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“Ask Us Anything” – Google Ads Edition

17/10/2024
12:00pm AUS
Guests
Jon Hollenberg
Five by Five
Oliver Baker
Five by Five
Cspi Thelot Sign
Cspi Thelot Img Burger

A proven recipe for digital marketing success.

If you’ve ever been curious about the inner workings of Google Ad campaigns like budgeting, keyword strategies, or ad performance, here is your opportunity to get expert advice and answers to those Google Ads FAQs.

Google Ads is like a treasure map for your business. Google Ads can put your business right in front of ideal customers, helping you generate leads and boost conversions. But let’s face it—simply running ads isn’t enough. To get real value from your ad spend, you need to track the right metrics, understand your audience, and choose the right strategies.

In our latest webinar, we break down key metrics you should be keeping an eye on—like click-through rates and conversion rates, and explore the different types of conversions (hint: not all leads are created equal). 

We also cover the age-old debate of smart bidding vs manual bidding, and share some critical advice about avoiding costly mistakes with Smart Campaigns. Whether you’re new to Google Ads or looking to optimise your existing campaigns, we have your back.

1. How does Google Ads work?

Google Ads is basically a pay-per-click (PPC) platform that has the ability to generate immediate traffic for your business. When a potential customer types a search phrase into Google that relates to your business, Google responds by displaying various elements on the screen, one of which is the Google Ads listing, often marked as “sponsored.” These search ads are the most common type of Google Ads.

At its core, Google Ads operates on a bidding system for keywords. You bid on specific keywords relevant to your business, and the cost per click (CPC) varies based on the competitiveness of the keyword, the location, the target audience, and several other factors. Key elements such as your ad copy, your website landing page you want to promote, and your bidding strategies also play critical roles in determining how and when your ads are displayed.

When a user clicks on your Google Ad, you are charged for that click, directing the user to your website or landing page. This model allows you to gain visibility at the top of Google search results almost instantly.

The biggest difference between Google Ads and SEO is the cost structure and the speed of their results. Google Ads allows you to secure immediate visibility, while Search engine optimisation (SEO) builds your organic rankings over time. SEO also does not charge you anything per click, but it does require considerable effort and expertise to achieve and maintain high rankings. If you are seeking quick results and increased visibility, Google Ads is the way to go!

Imagine driving a car without looking at the speedometer or fuel gauge. Sounds like a disaster waiting to happen, right? Well, running Google Ads campaigns without keeping an eye on your key metrics is pretty much the same thing.

There are three big metrics you cannot afford to ignore: Click Through Rate (CTR), Conversion Rate, and Ad Spend. But why do these matter?

Your CTR tells you how compelling your ads are—if people are not clicking, it is time to rework your messaging or targeting. Conversion rate, on the other hand, shows you how many clicks are turning into actual leads or sales, and that’s where the real money is. Finally, tracking ad spend ensures you’re not burning through your budget without seeing the results.

But don’t stop there! You need to break these numbers down at every level—ad group, campaign, and individual ad. It is too easy for one underperforming ad group to drag your whole campaign down. By digging deeper, you can spot these and make adjustments before they start eating away at your budget. If you are not breaking down these metrics and tracking conversions, you are essentially flying blind.

When it comes to Google Ads, not all conversions are created equal. There are two primary types of conversions: lead forms and phone calls. So, which one should you focus on?

Lead forms tend to be the golden ticket. Why? Because when a prospect fills out a form, they’re spending five to ten minutes of their time providing information. This isn’t a casual glance at your services—they are genuinely interested, and that means lead forms give you higher quality…leads. You are now dealing with someone who has already invested effort, making them more likely to convert into a paying customer.

On the flip side, phone calls can be hit or miss. Sure, sometimes a phone call to your business turns into a solid lead, but more often than not, people are just shopping around, looking for quick answers, and may not be ready to commit. Phone calls can be a bit of a mixed bag—sometimes great, but other times, they fizzle out after a few minutes of conversation. They also require more time and resources to answer! 

And here’s the kicker…you can’t manage what you’re not measuring. Whether you prefer lead forms or phone calls, you need to track them. Conversion tracking is key to figuring out what’s working and what is not. 

It is not just about form submissions either—did someone click your phone number from their mobile device? That counts too! By tracking all your conversion types, you can make smarter decisions and refine your strategy based on real data, not just guesswork.

One of the biggest debates you hear when running Google Ads is smart bidding vs manual bidding. Both have their pros and cons, but choosing the wrong one can cost you more than just a few clicks…it can burn through your budget fast.

Manual bidding puts you in the driver’s seat. You control how much you are willing to pay for each click, and you can make adjustments based on your campaign’s performance. For newer Google Ads accounts, this is usually the way to go. If your Google Ads account is still in its early stages, Google does not have enough data yet to know who is likely to convert. So, you are better to focus on maximising clicks to gather that valuable data. Once you know more about your audience and what is driving those conversions, you can start thinking about other strategies.

Automated bidding or smart bidding, like Google’s Smart Campaigns, sound like a dream come true, especially if you’re new to Google Ads. They promise hands-off, easy-to-manage advertising where Google takes the wheel and does all the heavy lifting for you. 

But one of the major limitations of Smart Campaigns is that they often result in inefficient ad spend. These automated bidding campaigns are marketed mainly to those who lack experience running PPC ads. However, they don’t always prioritise spending your budget wisely. The platform may spend your budget in ways that aren’t aligned with your specific goals, and that can cost you both time and money.

If you’ve been dabbling in Google Ads, you have probably heard of Performance Max campaigns. But what exactly are they, and should you be using them?

Performance Max is a campaign type where Google takes control of most of the decisions. You provide your assets like images, videos, headlines etc. and Google uses them across various platforms (Search, Display, YouTube, etc.) to optimise for conversions. The goal is to help you reach more people in more places by leveraging Google’s machine learning and vast network of placements.

Sounds great, right? But as we have seen, it’s not for everyone…at least not right away. Performance Max gives up a lot of control to Google, which can be a bit daunting, especially if you are used to having more of a say in how your Google ads are run.

The key takeaway here is that Performance Max works best for Google Ads accounts that have already accumulated solid conversion data and have strong creative assets. If you have been running Google Ad campaigns for a while and have a good understanding of what converts, it might be worth testing. Just keep in mind that you are giving up some control, so it is essential to monitor the performance and make adjustments as needed. 

Ensure that the results are worth the extra automation. As we said, automated bidding works best when you’ve already laid the groundwork and want to take your campaigns to the next level.

Google Ads loves to offer recommendations. Some of them might actually help improve your campaign performance, but does that mean you should auto-apply all of them? Well, not so fast.

Auto-applying recommendations can save you time, absolutely. But it can also lead to unwanted changes that hurt your campaign. Auto-applying might adjust your bids, change your targeting, or shift your ad strategy in ways that do not align with your original goals. The end result? You could end up spending money on clicks or placements that don’t convert, or worse, blow through your budget without realising it.

Instead of clicking that tempting “auto-apply all” button, we suggest manually reviewing all recommendations. Take a look at what Google is suggesting, but only apply the ones that make sense for your specific objectives. Not all recommendations are created equal—some might have a positive impact, while others could derail your strategy. By selecting the recommendations that fit with your goals, you’ll keep control over your budget and ensure that your campaign stays on track.

Just because a recommendation is there, it does not mean you need to use it. The key is to be selective. It is your Google Ads campaign, and you should be in charge of the decisions that affect its success.

There is also a word of caution when it comes to outsourced Google reps. When you run Google ads, you often get calls from Google reps offering advice. But these reps are often not directly employed by Google. They might be part of a third-party service and they do not always have a full understanding of your business goals. As a result, their advice—while well-meaning—can lead you down the wrong path.

The takeaway here? Be cautious when following advice from someone who doesn’t know your business as well as you do. We have seen how following a Google rep’s advice ended up costing someone $256 in wasted ad spend. Ouch!

Google Ads Exact Match keywords used to be, well, exact. You could count on your ad showing up only when someone searched for the specific keywords you targeted—no deviations allowed. If a user did not search for those exact words, your ad would not appear. It was simple, straightforward, and easy to control.

But, times have changed. Now, Exact Match is not as exact as it used to be. Google has evolved the way it interprets searches, focusing more on user intent. What does that mean for you? It means your ad might show up for searches that are close but not identical to your exact keywords. For example, if someone searches for a related phrase or a variation, Google might decide that their intent is similar enough to show your ad.

While this can sometimes work in your favour, it also means that you need to monitor your keyword matches closely. The risk is that your ads could appear for searches that are not exactly what you want, leading to wasted clicks and, ultimately, wasted budget. It is important to keep a close eye on how Google interprets your keywords to ensure that your ads are showing up for the right searches.

Your Google Ads Experts

Managing Google Ads can be tricky, especially when you are juggling decisions about bidding strategies, keywords, and conversion tracking. And while it’s tempting to let Google’s automation do the heavy lifting, as we’ve seen, it is not always the best approach. In fact, you could end up wasting significant budget on poorly optimised campaigns if you are not careful.

That is why partnering with our Google Ads experts can be a game changer. Businesses often struggle with setting up campaigns or optimising their ad spend for the best results. By working with an experienced agency like ours, you can ensure that your Google Ads are managed by professionals who understand how to get the most bang for your buck. 

So, if you’re feeling overwhelmed or simply want to ensure your budget is being put to good use, why not consult one of our Google Ads experts? Whether you need help optimising an existing campaign or setting up a new one, we are here to help.

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