Google Ads is one of the most powerful digital advertising platforms. However, many small businesses hesitate to use it because they fear wasting their budget. This concern is valid because poorly run campaigns can leave you with a big negative balance on your bank account.
We've been running Google Ads for our clients for more than a decade and we can tell you for sure when executed correctly, Google Ads is one of the most effective ways to grow your business, especially now in the era of AI.
In this article, we’ll explore whether Google Ads is worth it, how to avoid wasting money, and how to get started with successful campaigns.
Is Google Ads Worth It For Small Businesses?
Yes, Google Ads can absolutely be worth it for small businesses. It's a cost-effective marketing channel that can help you reach a targeted audience fast and without the complexities of other channels like SEO or Social Media Marketing.
Google handles over 9 billion daily searches and has a huge audience of billions of users on the Google Echo system, which includes YouTube, Google Discover, Gmail, Google Display Network, Google Maps, and other Google products.
This massive source of potential customers makes Google Ads a great addition to almost any digital marketing strategy.
You may have to work with a PPC expert to ensure that you don’t waste your budget, but there are many potential benefits to using Google Ads.
Benefits of Google Ads For Businesses
Here are some ways Google Ads are an effective marketing tool for your business:
1. Fast results
Google Ads can deliver fast results for your business, often within days of your campaign approval. Once live, traffic can start flowing in, and depending on your budget and industry, you may even see sales on the same day.
Unlike SEO, which requires months to achieve high rankings and consistent organic traffic, Google Ads allows you to appear at the top of search results faster.
While SEO is a valuable long-term strategy, Google Ads ensures your business gets in front of potential customers right when they’re searching for what you offer.
2. High ROI
One of the best things about using Google Ads is the potential return on investment (ROI). Statistics have shown that the average business earns $2 in revenue for every $1 they spend on Google Ads.
Strong performers can earn well above this mark, seeing anywhere from $5 to $10 in revenue for each dollar spent on Google Ads.
3. Work Great For Local Businesses
Google Ads effectively allows local businesses to reach their nearby customers.
You can create campaigns that target location-specific keywords like “buy flowers in NY”. Plus, you can set the ads to only display to users in your vicinity.
With location and call extensions, you can display your business address and phone number with your ads. This makes it easier for potential customers to find or contact you, especially if they are using a mobile device.
4. You Have Full Control Over Costs
With Google Ads, you can control how much you spend on your advertising campaigns.
You can set a total budget for a campaign, and you only pay for an ad after someone clicks it.
Your daily ad costs may vary from the set daily budget, but over the course of the month, the average daily spend is at or below your budget.
5. Google Ads Traffic Is Targeted
Google Ads are one of the best ways to bring highly targeted traffic to your business.
Because campaigns are built around specific keywords, or themes, you can ensure that your ads only appear to those actively looking for what you sell.
Plus, you can get in front of potential customers when they look for your products.
6. It's Easily Scalable
With such a large audience base, Google Ads is one of the most scalable ways to market your business online.
After you have sustained a successful Google Ads campaign, you can gradually increase your campaign’s daily budget to generate more clicks. You can also scale your campaigns by finding new keywords to target.
For many industries, you can continue scaling your campaigns for quite a while before exhausting the potential traffic source.
7. You Get Detailed Reports And Analytics
Google Ads has solid analytics features built into the platform. These stats include important metrics such as total clicks, average CPC, clickthrough rate (CTR), and conversion rate.
These metrics give you a clear overview of your marketing performance. You can use them to see what is working and make better decisions about where to spend your advertising dollars.
How To Stop Wasting Money on Google Ads?
When running Google Ads, we like to follow the golden rule of PPC: Keep spending as long as you get a positive ROI
If your campaigns consistently bring in more revenue than they cost, you can gradually scale your budget while maintaining profitability.
To maximize efficiency, it’s best to start with a narrow focus—targeting a specific product, service, or audience—and then expand based on results.
Once you’ve identified what works, you can refine your strategy and scale your campaigns without losing your budget.
Should You Run Google Ads?
Google Ads works well for many businesses, but it’s not always the best fit for every company. If your audience searches for your offerings and you’ve got the budget and time (or an expert) to manage it, Google Ads makes sense. Otherwise, test cautiously or explore alternatives.
Before investing money, time and effort in Google Ads, consider the following factors:
Your Target Audience
The first step is understanding your target audience. You need to know who your ideal customers are, their demographics, interests, and online behavior. If your customers frequently use Google to search for solutions, products, or services, then Google Ads is likely a good fit.
Your Advertising Budget
Next, consider how much you are willing to budget towards your Google Ads campaign.
Your budget will impact everything from how much you can spend per click to how many clicks you ultimately get.
If the cost-per-click (CPC) for keywords related to your business is high relative to your available budget, you will be limited in the number of clicks you can get. In the legal industry, for example, you can find keywords with average CPCs of hundreds of dollars.
Without enough budget, you risk getting too few clicks to see meaningful results.
Who Will Manage The Campaigns
You also need to decide who will manage your campaigns. While you can run Google Ads yourself, it requires time and expertise to optimize your ads and avoid costly mistakes.
Many businesses choose to work with an agency that specializes in PPC management. An experienced agency can help you maximize your budget and improve performance, but if you prefer to manage ads yourself, investing in Google Ads training or certifications can be a smart first step.
From there, experience is often the best teacher, and you can learn more about Google Ads by managing your campaigns.
Are Your Profit Margins Sufficient?
Profit margins are another key factor. If your customer acquisition cost (CAC) is too close to or higher than your profit per sale, your campaigns may not be sustainable.
For example, if you spend $50 to acquire a customer but only make a $25 profit per sale, you’re losing money.
To make Google Ads work, you either need to increase your profit margins or optimize your campaigns to lower your CAC through better targeting and conversion rate improvements.
Which Is Better, Google Ads or Facebook Ads?
Facebook is another popular and effective online channel for advertising your business.
Facebook Ads are similar to Google Ads, allowing you to connect with your target customers at scale.
But, there are some distinct differences in how ads work for each platform.
Google Ads:
- Best For: Capturing people ready to buy (e.g., searching “best plumber near me”).
- Pros: High-intent traffic, precise targeting, fast results.
- Cons: Can be costly in competitive niches; less visual appeal.
- Cost: CPC ranges from $1-$50+, depending on industry.
Facebook Ads:
- Best For: Building awareness or targeting interests (e.g., “dog lovers aged 30-50”).
- Pros: Cheaper clicks ($0.50-$2), engaging visuals, great for retargeting.
- Cons: Lower intent—users aren’t always shopping while scrolling.
- Cost: Lower CPC, but conversions may take longer.
By using them together you can leverage the capabilities of each platform to reach customers at every stage of the buyer’s journey.
For example, you could use Google Ads to target transactional keywords and drive sales from people who are ready to buy.
Or, you could run a Facebook campaign to grow awareness for your brand by targeting a Lookalike Audience that shares traits with your past customers.
As your ads attract visitors to your site, you can set up remarketing campaigns with both platforms to retarget these visitors and continue moving them through your digital marketing funnel.
How To Get Started With Google Ads?
As I mentioned earlier, knowing the ins and outs of using Google Ads is essential if you don’t want to waste your budget.
In summary, here are the steps you need to get started with Google Ads:
Choose a campaign type
Campaign types determine the format for your ads. You can choose from search, display, shopping, video, and Performance Max campaigns.
Set your budget
The daily budget is the average amount you want to pay for ads. Again, until you are experienced in Google Ads, it’s best to set a lower budget or to hire a PPC expert that knows what they are doing.
Add keywords
The keywords you select are the search terms that will trigger your ads to appear to customers. There are various match types that allow you to include different variations of words or phrases.
You can use Google Keyword Planner to find the keywords your customers are using and the associated costs.
Set up conversion tracking
Conversion tracking ensures that Google records all important actions that occur on your site as a result of your ad campaigns. You can measure several conversion goals, including eCommerce orders, webform leads, phone calls from ads, and more.
Create your ads
Next, you need to create the content for your ads. You want to create compelling ads. Your headlines should capture attention, and your descriptions should include the key benefits of your offering along with a direct call to action.
If you are targeting a specific keyword with your ads, be sure to include it in the headline or description, as this can help improve click-through rates from visitors.
Design your landing page
Your landing page is the page your users see after clicking your ad. It is a good practice to use a page designed specifically to match your advertisement. Doing so leads to better conversions as customers receive an experience that matches their expectations.
Learn More About Google Ads
- How To Optimize Your Google Ads Campaigns (Checklist)
- How To Create Your First Google Search Campaign (Tutorial)
- Google Ads Remarketing: How to Do Remarketing on Google
- How To Get a Google Ads Certification For Free (4 Steps)
- 10 Best Google Ads Courses For Beginners (Besides Google Skillshop)
- How Do Google Ads Work? (Easy Guide for Beginners)
