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Google Ads for Small Businesses and their ROI

by | Jun 28, 2022 | Digital Marketing

Google Ads can be a great way for small businesses to get their name out there and attract new customers. However, it’s important to understand how Google Ads works and what the potential return on investment (ROI) could be before investing any money. If you’re interested in getting PPC management services, this guide will show you what to expect.

In this guide:

How Does Google Ads Work?

Google Ads is online advertising that allows businesses to pay to have their advertisement appear on the first page of Google’s search results. Google Ads works by auctioning off ad space on Google’s search engine results pages (SERPs) where businesses bid on keywords that they think potential customers will use when searching for their product or service. The amount businesses are willing to pay per click (CPC) on their advertisement will determine their position on the SERP. The higher the CPC, the higher the position on the SERP.

The potential ROI of Google Ads depends on several factors, including the CPC, the ad’s quality score, and the conversion rate.

The CPC is determined by the amount that businesses are willing to pay per click on their ad. The quality score is used by Google to measure how relevant and useful it believes an ad is to potential customers. Finally, the conversion rate is the percentage of people who click on an ad and then take the desired action, such as making a purchase or signing up for a newsletter.

For example, your product costs $100 to produce and sells for $200. And after advertising on Google Ads, you were able to sell 6 of these products. You get a total sale of $1200 with Google Ads costs around $200. Your ROI will then be ($1200-($600+$200))/($600+$200), or 50%.

Of course, this is merely an estimate. Your actual ROI may be higher or lower depending on your CPC, quality score, and conversion rate.

To maximize the ROI of your Google Ads campaign, it’s important to bid on relevant keywords with a high-quality score. You should also ensure that your ad is well-written and includes a call to action that encourages people to take the desired action.

 

Is Google Ads for small businesses worth it?

While there are a number of factors to consider, it is generally a great way to jumpstart any business and get it in front of potential customers who are already interested in what you have to say. Google Ads can be very effective for small businesses if used correctly.

 

Advantages of Google PPC Ads for Small Businesses

There are many benefits to investing in Google Ads for small businesses. Here are some of them.

  • PPC Ads are Measurable

You can track and gather data on how your ads are performing using Google Analytics. This data can help you to improve your ad campaigns over time. Data you can gather include the number of impressions, clicks, and conversions. 

Impressions are the number of times your ad has been shown. Clicks are the number of people who have clicked on your ad. Conversions are the number of people who have taken the desired action, such as making a purchase or signing up for a newsletter.

You can also track the average cost per click (CPC) and the average cost per conversion. This data can help you to understand the ROI of your Google Ads campaigns.

 

  • PPC Ads are Scalable

Google Ads is a very scalable form of marketing. You can start with a small budget and gradually increase your spending as your business grows. This makes it a great option for small businesses that are just starting out.

You can also adjust your campaigns at any time to respond to changes in your business or the market. For example, if you’re a seasonal business, you can increase your ad spend during your busy season and then scale back when things slow down.

 

  • PPC Ads Deliver Faster Results Than SEO

Google Ads can deliver results much faster than SEO. This is because your ads will appear on the SERP as soon as you start your campaign. With SEO, it can take several months or even years to see results.

This means you can immediately gather data about your target market and change your campaign based on this data. This flexibility is one of the major advantages of Google Ads over SEO.

 

  • PPC Ads Secure Brand Name Searches

When people search for your brand name, you want your ad to appear first. This ensures that potential customers see your message, not your competitor’s.

But doesn’t Google automatically show your website when someone searches for your brand name? Not exactly. Google may show your website in the organic results, but this is not guaranteed.

Many factors determine whether or not your website will appear in the organic results, such as the quality of your website and how well you’ve optimized it for SEO. However, if you’re running a Google Ads campaign, you can ensure that your ad will appear when people search for your brand name.

This is a great way to protect your brand and ensure potential customers see your message, not your competitor’s.

 

  • PPC Ads Help Get Your Brand Recognized

Google Ads can help get your brand recognized. This is because your ad will be shown to people who are already interested in what you have to say.

As more people come across your brand and choose you for the products you offer, your brand recognition becomes more established. This can lead to organic traffic growth and more customers over time.

 

  • PPC Ads Help Drive More Sales

Google Ads can help to drive more sales for your business. This is because you can target potential customers who are already interested in what you have to say.

This means you’re more likely to make a sale than if you were targeting people who are not interested in your product or service.

 

  • PPC Ads Are Cost-Effective

Google Ads is a very cost-effective form of marketing. This is because you only pay when someone clicks on your ad. This means you’re not paying for impressions or branding.

You’re only paying for results, making it a very efficient way to market your business. For example, if you’re selling a product that costs $100, and you’re willing to pay $10 per sale, then your maximum cost per click would be $10 with a 10% conversion rate.

This means you would only need to make 10 sales to break even. And if you’re able to make more than 10 sales, then you’re making a profit.

 

How Much Does PPC Cost for Small Businesses?

The cost of launching a Google Ads campaign will depend on many factors, such as the keywords you’re targeting, the competition, and your bid.

Generally, running Google Ads for small businesses costs about $10 per day. However, this can vary depending on the factors mentioned above and your business industry.

To get an accurate estimate of how much your campaign will cost, you can use the Google Ads Keyword Planner tool. This tool can provide you with an estimate of how much it would cost to bid on specific keywords.

This is where hiring a PPC management agency can greatly help you. At Public Advertising Agency, we have years of experience managing PPC campaigns for small businesses.

 

What Are The Benefits Of Hiring A PPC Management Agency like Public?

Benefits to hiring a PPC management agency includes:

 

You’ll Save Time

One of the biggest benefits of hiring a PPC management agency is that it will save you time.

Like any marketing strategy, PPC advertising is time-consuming and laborious. In addition, PPC may be complicated to learn if you’re not familiar with how it works.

This is where a PPC management agency can help. We’ll take care of all the aspects of your campaign, so you can focus on running your business. At Public Ad Agency, we have dedicated PPC experts who can help you devise a bidding strategy that effectively lowers costs and increases your ROI.

 

We Have The Expertise

Another benefit of hiring a PPC management agency is that we have the expertise to run successful campaigns.

PPC is a complex and ever-changing field. It’s constantly evolving, and new features are constantly added. This is where having a PPC expert on your side can be extremely beneficial. We stay up-to-date with all the latest changes and features, so you don’t have to. This way, we can help you take advantage of the latest features and get the most out of your campaign.

 

We Provide A Personalized Service

When you hire a PPC management agency, you’ll get personalized service. This means we’ll take the time to get to know your business and your goals. We’ll then create a customized campaign that’s designed to meet your specific needs. This is in contrast to the one-size-fits-all approach that many PPC providers take.

At Public, we believe every business has its own requirements. While there is a standardized way to set up a new PPC campaign, the strategy varies for each business. This is why we offer a personalized service to all our clients.

 

5 Things To Keep In Mind Before Starting a PPC Campaign For Your Small Business

 

  1. Define your goals

Before starting a PPC campaign, it’s important to have a clear goal in mind. What do you want to achieve with your campaign? Are you looking to increase brand awareness? Drive traffic to your website? Make more sales? Once you know your goal, you can create a campaign designed to achieve it.

 

  1. Do your research

Once you know your goals, it’s time to do some research. What keywords are you going to target? Who is your competition? How much are you willing to spend on your campaign? Answering these questions will help you create a campaign that’s more likely to be successful.

 

  1. Know What Locations You Want to Target

This is an essential step for small businesses targeting a local market. You need to make sure you’re targeting the right location. The last thing you want is to waste your time and money on ads that no one in your target market will see.

 

  1. Know Which Campaign Will Be Best For You

There are two main types of campaigns you can run: search campaigns and display campaigns. Search campaigns are designed to target people who are actively searching for your products or services. Display campaigns, however, are designed to reach people who may not be actively searching for your business but could be interested in what you have to offer.

 

  1. Make Sure Your Landing Pages Are Ready

Your landing pages play a vital role in your PPC campaign. They’re the first thing people will see when they click on your ad, so you need to ensure they’re well-designed and relevant to your offer.

 

  1. Set a Budget

Last but not least, you need to set a budget for your campaign. This will ensure you don’t overspend and end up in a difficult financial situation.

When it comes to setting a budget, it’s important to keep in mind that PPC campaigns can be very expensive. The cost of each click can vary depending on the keywords you’re targeting and the competition. However, as a general rule of thumb, you should expect to spend at least $10 per day on your campaign.

If you’re unsure how much you should be spending, a PPC management agency can help you set the right budget for your business.

 

Takeaway

Google Ads for small businesses can be a great way to promote your brand, products and services, but it’s important to do your research and create a well-thought-out campaign. By following the tips above, you can set yourself up for success.

If you’re unsure where to start or need help managing your PPC campaign, consider hiring a PPC management agency. At Public, we specialize in helping small businesses create and manage successful PPC campaigns. Holler at us today!

 

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