Do Google Ads Work for Small Business and Other Services?

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As a business manager, you might have considered Google AdWords or Google’s pay-per-click advertising (PPC ads) as a way to boost your online visibility and SEO.

But you may be wondering, do Google Ads work and is really worth investing in for all types of services and businesses, including small ones?

Well, the answer isn’t straightforward, for Google Ads can work great for some business owners but not for others.

Nonetheless, experts from digital marketing agencies provide pragmatic tips and insights on how Google Ads can work for businesses, even local ones.

In this article, we will delve into whether Google Ads are worth the investment for all types of businesses and how to set up a Google Ads account for optimal results.

We’ll also touch on how Google Ads can help drive traffic to your website and get you on top of the search engine results.

Does Google Ads Really Work? Are Google Ads Worth It?

Google Ads may or may not work for all types of services and businesses. No matter the size of your business, Google Ads can be used an effective tool for promoting it online but success is not guaranteed. 

While success is not guaranteed, you increase the likelihood of achieving positive results when the right strategies and implementation techniques are employed.

It’s important to assess if your business is a suitable fit for Google Ads and ensure that all the necessary digital marketing pieces are in place. When these criteria are met, you’re well on your way to successful search marketing endeavors.


Do Google Ads Work for Small Businesses?

Google Ads have undoubtedly changed the marketing world, catapulting it to new heights of effectiveness.

The platform is currently home to an impressive 7 million advertisers and generated a whopping $150 billion in revenue in 2020 alone—a testament to its effectiveness.

True, leveraging Google Ads is not an easy task, but thankfully, modern digital marketing makes tracking ROI easier than ever, and many of these advertisers are reaping the rewards.

There’s no denying the success of this remarkable tool, which makes it quite possibly one of the most profitable marketing strategies ever devised.

Steps to Discover if Google Ads Is Right for Your Business

Are you considering Google Ads to help reach your business goals? If so, conducting the research could give you invaluable insight into whether or not it is right for you.

Let’s explore the options together to make sure you are making an informed and confident decision.

1. Assess Your Marketing Campaign Budget, Time Constraints, and Product Offerings

i) When considering investing in Google Ads, budget concerns can be a major obstacle.

However, it’s important to keep in mind that investing in Google Ads is an investment—one that has the potential to double your return or get you even more valuable results.

Loss aversion theory may make us feel like we’re risking our money when, in reality, we are giving ourselves a chance at acquiring far greater gains than if we had chosen not to invest.

ii) Understanding the average cost per click in your industry, and comparing it to conversion rates can be an effective way to research and plan for success.

Through this simple cost-benefit analysis, you will have a clearer understanding of how much to budget for each month and what returns you could realistically generate.

This method can provide a valuable baseline as well as the possibility of higher rewards.

Industry-wise average CPC analysis for Google ads:

Category Average CPC ($) Average CTR (%)
E-commerce $ 8.8 2.3%
Retailers and General Merchandise $ 0.2 24.2%
Software $ 1.9 5.6%
Legal $ 4.1 4.7%
Education and Training $ 3.2 5.0%
Travel and tourism $ 1.0 6.1%
Finance $ 3.3 7.4%
Health $ 1.5 5.1%
Real Estate $ 0.9 8.3%

iii) When it comes to running Google Ads campaigns, allocating your time carefully is crucial. Consider the budget you have available and look at what costs can be expected in order to determine how much you are able to dedicate.

If you have employees or other resources available, outsourcing some of the work is a great way to make the most of your budget.

It’s important to remember that managing Google Ads requires several hours per week, besides any additional time-saving tactics. Allocating the right amount of time will ensure that your digital marketing campaigns run smoothly and effectively.

iv) Before investing in Google advertising for your product, consider first if it’s the right platform for you. Google Ads may seem like the popular choice, but it’s important to evaluate your product and how it would play across different platforms.

For instance, if visuals are an important factor when selling your product, then complementary platforms such as Instagram or Facebook ads might be more successful.

A great example of this is a wallet company that was finding limited success on Google Ads due to its lack of product images. Once they switched over to Instagram, their sales skyrocketed to six figures.

Consider the key elements of your product that would drive a successful ad campaign, then make the decision on which medium will work best.

keyword research

2. Keyword Research Plays an Important Role to See Your Potential Customers

If you’re considering using Google Ads for your business, the first step is to do keyword research.

By examining the estimated monthly search volume for keywords related to your product or service, you can quickly determine whether running ads for your business is likely to be worth the time and effort.

If you find that the search volume for your product or service is quite low (less than a few hundred searches per month), it might be difficult to generate enough sales from a Google Ads campaign to make it worthwhile.

Fortunately, you can get started on this research by using a tool like SEMRush. Simply enter keywords related to your product or service to gain an understanding of how many people are searching for them in any given month.

3. Invest Time in Competitor Research

Competitor research can be a useful tool before jumping into paid advertising for a product or service.

By searching for terms related to your product on Google, you can quickly determine if any of your competitors are using paid ads to increase sales.

Not only does it help you identify potential competitors, but it also allows you to discover the budget they are likely spending on their campaigns.

Isolating this data and projecting a budget for yourself gives you a better understanding of what you need to invest in order to maximize leads and sales.

With competitor analysis at your disposal, you’ll be equipped to launch an effective, optimized ad campaign that will reach the right people at the right time.

4. Select the Correct Network for Your Business

Google Ads offers flexible bidding strategies, precise targeting options, and accurate measurement tools so you can track the performance of your campaigns.

You can customize your ads to appear to users based on their location, device, interests, and more. Additionally, you can adjust your bids in real-time for increased efficiency and cost-effectiveness.

Choosing the right network for your business is essential for achieving the best results.

Google Ads allows businesses of all sizes to access a vast pool of potential customers, enabling them to make well-informed decisions about their ad campaigns.

With sophisticated tools and analytics, you can easily create campaigns that will bring even better outcomes for your business.

google ads


Overall, it can be said that Google Ads do not work for all types of services and businesses. While the Google Ads platform can be highly effective for some businesses, it isn’t always the best option for others.

Google Ads work well for businesses that are looking to attract customers who are actively searching for a particular product or service.

However, local businesses that rely heavily on foot traffic may not see much benefit from showing ads on the Google Display Network. Maintaining a high ad spend can also significantly impact the success of your campaign.

Ultimately, the success of Google Ads will depend on various factors, such as the target market, budget, and competition.

Overall, if you are looking at getting your business in front of potential customers, Google Ads is a viable option that has the potential to deliver results.

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