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Google Ads for a small business

Google Ads for your business

Google Ads can be a powerful tool for small businesses when used effectively. However, many small business owners struggle to make it work for them due to common misconceptions and improper setup. Let’s explore how small businesses can leverage Google Ads successfully. Feel free to read our the newest case study.

Agenda

Understanding Google Ads for small businesses

Google Ads is not a one-size-fits-all solution, especially for small businesses. As Pete Bowen aptly puts it, “A small business is not just a little big business. It’s a completely different beast.” This principle applies to Google Ads as well. Small businesses need a tailored approach that differs from larger companies with bigger budgets.

Key differences for small business accounts

Let’s start with the special needs that small businesses have compared to companies with huge budgets.

  1. Budget constraints: small businesses typically have limited advertising budgets, requiring more strategic allocation of funds.
  2. Narrower focus: unlike large corporations, small businesses often benefit from concentrating on specific services or locations.
  3. Immediate results: small businesses usually need to see quicker returns on their investment.

Essential settings for small business Google Ads

To maximize the effectiveness of Google Ads for small businesses, certain settings and strategies are crucial:

1. Disable search partners and display network

One of the most important settings for small businesses is to disable search partners and the display network. These are often responsible for click fraud and low-quality leads, which can quickly deplete a limited budget.

2. Precise location targeting

Set your location targeting to “Presence: People in or regularly in your targeted locations.” This prevents your ads from showing to people worldwide who might have a vague interest in your location.

3. Manual control over recommendations

Disable auto-apply on all recommendations. While Google’s suggestions can be helpful, they’re often geared towards larger accounts and may not be suitable for small businesses. Review and apply changes manually based on your specific needs1.

4. Negative keywords

Add negative keywords to your campaigns before launching them. This helps train Google’s AI to show your ads to the right audience from the start, reducing wasted spend1.

5. Focus on one aspect of your business

If you have a limited budget, concentrate your efforts on one facet of your business instead of trying to advertise everything you do. This allows you to gather more meaningful data and optimize your campaigns more effectively.

Strategies for success

Keyword strategy

Your keyword strategy is crucial for maximizing your advertising budget. A balance of high-cost, high-reward keywords along with branded or low-cost terms is often the most effective approach. Use free keyword research tools like Google’s Keyword Planner to find this balance2.

Local Services Ads

For service-based small businesses, Local Services Ads can be particularly effective. These ads are managed through your Google Business Profile and only charge for qualified leads. They’re designed to reach customers within your service area, making them ideal for local markets2.

Focus on lead generation

While it’s tempting to focus on ROI immediately, small businesses should prioritize lead generation first. The more leads you bring in, the more they will offset your costs in the long run. Remember, you need to spend enough to generate sufficient data for optimization2.

Multichannel approach

Consider expanding beyond just search ads. Google offers various ad types like Shopping, Display, and Performance Max. A multichannel approach can help you reach customers at different stages of their buying journey2.

Setting clear goals

Before diving into Google Ads, it’s crucial to set clear goals. Ask yourself: What do you want your customers to do? Call you, visit your store, or visit your website? This will help you decide where you want your ads to appear across Google’s platforms3.

Campaign types for different goals

  1. Search campaigns: Text ads that appear in Google Search results when someone searches for products or services similar to yours.
  2. Local services ads: Ideal for local businesses like plumbers or dentists, these ads appear at the top of search results with trusted badges.
  3. Performance Max: This campaign type uses AI to drive results across all of Google’s advertising channels, including Search, YouTube, Display, Discover, Gmail, and Maps3.

Budget considerations

Determine how much you can afford to spend on digital ads. With Google Ads, you never pay more than your monthly budget cap and only pay per click or call. You can stop advertising at any time, giving you control over your spending. Recommended budget should start from $1000/month.

Measuring effectiveness

Google Ads provides conversion tracking, which is essential for understanding the effectiveness of your campaigns. By implementing this free tool, you can see what happens after a customer interacts with your ads – whether they make a purchase, sign up for a newsletter, call your business, or download your app3.

Case studies

Several small businesses have found success with Google Ads:

  1. Premium sink sales company: 150% increase in conversion value in just 3 months. Using effective grouping of products by value and margin in Performance Max, effectively spreading awareness through DIY videos on YouTube.
  2. New marketplace with used repair items: increase traffic +90% in 3 months from paid channels, then work with acquiring leads from new contacts. A new store with zero visibility, tested its idea in 6 months by incorporating Google Ads into its MVP early on.
  3. Pregnant women’s clothing store: 300% year-over-year increase during Black Friday thanks to effective product segmentation and targeting to users visiting the site but not making a purchase (remarketing).
google-ads

Common challenges and solutions

While Google Ads can be effective, small businesses often face challenges:

1. Limited budget

Solution: Focus on high-intent keywords and use negative keywords to avoid wasted spend. Consider starting with Local Services Ads or call-only campaigns for immediate, measurable results

2. Lack of expertise

Solution: Take advantage of Google’s free resources and tutorials. Consider hiring a specialist for initial setup and strategy, then manage day-to-day operations yourself once you’re comfortable.

3. Poor quality leads

Solution: Refine your targeting, use negative keywords aggressively, and ensure your ad copy and landing pages are aligned with your ideal customer’s needs.

4. High cost per lead

Solution: Continuously optimize your campaigns, test different ad formats, and focus on improving your Quality Score to lower costs.

Conclusion

Google Ads can indeed work for small businesses, but it requires a strategic approach tailored to the unique needs and constraints of smaller operations. By focusing on the right settings, targeting, and campaign types, small businesses can effectively use Google Ads to drive leads and growth. However, it’s crucial to set clear goals, monitor results closely, and be prepared to adjust strategies as needed. With patience and persistence, Google Ads can become a valuable tool in a small business’s marketing arsenal.

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