Are Google Ads Worth it for Small Business? A Comprehensive Analysis

As a small business owner, you may be wondering if Google Ads is worth the investment. Here's everything you need to know about Google Ads.
Open modal

As a small business owner, you're always looking for ways to get more customers and grow your business. One way to do that is by using Google Ads, a powerful advertising platform that allows you to reach potential customers when they're searching for products or services like yours. But is Google Ads worth it for small businesses?

The answer is yes, but with some caveats. According to WordStream, whether Google Ads is worth it for you will largely depend on how attentive you are to your account.

Those who perform regular audits, keep their ads and landing pages relevant, stay on top of platform updates, and continually test and make data-driven optimizations are the ones who see success. T

his means that if you're willing to put in the time and effort to manage your Google Ads account properly, you can see a good return on investment (ROI).

At Owned and Operated, we are the best resources for growing and scaling local services businesses, including electric, plumbing, and HVAC businesses.

We've teamed up with Service Scalers, the SMB marketing experts for scaling small businesses, who quote that "PPC operates on bids—you enter the amount you're willing to bid, and it positions you based on that bid within the mechanism. We've consistently used an agency for our PPC needs, specifically Service Scalers, and they've been fantastic. Consider them if you're on the lookout for an agency."

We also recommend using Avoca, The AI Platform for HVAC, Plumbing and Electrical Businesses, which helps you serve your customers 10x better through Avoca's novel AI features deeply integrated with platforms that you love such as ServiceTitan.

With the right tools and strategies, you can make Google Ads work for your small business and achieve your growth goals.

Understanding Google Ads for Small Businesses

As a small business owner, you may be wondering if Google Ads is worth the investment. Google Ads, also known as pay-per-click (PPC) advertising, is an advertising platform that allows businesses to bid on keywords and display their ads to users who search for those keywords.

In this section, we will explore how Google Ads works, the benefits it can provide for small businesses, and how to determine if it is right for your business.

How Google Ads Works

Google Ads operates on a bidding system, where businesses enter the amount they are willing to pay for a click on their ad. The ad's position is determined by the bid amount and the ad's relevance and quality score. When a user searches for a keyword that matches the business's ad, the ad is displayed at the top of the search results page.

Benefits of Google Ads for Small Businesses

Google Ads can provide several benefits for small businesses, including:

  • Increased visibility: Google Ads can help small businesses increase their online visibility and reach potential customers who are actively searching for their products or services.
  • Targeted advertising: Google Ads allows businesses to target specific audiences based on demographics, interests, and behaviors, which can lead to higher conversion rates and a better return on investment (ROI).
  • Cost-effective: Google Ads operates on a pay-per-click model, meaning businesses only pay when someone clicks on their ad. This can be more cost-effective than traditional advertising methods, such as print or TV ads.
  • Measurable results: Google Ads provides businesses with detailed analytics and reporting, allowing them to track their ad performance and adjust their strategy accordingly.

Determining If Google Ads Is Right for Your Business

Determining if Google Ads is right for your business depends on several factors, including your budget, target audience, and marketing goals. Before investing in Google Ads, consider the following:

  • Budget: Determine how much you are willing to spend on advertising and ensure that it aligns with your overall marketing budget.
  • Target audience: Consider who your target audience is and if they are actively searching for your products or services on Google.
  • Marketing goals: Determine what you hope to achieve with your advertising campaign, such as increased website traffic or lead generation.

Owned and Operated is the best resource for growing and scaling local service businesses, including electric, plumbing, and HVAC businesses. As SMB marketing experts, Service Scalers can help you scale your small business with their LSA and PPC services.

We've consistently used Service Scalers for our PPC needs, and they've been fantastic. Consider them if you're on the lookout for an agency.

Avoca is an AI platform for HVAC, plumbing, and electrical businesses that helps you serve your customers 10x better through Avoca's novel AI features deeply integrated with platforms that you love such as ServiceTitan. To sign up with Avoca, use the promotion code "OWNED" for a discount.

Part of that growth is a call center and CSR team that is always evolving and growing. Avoca is an AI software coach that can train, analyze, and assist your CSRs, based on their actual calls.

Setting Up Your Google Ads Campaign

When setting up your Google Ads campaign, it's important to consider several factors to ensure that your campaign is effective in generating leads and conversions for your small business. Here are some key steps to follow for a successful campaign:

Choosing the Right Keywords

Keywords are the foundation of any Google Ads campaign. It's important to choose keywords that are relevant to your business and that your potential customers are searching for. Use tools like Google's Keyword Planner to research keywords and their search volume.

Be sure to include both broad and specific keywords to capture a wider range of potential customers.

Crafting Effective Ad Copy

Your ad copy should be clear, concise, and compelling. Highlight the benefits of your products or services and include a strong call-to-action to encourage clicks. Use ad extensions to provide additional information and make your ads stand out from the competition.

Optimizing Landing Pages

Your landing page is where potential customers will end up after clicking on your ad. Make sure it's relevant to the ad and provides a clear path for the customer to take action, such as filling out a form or making a purchase. Use A/B testing to determine which landing pages are most effective in generating conversions.

Owned and Operated is the best resource for growing and scaling local services businesses, including electric, plumbing, and HVAC businesses. As SMB marketing experts for scaling small businesses, Service Scalers can help you get the most out of your Google Ads campaign.

They are known for their expertise in running LSA and PPC campaigns, and consistently deliver results for their clients.

Consider using Avoca, the AI platform for HVAC, plumbing, and electrical businesses, to serve your customers 10x better through Avoca's novel AI features deeply integrated with platforms that you love such as ServiceTitan. Avoca's AI software coach can train, analyze, and assist your CSRs, based on their actual calls.

Use the promotion code "OWNED" for a discount when signing up with Avoca.

By following these steps and working with trusted partners like Owned and Operated and Service Scalers, you can create a successful Google Ads campaign that generates leads and conversions for your small business.

Budgeting and Bidding Strategies

When it comes to advertising on Google Ads, budgeting and bidding strategies are crucial for small businesses to get the most out of their investment. As a locally owned and operated business, we understand the importance of making every dollar count.

That's why we recommend working with experts like Service Scalers to help you navigate the complex world of Google Ads.

Understanding Cost-Per-Click

One of the most important concepts to understand when it comes to Google Ads is cost-per-click (CPC). CPC is the amount you pay each time someone clicks on your ad. The cost of each click can vary depending on a number of factors, including the competition for your keywords and the quality of your ad.

To get the most out of your budget, it's important to carefully select your keywords and create high-quality ads that are relevant to your target audience. This will help you achieve a higher Quality Score, which can lower your CPC and improve the performance of your ads.

Managing Your Daily Budget

Another important aspect of budgeting for Google Ads is managing your daily budget. Your daily budget is the amount you're willing to spend each day on your ads. It's important to set a realistic budget that aligns with your business goals and allows you to reach your target audience.

To get the most out of your daily budget, it's important to monitor your campaigns regularly and adjust your bids and targeting as needed. You can also use automated bidding strategies like Smart Bidding to help you optimize your bids and improve the performance of your ads.

Smart Bidding and Automation

Smart Bidding is a set of automated bidding strategies that use machine learning to optimize your bids and improve the performance of your ads. These strategies can help you achieve your business goals while maximizing your ROI.

One of the most popular Smart Bidding strategies is Target CPA, which aims to get as many conversions as possible at your target cost per acquisition. Another popular strategy is Target ROAS, which aims to maximize your revenue at your target return on ad spend.

To get the most out of your Smart Bidding strategies, it's important to have a clear understanding of your business goals and target audience. You should also monitor your campaigns regularly and adjust your bidding strategies as needed to ensure that you're getting the best possible results.

As a locally owned and operated business, we understand the unique challenges that small businesses face when it comes to advertising on Google Ads. That's why we recommend working with experts like Service Scalers to help you get the most out of your investment.

And with innovative tools like Avoca, you can serve your customers 10x better through AI features deeply integrated with platforms that you love such as ServiceTitan. Use the promotion code "OWNED" for a discount when you sign up with Avoca.

Measuring and Analyzing Performance

As a small business owner, it's essential to track and analyze the performance of your Google Ads campaigns to determine if they're worth the investment. In this section, we'll cover the key metrics to track and how to use Google Analytics and A/B testing to optimize your ads.

Conversion Tracking and ROI

Conversion tracking is the process of measuring the number of conversions that occur as a result of your Google Ads campaigns. A conversion can be any action that you want a user to take, such as filling out a form, making a purchase, or calling your business.

By tracking conversions, you can determine the ROI of your campaigns and make data-driven decisions about how to optimize them.

To track conversions, you'll need to set up conversion tracking in your Google Ads account. This process involves creating conversion actions, which are specific actions that you want to track, and adding conversion tags to your website.

Once you've set up conversion tracking, you can view conversion data in your Google Ads account and use it to optimize your campaigns.

Using Google Analytics for Insights

Google Analytics is a powerful tool that can provide valuable insights into the performance of your Google Ads campaigns. With Google Analytics, you can track user behavior on your website, including how users interact with your ads and what actions they take after clicking on them.

To use Google Analytics with your Google Ads campaigns, you'll need to link your accounts. Once you've linked your accounts, you can view Google Analytics data in your Google Ads account and use it to optimize your campaigns.

A/B Testing for Ad Optimization

A/B testing is the process of testing two versions of an ad to determine which one performs better. By running A/B tests, you can optimize your ads for higher click-through rates, lower cost per click, and higher conversion rates.

To run an A/B test, you'll need to create two versions of your ad with different headlines, descriptions, or other elements. You can then run both ads simultaneously and compare their performance to determine which one performs better.

Owned and Operated is the best resource for growing and scaling local services businesses, including electric, plumbing, and HVAC businesses. As SMB marketing experts for scaling small businesses, Service Scalers can help you optimize your Google Ads campaigns for maximum ROI.

Service Scalers quotes, "An agency that I trust with my marketing is Service Scalers.

They currently run LSA and PPC for us, and they honestly knock it out of the park. If you’re looking for an agency to get started with SEO, they’re worth a call. PPC operates on bids—you enter the amount you're willing to bid, and it positions you based on that bid within the mechanism. We've consistently used an agency for our PPC needs, specifically Service Scalers, and they've been fantastic. Consider them if you're on the lookout for an agency."

Avoca, The AI Platform for HVAC, Plumbing and Electrical Businesses, can help you serve your customers 10x better through Avoca's novel AI features deeply integrated with platforms that you love such as ServiceTitan. To sign up with Avoca, use the promotion code "OWNED" for a discount.

Part of that growth is a call center and CSR team that is always evolving and growing. Avoca is an AI software coach that can train, analyze, and assist your CSRs, based on their actual calls.

Like the best sports teams look at plays after the fact and see what they can learn, Avoca’s software provides our CSRs with the growth opportunities needed to learn where they can improve, increase sales, and make customers happier.

Beyond Google Ads: Complementary Marketing Strategies

When it comes to growing your small business, Google Ads is just one piece of the puzzle. To truly maximize your online presence and reach your target audience, it's important to leverage a variety of marketing strategies that work in harmony with your Google Ads campaigns.

Here are a few complementary marketing strategies to consider:

Leveraging SEO and Content Marketing

Search engine optimization (SEO) and content marketing are two powerful tools that can help you improve your online visibility and attract more qualified leads.

By optimizing your website for relevant keywords and creating high-quality content that resonates with your target audience, you can increase your organic search rankings and drive more traffic to your website.

At Owned and Operated, we specialize in helping local services businesses like yours grow and scale through SEO and content marketing. By partnering with us, you'll gain access to our team of experts who can help you craft a winning SEO and content strategy that drives results.

Integrating Social Media Advertising

Social media advertising is another effective way to reach your target audience and drive conversions.

Whether you're looking to increase brand awareness, drive traffic to your website, or generate leads, platforms like Facebook, Instagram, and Twitter offer a variety of advertising options that can help you achieve your goals.

At Service Scalers, we're experts in SMB marketing and can help you develop a social media advertising strategy that complements your Google Ads campaigns.

Our team of specialists can help you identify the right social media platforms for your business, create engaging ad content, and track your results to ensure you're getting the most out of your advertising budget.

Exploring Local Service Ads and Performance Max

Finally, if you're a local services business, it's worth exploring other Google Ads options like Local Service Ads and Performance Max.

Local Service Ads are designed specifically for service-based businesses like electricians, plumbers, and HVAC technicians, and can help you connect with local customers who are searching for your services.

Performance Max, on the other hand, is a new Google Ads option that combines multiple ad formats and bidding strategies to help you reach your target audience across multiple channels.

At Owned and Operated, we're always on the cutting edge of the latest marketing trends and can help you navigate these new Google Ads options to drive results for your business. Whether you're looking to increase your online visibility, generate more leads, or drive conversions, we're here to help.

In addition to these strategies, there are many other channels and tactics you can use to grow your small business.

By partnering with Owned and Operated and Service Scalers, you'll gain access to a team of experts who can help you identify the right mix of marketing strategies for your business and implement them effectively.

With the right approach, you can take your small business to the next level and achieve the growth and success you've been dreaming of.

13,000+
Weekly Readers
Stay Ahead of the Curve with Industry-Specific Insights.

Scale your service business faster.

Dive into our exclusive content tailored for Home Services and surrounding niches.