I hear this question a lot: Is Google Ads right for my business? I just don’t think it will work for me.
Or even more common: Google Ads doesn’t work for me.
To figure out if Google Ads is right for your business, you need to ask yourself one crucial question: Do you have a budget to spare?
If you’ve got some money to spare and don’t mind potentially losing that money, Google Ads is right for you. As the old saying goes, you never know if you don’t try.
Google Ads can work for almost any business. It’s just a matter of trial and error.
According to Ads:
“Companies will, on average, double their return on investment on the platform”.
Meaning the majority of users will most likely find success on Google Ads.
You just have to be willing to roll the dice and test the waters. Even if you’ve got £50 to spare, it’s a great way to test the market and see if Ads can be good for your business.
But if you want something more concrete, let’s talk about average industry data concerning cost per click.
Cost per click is the money that you will owe Google for each and every click on your ads.
The average cost per click on Google Ads across all industries is between £0.66 and £1.32 on the search network. Knowing this data, you can expect to pay around a pound per click depending on your niche and industry. Next, you can take a look at the average conversion rate for your industry. With this data along with average costs per click, you can start to calculate how much it’s going to cost you to land one conversion.
For example, if your industry is automotive, your average CPC could be £1.43, and your average conversion rate is 2.27%. That means to get a single conversion, you need about 45 visits, and you’ll pay around £64.35 for a conversion.
Do this simple calculation on your own by finding your average conversion rate and cost per click. Then, see how many clicks it will take to drive a conversion and how much you’ll end up paying for it.
If the costs exceed your margins, then selling that specific product directly with Google Ads isn’t a viable option.
Remember that the entire goal of Ads is to make money, not just drive sales.
You don’t want sales that break even. You want to drive sales and results for your business with a positive ROI.