Conquering Google Ads with a Low Budget: 12 Tips for Small Businesses

By: Jyll Saskin Gales, Google Ads Coach

Google Ads presents a powerful opportunity for businesses to reach their target audience directly. However, running Google Ads for small businesses and startups is complicated. Achieve a positive ROI is harder when you have a modest budget. Here are some key takeaways from my decade-plus of advising business owners to help you avoid common pitfalls in Google Ads.

Common Mistakes: Laying a Strong Foundation

One of the biggest mistakes small businesses make is diving headfirst into Google Ads without establishing a solid foundation. Before launching your first campaign, ensure you have the following in place:

• Conversion Tracking: Implement robust conversion tracking to measure the actions users take after clicking or viewing your ads. This data is crucial for evaluating campaign effectiveness and making informed optimizations.
• Audience Data: Gather as much information as possible about your target audience to tailor your ads and landing pages to their specific needs and interests.
• Optimized Landing Pages: Create user-friendly landing pages with clear calls to action that align with your ad messaging.
• Clear Ad Messaging: Craft concise and compelling ad copy that highlights the value proposition of your product or service.

Budgeting Wisely: Setting Realistic Expectations

When it comes to budgeting for Google Ads, it's crucial to be realistic and avoid overspending - or under-spending.

• Affordability: Never allocate more budget to Google Ads than you can afford to potentially lose, especially in the initial testing phase.
• Minimum Clicks and Spend: Aim for a minimum of 10 clicks per day per campaign and a daily budget of at least $20 per campaign (go with whichever rule of thumb leads to a higher daily budget).
• Keyword Planner: Leverage Google's Keyword Planner tool to estimate click costs and refine your budget based on your target keywords. 

Maximizing Impact: Strategies for Success

• Demand Gen Campaigns: If you're familiar with social media advertising, consider starting with Demand Gen campaigns, which mimic the Meta Ads buying process on Google's platform.
• High-Intent Keywords: Focus on keywords that indicate a strong purchase intent, such as "buy [your product]" or "[your service] near me."
• Brand Keywords: Advertising on your own brand name can be a valuable strategy to capture high-intent traffic and reinforce brand awareness.

Proving ROI: The Rule of 2

Before investing in Google Ads, assess your readiness using the "Rule of 2." Multiply your conversion rate by your average order value. If the result is at least 2, you're likely in a good position to start experimenting with paid advertising.

If not, consider focusing on other marketing channels like SEO until you've improved your conversion rate or average order value. Remember, be prepared for the possibility of no immediate ROI in the first month, and have a budget that allows for at least 3 months of testing.

Data Challenges: The Importance of First-Party Data

Small businesses often face challenges with limited data compared to larger enterprises. Prioritize collecting first-party data, such as email addresses or phone numbers, through your website or other marketing efforts. Even if you don't meet the thresholds for Customer Match in Google Ads, this data can still benefit the algorithm and provide a valuable asset for your business.

Bid Strategy: The Heart of Your Campaign

Your bid strategy is a critical element of your Google Ads campaigns, as it determines how Google allocates your budget to achieve your goals. While there's no one-size-fits-all solution, Smart Bidding strategies like Max Conversions, Max Conversion Value, Target CPA, or Target ROAS are often effective. Experiment with different strategies to find what works best for your business and goals.

By understanding these key takeaways and implementing them in your Google Ads strategy, you can increase your chances of success and achieve a positive ROI, even with a limited budget. Remember, Google Ads is a powerful tool, but it requires a strategic approach and ongoing optimization.