Yes, Google Ads is still profitable, and if you’re worried about it because of higher CPC costs or other reasons, then read this post carefully or chat with a trusted Google Ads expert. There’s no doubt that the cost per click (CPC) has gone up for most businesses, but you can still achieve a positive ROI.
It’s important to remember that the profitability of Google Ads isn’t just about the CPC. Building high-quality campaigns is equally important to address users’ search intent.
A lower CPC doesn’t guarantee success; it’s mostly about understanding the CPC and planning the campaign to achieve positive results.
We all know that Google Ads has become more expensive than before and is still profitable. However, certain steps need to be taken to ensure you achieve a positive ROI.
Table of contents:
- How do Google ads work?
- Here’s how Google ads are still profitable in 2024
- Steps to improve your ROI in Google ads
How do Google Ads work?
Google Ads, once known as Google AdWords, is one of the most popular pay-per-click (PPC) platforms in the advertising arena.
You need to know how Google Ads works before concluding whether it may be worth it for your business or not.
You pick keywords related to your product or service and bid on them, deciding how much you’re willing to spend for each click. These aren’t just any words; they’re the ones consumers often type into Google when they’re on the hunt for what you offer.
Now, imagine someone searches for your keywords. Bam! Your ad pops up right above the regular search results, boosting your chances of getting new customers based on their search terms.
Also with the Google Display Network, your ads can make an appearance on popular websites, such as YouTube, mobile ads, and even in Gmail, reaching your audience in all corners of their online world.
You only pay when someone clicks on your ad. So, whether it’s $1 or $5 or more in a super competitive niche, you’re in control of your ad spend. That’s the beauty of Google Ads – you pay for results, not just for showing up.
Here’s how Google Ads are still profitable in 2024
Faster results
Google Ads has always been known for delivering speedy results, and 2024 is no different.
You can start running a Google Ads campaign within a day, a complex setup can take time, but once it’s ready and approved, you start seeing traffic flow to your website.
This feature is a game-changer, especially when compared to the slow burn of SEO strategies that can take months to give results.
For businesses looking for quick visibility and immediate returns, Google Ads remains a top choice.
Some businesses need faster results to be profitable, Google Ads is here to deliver that for you.
Unlimited potential
The potential reach of Google Ads is vast. With millions of keywords to bid on and new ones popping up daily, the opportunities for targeting your audience are virtually limitless.
Whether you’re looking to boost your traffic with fresh keywords or scale up a successful PPC campaign by increasing your daily spending, Google Ads provides the scalability to match your ambitions.
There are numerous possibilities for marketers aiming to cast a wide net or target niche segments. With Google Ads, the keywords are ranked based on a bidding system, so know your keywords and bid higher to increase your position.
More flexibility and control
One of the standout features of Google Ads is its flexibility.
Campaigns can be tweaked, paused, or stopped at a moment’s notice, allowing you to adapt to changing market conditions or budget constraints without penalty.
This level of control extends to your spending, too. There’s no minimum investment required, so you can change your expenditure to suit your budget level, ensuring that you’re getting the most bang for your buck without overspending.
It’s important you consult with a Google Ads consultant to know more about the level of flexibility and control you can set with your Google Ads campaigns.
Fair competition
Google Ads levels the playing field by prioritising ad quality and relevance as much as the bid amount. This means that even small businesses with modest budgets can compete effectively if their ads are well-crafted and closely aligned with user queries.
High-quality ads can achieve better positions and lower costs, making Google Ads a viable and profitable platform for companies of all sizes.
Even though there are several keywords with a high bid, creating quality ads that address user intent based on Google’s content guidelines can improve your quality score. This can improve your rankings even with the slightest bid when compared to others.
It’s not just about who has the deepest pockets, but who can create the most compelling and relevant ads.
Available in a wide range of formats
Google Ads has evolved to offer a diverse array of ad formats to suit different needs and industries.
From the original text-based ads to more additions like shopping ads and interactive elements, there’s a format for every business goal.
These specialised formats allow you to tailor your advertising approach to your specific audience, enhancing the effectiveness of your campaigns.
With Google’s continual innovation, you can expect even more options to emerge, keeping your advertising strategy fresh and engaging.
Steps to improve your ROI in Google Ads
Know your CPC & monthly cost
Understanding your cost-per-click (CPC) and estimating your monthly Google Ads spend is crucial for success.
It’s not just about bidding high; a balanced approach is the way to go.
Analysing data and taking necessary actions to reduce Google Ads costs and allocate more budget where needed is key.
Unless your CPC is way too high, you should consider Google Ads for your business, use our Google Ads cost calculator tool to find monthly estimates based on your CPC cost and your needs.
Even if your keywords are very expensive, you should try before ignoring the platform altogether. You should build bulletproof campaigns by ensuring all possible angles are considered starting from the right keyword selection to building quality Ads and conversion tracking. Regularly monitor your performance and plan changes to make it profitable.
After a good run (a minimum of 2-3 months), you should be able to assess the impact. If you find that Google Ads isn’t worth the money, consider alternative platforms like Facebook Ads or Microsoft Bing Ads, which may offer more cost-effectiveness.
Bid realistic – save on high CPC
One common mistake is not being careful with keyword selection. You must understand the cost implications and performance of your keywords. Create a balance between bidding enough to achieve a decent position and not going too aggressively to drain your budget. Learn more about ranking higher in Google Ads and paying less.
Avoid bidding on generic keywords at the start, as they can quickly drain your budget and return poorly. Start with keywords that have a higher search intent for the desired action on your website, like purchasing a product or filling out a form.
As you gather more data, you can introduce generic keywords in a targeted approach to scale while still achieving a positive ROI.
One of the key aspects of achieving great success in using Google Ads is knowing how to set a realistic Google Ads budget.
Build an awesome campaign with tagging
Having data and learning is great, but it’s the campaign quality that will lead to success.
Don’t settle for ordinary campaigns; get help from a Google Ads expert who can connect all the dots and build quality campaigns while tracking performance.
DIY is NOT recommended; it’s a waste of time and money. Building a professional campaign requires technical expertise and an understanding of the latest tips and tricks.
Experts can also ensure that conversion tracking and other tagging are implemented correctly, which is vital for Google Ads’ performance.
Build to scale
It is not that difficult to achieve some degree of success using Google Ads, if you want to take your business to the next level then you should plan and build campaigns to scale.
It is not just about increasing the budget to get more conversions. Building a powerful Google Ads campaign that can scale requires a solid understanding of the business and its offerings and taking those learnings to structure campaigns in a way that budget allocation will be easier with a focus on core revenue categories.
Learn from competition
This is crucial when considering whether Google Ads is still profitable. Research the market and your competition.
If your competitors are advertising successfully on Google Ads, that’s a clear sign that you can too.
By analysing your competitors’ Google Ads budgets, you can plan not only to run your campaign but also to outperform them.
Along with understanding their budget, you can learn from their advertising messaging, offers, and social signals.
Need help with a profitable Google Ads strategy?
Google Ads is an efficient way to boost traffic and increase your position but can be quite expensive. A proper Google Ads campaign is necessary to make it profitable for your business.
That’s where we can help you. At webapex, we can help set a realistic budget, create a targeted keyword strategy, and optimise it to make it profitable.
Book a free consultation with us today to transform your business to new heights! Visit our Google Ads packages page to learn more about our pricing in Australia.
