If you’re a business owner, it’s a given that you want your business to grow. There are many tactics to achieve success. Google Ads is one of them. A lot of online stores now choose Google Ads to advertise their products or service because your ads will reach millions of viewers if you do it right. How you set the ads up can make a difference when it comes to profit and reach.
There are things they don’t tell you about Google ads and here are some of them:
1. Not Every Business Can Make a Profit from Google Ads
To make a profit from Google Ads, your business needs to be doing well in the first place. It depends on three factors: the average order value, conversion rate, and gross margins. Let’s start by average order value.
Average order value is the value of your product and if it’s not much higher than the cost-per-click then it will be hard to make a profit. If a single click costs you $0.5 then you will not gain much if your product costs $5. Let’s not forget that not every click will result in a purchase. Which brings us to conversion rates.
The conversion rate is the percentage of how many people made an action, like buying for one, from the number of people who clicked the link. If you get 1000 visitors but only 10 perform an action, your conversion rate percentage is 1% only.
The third factor is the gross margins. Gross margin is the amount of cost of goods subtracted from the net sales. If it’s low as the order value, then spending extra money on ads won’t be very profitable.
2. Starting Small Is a Good Strategy
Don’t advertise all of your products right away. Choose a small set and if it’s profitable, slowly go bigger and bigger. If you advertise a big set of products, you will have to pay more when you’re not even sure about the outcome of the investment.
3. How Much You Pay Won’t Make You Win the Google Auction
There’s probably another business using the same keyword you use for your ad. When someone types this keyword in the search engine, a Google auction happens behind the scenes. It doesn’t only depend on who paid more although it helps to pay more when it’s within your budget.
Your ad rank will be the maximum bidding you made multiplied by the quality score of your website. The digital marketers at https://www.digitallogic.co/blog/how-much-does-google-advertising-cost/ explain how afterward, Google will use the data to calculate how much you will pay when your ad is clicked on. We advise you to find more sources online that will give you information about Google auctions and Google ads cost.
4. Default Settings Can Be Tricky
There are two types of ways for your ads to show by default, in the search network and the display network. The search network is the search results page which is where you want your ads to be spotted. The display network is third parties’ apps, websites, and YouTube.
Mainly, you want your ads to appear for people searching for the specific keyword as opposed to your ads interrupting people when they’re using websites, apps, and mobile games. Google uses this option because you will pay them for more clicks. You can turn the default option off and save yourself from your ad clicks being wasted.
5. Keyword Settings May Need Adjustments
The keyword is very important as it picks out a suitable audience for your business. That’s why it’s important to understand the concept of a broad match which is the default option for keywords match types. A match type is added to the keyword and decides how close Google will stick to the keyword.
Google will show your ad to people who search for the term you chose, or close variations but sometimes these ‘close variations’ won’t be related to the product or service you sell. You can change the keyword match type to go narrower with settings such as a modified broad, phrase, or an exact match.
Google Ads have a learning curve and there are things you won’t learn from the first time you use them. It’s better to set your budget and try to be wise with how much you spend and on which products. The more you learn about it, the more you can expand and advertise a bigger number of products, or services. While we can’t predict the outcome of using Google ads, at best, you can grow your business and establish your brand.