A low ad budget doesn’t have to mean minimal results. SMBs with spend under $5,000 can use these tips to improve their conversions.
Whether you’re a small business owner or an agency that works with SMBs, you’ve likely encountered issues with low ad budgets. SMBs are often spread thin and, especially in light of business shifts due to COVID, their ad budgets are, too.
However, low budgets don’t have to mean small returns for SMBs or their agency partners.
What is Google Ads? How does it work?
If you’re an SMB owner just getting started, here’s how it works: Google Ads offers paid advertising options for businesses of all sizes to promote their products and services across Google platforms like Search, YouTube, Shopping, and more. Ads display at the top of search results, in the local map packs, before and during YouTube videos, or on websites across the internet that opt into Google’s AdSense.
Google Ads, often referred to as pay-per-click (PPC), works on an auction system. Individual businesses submit a bid for their ads to show up in these ad locations for a greater chance at visibility with their target audiences.
At a fundamental level, Google looks at your bid amount, multiplies it by your Quality Score (a numeric estimate of the quality of your ads and their associated landing pages), and ranks the top ads in their advertising spots. If your ad is displayed, you pay only when your ad is clicked (hence pay-per-click).
How do small businesses use Google Ads?
The Ads bidding process may seem intimidating or cumbersome for small businesses investing in paid online advertising for the first time, but Google estimates that businesses profit $8 for every $1 spent on Google Ads. This can be a huge gain for SMBs and local businesses.
PPC allows businesses to target their audiences based on their particular demographics and locations — a big deal for franchise and brick-and-mortar businesses. SMBs can show up in maps, above search results, on affiliated websites that opt-into Google’s display ads, and even in pre-roll ads on YouTube. https://searchengineland.com/google-ads-and-smbs-how-to-drive-results-on-a-low-budget-345228