contains “line striping company near me.” You don’t want somebody calling looking for parking lot line striping and not being able to serve them any. Or maybe you do – e.g. by utilizing an unintentional bait-and-switch
selling strategy.
Also Take Note Of Keywords That Do Not Apply To You At All.
Are you running a Paving company that does not offer Line striping? You may want to list “line striping” as a negative keyword so that your ad isn’t triggered for a keyword that contains “line striping company near me.” You don’t want somebody calling looking for parking lot line striping and not being able to serve them any. Or maybe you do – e.g. by utilizing an unintentional bait-and-switch
selling strategy.
What Time Of Day Is Best For Your Ads To Run?
To get the most out of the money that you’re spending, take into account what time your ads will be visible. Of course, many businesses nowadays sell items on a 24-7 basis. However, if, for example, you own a service based business like many of our clients, you may want to focus your ads on being visible only during your normal business hours, when your team will be more available to handle those incoming calls.
Do also check what types of results show up with your chosen keywords. If what currently appears on that search-results page are organizations and other types of listings that are not at all similar to yours, consider using different keywords.
NOTE: For our paid advertising clients we handle all of the keyword selection, write the Ads, create the landing page, and handle all the advertising campaign management and tracking.
What Time Of Day Is Best For Your Ads To Run?
To get the most out of the money that you’re spending, take into account what time your ads will be visible. Of course, many businesses nowadays sell items on a 24-7 basis. However, if, for example, you own a service based business like many of our clients, you may want to focus your ads on being visible only during your normal business hours, when your team will be more available to handle those incoming calls.
Do also check what types of results show up with your chosen keywords. If what currently appears on that search-results page are organizations and other types of listings that are not at all similar to yours, consider using different keywords.
NOTE: For our paid advertising clients we handle all of the keyword selection, write the Ads, create the landing page, and handle all the advertising campaign management and tracking.
Where Are You Sending Them From The Google Ad?
Imagine yourself searching for a stationary bicycle that you can use during the cooler months. You head to Google to see what’s available. You’re intrigued by one of the paid advertisements and click on it. “Running Shoes.” What’s this? You’re presented with a page showing you dozens of running shoes to purchase. They all look impressive and you may have considered buying a pair had you not just got some new ones a week ago. You quickly scan the page for any mention of a stationary bicycle, don’t find any, and, frustrated, head back to Google.
This is a situation that you want to avoid. Now, that is a more extreme example, but I hope that it got your attention. You want wherever you’re sending the clicker to be a web page that’s very relevant to the keyword that was used in their search. In this example, you would want somebody who clicks on your PPC ad to be sent to a landing page that specializes in stationary bicycles.
For that reason, you will want to, in most cases, not simply direct them to your home page of a website. If you do that, they would likely need to then search some more, figuring out where on your website to go, when they had thought that their search was over when they clicked on your link. This leads to frustration (and leads to people hitting the “Back Button” to go visit a competitor site.
However, in some situations, using your home page of your small business website as your landing page may make sense. One example could be if all you sell are stationary bicycles.
For the majority of our small business landing pages we drive them to a customized Landing Page. This results in higher conversion rates and more inbound leads for your small business.
One strategy that some small businesses use is to create customized landing pages for these ads. These should be optimized to convert. For example, they could include a special deal that’s not otherwise available on your website.
Another benefit of using a landing page is it gives you complete clarity in what you get out of that page for new leads and customers for your business. We use sophisticated call tracking and web form tracking on the pages we build to ensure our client’s can see the leads and customers they are getting out of the campaign.
Better visibility in the campaign performance allows for better decisions.
Also take into account that having a lot of people pogo stick – clicking on your link and returning almost immediately to Google’s search results – will also result in Google starting to charge you more per click.
For all of these reasons, make sure that any wrinkles in your landing pages, value propositions and overall messaging have been ironed out prior to spending your money on Google Ads unless you’re intentionally using this service to test things. That way you won’t be paying for incoming traffic that doesn’t evolve into sales figures at a high enough percentage, and you won’t be turning prospective customers off, leaving a bad taste in their mouths.
Imagine yourself searching for a stationary bicycle that you can use during the cooler months. You head to Google to see what’s available. You’re intrigued by one of the paid advertisements and click on it. “Running Shoes.” What’s this? You’re presented with a page showing you dozens of running shoes to purchase. They all look impressive and you may have considered buying a pair had you not just got some new ones a week ago. You quickly scan the page for any mention of a stationary bicycle, don’t find any, and, frustrated, head back to Google.
This is a situation that you want to avoid. Now, that is a more extreme example, but I hope that it got your attention. You want wherever you’re sending the clicker to be a web page that’s very relevant to the keyword that was used in their search. In this example, you would want somebody who clicks on your PPC ad to be sent to a landing page that specializes in stationary bicycles.
For that reason, you will want to, in most cases, not simply direct them to your home page of a website. If you do that, they would likely need to then search some more, figuring out where on your website to go, when they had thought that their search was over when they clicked on your link. This leads to frustration (and leads to people hitting the “Back Button” to go visit a competitor site.
However, in some situations, using your home page as your landing page may make sense. One example could be if all you sell are stationary bicycles.
For the majority of our small business landing pages we drive them to a customized Landing Page. This results in higher conversion rates and more inbound leads for your small business.
One strategy that some small businesses use is to create customized landing pages for these ads. These should be optimized to convert. For example, they could include a special deal that’s not otherwise available on your website.
Another benefit of using a landing page is it gives you complete clarity in what you get out of that page for new leads and customers for your business. We use sophisticated call tracking and web form tracking on the pages we build to ensure our client’s can see the leads and customers they are getting out of the campaign.
Better visibility in the campaign performance allows for better decisions.
Also take into account that having a lot of people pogo stick – clicking on your link and returning almost immediately to Google’s search results – will also result in Google starting to charge you more per click.
For all of these reasons, make sure that any wrinkles in your landing pages, value propositions and overall messaging have been ironed out prior to spending your money on Google Ads unless you’re intentionally using this service to test things. That way you won’t be paying for incoming traffic that doesn’t evolve into sales figures at a high enough percentage, and you won’t be turning prospective customers off, leaving a bad taste in their mouths.
Using PPC To Experiment And Analyze Results
One of the top benefits of PPC advertising that many do not consider is the ability to use it to test ideas. For example, if you have two or more web pages that are related to a keyword and you’re not sure which one would be better to use, initially use them all, and analyze the results. In particular, check the Quality Scores that Google awards as that will likely be the best indicator that you will have. Also note that the higher your QS is, the less you’ll have to pay and the higher your conversion rate will be.
What is a QS? As is the norm for all things Google, no one knows what the exact formula is, but the primary factors are the click-through rate, any relevant Google Ads historical data and the relevancy of the keyword, your copy, how many people take action (tracked calls and web leads) and your landing page.
Simply being able to analyze the results of your ads is such a great benefit to have as well. PPC advertising provides numerous ways to measure your return on investment and determine if it makes financial sense to take advantage of this, if the answer to “Does Google Ads work for small business?” is an affirmative in your case, or to more clearly see what changes you need to make in order to start receiving a positive ROI.
You can also alter the copy of your ads to see what wording achieves the most positive results. In this area, focus on trying out different headlines as that’s the first thing that viewers will see.
One of the top benefits of PPC advertising that many do not consider is the ability to use it to test ideas. For example, if you have two or more web pages that are related to a keyword and you’re not sure which one would be better to use, initially use them all, and analyze the results. In particular, check the Quality Scores that Google awards as that will likely be the best indicator that you will have. Also note that the higher your QS is, the less you’ll have to pay and the higher your conversion rate will be.
What is a QS? As is the norm for all things Google, no one knows what the exact formula is, but the primary factors are the click-through rate, any relevant Google Ads historical data and the relevancy of the keyword, your copy, how many people take action (tracked calls and web leads) and your landing page.
Simply being able to analyze the results of your ads is such a great benefit to have as well. PPC advertising provides numerous ways to measure your return on investment and determine if it makes financial sense to take advantage of this, if the answer to “Does Google Ads work for small business?” is an affirmative in your case, or to more clearly see what changes you need to make in order to start receiving a positive ROI.
You can also alter the copy of your ads to see what wording achieves the most positive results. In this area, focus on trying out different headlines as that’s the first thing that viewers will see.
Increasing Your Real Estate
A great way to increase your clicks is to use sitelink extensions. This is because these expand the size of your ad – i.e. the real estate that you’ve purchased. There are multiple add-ons available (phone number extension, site link extension, etc.). The more space your ad takes up the higher your click through rates can be. For our paid advertising clients we help to maximize the ad extensions we can get them the best possible results.
The Bottom Line - Do Google Ads Work For Small Business?
For the right businesses, ABSOLUTELY. It all depends on your specific circumstances. However, I will say that Google Ads is something that you should consider if your business meets some or all of the criteria above. Do some research specific to your situation, and determine to the best of your knowledge if your ROI is likely to be in the black. The prospective benefits that are out there are positive enough for you to want to at least do that. Also note that the odds of this being something advantageous for you is more likely if you have quality landing pages and a strong value proposition. Our team of digital marketing experts are happy to have a conversation with you to run some numbers and determine if it would be a good fit for your business.
Time To Meet With Kyle Battis
Kyle Battis has been involved in advertising and marketing since 1999. He has a background in Website Design, Direct Marketing, Online Media Buying commanding $150,000 per Month Ad budgets, Live Presentations, and he has extensive experience designing Marketing Campaigns that make money for small businesses.
Time To Meet With Kyle Battis
Kyle Battis has been involved in advertising and marketing since 1999. He has a background in Website Design, Direct Marketing, Online Media Buying commanding $150,000 per Month Ad budgets, Live Presentations, and he has extensive experience designing Marketing Campaigns that make money for small businesses.
603-573-9289
