We do performance driven advertising.
Is Google Ads worth it?
If you’re in the beginning of your ecommerce / digital journey and have started to gain some sales and traffic, you might have started contemplating to jump on the ads train, but don’t quite know wether it’d be a smart move right now.
Is advertising on Google Ads too competitive?
Our research shows that many new businesses worry about google ads being too saturated – and that’s with all rights!
Google is by far the greatest search engine out there and is growing by the second with more users and new advertisers. It’s making the environment more competitive by the day, requiring you, and us to really stay on top of our game!
All this extra competition really pushes companies like google, and ourselves to always become smarter with the targeting. New, smarter tools that can help us deliver our ads to the right people at the right moment, and really streamline your marketing eco system and always improve.
So to answer this burning question...
Google ads is competitive. But is it worth it? And can you still perform well in this climate?
You know the tools ambiguously mentioned above?
They do exist, and they are available. Some are free, and some require you to pay up. And some people choose just lay off the burden on someone else – On us, for example! Our hearts light up when working on improving google ads performance.
However, if you’re one of those “I’ll make it on my own” people – Here’s a link for you, where we list out tips on extremely useful tools for improved marketing on google ads! **Hint – You better love technology!
All this way too simple for you?
Read our Google Ads article for intermediate users. (Coming soon)
Google ads comes with extremely useful tools and settings straight out of the box, giving you the possibility to set your own COS targets, cost per order, and even adjust settings based on seasonality!
Interested in knowing more about how to create winning ads?
So let's talk costs!
How much of a cost would you consider it to be, if it generated more money back into your pocket than you paid in the first place? I mean, if you can track it, you can hack it, right?
Alright, what I mean by that is that the more you know about why and how something is and works, the more you can affect it.
Google ads cost is based on auctions against other advertisers, and to win the auction, you need a competitive bid and healthy data.
The way we usually measure profitability is by dividing the cost with the revenue generated from the campaign. $20 invested and $100 returned would give you a “COS”, or “Cost of Sale” of 20%. The only thing you’d have to know now is – what’s your product margin? 40%? Because in that case, you just made $40 bucks!
When is it a good idea to to start advertising on google ads?
Finally, we’d like to throw in a word about when’s the perfect time to start advertising. This is definitely dependent on what type of business you’re running and how mature your website is. But if you’re in ecommerce – the best time would be when your conversion rate combined with your average order value exceeds the cost for the amount of clicks you’d have to generate to be profitable.
Apart from that, it’ll always feel a bit intimidating when jumping into something new. But hey! You started and have begun running your business, so how different could this be??
Ready to take the leap?
Dive deeper into google ads