The Good The Bad & The Ugly of Google Ads In 2023

| Schieler Mew |

Are you a small business thinking of running Google Ads? Well, I’m here to tell you that it very may well not be for you!

Google Ads is a platform that allows businesses to create and run ads that appear on Google search results pages, as well as other websites and apps that are part of the Google Ads network. By bidding on specific keywords, businesses can target their ads to users who are searching for specific terms or products, and only pay when someone clicks on their ad.

While Google Ads can be an effective way to reach a large and targeted audience, it’s important to consider both the pros and cons before launching a campaign.

Pros of Google Ads

  1. One of the main benefits of Google Ads is the ability to reach a large and targeted audience. With billions of searches happening on Google every day, there is a good chance that your ads will be seen by potential customers who are actively looking for products or services like yours. Additionally, Google Ads allows you to target your ads based on factors such as location, language, and device type, so you can ensure that your ads are being shown to the most relevant audience.
  2. Another advantage of Google Ads is the ability to track and measure the performance of your campaigns. Google provides a wealth of data and analytics on how your ads are performing, including metrics such as clicks, impressions, and conversion rate. This allows you to see which ads are working well and which may need to be adjusted or optimized.
  3. Additionally, Google Ads offers a high level of flexibility and control. You can adjust your bids, targeting options, and ad copy in real-time based on the performance of your campaigns. This allows you to make changes and improvements on the fly, rather than waiting for a set period of time to see how your ads are performing.
  4. Lastly, some SEOs believe that Google Ads can assist your organic ranking by providing Google with extended user data on visitors that come to your website through your associated keywords. Or, in other-words, every click that comes to your Finance Website through Google Ads still required someone to inquire about Financial Topics in the search query, and now your website is associated with those additional queries.

Cons of Google Ads

  1. While Google Ads can be an effective marketing tool, it’s important to be aware of the potential downsides as well. One of the main drawbacks is the cost. Google Ads operates on a pay-per-click model, which means you pay each time someone clicks on your ad. This can quickly add up, especially in competitive industries where the cost-per-click (CPC) can be high.
  2. In addition to varying cost per click, the total amount is usually dictated by other bidders. If your direct competitor is willing to pay $35 for a keyword to come in Google’s top Ad position, then to beat them you may have to pay between $30-$40 per click. Effectively, as you can assume, the more bidders you have the higher the potential cost of ad placements.
  3. Next, it’s important to assess the average ticket of your services booked on Google Ads, as this could lead to an unsuccessful campaign. For example, if your average booked service lead coming in is only yielding $180, but it costs you 10 clicks at $14 per click to get the lead, you are most likely not making a net return.
  4. Another potential drawback is the ongoing management and optimization required to get the most out of your campaigns. Google Ads requires regular attention to ensure that your ads are being shown to the right audience, and that you are getting the best possible return on your investment. This can be time-consuming, and may require the expertise of a digital marketing specialist.
  5. It’s also important to note, there is no guarantee that your Google Ads campaign will result in a good conversion rate. Conversion rate refers to the percentage of people who take a desired action (such as making a purchase or filling out a form) after clicking on your ad. While Google Ads allows you to target your ads to a specific audience, there are many factors that can impact the likelihood of someone converting after clicking on your ad.
  6. Lastly, one of the most often overlooked problems that can arise from Google Ads is your companies “Close Rate”. By this, we mean that if ten leads come through but only 3 of them resulted in an actual job or revenue, then depending on the amount of the job you may be paying more in ads than the return of the investment, also known as an ROI.

Determining factors of a good conversion rate

So what determines whether a Google Ads campaign will have a good conversion rate? There are several key factors to consider:

  1. Quality of the ad copy and landing page: The ad copy and landing page are crucial to the success of your campaign. The ad copy should be clear and compelling, and should clearly communicate the benefits of your product or service. The landing page should be well-designed and relevant to the ad, and should make it easy for users to take the desired action (such as making a purchase or filling out a form).
  2. Relevance of the ad to the target audience: It’s important to ensure that your ad is relevant to the audience you are targeting. If your ad is not relevant to the user’s search query or interests, they are less likely to convert.
  3. Ad placement and targeting options: The placement of your ad and the targeting options you choose can also impact your conversion rate. For example, if your ad is shown to a broad audience that is not particularly interested in your product or service, you may see a lower conversion rate. On the other hand, if you use targeted keywords and demographics to reach a highly relevant audience, you may see a higher conversion rate.
  4. User experience on the landing page: Finally, the user experience on the landing page can play a big role in your conversion rate. If the landing page is confusing or difficult to navigate, users may be less likely to convert. On the other hand, a well-designed landing page with a clear call to action can increase the likelihood of a conversion.

Why companies who run deals and discounts through Google Ads get better conversions

The secret is out and there’s no use in denying it – companies who run deals and discounts through Google Ads always have better conversion rates and more possible leads!

  1. Deals and discounts can be an effective way to attract potential customers. When people see a special offer, they are more likely to click on the ad and visit the website. This can increase the number of visitors to the site and increase the chances of converting them into customers.
  2. Deals and discounts can also be a good way to differentiate a company from its competitors. If a company is offering a special promotion that is not available elsewhere, it can make it more attractive to potential customers.
  3. Offering a deal or discount can also be a good way to encourage people to make a purchase more quickly. For example, if a company is offering a limited-time offer, it can create a sense of urgency that encourages people to act quickly.
  4. Finally, offering deals and discounts can be a good way to build customer loyalty. When people feel like they are getting a good deal, they are more likely to return to a company in the future. This can help to increase the overall conversion rate for the company.

Overall, companies who offer deals and discounts through Google Ads can have higher conversion rates because these promotions can be effective at attracting potential customers, differentiating a company from its competitors, encouraging quick purchases, and building customer loyalty.

How to measure ROI through Google Ads

The conversion rate for a Google Ads campaign is calculated by dividing the number of conversions by the number of clicks on the ad, and then multiplying by 100 to express the result as a percentage.

For example, if you have an ad that has received 100 clicks and resulted in 10 conversions, the conversion rate would be calculated as follows:

(10 conversions / 100 clicks) x 100 = 10% conversion rate

It’s important to note that a conversion can refer to any desired action that a user takes on your website, such as making a purchase, filling out a form, or signing up for a newsletter. The specific conversion actions that you track will depend on your business goals and the goals of your Google Ads campaign.

Note: To view the conversion rate for your Google Ads campaign, you can go to the “Conversions” tab in the Google Ads interface. This will show you the total number of conversions and the conversion rate for your selected time period. You can also view the conversion rate for individual ad groups or keywords to see which are performing the best.

Higher ROI Alternatives to Google Ads

While Google does lead the pack in terms of total consumer awareness there are other Pay Per Click (PPC Options) that may be cheaper with a higher ROI!

  1. Bing Ads: Bing Ads is the PPC platform for Microsoft’s search engine, Bing. While it has a smaller market share than Google, it can be a good option for businesses looking to reach a different audience or target specific demographics.
  2. Yahoo Gemini: Yahoo Gemini is a PPC platform that allows businesses to run ads on Yahoo’s search engine and across the Yahoo Gemini network, which includes Yahoo Sports and Yahoo Finance.
  3. LinkedIn Ads: LinkedIn Ads is the PPC platform for LinkedIn, the professional networking site. It allows businesses to target their ads to specific demographics and industries, making it a good option for B2B companies.
  4. Facebook Ads: Facebook Ads is the PPC platform for the social media giant, Facebook. It allows businesses to target their ads based on a wide range of demographics and interests, making it a good option for reaching a specific audience.

It’s important to note that each of these platforms has its own strengths and limitations, and the right approach will depend on your business goals and the audience you are trying to reach. It may be worth experimenting with different platforms to see which provides the best ROI for your business.

People Also Ask About Google Ads

How does Google Ads charge?

Google Ads charges on a pay-per-click (PPC) basis, which means that you pay each time someone clicks on one of your ads. The amount you pay for each click is determined by an auction, in which advertisers bid on keywords and phrases that are relevant to their business. The highest bidder for a given keyword or phrase will have their ad displayed when someone searches for that term, and they will be charged the amount of their bid each time their ad is clicked.

There are a few different factors that can influence the cost of a click on Google Ads, including the quality of your ad and the relevance of your keywords and landing page to the search query. In general, ads that are well-written and targeted to the right audience are more likely to perform well and drive high-quality traffic to your website, which can help to lower your overall advertising costs.

Google Ads also offers a number of options for setting and managing your budget, including the ability to set daily or lifetime budget limits, as well as bid adjustments to help you control your costs. You can also set up conversion tracking to measure the effectiveness of your ads and optimize your campaigns for better results.

What is the minimum amount to run Google Ads?

There is no minimum amount required to run a Google Ads campaign. You can set your budget to as low as you like, although keep in mind that the amount you spend will directly impact the reach and visibility of your ads. In general, it’s a good idea to set a budget that is appropriate for your business and marketing goals.

It’s important to note that Google Ads operates on a pay-per-click (PPC) basis, which means that you’ll be charged each time someone clicks on one of your ads. The cost per click (CPC) will vary depending on the keywords and phrases you’re bidding on, as well as a number of other factors such as the quality of your ads and the relevance of your landing page to the search query.

What’s the difference between keyword match types on Google Ads?

In Google Ads, keyword match types are used to control which searches will trigger your ads to be shown. There are four main keyword match types:

  1. Broad match: This is the default match type, and it allows your ad to be shown for any search query that includes your keyword, or close variations of it. This can be a good option for getting a lot of impressions, but it can also result in your ad being shown for unrelated or irrelevant searches.
  2. Phrase match: This match type allows your ad to be shown for searches that include your keyword, or close variations of it, in the exact order you’ve specified. For example, if your keyword is “red shoes,” your ad could be shown for a search like “buy red shoes online.”
  3. Exact match: This match type allows your ad to be shown only for searches that exactly match your keyword, or close variations of it. For example, if your keyword is “red shoes,” your ad would only be shown for a search like “red shoes.”
  4. Negative match: This match type allows you to exclude certain searches from triggering your ad. For example, if you use the negative keyword “free,” your ad will not be shown for searches that include the term “free.”

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