How to advertise on Google: a small business guide

Google Marketing

Why Advertise on Google

Do you still receive many flyers in your mailbox? I imagine they’ve become increasingly rare in your area, too.

In contrast, our online browsing is filled with promotional offers. Just open any news site like The New York Times or The Washington Post, and you’re confronted with full-page pop-up ads, column insertions, ads beneath articles, and other highly annoying ones that float mid-screen and start playing videos at full volume.

Being a small business owner means making your products or services known to the public, and online advertising platforms have given businesses of every size powerful tools to reach their ideal customers.

Among all available platforms, Google Ads stands out as an especially precise tool thanks to its ability to reach users at the moment of need. For example, when you search for “plumber in Chicago” or “plumber near me”, there’s a good chance you need one urgently or at least soon. In technical jargon, this is called capturing intent, and only search engines like Google or Bing can offer this level of precision aimed at capturing demand when the potential customer is ready to buy.

When you search online to purchase a new car, for instance, by searching “Ford Mustang price” or “Ford dealerships near me”, Google records your interest in that particular make or model of car and offers car dealerships the opportunity to reach you when you browse online.

Thanks to its global popularity, boosted by Android phones, Google holds a large chunk of the online advertising market.

However, the real reason for Google Ads’ popularity is that it works for businesses of all sizes and, according to official estimates, can deliver up to eight times the return on advertising investment for the best campaigns; this means that, for example, with an investment of $10 to win a customer, selling products or services worth $80 is possible.

Let’s take an example of a physical therapist who charges $100 per rehabilitation session. Usually, rehabilitating a patient requires multiple sessions, let’s say five. This means a new patient could be worth at least $500 to the therapist. If we then assume that a patient might need other types of therapy in the future, we can also estimate the so-called Customer Lifetime Value (CLV) or the value of that patient throughout their lifetime. Let’s say the CLV for this therapist is $2500 over the patient’s lifetime. This means that to acquire that customer the first time, we can spend anywhere from $100 to $2500, depending on how aggressive we want to be in our strategy, with the assurance that this money will come back to us as revenue over a certain period.

This reasoning applies to almost all professional services, such as lawyers, accountants, plumbers, electricians, consultants, etc.

Understanding Google Ads

How Google Ads Works

Google Ads, previously known as Google AdWords, functions like a digital auction where businesses can bid to place advertisements in Google search results, YouTube videos, websites, and apps like Gmail that are part of Google’s network.

Keywords are at the heart of the Google Ads system. Businesses choose specific terms they believe their potential customers use during online searches. For example, a Chicago landscaping company might focus on keywords like “landscaping services Chicago” or “Chicago garden maintenance”. When someone searches for these terms on Google, the company’s ad could appear at the top or side of the search results, depending on the ad’s relevance to the search query and relative to competitors.

Google Ads operates on a pay-per-click (PPC) model, which means the company only pays when a user clicks on the ad. This model is particularly effective because it ensures that advertising expenses are directly correlated to the interest shown by potential customers and can represent an efficient way to manage advertising budgets for small and medium-sized businesses, optimizing investment based on actual results.

Furthermore, Google offers advanced targeting tools that customize ads based on location, age, interests, and more. These tools help reach the most relevant audience and increase the chances of converting a mere visitor into an actual customer.

The Difference Between SEO and SEM

If curiosity has led you to explore the topic of digital marketing, you’ve undoubtedly heard of SEO and SEM.

SEM (Search Engine Marketing) and SEO (Search Engine Optimization) are two fundamental strategies in digital marketing. Both aim to improve a website’s online visibility but differ in methods and objectives.

SEO (Search Engine Optimization)

SEO focuses on optimizing the website to improve its ranking in organic (i.e., unpaid) search engine results by adapting its content, optimizing keywords in texts, site structure, internal and external links, and other technical factors to make it more attractive to search engines like Google. The main goal of SEO is to attract qualified traffic to the site without directly paying for ads. SEO results are more sustainable over time but take longer to materialize.

A common misconception about SEO is that it’s a virtually free strategy. In reality, creating a website and quality content requires time and expertise that are rarely cheap. However, this work can bear fruit for many seasons, and its cost can be spread over the medium and long term.

SEM (Search Engine Marketing)

SEM includes SEO but also extends to paid advertising on search engines. It generates immediate visibility and can be particularly effective for promoting specific events or offers or standing out in highly competitive markets.

Key Differences Between SEM and SEO

Time and Costs: SEO is generally cheaper in the long run and produces results that can last long after active optimization ends, but it takes more time to deliver results. SEM can generate traffic immediately but requires continuous monetary investment.

Control over results: With SEM, you have precise control over who sees your ads, while SEO depends on algorithms that can change and over which you have no direct control.

Sustainability: SEO tends to offer long-term benefits, as it works on optimizations that don’t disappear once you stop paying. On the other hand, SEM results stop as soon as advertising spending is interrupted.

Both strategies are complementary, and companies usually benefit from implementing both to maximize their visibility and online impact.

First Steps with Google Ads

Setting Objectives

Defining clear and measurable goals is essential to guide strategic and tactical decisions when planning a Google Ads campaign. Here’s an overview of the most common objectives businesses can pursue through Google Ads:

Increasing Visibility

Many companies use Google Ads to increase their business visibility by promoting new products or services, expanding into new geographic markets, or maintaining a dominant position in their category. The goal is to show the ad to as many people as possible, like in a print newspaper or on television, not necessarily to drive those people to the website.

Lead Generation

One of the most common objectives for Google Ads campaigns is lead generation, i.e., collecting contact information from interested potential customers. Professional service companies, such as law firms or financial service companies, often use Google Ads for this purpose.

Increasing Web Traffic

Another frequent goal is increasing traffic to a website to improve brand popularity, provide information, or encourage users to interact with specific online content. Campaigns are optimized to get the maximum number of clicks on ads at the lowest possible cost.

Conversions and Online Sales

For e-commerce businesses, the main goal is often to increase direct sales through their online store by configuring ads to attract regular and qualified traffic that can convert into sales. Strategies such as remarketing (advertisements that follow you online) or specific product ads (Google Shopping) are common in these cases.

Promoting Events or Special Offers

Google Ads can be used effectively to promote special events, product launches, or seasonal offers. Ads can be scheduled to coincide with event dates or offer periods, maximizing exposure at the most relevant time.

Improving Engagement

Some campaigns aim to increase interaction (engagement) with brand content, such as videos, games, or applications. Ads can be configured to encourage users to interact with this content, improving engagement and brand affinity.

Optimizing ROI

Ultimately, many ads are optimized to improve return on investment (ROI) by carefully monitoring advertising expenses against revenues generated from conversions and continuously adjusting campaigns to maximize this ratio.

Each campaign can have one or more of these objectives. Google Ads’ effectiveness lies in its flexibility and ability to be adapted to meet different business needs and goals. Clearly defining what you want to achieve is the first step in building a successful campaign on Google.

Gradual Optimization

To optimize a Google Ads campaign, it’s crucial to adopt an evolving approach, starting from increasing visibility and continuing to maximize ROI (Return On Investment). Below, I describe a gradual path to transform the initial visibility-focused approach into a strategy focused on ROI optimization.

Phase 1: Increasing Visibility

The initial goal is to make the brand or product/service known to as broad an audience as possible. Campaigns focused on maximizing the number of views and coverage are used. In this phase, keywords can be more general and broad, aimed at capturing the attention of a wide audience.

Action: Set up Display or Shopping campaigns, using demographic and geographic targeting to reach potential customers in specific areas or age groups.

Success Metrics: Number of views, reach, and frequency of ad views.

Phase 2: Traffic Generation

Once the brand has gained some visibility, the next step is to drive relevant traffic to the website by transitioning to campaigns focused on more specific keywords and ads optimized for clicks.

Action: Set up SEM campaigns with ads focused on high CTR, using a compelling call-to-action (CTA) to stimulate clicks.

Success Metrics: Click-through rate (CTR), website traffic, new users.

Phase 3: Conversion

With a steady traffic flow to the site, the goal shifts to converting this traffic into leads or sales. Here, the emphasis is on traffic quality as well as quantity.

Action: Use optimized landing pages and experiments (A/B testing) to improve conversion rates. Campaigns can be adjusted to target keywords with high purchase intent (e.g., “acoustic guitars price”), and remarketing can recapture visitors who haven’t converted.

Success Metrics: Conversion rate, cost per acquisition (CPA), leads generated.

Phase 4: Customer Retention

Once customers have converted, the goal is to retain and turn them into recurring customers with remarketing campaigns and integrated email marketing strategies.

Action: Implement remarketing and email marketing campaigns for post-sale offers, loyalty incentives, or related products.

Success Metrics: Customer return rate, customer lifetime value (CLV).

Phase 5: ROI Optimization

The final phase is the most critical, during which the overall strategy is refined to maximize the return on advertising investments through detailed data analysis and continuous campaign optimization.

Action: Use advanced analytics tools to identify and cut ineffective spending, increase investment in higher-yielding areas, and continuously test new strategies to improve ROI.

Success Metrics: Overall ROI, advertising budget effectiveness.

This strategic path allows businesses to gradually shift from focusing on visibility and brand recognition to a more performance-focused and investment-efficient strategy. It ensures that each phase of the customer acquisition system is optimized to contribute to the company’s long-term goals.

Creating the Advertising Campaign

Choosing the Campaign Type

When setting up a campaign on Google Ads, choosing the campaign type is one of the first and most important decisions. Each campaign type is suited to specific objectives:

  1. Search Network: Search Network campaigns display ads in Google search results when someone searches for keywords related to your business. They’re ideal for capturing existing demand rather than generating new demand.
  2. Display Network: These campaigns show ads on a large network of Google partner websites, including major news sites like The New York Times and smaller sites. They help build brand awareness and rekindle site visitors’ interest.
  3. Shopping: Perfect for e-commerce stores, shopping campaigns promote products through visual ads that show users a photo of your product, the price, and your store name directly in search results.
  4. Video: Video ads are shown before or during videos on YouTube and other Display Network websites. These are particularly effective for branding campaigns and demographic targets that consume much video content. Ads can be shown on specific YouTube channels that discuss topics related to your product or service.
  5. App: If you aim to promote app installation, this campaign allows you to show ads on Google’s search, display, and YouTube networks to increase installations and engagement with the app.

Setting the Budget

The campaign budget should be set based on marketing objectives and the company’s spending capacity. Consider the following aspects:

  • Cost Per Click (CPC): The CPC will be higher if you operate in a competitive sector. Evaluate the average cost per click in Google Ads’s estimates for your main keywords.
  • Conversion Goals: If you know your conversion rate, you can calculate a spending budget based on the desired cost per acquisition (CPA). For example, if your target CPA is $10 and the conversion rate is 2%, your maximum CPC should be $0.20 to keep the CPA within budget.
  • Frequency and Visibility: Consider how often you want your ads displayed. A higher budget can ensure greater visibility and frequency.

Geographic and Demographic Targeting Considerations

Effective targeting is crucial for campaign success. Here are some considerations:

  • Geographic: You can choose to show your ads in specific geographic areas, from global to local scale. For example, if your business is a restaurant in Chicago, you’ll want to target only Chicago and the surrounding areas. You can also exclude areas where your services or products are not available.
  • Demographics: Google Ads allows you to select your audience based on age, gender, economic status, and other demographic criteria, making them particularly useful if your products or services are geared towards a particular market segment. For example, a women’s clothing store might want to target primarily women between 18 and 54 years old.

Proper configuration and optimization of campaign type, budget, and targeting are fundamental to maximizing the effectiveness of your advertising activities on Google Ads.

Keywords and Targeting

When setting up advertising campaigns on Google Ads, keyword selection and targeting are crucial. Choosing the right keywords can determine the success or failure of a campaign. Here are some essential tools and considerations for effective targeting:

Keyword Research Tools

  1. Google Keyword Planner: A free tool provided by Google Ads that helps advertisers find the most relevant keywords based on specific terms or websites. It includes traffic estimates and other valuable metrics to help decide which keywords to target.
  2. Google Search Suggestions: When you search for something on Google, you’ll be presented with suggestions to refine and make your search more specific. These suggestions appear in Google’s search boxes and at the bottom of the search page.
  3. SEMrush: A paid tool that offers a comprehensive overview of keyword strategies used by your competitors, including the keywords they rank for and traffic estimates.

Critical Considerations for Keyword Targeting

  • Relevance: Keywords must be closely related to your products or services. The more relevant the keywords, the more likely the generated traffic will be qualified and interested in your offer.

Pro tip: Google’s algorithm will reward ads relevant to the keyword, site content, and quality with better ad placement (above competitors) and a lower cost per click.

  • User Intent: Understanding the intent behind user searches is crucial. Keywords can have informational intent (e.g., “how to repair a bicycle”), navigational intent (e.g., “official Nike website”), or purchase intent (e.g., “gravel bike prices”). Make sure your keyword intentions match your campaign objectives.
  • Search Volume: Keywords with high search volume can generate more traffic but are often more competitive and expensive. It’s essential to find a balance between volume and competitiveness.
  • Long-tail vs. Short-tail: Long-tail keywords are longer, more specific phrases with lower search volume but less competition and often higher purchase intent. Short-tail keywords are shorter and more generic, with higher search volume, and more competitive.
  • Competitiveness: Some keywords are highly competitive, meaning many companies pay to appear on those searches. Using tools like Google Keyword Planner can help identify the level of competition for each keyword.
  • Cost per Click (CPC): CPC is another critical consideration. Evaluate the average cost per click of target keywords and ensure it aligns with your campaign budget and ROI expectations.

By implementing these strategies and using the right tools, you can develop a well-optimized keyword list that targets precisely the audience you want to reach, thus maximizing the effectiveness of your advertising campaigns on Google Ads.

Creating Effective Ads

Creating effective ads on Google Ads requires careful attention to writing and structuring the ad. Here are some key points to consider:

Ad Copywriting

  1. Compelling Headline: The headline is the first thing users see. It should be direct and contain the keyword you’re optimizing the ad for, ensuring it’s relevant to users’ searches.
  2. Persuasive Description: The description should expand on what’s introduced in the headline, providing further details on what sets you apart or what unique offering you have. Use language that speaks directly to your target audience’s needs and desires.
  3. Highlighting Benefits: Instead of focusing solely on product or service features, emphasize the benefits. Explain how your product or service can solve a problem or improve the customer’s life.
  4. Clear and Concise: Ads should be easy to read and straightforward. Avoid complex jargon that might confuse less experienced users.

Call-to-Action (CTA)

A compelling CTA prompts users to act, whether visiting a website, signing up for a newsletter, or purchasing. Here are some examples of effective CTAs:

  • “Buy now and save 20%.”
  • “Sign up free for a month.”
  • “Learn more”

The CTA should be visible and compelling, encouraging the user to take the next step after reading the ad.

Using Ad Extensions

Ad extensions expand your ad with additional information, offering more reasons for users to click on your ad. Some examples include:

  1. Sitelink Extensions: Add links below the ad that lead directly to specific pages on your site; this is useful for directing users straight to the information they’re looking for, such as a product page or contact form.
  2. Call Extensions: Incorporate your phone number into the ad, allowing mobile users to call you directly from Google; this is ideal for businesses relying on phone contacts, such as local or emergency services.
  3. Location Extensions: The ad shows your store or office address directly, which helps attract local traffic.
  4. Price Extensions: Display prices for products or services directly in the ad, helping users make quicker purchasing decisions.
  5. Structured Snippet Extensions: These extensions highlight specific aspects of your products or services, such as “brands” or “types of service,” giving users an immediate overview of your offer.

Strategic use of extensions can significantly increase ad effectiveness, improving both visibility and user interaction. Implementing these extensions appropriately can also enhance the click-through rate (CTR) and, consequently, the ROI of the advertising campaign.

Campaign Optimization and Management

Effective management of Google Ads campaigns requires careful monitoring and continuous optimization based on precise analytical data. Here’s how to monitor and analyze a campaign’s performance and what key metrics to consider for optimization.

Performance Monitoring

Campaign performance monitoring is done through the tools in Google Ads, where you can view various metrics related to your active campaigns. Google Analytics is another crucial tool that allows you to understand user behavior on your website after clicking on ads.

Key Metrics

  1. Click-through Rate (CTR): Indicates the percentage of clicks received on your ads relative to the total number of impressions. A low CTR may indicate that the ads are not relevant or attractive to the target audience.
  2. Cost per Click (CPC): The average cost for each click received on your ads. Monitoring CPC helps manage the budget and evaluate advertising spend efficiency.
  3. Conversions: The number of times a click on your ads has led to a desired action, such as a purchase, registration, or brochure download. They are vital for evaluating the actual success of ads.
  4. Cost per Acquisition (CPA): The average cost for each conversion. This metric is crucial for assessing campaign profitability.
  5. Conversion Rate: Percentage of clicks that turn into conversions. A low conversion rate may indicate that the ads are ineffective in converting interest into action.

Campaign Optimization

  1. A/B Testing: Create multiple versions of ads to test which combination of title, text, and image works best. This approach can help improve CTR and conversion rate.
  2. Keyword Adjustments: Remove or modify low-performing keywords and increase investment in those generating a high conversion rate. Consider adding negative keywords to exclude irrelevant traffic.
  3. Budget Optimization: Allocate more budget to campaigns and ads that perform best in conversions and CPA, reducing funding for less efficient ones.
  4. Targeting Improvement: Refine geographic and demographic targeting based on analytical data to focus on areas and demographic groups that generate the best performance.
  5. Use of Ad Extensions: Add call extensions, location extensions, or structured snippets to provide more information and increase ad visibility and attractiveness.
  6. Responding to Customer Feedback: Monitor and respond to reviews and suggestions to improve service quality and ad reliability.

Constant optimization based on detailed analysis is critical to improving the effectiveness of Google Ads campaigns and maximizing ROI. Maintaining a data-driven approach will allow you to adapt your strategies to evolving campaign performance quickly.

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