In this post we discuss, are Google Ads a good investment? We’ve rounded up a few resources that will expedite your learning process.
Are Google Ads A Good Investment For Small Business?
[Video Transcript]
Hey, guys.
Silvio Perez here, and welcome to today’s video.
In this video, we’re going to be talking about if Google Ads is a good investment for small
businesses.
Now, to get started, let’s go ahead and get it from the source themself, Google, and let’s
look at their economic impact report from 2018.
So by the way, if you want to go ahead and look at this report, it’s going to be in the
description box down below.
I’ll link to it so you can go ahead and check this out.
But according to Google themself, nearly 4x is the returns businesses are receiving within
a year using advertising, digital advertising.
So I’ll read it from them.
They said, “Small businesses that use advanced digital tools, such as online advertising
and data analytics, experienced revenue growth in the previous year that was nearly 4 times
higher than less digitally advanced businesses.”
So that’s huge potential.
I mean, think about what 4x returns are.
I think that’s also, it could be a little promising.
You know, you’re definitely going to go through a learning period at first.
But overall, utilizing digital advertising, I mean … The opportunities are limitless.
Just to give you an idea of some of the things you can do with Google Advertising.
You can do location targeting, small business, right?
You only want to service your local market.
Well, guess what?
With Google Ads, you can make sure you’re only showing ads to people who are within
10 miles of your business, 20 miles of your business, whatever you want to be.
It could be one mile.
I mean, you can get really crazy with it.
You can target based on time of day, so you can show ads to people based on certain hours
of the day, so if you’re only open from 8 a.m. to 5 p.m., guess what?
Your ads will only show from 8 a.m. to 5 p.m.
You’ve just got to go ahead and set that up.
You can also target people based on income.
If they’re, you know, top 20%, bottom 30%, whatever it is, you can target based on income.
You can target based on how they’ve behaved, so if they’ve gone to your website, and then
they left, you can bring them back with re-targeting.
So the opportunities truly are limitless.
You can also target by language, so maybe you don’t service customers in English.
You do Spanish.
You can target Spanish.
I mean, it’s literally limitless the opportunities you can do, and it’s awesome.
And it’s, everything is controllable.
There’s tracking in place.
You know what you spend, and you know what you get out of it.
So it’s very transparent.
There’s no, “I hope by the end of the month it works out.”
It’s, you’ll know really by the first week what’s going on.
And then from there, it is a continuous process, and you’re making your campaigns better and
better and better.
Now that I hopefully have sold you on Google Ads, I want to go ahead and show you how you
can get started.
So to, first and foremost, you have to sign up for a Google Ads account.
That is the main thing.
You have to sign up for a Google Ads account.
It’s absolutely free though, so don’t be afraid.
Go ahead and sign up.
It’s absolutely free, but before you go ahead and sign up, I want you to take advantage
of this.
So go to Google and search “Google Ads Coupon,” and then you’ll see here, “Google Ads Coupon
Code.”
Just click on that, and this is a $100 coupon you get from Google, so there you go.
Saved some money already right off the bat.
So go ahead and take Google up on this free offer when you sign up for an account.
Doesn’t cost you anything.
They’ll send you the coupon to your email.
Awesome.
So the next thing I want to talk about is the Google keyword planner tool.
The Google keyword planner tool is an absolutely free tool that Google provides, and it allows
you to research different keywords so you get an understanding on what you can expect
to pay per click.
It’s just an estimate and you never really know fully what you’re going to pay until
you actually launch your campaigns, and then you get the real feedback, the real data.
And then you can see what your true cost per click is.
But the Google keyword planner tool is an amazing way to just get started and see whether
or not Google is something that you’d like to try out and to get into.
So go ahead and hop into your Google Ads account that you just signed up for.
We’re going to go click on tools, and then from tools, we’re going to click on keyword
planner.
And then this is where we’re going to be able to do all our searching.
So with the Google keyword planner tool, we’re going to really be able to find out whether
or not this is something that we can even have the cashflow to support, to get started.
So just go ahead and click find new keywords, and now search one of your services that you
offer.
So the example I love to always go to is DJ services.
So I’m going to search that.
So you search DJ service.
And then now, it’s going to go ahead and pull up different estimates based on your targeting,
so let’s go ahead and adjust our targeting first.
So if you look here, it says, “All locations.”
I’m going to change the language to English.
And then you can also change it based on networks.
So Google meaning Google itself, and then Google and search partners, or Google and
then other affiliated search engines that partner with Google.
So we’ll just leave it at Google.
And now I’m going to search DJ service again.
And now I’ll get a better understanding of different cost-per-clicks.
So for example, DJ service, on average monthly searches, 1 in 10,000 people.
So also, if you’re thinking of launching a product, or if you’re just thinking on whether
or not there’s a demand for something that you’re thinking of offering, this is a great
way to validate your idea.
You can come into the keyword planner tool and see if people are already searching for
your solution.
So basically, according to this, a thousand to 10,000 monthly searches, and the top of
the page bid, so to be on the top of the page, is $4.35.
So that gives me an understanding, right there, that am I willing to pay Google $4.35 per
click.
Can that be profitable for me?
So some things to take into consideration is when you’re in lead generation, is of all
the leads you receive, what percentage of them do you close, and factoring that in.
So for example, usually, I would say, a kind of best practice is you should get at least
a hundred clicks a month to really get enough data.
So I can just take $4.35, multiply that by 100, and I know I need at least $435 to advertise
on Google for the month.
That’s a very easy way to go about doing it.
You can definitely do a more advanced way about calculating your budget.
For example, taking in your marketing conversion rate, what your target market conversion rate
is, your sales closing rate, so you can get very specific with it.
For example, if you have a 10% market conversion rate, and a 10% close rate, well then, that
means you need 100 clicks to get 10 leads, and then of those 10 leads, you’ll close one
lead into a sale.
So then you know your true cost per acquisition.
Is that cost, after everything is said and done, after factoring those different variables.
That’s, you can get a lot more advanced than that, but that’s just to give you an understanding.
But the most basic to not complicate this is just come to the Google keyword planner
tool.
Search a keyword that you’re thinking of bidding on that you’re thinking of advertising on,
and then from there, come look at the top of page bid high range.
The estimate here.
I really never really like to go by the low range.
Usually I find that the high range is usually low.
So sometimes, the high range can be too high or too low, but most of the time, from my
experience, I’ve noticed that the bids are usually a little bit higher than this.
Some come, look at this column right here, and then get an understanding on if this is
something you can afford.
If it’s something that you’re looking at, and then factor in your profit margins and
all that good stuff.
So that’s going to be it for this video.
If you got some value from this, please go ahead and make sure to subscribe and follow
along to the channel.
I create content every week.
And something I just want to close on is, I work with clients every day doing Google
ads for lead generation.
That’s basically all I do, and I can tell you from my own personal experience and working
with these different businesses, that Google Ads has become something that is absolutely
a godsend for a lot of these businesses that I work with.
It’s something that’s really allowed them to get a predictable stream of customers every
month to their business and allowed them a lot more predictability and consistency.
I will say, though, that, with Google Ads, just like anything else in life, there are
no magic pills, no magic solutions.
It takes work.
It takes effort.
If this is something you want to do yourself, I welcome you to subscribe to the channel
and follow along and watch my other videos.
I definitely have a lot more Google Ads tutorials coming out.
But make sure you’re educated, make sure you do your research, and follow best practices
and things like that so you can avoid doing costly mistakes.
And if this is something that you just don’t have the time or the investment to be able
to learn yourself because you’re focusing on servicing customers, then I do recommend
that you hire a professional that knows how to do this for you, because Google Ads can
be, and really not just Google Ads, any advertising platform, can be a double-edged sword where
it can be really good, but it also can be really bad if you don’t know what you’re doing.
So just make sure you’re educated and approach it with the best practices in mind.
So that is it for this video.
Thanks so much for watching.
Take care.