Profitability of Google ads for businesses
The profitability of Google ads for businesses and the review of profitable campaigns is the subject of this article from the Selectaak blog.
Checking the profitability of the Google advertising campaign is not the same for all businesses, and it can be analyzed by checking the specific parameters of the business.
With SEO, you can get any page with the desired keyword to the top results of Google, but this requires a lot of time and money. Along the way of SEO, you have to do things like Buy Website Traffic and pay for backlinks and reporting, etc. But with Google ads, in a short time, you will place the site with the desired keyword in the top results to see if this word is profitable for your business or not?! Then you move on to keyword SEO.
What we can do is give you some considerations to make when it comes to advertising for your business.
Examining the influencing factors in the profitability of the Google advertising campaign
Considering the profitability of Google ads, let me talk about what factors Google ads depend on? Let's also talk about how it might influence your decision to try and use Google Ads.
In the following, we will examine the following:
- Basic advantages and disadvantages of Google Ads or the profitability of Google ads
- Factors affecting Google advertising costs
- What can Google Ads do and what can't it do?
- What is your profitability scenario?
- What are the costs of starting the campaign?
Advantages and disadvantages of Google ads
Before we go into details about the profitability of Google Ads, let's go over some general advantages and disadvantages of Google Ads.
Advantages of using Google ads
Google ads have many benefits for websites and internet businesses. In the following, we are going to explain the best advantages of Google Ads.
Since you're targeting keywords in your Google Ads, that means you're putting those keywords in front of people who have the highest intent to buy. It goes without saying that 89% of shoppers' browsing on the Internet begins with a search engine.
While SEO is essential for any business, it can take weeks or even months to get noticed on the SERP. If you pay for Google ads, you will get higher results easily and in a short time (as long as you have charge).
Better and faster viewing and clicking
Not only do search ads appear at the top and bottom of the search results page (SERP), but search engines are the best channel used by customers when searching for a brand online.
Google is undoubtedly the most used search engine among users. It has 91% of the market share of search engines. So, advertising on Google is a great way to get in front of people who are searching for brands and not just products and services.
As with most forms of digital marketing, the Google Ads platform provides measurable results so you can clearly study which ads, offers, keywords and landing pages are performing best.
While we usually associate search advertising with Google Ads, there are a variety of other formats for this, and each advertising channel plays a different key role in your marketing strategy.
The most important advantage of Google advertising is return on investment
The nature of the Google Ads auction says that you pay the lowest possible price for a click on your brand name. This is because your cost-per-click formula is higher than one cent in the maximum ad bid that appears below your ad. Of course, you only pay when someone clicks on your ad.
PPC returns an average of $2 for every $1 spent, Google (so consider this a bit higher) has gone so far as to say that Google Ads actually returns $8.
You can also learn more about its advantages through the article "Checking the benefits of advertising on Google".
Disadvantages of using Google ads
Admittedly, Google Ads has disadvantages that we have mentioned below.
Low fees do not guarantee exposure
Building on the last point above about the benefits of Google Ads, paying a click on your ad doesn't have to be low. You pay the lowest price compared to your competitors and some keywords can be very expensive. Plus, it's no secret that Google Ads is one of the best marketing channels out there. The more people use Google Ads, the more competitive and expensive it becomes.
High maintenance cost
How much you pay for your campaigns depends on several factors – one of the main factors being how effective you are at optimizing your ads. Properly managing a Google Ads account includes properly structuring the account, conducting keyword research, and continuously monitoring and adjusting the data collected.
Automation does not mean without manual intervention
Although automation is happening at Google, you need to know how to work with automation and the new information it provides. In most cases, applying auto reply to comments is not a good practice and is not recommended.
The Google Ads platform is mixed with a bit of a paradox. The more features and functionality a platform offers to make it easier to use, the more difficult and confusing it becomes to use, or at least learn. There are free Google Ads training courses and you can't escape learning. In addition, the many useful features provided make you more cautious about mistakes in Google ads.
Factors affecting the cost of Google ads
You can get a more detailed analysis of the profitability of Google ads in our blog section on the cost of Google Ads, here we will talk about it only briefly.
field of activity
Because consumers exhibit different purchasing behaviors based on the product or service they are looking for, each niche has a different set of average click-through rates and conversion rates, each with different costs. The cost per click and cost per profile management will be different. But also keep in mind that many industries with higher costs have more value associated with a conversion.
Customer life cycle
Similarly, the benefits of Google Ads vary across the customer return cycle in terms of activity. Some buyer returns are one day, some are months or even years.
Whether it's inflation, a pandemic, a supply shortage, or something else, these trends are driving changes in consumer behavior that will affect your Google Ads results.
Other channels like SEO and social media can improve your brand awareness and indirectly influence the effectiveness of your Google ads.
As mentioned before about the profitability of Google ads, is Google Ads worth it for you or not? It largely depends on how much you pay attention to your account. Those who conduct regular audits keep their ads and landing pages relevant, aware of updates from different platforms. Continuously test and implement data-driven optimizations. These are the ones who touch success sooner.
Are Google Ads useful for your business?
As you can see, the above were only the main and superficial advantages and disadvantages of using Google Ads. Now we want to dig a little deeper into the value of Google ads. As mentioned above, we cannot provide a general answer about the profitability of Google Ads for all businesses, but the following considerations and tips can help you determine whether Google Ads is really worth it for your business. be helpful
- What do you want from Google?
- What is your profitability scenario?
- What are the costs of setting up your startup?
Theory number 1:
How does Google advertising affect your business and what can it do for you?
What Google Ads can't do:
Guarantee sales or results
No guarantee the sales or results you get will be profitable.
Steal your competitors' customers
Place your ads on competitors' websites.
Increase the rank of your site organically.
It seems to me that the first three are usually the most common Google Ads benefits that people want Google Ads to do for them, of course it can, but it's not guaranteed. The fourth depends on some external factors. The latter cannot be done at all.
What Google Ads does for business
Let's assume you have a campaign with realistic expectations when it comes to Google Ads profitability. You want to use Google Ads to do something in one of these groups. Now let's talk about whether these tactics are really worth testing or not. Advertising on Google helps you appear to people who are searching for your brand, products or services. It helps you show up for people who are also searching for your competitors. Get in front of potential customers through contacts and persona targeting. Promote your physical store to those in the vicinity.
Theory number 2:
What is the profitable scenario of Google ads for you?
No matter what your goals are with Google Ads, there are many profitable Google Ads scenarios that you can rely on. Your choice of advertising is influenced by a wide range of factors, some you can influence, some you can't. Factors affecting any Google advertising campaign include: industrial competition and costs per click, website conversion rate, etc.
No matter what happens, you will likely find yourself in one of the following situations. Depending on the scenario you are in, you may be able to easily determine whether Google Ads is "worth it" or not.
Profitability of Google ads directly
In this scenario of Google Ads profitability, you earn directly from Google more than what you pay on this platform. Are Google Ads worth it? No! This is a pointless task. Don't forget that whatever you spend on account management (whether it's internal, external, or your time), if it makes you money, you'll probably decide to continue using Google ads.
Profitability of Google ads indirectly
Maybe there are some tracking issues or your communication process is a little fuzzy. But you can tell that Google Ads is beneficial because if you stop it, you won't make as much money anymore. Are Google Ads worth it? Probably yes, even if you can't see it directly in the numbers on the platform. Fix your tracking problem. It's not always easy, but solving your conversion tracking problems isn't the only way to find out if Google Ads is worth it to you. Rather, it is necessary to get the data you need to optimize performance and save money.
Theory number 3:
What are your startup costs?
Apart from the financial issues of the brand and the long-term consequences of advertising in Google, calculating the initial costs of a user account is important in estimating the profitability of Google advertising. No matter how hard you bootstrap, there will still be upfront costs. It just might not be as financially transparent as advertising.
Dedicated Google Ads account management
If you plan to run your own Google Ads account to make Google Ads profitable, your setup costs will be more focused on time and learning the function.
Google Ads is a complex platform. Although Google claims to help small business owners, it can get out of hand very quickly if you don't know exactly what you're aiming for. Of course, there is nothing to worry about! You just need to have a good understanding of timing and take the necessary and timely actions to ensure that you don't waste your money.
Also, with the help of various training courses, you can gradually master the management of campaigns and their profitability.