In today’s digital age, online advertising has become a cornerstone for small to medium Australian businesses aiming to grow and thrive. With the majority of consumers turning to the internet to find products and services, having a strong online presence is essential. This is where Google Ads comes into play—a powerful tool that allows businesses to reach potential customers right when they’re searching for what you offer.
For local businesses, Google Ads offers an invaluable opportunity to target audiences in specific geographic areas, ensuring that your ads are seen by those who are most likely to convert. Whether you’re a neighbourhood bakery, a local plumber, or a boutique retailer, Google Ads can help you attract more customers and boost your bottom line.
Many small business owners worry, however, that effective online advertising requires a hefty budget. The good news is that you can run successful Google Ads campaigns even with a modest budget. In this article, we’ll explore how you can maximise your advertising efforts with budget recommendations as low as $100, $200, $500 and $1000. By following our tips and strategies, you’ll be able to create cost-effective campaigns that drive results and help your business grow.
Understanding Google Ads.
Google Ads is an online advertising platform developed by Google where businesses can create and display ads to reach potential customers. These ads appear on the Google Search Network (i.e. on search engine results pages (SERPs), YouTube and on websites within the Google Display Network. The platform operates on a pay-per-click (PPC) model, meaning you only pay when someone clicks on your ad.
How Google Ads work.
When you create a Google Ads campaign, you bid on specific keywords that are relevant to your business and the products or services you offer. When users search for these keywords, your ad has the chance to appear at the top of the search results, increasing the likelihood that they’ll visit your website or contact your business. The placement and visibility of your ad depends on several factors, including your bid amount, the quality and relevance of your ad and the expected impact of your ad extensions and other ad formats.
Benefits of using Google Ads for local businesses.
1. Targeted reach: Google Ads allows you to target specific geographic areas, ensuring that your ads are seen by potential customers in your local area. This is particularly beneficial for local businesses looking to attract nearby customers.
2. Measurable results: With Google Ads, you can track the performance of your campaigns in real time. You’ll have access to detailed metrics like impressions, clicks and conversions, allowing you to measure the effectiveness of your ads and make data-driven decisions.
3. Cost control: Google Ads offers flexible budgeting options, allowing you to set daily or monthly limits to control your spending. You can start with a small budget and gradually increase it as you see positive results.
4. Quick visibility: Unlike organic search engine optimisation (SEO), which can take time to yield results, Google Ads can drive immediate traffic to your website. This is particularly useful for new businesses or time-sensitive promotions.
RELATED: 7 Ways to appear in more local searches.
Key terms and concepts.
- Cost-per-click (CPC): The amount you pay each time someone clicks on your ad. CPC can vary based on the competitiveness of your chosen keywords.
- Click-through rate (CTR): The percentage of people who click on your ad after seeing it. A high CTR indicates that your ad is relevant and compelling to users.
- Keywords: Words or phrases that users type into the search engine when looking for products or services. Choosing the right keywords is crucial for the success of your campaign.
- Ad groups: A collection of ads within a campaign that share a set of keywords. Ad groups help you organise your ads and target specific audiences more effectively.
- Quality Score: A metric that measures the relevance and quality of your ads, keywords and landing pages. A higher Quality Score can lead to lower CPCs and better ad positions.
- Ad extensions: Additional information you can add to your ads, such as location information, phone numbers, or links to specific pages on your website. Ad extensions can improve your ad’s visibility and performance.
By understanding these key aspects of Google Ads, you’ll be better equipped to create effective campaigns that reach your target audience and drive meaningful results for your business.
Setting your Google Ads budget.
Importance of budget planning.
Budget planning is a critical step in any advertising campaign, and Google Ads is no exception. Proper budget planning ensures that you allocate your resources effectively, maximising the return on your investment. Without a well-defined budget, you risk over-spending or under-spending, both of which can negatively impact the success of your campaign. A carefully planned budget allows you to:
- Control costs: Set daily or monthly limits to prevent over-spending
- Measure ROI: Track spending and compare it against your results to determine the effectiveness of your ads
- Optimise performance: Allocate more resources to high-performing campaigns and adjust or pause under-performing ones.
How to determine the right budget for your business goals.
1. Define your objectives: Start by identifying what you want to achieve with your Google Ads campaign. Common objectives include increasing website traffic, generating leads, boosting sales, or promoting a specific product or service. Clear objectives will help you determine how much you need to spend to achieve your goals.
2. Research your industry and competition: Look at industry benchmarks and analyse your competitors’ ad spend. Understanding the average cost per click (CPC) for your target keywords and the level of competition can give you a better idea of the budget required to compete effectively.
3. Consider your customer lifetime value (CLV): Calculate the average revenue you expect from a customer over their lifetime. If your CLV is high, you may be able to justify a higher ad spend to acquire each new customer. For example, if your average customer spends $500 over their lifetime, you might be willing to spend $50 or even $100 to acquire a new customer.
4. Start small and scale: If you’re new to Google Ads, start with a smaller budget to test the waters. This allows you to gather data, see what works and make necessary adjustments without a significant financial commitment. As you become more confident and see positive results, you can gradually increase your budget.
5. Allocate your budget across campaigns: If you run multiple campaigns, decide how to allocate your budget between them. Prioritise campaigns that align with your primary business goals and show the most promise based on initial performance.
6. Monitor and adjust: Regularly review your campaign performance and make data-driven adjustments to your budget. If certain keywords or ads are performing well, consider increasing their budget to capitalise on their success. Conversely, reduce or reallocate the budget for under-performing elements.
By following these steps, you can determine a budget that aligns with your business goals and maximise the effectiveness of your Google Ads campaigns. Remember, the key to successful budget planning is flexibility—be prepared to adjust your budget as you gather more data and insights from your campaigns.
RELATED: Digital display advertising for small business.
Tiered Google Ads budget recommendations.
$100 Google Ads budget.
With a $100 budget, it’s crucial to make every dollar count. Here’s how to maximise your investment:
- Tips for maximising a very small budget: Focus on getting the most value by targeting specific, low-cost keywords and tightly controlling your spending.
- Focus on highly specific keywords: Choose long-tail keywords that are more specific and less competitive. This helps ensure that your ads are seen by people who are more likely to convert.
- Utilise geo-targeting for ‘near me’ searches: Limit your ads to show only in your local area to attract nearby customers. This increases the relevance of your ads and improves conversion rates.
Example of a basic campaign setup:
- Campaign Type: Search Network only
- Keywords: ‘best bakery near me’, ’emergency plumber in [city]’
- Geo-targeting: Set radius targeting around your business location
- Ad Copy: Highlight unique selling points and include a strong call-to-action (CTA)
- Budget allocation: $3-4 per day
$200 Google Ads budget.
With a $200 budget, you have more flexibility to expand your reach:
- Expanding keyword reach while staying focused: Add a few more relevant keywords to capture a broader audience while still keeping them targeted.
- Incorporate negative keywords to avoid wasteful spending: Use negative keywords to prevent your ads from showing on irrelevant searches, saving your budget for the most relevant clicks.
- Use of ad extensions to enhance visibility: Implement ad extensions like callouts, sitelinks and location extensions to provide more information and increase your ad’s visibility.
Example campaign structure:
- Campaign Type: Search Network with Display Network
- Keywords: ‘affordable HVAC repair’, ‘local coffee shop deals’
- Negative keywords: Exclude terms like ‘free’, ‘cheap’ or irrelevant locations
- Ad Extensions: Use sitelinks to link to different services or promotions
- Budget allocation: $6-7 per day
$500 Google Ads budget.
A $500 budget allows for a balanced approach between reach and precision:
- Balancing reach and precision: Use a mix of broad match and phrase match keywords to increase reach while maintaining relevance.
- Incorporate remarketing strategies: Set up remarketing campaigns to target users who have previously visited your website, keeping your brand top-of-mind.
- Use of more diverse ad formats: Experiment with different ad formats like text ads and display ads to capture attention across various platforms.
Example of a more complex campaign:
- Campaign type: Search Network, Display Network and Remarketing
- Keywords: ‘professional landscaping services’, ‘best sushi restaurant near me’
- Remarketing: Target past website visitors with special offers
- Ad formats: Use a combination of text ads, responsive display ads and image ads
- Budget allocation: $15-17 per day
$1000 Google Ads budget.
With a $1000 budget, you can implement a comprehensive and robust strategy:
- Comprehensive strategy including multiple ad groups and campaigns: Create several ad groups targeting different keywords and customer segments to increase relevance and improve ad performance.
- Advanced targeting options: Utilise demographic targeting and interest-based targeting to reach specific audience segments.
- Focus on ad quality and optimisation: Continuously test and optimise ad copy, keywords and landing pages to improve Quality Score and reduce CPC.
Example of a detailed and robust campaign setup:
- Campaign type: Search Network, Display Network, Remarketing and YouTube ads
- Keywords: ‘luxury real estate agents’, ’emergency dental care in [city]’
- Ad groups: Separate ad groups for different services or product lines
- Advanced targeting: Use demographic filters to target age, gender and income brackets; also interest-based targeting for specific hobbies or preferences
- Ad quality: Implement A/B testing for ad copy and landing pages to identify the highest performing variations
- Budget allocation: $30-35 per day
By tailoring your Google Ads strategy to your budget, you can effectively reach your target audience and achieve your business goals, no matter the size of your advertising spend.
Tips for Google Ads success.
Regular monitoring and adjustment of campaigns.
To get the most out of your Google Ads, it’s essential to regularly monitor and adjust your campaigns. This involves checking your ad performance metrics, such as click-through rates (CTR), conversion rates and cost-per-click (CPC). By keeping an eye on these numbers, you can identify what’s working and what’s not. If certain keywords or ads aren’t performing well, consider pausing them and reallocating your budget to higher-performing ones. Continuous optimisation helps you make the most of your budget and improve your overall campaign effectiveness.
Importance of A/B testing for ad copy and landing pages.
A/B testing, also known as split testing, is a powerful technique to improve your ad performance. It involves creating two or more versions of an ad or landing page to see which one performs better. Test different headlines, ad copy, images and calls-to-action to determine what resonates most with your audience. Similarly, experiment with different layouts, images and forms on your landing pages. By systematically testing and refining your ads and landing pages, you can increase your conversion rates and get more value from your ad spend.
Using analytics to measure success and make informed decisions.
Utilising analytics tools is crucial for understanding the success of your Google Ads campaigns. Google Ads provides a wealth of data on impressions, clicks, conversions and more. Additionally, Google Analytics can offer deeper insights into user behaviour on your website. Track key performance indicators (KPIs) such as conversion rate, cost per conversion and return on ad spend (ROAS). Use these insights to make informed decisions about your campaigns, such as adjusting bids, refining keywords and optimising ad copy. Data-driven decision-making ensures you’re investing your budget wisely.
Leveraging local SEO alongside Google Ads.
Combining local SEO with your Google Ads strategy can significantly enhance your online presence and attract more local customers. Local SEO focuses on optimising your online presence to attract more business from relevant local searches. Ensure your Google Business Profile is complete and up-to-date, and encourage satisfied customers to leave positive reviews. Optimise your website for local search terms and include location-specific keywords in your content. By aligning your local SEO efforts with your Google Ads campaigns, you can increase your visibility in both paid and organic search results, driving more traffic to your business.
Small budget Google Ads – final thoughts.
Running Google Ads on a small budget is entirely possible and can be highly effective for small to medium businesses, especially local ones. By understanding how Google Ads work, setting a realistic budget, and utilising targeted strategies, you can make every dollar count. From focusing on highly specific keywords and geo-targeting for a $100 budget to implementing advanced targeting and optimisation techniques with a $1000 budget, each tier offers unique opportunities to grow your business.
Don’t be afraid to start small …
Begin with a modest budget, test different strategies, and learn from the results. As you become more comfortable and see what works best for your business, gradually increase your budget to expand your reach and impact. The key is to be patient and persistent, continually optimising your campaigns for better performance.
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