5 Ways to Determine if Google Ads are Right for Your Business

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According to Google Economic Report, for every $1 an enterprise spends on Google Ads, it generates $2. As such, many businesses are investing in Google ads to maximize ROI, build brand awareness, increase conversions, and attain competitiveness.   

While advertising with Google Ads is lucrative in the current competitive business landscape, you must answer the million-dollar question. “Are Google Ads right for my business?”

Let’s explore five ways to determine whether or not Google Ads are a good fit for your business.

1. Do you have the budget?

Many businesses refrain from investing in Google Ads as they are unsure about their cost. They wonder whether they can afford it and if they will get any returns.

The first step in determining whether Google Ads are right for your business is to assess your marketing budget. Do you have money to pay for the advertisement?

To identify how much Google Ads cost, analyze the average CPC for your industry. Then, benchmark it with conversion rates. This way, you can ascertain how much you will spend and what returns to expect. You also establish whether you will be able to afford the costs.

Google Keyword Planner Tool can help you estimate your expected cost per month. It offers the Cost-Per-Click (CPC) estimates for keywords. Using this information, you can establish how much you will spend to acquire a new customer and whether you can afford it.

Google Ads Start Page

Let’s use a hypothetical example of an accountant. We assume every new customer is worth $1,000. In his industry, the average CPC is $5 for 100 clicks. If the conversion rate is 2%, he spends $500 on 100 clicks while attaining two customers. The two customers bring in $2,000. That’s a good deal with a high ROI.

Let’s give another example on the flip side. Take an enterprise where the CPC is $5, the conversion rate is 2%, and a new customer is worth $100. You spend $500 for 100 clicks while bringing in $200. In such a business, Google Ads are not feasible because the best you can do is break even. It is best practice to know the numbers in advance before you spend your dollars on Google Ads.   

As you calculate these costs, remember that you will need an adequate budget to test and optimize campaigns. It often means running campaigns that could lose money initially but make money as you optimize targeting and bidding over time.

2. Do you have the time?

Google Ads is not a set-it-and-forget-it tool. Managing ads can be laborious and time-consuming. You need to monitor your ads and optimize them for the best results. You must also perform tasks such as creating new ads, adjusting budgets, looking for new search terms, and testing new designs.  

Therefore, you must assess if you have the time to manage these ads. Do you have an employee who can help you manage your Google Ads account? If not, can you outsource the function cost-effectively?

If you manage your Google Ads as part of running your business, the time required can be a major hurdle. Luckily, here are some tips you can employ to help you spend less time on Google Ads.

  • Set automated rules
  • Use bidding strategies
  • Utilize negative keyword lists
  • Set up automated reports

3. Are your offerings right for Google Ads?

Before you invest in Google Ads, ensure that your offerings – products and services – are right for the medium. Google ads are profitable for many businesses because of their effective targeting. You can reach prospects when they are looking for your products or services. However, consider whether simple text ads are adequate to sell your products and services or stimulate interest.

Importantly, remember that there are numerous other platforms you can use to promote your offerings such as Facebook, Instagram, and LinkedIn. For instance, if your product is difficult to sell without images, then Google Ads may not be ideal for you. Instead, consider using Instagram or Facebook ads. 

4. Conduct Keyword Research

One of the most effective ways to determine whether Google Ads are a good choice for your business is by conducting keyword research. Keyword research allows you to know if people are searching for your products online.
If they are not searching for what you are selling, there’s no point in advertising on Google.

Keyword research also lets you know how many people are looking for your offerings to determine whether your efforts will be worth it. If only 20 people are searching for your products monthly, then the time and money required to manage an ads campaign may not be worth it.

Tools like Google Keyword Planner and SEMRush can help with keyword research. They let you know the search volume for keywords based on your products and services. High search volumes indicate that people are searching actively for your offerings.
Hence, Google Ads are a good fit for your enterprise. Low search volumes mean that customers are not searching for your products and services. As such, Google Adwords is not ideal for your company.

5. Perform Competitor Research

Competitor research reveals whether your competitors are using Google to advertise their services.

If your competitors are creating ads for the phrases you want to target, there is a high probability they are reaping big rewards from it. It follows that you can’t sit there and let them earn Google Ads dollars alone –a little competition isn’t bad.               

Competitor research lets you know how much your rivals are spending on the medium. Through it, you get an idea of how much budget you need in order to run Google Ads, too. Also, with competitor research, you can uncover the keywords other companies are using to get good returns.   

The Takeaway

Forget all the awful stories you have heard about Google Ads depicting negative ROI, failed campaigns, and sinking profits. Google Ads are an incredible tool for businesses to boost ROI, increase conversions, and attain a competitive edge.

However, before investing in these ads, you must ascertain that they are a good fit for your enterprise. Use the five ways outlined above to test the waters, and establish whether Google Ads are a good choice for your company. Also, feel free to contact us if you are on the hunt for experts to run your Google Ads campaign

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