What is Google AdWords, and Is it Effective for Small Business?


How to use Google AdwordsGoogle AdWords are the advertisements that show up in the results of a Google search. It is an extremely efficient means of advertising and is especially useful for businesses with small advertising budgets (What is Google Adwords Video). You can get started for any amount of money you choose, whether you choose to pay per-click, per-day, per-week, etc., unlike radio, print, and television advertising which usually have very large upfront costs.

A simple example can easily explain the value of the Google AdWords Program. When performing a Google search for “Richmond Hill plumber”, the triggered AdWords are shown in the red box. Plumbers in the red boxes have established an Adwords Account and created a campaign that tells Google they want their ads to appear when someone is searching for a plumber in Richmond Hill. You, as the business owner , selects the keywords to “trigger” your ad.

When someone clicks on your ad for more information, that is the only time you pay any money to Google; when the ad is just seen, but not selected, there is no cost to you.

How much you “pay-per-click” varies greatly depending on your industry, city, and/or competition. Following the above example, a plumber in Toronto will have much more competition than a plumber in a small town.

By using a few simple Google tools, approximately 40, 000 people search Google for “plumbers in Toronto” and the average cost per click is $9.50; compared to the search query “plumbers in Bracebridge” which gets around 1600 searches per month and has an average cost per click of $6.00.

Those rates may seem a little high for a small business, but look at what you are getting out of it: potential customers actively seeking out your business in your city are finding you (who may not have otherwise). If 10 people end up clicking your ad in a month and only 1 of them ends up using your business, that 1 job will more than cover your $60 Adwords expense. Remember, you are ALWAYS in control of how much you are willing to spend, eliminating the worry about receiving a huge bill at the end of the month.

If you are interested in learning more about Google Adwords, or starting a campaign, ask how we can set you up with a free $100 Adwords Campaign.

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John Shaw

Owner & Lead Developer at Branch Out Marketing
John is the lead developer at Branch Out Marketing. An Ottawa based agency specializing in digital marketing strategies & web development.

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