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Ultimate Google Ads Guide for SME’s: 3 steps to increase return on Ads spend

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Eerik Beeton, MSc Digital Marketing Management student

Return on Advertising Spend
Increase return on Ads spend with these 3 steps!

There are a few reasons why your Google Ads might not work as well for your business as it seems to work for your competitors. Make sure you follow these three steps and you’re guaranteed to be more productive with your Google Ads.

Many businesses have struggled to make most out of their digital marketing efforts and have employed strategies where they use an external marketing agency to handle paid digital marketing. I’m here to suggest that outsourcing Pay Per Click and Cost Per Mille (PPC/CPM) is not sensible anymore in the 2020’s. Why would you pay someone else to do what you can do yourself?

To prove this to you, the next three steps in this blog will bring to your attention some issues around outsourcing your Google Ads and how to do it yourself to both save money and increase the effectiveness of your paid ads!

1. Exploit automation, lose that agency and save up to half of the cost

Historically, making your ads has been time-consuming and has required a lot of technical input from marketers to stay in top of the game. Year 2019 was the year of automation, this also changed how PPC works. Now your PPC can be automated with budget diversification and smart audience targeting, making the use of an agency inferior. I’m listing more handy tools throughout this blog so keep reading!

If you buy click-based advertising services (Google Ads, Facebook, Instagram, Twitter), a service provider will usually charge a 10-20% of the ad spend and a minimum monthly fee for their work. If your competitor advertises their services in-house for £300 per month and you outsource this service, then your advertising spend on Google AdWords is £150-200. This gives your competitor 30-50% higher advertising budget and an advantage.

As the average return on advertising pounds spend on google is 1 pound spent, 2 earned, you’re most likely giving your profits away using  a marketing agency.

2. Optimise and save up to 69% on your Ads

Understanding you Ad quality score can help you to create better campaigns and improve your digital marketing as a whole.

Poorly optimised Google Ads are a costly mistake, not only are they more expensive but they won’t get your business the leads they are after.  Once you get your Ads optimised, your Ad spend can be decreased by 69%.

Maybe the most important part of your Google Ads optimisation is that they need to be eligible for Google auctions. This means that your ads need to focus on a few strange terms like Quality Score, Maximum Bid and Ad rank. Ad rank is influenced by the maximum cost-per-click (CPC) you choose for your ad and your ad’s Quality Score. In the following, I will explain how you can create the best quality score for your ads.

To improve the quality score of your ads, focus on the following 4 strategies

  • Use keyword planning to increase relevance of your adds by making ad groups based on keywords
  • Optimise your ads for higher Click-through-Rate (CTR) by using focus keywords and Google Ads extensions, like call to actions and contact options.
  • Improve the quality of your landing page. This can be achieved by (re)targeting your ad and landing pages using long-tailed keywords or by using Dynamic advertising.
  • Be patient! Google’s algorithms will take more than a few days to improve the quality score of your Ads and being patient is the key to measure the improvements.

If reading pages of descriptions is not for you, I’ve also included a 4-minute video clip on the strategies for your convenience.

3. Set tracking and retarget customers to get 3x more leads

Retargeting Ads are 76% more likely to be clicked on than regular Display Ads. Therefore, building accurate conversion tracking is important for improving the results of your advertising. This is important as it will show how the customer actually behaved on the site.

Often, micro-conversions, such as referral browsing, shopping cart additions,, are ignored in tracking. However, they are essential metrics that tell about the quality of traffic and enable accurate re-marketing to visitors who completed a specific activity. This can also be used to track the performance of your paid advertising and to make changes accordingly. See the short video below on how to set you tracking!

The importance of setting conversion actions to help your customer tracking is essential; if you’re not sure how to do this here’s a link to a Google Ads article that explains it step by step.

Lastly, understanding the whole customer journey and to assess all the steps is important. By setting tracking and using retargeting can feed into 3 times more leads for your campaigns.

Future-proof your Google Ads revenue

Google has focused heavily on machine learning and keeps finessing the technology in order to deliver helpful and frictionless customer experience. There have been some setbacks in the technology and most of the features are not fully functioning for the SME’s, but this said: – The year 2020 will be the year to look out for improvements in:

Next big things in the early 2020’s

Google has focused heavily on machine learning and keeps finessing the technology in order to deliver helpful and frictionless customer experience. There has been some setbacks in the technology and most of the features are not fully functioning for the SME’s but this said: – The year 2020 will be the year to look out for improvements in:

Eerik Beeton