When running a business, you have a lot to learn and do. You must carefully plan every dollar to get the maximum returns on investment. While you might feel that your small ad budget can’t compete with the big spenders on Google ads, this isn’t always true. This article will guide you on how to get the highest return on investment in your Google ads for small businesses.
What are Google Ads?
Formerly called Google AdWords, Google Ads is an advertisement model where users pay per click. The platform allows all sizes of businesses to place ads for their products and services or increase their website traffic and pay depending on the number of clicks they receive.
The ads are usually placed at the top of the Google SERPs and combined with the right keywords to create well-optimized PPC campaigns. They can also be placed on nonsearch websites, apps, and videos. The amount you pay for the ad depends on the bid range. If you are going for highly competitive keywords, you will likely pay more than someone else bidding for a low-competition keyword.
Compared to media and print advertising, Google ads can be a cost-effective way for small businesses to market their products and services. The fact that they target an audience seeking products and services in your niche means they can be effective. Furthermore, if you’re a seasoned professional in business consulting, well-versed in Google Ads principles, and eager to offer valuable tips to beginners or small businesses through motivational YouTube videos, consider leveraging YouTubeStorm to enhance engagement and visibility.
How Does Google Ads work for small businesses?
The first step to advertising on Google Ads should be determining the keyword you want to target. You can use the best keyword research tools to know the words that people are using to find the keywords that people are using to find products or services in your niche. These are what you will be bidding for. Therefore, keyword research for blogs and PPC campaigns is crucial.
For instance, you might be trying to rank for the keyword SEO services in Salt Lake City. If you check your organic ranking, you might rank at number 120 for the keyword. You can bid on Google Ads to appear on the top of the SERPs for the keyword. If several sites are bidding for that keyword, the bidder with the highest bid earns the spot.
When bidding for a keyword, you will also need to understand the search intent of a keyword, as some keywords have a higher buying intent than others. Such keywords are likely to convert easily compared to those with a low buying intent in the sales funnel.
What is the cost of Google Ads for small businesses?
On average, Google ads cost around $2.96 per click. However, this figure isn’t set in stone, as other variables must be considered. These include the industry, keywords, and quality score. For instance, we noted earlier that bids determine the cost of Google Ads. You can also set your bid so that you only pay for the actual results in a bid.
Factors Determining The Cost Of Google Ads
The Google advertising cost for small businesses can be affected by several factors, such as:
Bids
This is the main factor determining how much you pay for your Google Ad. You must enter your budget and bid range details when running an AdWords campaign. The budget refers to the maximum you plan to pay monthly. The bid range is the amount you want to pay per click.
Keywords
The competition for a keyword and its search intent also affects how much you pay for a Google Ad campaign. If you bid for a high-value keyword, you will likely encounter stiff competition and pay more.
For instance, a keyword like “how to repair a phone?” may not have a lot of monetary value as the searcher is looking for general information. On the other hand, a keyword like the best phone repair shop in Salt Lake City” denotes that the searcher is looking for the service.
Therefore, more phone repair shops will likely be the second keyword in Google local business advertising. In return, this drives the cost of bidding for the keyword higher.
Industry
The industry in which your business operates is also likely to affect the average ad spend. This can be attributed to several factors, such as:
- The average conversion rate for the industry
- Period a customer takes to complete a transaction
- Trends and other factors affecting the industry in general
Targeting options
You can limit the areas where you want the ad to appear and cut your ad spend. This is especially true when you want to limit the ad spend for Google Ads for local businesses with specific operating hours. For instance, if you are a coffee shop operating only in the morning, you can target to bid for only your operating hours.
Quality score
This refers to Google ranking of your business depends on several factors such as:
- Landing page experience
- Clickthrough rate
- Relevance of the ad
A high-quality score will reduce your Google ad cost. Google values customer experience and will prefer your ad if it provides a great customer experience. The score ranges from 1 to 10, with 10 being the highest score rating.
Ad Rank
This figure is obtained by multiplying the quality score with your maximum bid. Web users are usually shown the ads with the highest ad rank. When creating an ad for a small business with a limited budget, you should aim to improve your quality score to compete well with big firms with big budgets.
How to Determine Your Google Ad Bid Amount
The right bid will depend on different factors, such as your campaign type and the keyword. It’s advisable to keep testing to determine your optimum bid range. However, Google recommends starting with a maximum bid of $1 if you do not know how much you should bid for.
The best way to get a good Google ad return on investments is by maintaining the maximum bid lower than the break-even cost per click. The break-even CPC refers to the point where the Google Ad cost is equivalent to the profit.
Tips To Get The Most Out Of Google Ads For Small Businesses
Here are some best practices for Google ad optimization:
- Have an objective. Avoid setting up a Google Ad campaign blindly. Instead, set up your objectives, such as generating leads, email signups, or increasing sales.
- Avoid using broad keywords. Targeted search engine marketing is essential. The keywords that convert best are the narrow ones, as they are highly targeted. So, focus on them instead of broad keywords.
- Try dynamic keyword insertion. This adds keywords to your headlines automatically and in real-time in response to the search query.
- Study competition. Your competitors can help you learn about a successful ad campaign.
- Have a well-optimized website. This will help improve your quality score.
Final Thoughts
Google ads for small businesses can be an effective but affordable way of putting your business, products, or services to a large audience. However, for the best results, it should be done right. By following our guide above, it’s possible to get the highest ROI on Google Ads for small businesses.
