Do Google Ads Work for Small Business? Everything You Need to Know

On average, more than 40% of clicks on a Google search results page will go to the three sponsored results at the top. When set up correctly, a Google Ads campaign can generate a large number of website visits. This in turn leads to increased brand awareness, the creation of leads, and ultimately, sales.

A question that business owners frequently ask is “do Google Ads work for small business”? Spoiler alert: the answer is yes. But, in this article, we’ll explore this question in more detail. We’ll identify exactly how Google Ads is a profitable digital marketing strategy for many small businesses.

Keep reading to find out more about how Google Ads can help small businesses prosper.

What Are Google Ads?

When referring to Google Ads, most people tend to think of the advertisements that appear at the top of search results. In fact, Google Ads also refers to shopping, display, and video campaigns.

A small business’s marketing budget and the reputation they wish to propagate will determine which of these advertising options they choose. Display campaigns are sometimes associated with less reputable brands. Meanwhile, not all businesses will be able to afford a sleek video ad for YouTube.

For the purpose of this article, we will concentrate on search engine advertising (SEA). Google Ads appearing in search results consist solely of text: a headline, description, and site link extensions. They are difficult to distinguish from organic ads, but they feature the word ‘Ad’ alongside them.

How Do They Work?

We can now delve into how Google Ads operate, which is on a pay-per-click basis. This means that businesses are only charged when their ad is clicked on, and a potential customer navigates to their website.

Thus, every time a business is charged for ad-spend, they can see concrete results in terms of website visits, and very often, conversions. This is largely because businesses choose transactional keywords to “bid” on.

So, when someone searches for a term such as “realtor near me”, local real estate agents will appear as ads at the top of the search results. When clicked on, this visit is likely to result in a conversion because the keyword suggests the searcher is in-market.

Why Are Google Ads Beneficial for Small Businesses?

One could argue that Google Ads are more suitable for small businesses than for large businesses. This is because well-known brands like Nike are so popular that they will likely rank higher in the organic search results. Small businesses cannot compete for the biggest keyword search terms through SEO practices alone.

Keyword research allows small businesses to target an audience looking for their product. Small business owners can place their website in front of potential customers who never would have come across their brand otherwise.

Google Ads also levels the playing field somewhat. Larger businesses will always have an advantage when it comes to organic search results, but with Google SEA, the highest bid wins.

When Should They Be Used?

Google Ads should be used for all businesses that offer products or services that are searched for via Google. Try Googling a search term that relates to your business. If no ads appear, then you might be working in one of the incredibly rare sectors that does not require an investment in Google Ads.

For all other businesses, provided there is a functional and aesthetically pleasing website, Google Ads should be used. An email marketing structure, social media pages, and customer demand are other indicators of readiness for a Google Ad campaign.

One of the most important benefits of Google Ads is its ability to make conversions. It’s worth remembering that conversions do not always signify a sale. It could be designated as a newsletter sign-up, or downloading a free trial of some software.

Top Mistakes to Avoid

Digital marketing for small businesses can result in a loss of money, and fast, when certain best practices are not followed. At Vujaday, we would advise you that keyword research is essential for choosing which search terms to bid on, but there are several important traps to avoid.

First, when using Google’s Keyword Planner, be sure to select the correct location for your business. This can vastly alter the terms that are generated by the tool.

Another common mistake is neglecting negative keywords. These are crucial for avoiding money spent on attracting customers to your website who are unlikely to make a purchase. Let’s take high-end brands as an example. They should exclude search terms like “cheap” and “low cost”. People including these words in their search terms are unlikely to buy from a luxurious brand.

Keyword selection is thus an important step of customer targeting. It ensures ad spend is only incurred for visitors likely to make a purchase.

Why Hire an Expert Agency for Your Google Ads?

Small businesses should entrust their Google Ads campaign to an expert digital marketing agency such as VujaDay. This allows them to save on time and resources. Our experienced marketers are able to hit the ground running. They eliminate the teething problems often experienced by business owners when launching their own PPC advertising campaigns.

What’s more, our team can develop a Google Ads campaign as part of a wider digital marketing strategy. By also incorporating SEO practices and social media marketing, small businesses can ensure they obtain the maximum lead generation and revenue possible.