SEM: Why SMEs Should Invest in Google Ads Campaigns

Businesses of all jacks and trades are increasingly reliant on online marketing to reach their target audience and drive growth. With consumers spending more time online than ever before, a strong online presence has become a necessity for success.

To navigate the complex landscape of digital marketing, businesses have a variety of channels at their disposal, including:

Social media marketing: Engaging with customers on platforms like Facebook, Instagram, and LinkedIn.
Content marketing: Creating valuable content to attract and retain visitors.
Email marketing: Building relationships with customers through personalized email campaigns.
Search engine optimization (SEO): Improving a website’s organic search engine rankings.
Pay-per-click (PPC) advertising: Paid advertising on search engines and other platforms.

Among these channels, Pay-Per-Click (PPC) advertising has emerged as a highly effective and measurable strategy. PPC allows businesses to reach their target audience at the precise moment they are searching for relevant products or services.

While there are several PPC platforms available, including Bing Ads, Amazon Ads, and Facebook Ads, Google Ads remains the largest and most popular option. Its extensive reach, robust targeting capabilities, and comprehensive reporting tools make it a preferred choice for many businesses.

In this comprehensive guide, Knok Studios will delve into the world of Google Ads and explore how businesses can leverage this powerful tool to achieve their online marketing goals.

Table of Contents

Search Engine Marketing: Terms Definition

Before we delve deeper, let’s clarify some key terms:

Google Ads (formerly Google AdWords): Google’s online advertising platform that allows businesses to create ads and bid on keywords to appear in Google search results and on partner websites.
CPC (Cost Per Click): The amount you pay each time a user clicks on your ad.
SEM (Search Engine Marketing): A form of online marketing that involves promoting a website by increasing its visibility in search engine results pages (SERPs) through paid and organic methods.
CPM (Cost Per Mille): The cost to reach 1,000 impressions (views) of your ad.
CTR (Click-Through Rate): The percentage of impressions that result in clicks on your ad.
Ad Rank: The position of your ad in the search results, determined by a combination of factors including bid amount, ad quality, and expected CTR.
Quality Score: A metric used by Google to assess the relevance and quality of your ads and landing pages.
Keywords: The words or phrases that users search for and that your ad is targeting.
Ad Extensions: Additional pieces of information that can be added to your ads to make them more informative and visually appealing.
Conversion: A desired action taken by a user, such as making a purchase, signing up for a newsletter, or filling out a contact form.
ROAS (Return on Ad Spend): The revenue generated from your ad campaigns divided by the cost of those campaigns.

Why Should You Use Google Ads? The Benefits of Search Engine Marketing

1. Improved brand visibility

Top-of-Mind Awareness : Google Ads ensure your brand appears at the top of search results, making it the first thing potential customers see. This prime positioning dramatically increases your brand’s visibility, making it more likely to be remembered.
Brand Recognition : Google Ads allow you to repeatedly show your brand to potential customers, reinforcing your brand identity and building familiarity. Additionally, the Remarketing feature allows you to target users who have already visited your website, increasing the chances of them returning and making a purchase.
Credibility : Google’s search results are often seen as a reliable source of information. Being featured in these results can enhance your brand’s credibility and trustworthiness.

2. Increased website traffic

Targeted reach: Google Ads allows you to target users based on keywords, location, time of the day, demographics, age, sex, languages, interests, devices… so you can tailor your campaign to your ideal customer (however, the more criteria you use to refine your audience, the more bucks you’ll pay).
Immediate results: Google Ads can start driving traffic to your website in less than 48 hours after creating your first campaigns, making SEM an amazing tool to get visitors even if you just opened.
Scalability: You can adjust your budget and targeting to increase or decrease traffic as needed, making it the perfect marketing tool for businesses with high seasonality such as tourism, jewelry, and education.

3. Increased conversions

Market Share: Google Ads allow you to reach a wider audience than traditional marketing methods, giving you a significant advantage over competitors who rely solely on organic search or other channels.
Relevant Messaging: Tailoring your ad messages to resonate with your target audience increases the likelihood of clicks and conversions, making your customer acquisition efforts more effective.
Personalized Offers: By using remarketing and dynamic ad targeting, you can deliver personalized offers and promotions to your existing customers, increasing their loyalty and encouraging them to make additional purchases.

4. Measurable results

Detailed analytics: Google Ads provides comprehensive tracking and reporting tools, allowing you to measure the effectiveness of your campaigns. For each campaign, country, city, keyword, you’ll have data you can exploit to refine your strategy, since you will know precisely what triggered your conversion, a tremendous advantage compared to other marketing channels. Knowing what keywords are working best for you is also an amazing way to improve your Search Engine Optimization.
ROI analysis: As a result, you can calculate your return on investment (ROI) to determine the profitability of your ad spending. You will know how much you need to spend for each conversion and be able to assess if it fits your business structure.
Automatic optimization: While you can study your KPIs on your own, Google Ads has become smarter over the years, and it can automatically make adjustments to favor the best ads, locations, etc. and it will also give you advice and recommendations to further improve your campaigns.

Crafting Your SEM Strategy

Google Ads offers a variety of campaign types to suit different marketing goals. Whether you want to increase website traffic, generate leads, drive sales, or enhance brand awareness, there’s a campaign type that can help you achieve your objectives.

1. Search Advertising: For Qualified Traffic

Search ads appear at the top of search engine results pages (SERPs) when users search for specific keywords related to your products or services.

They are highly relevant to the user’s search query, leading to higher CTRs and conversion rates. However, search advertising can be competitive, especially for popular keywords, and the cost per click (CPC) can vary significantly.

Best Applications:

Driving Conversions: Generating leads, sales, or sign-ups.
Customer Acquisition: Attracting new customers.
Brand Visibility: Increasing brand visibility in search results.
Local SEO: Promoting local businesses and services.

2. Display Advertising: For Visibility & Brand Awareness

Display ads are visually appealing ads that appear on various websites across the internet. They can be texts, static images, animated GIFs, or video ads. While they can reach a broad audience and are effective for building brand awareness, they often have lower click-through rates (CTRs) compared to search ads. Additionally, users may become desensitized to display ads over time, leading to decreased effectiveness.

Best Applications:

Brand Awareness: Building brand recognition and visibility.
Product Promotion: Introducing new products or services to a wider audience.
Retargeting: Reminding users of your brand and encouraging them to return.
Remarketing: Targeting users who have previously visited your website but haven’t made a purchase.

3. Ads with Media: For Engagement & Storytelling

Ads with media combine text, images, and videos to create more engaging and impactful ads. Visual elements can capture attention and increase engagement, leading to higher CTRs, but also higher costs, so they shouldn’t be used for all types of products and services. Also, creating visually appealing ads can be more time-consuming and resource-intensive for your digital marketing expert.

Best Applications:

Product Showcase: Showcasing products or services in a visually appealing way.
Brand Storytelling: Telling your brand’s story through visuals.
Emotional Connection: Connecting with your audience on an emotional level.
Educational Content: Providing valuable information or tutorials.

4. Other types of Google Ads campaigns

Discovery campaigns leverage Google’s discovery properties like Google Discover and Gmail to reach potential customers who may not be actively searching for your products or services.
App campaigns are designed to promote your mobile app on Google Search, the Play Store, and other Google properties, driving app installs, in-app actions, and user engagement.
Shopping campaigns showcase your products directly in search results, making it easier for customers to find and purchase them.
Local campaigns target customers in a specific geographic area, helping local businesses attract customers within their local market.
Performance max campaigns automate your campaigns across multiple Google Ads channels, optimizing for your chosen performance goal, such as conversions or clicks.

When to Run an SEM Campaign?

First and foremost, before breaking the bank on multiple paid campaigns, SMEs need to understand that not all websites are created equal, and that a campaign might be effective for one website, and counterproductive for another. Depending on the optimization of your website, your campaign will achieve very different results.

So before spending any money on SME, ask yourselves these questions:

Is my offer clear? Can the visitor easily identify what my added-value or USP is?
Is my content engaging? Are my strengths reflected through it?
Is my navigation optimized? Have I given enough thought about User Experience?
Is my website fast enough? Won’t the visitors wait too long to act?
Is my design convincing and relevant? Does it appeal to my audience?

And, finally … is my website good enough in terms of conversion?

At knok studios, we always want our customers to get the best bang for their buck. This is why it is important to put all chances on your side by first optimizing all these points: UX, speed, design, content, strategy… Make sure to consult with us and address these matters before throwing your money out of the window!

So once you have a website that absolutely nails its conversions, let’s consider the best opportunities for you to run your campaigns:

1: Countering a Temporary Decrease in SEO Visits

Imagine you’re a small business owner who specializes in selling handcrafted jewelry. Suddenly, your website’s organic search rankings drop due to a Google algorithm update. This can significantly impact your visibility and traffic.

To mitigate the effects of this decline, you can launch a targeted Google Ads campaign focused on relevant keywords related to your jewelry products, or increase your budget. By bidding strategically on these keywords, you can ensure that your ads appear prominently in search results, driving traffic to your website and maintaining sales.

2: Launching a New Product or Service

Let’s say you’re introducing a new line of eco-friendly jewelry; Google Ads can be a powerful tool for generating initial awareness and interest. By creating compelling ad copy and targeting specific demographics, you can reach potential customers who are likely to be interested in your new products. You can also use remarketing to target users who have visited your website and purchased your other products in the past to show them your novelties.

3: Expanding into a New Market

Suppose you want to test the expansion of your jewelry business to a new geographic region, before, say, hiring someone there, or founding a local company and store. Since Google Ads allows you to target specific locations and demographics within that region, it is a great tool to test the waters. You wonder if your product sold in the US can make it in Asia? Duplicate your US campaign and see if it gets as good as a result in Vietnam, in South Korea, etc. without even setting foot there!

4: Driving Seasonal Sales

For businesses that experience seasonal fluctuations in demand, Google Ads can be a valuable tool for driving sales during peak periods. For example, if you sell jewelry that is popular during the holiday season, you can create a targeted campaign focused on keywords related to Christmas gifts, Hanukkah presents, or Valentine’s Day jewelry. By running these campaigns in the weeks leading up to these holidays, you can increase your visibility and capture a larger share of the seasonal market.

5: Improving Brand Awareness

If your goal is to increase brand recognition and reach a wider audience, Google Ads can help you achieve this. By displaying your brand across various platforms, including the Google Display Network and YouTube, you can create top-of-mind awareness among potential customers. Then again, remarketing to target users who have interacted with your brand in the past further reinforces your message and conversions.

Understanding Google Ads Costs: Mastering your Budget

This is one of the questions our clients ask us the most: “How much should I spend on marketing?“, which is always somewhat of a curveball, since we first need to determine key points that will help us understand how your business operates:

What is your competition like? Are you entering an arena of gladiators armed to the teeth or do you have a safe niche to exploit? Obviously, the more in-demand a market is, the more budget you’ll have to spend to be on par with your competition.
How much are you willing to “lose” in test campaigns? You need to consider that each product is unique and will resonate differently on the audience. There is no “magic formula” that will work 100% of the time. If you can expect immediate visits with Google Ads, conversions might need more time, as the campaigns get refined. A 1 or 2 month old campaign isn’t enough to assess what the best solution is for you, and needs refinement before reaching peak performance. So you need to factor in what can be slow beginnings.
How much do you spend in marketing at all? Certainly, you shouldn’t put all your eggs in the same basket and run only Google Ads campaigns. Tell us how much you’re spending in other channels for us to be able to have a global vision of your strategy and objectives.
How much should you spend in marketing? Are you spending enough? Too much? Run some research on your competitors and industry. Usually, you will get indications such as: “x percent of your total revenue,” which can give you a hint on how much to spend on Google Ads.
What is your average sale and margin? Let’s say you sell shoes online, with an average price of 60 USD, and your margin is 50%. In this case, you don’t want to spend more than 30 USD in advertising for each purchase. Make sure you know your business enough to have a clear vision of this.
and, once again: Is the website converting enough? Using the same example, let’s say that your average CPC for your shoes campaign is 50 cents. Well, in that case, to meet your goals, you need to sell one pair at least every 60 visits (50 cents x 60 = 30 USD margin), meaning your website needs a 1.67% conversion rate. Anything higher than that, and you’re good to go. However, if your website can’t convert as much, you might need to change your offer, optimize your website, and/or change your strategy to spend less.

Moreover, the cost of Google Ads depends on several factors that are difficult to estimate before actually running campaigns:

Keywords: The competitiveness and search volume of your chosen keywords significantly influence CPC. Highly competitive keywords with high search volume often have higher CPCs due to increased demand from advertisers.
Ad Quality: The relevance and quality of your ads play a crucial role in determining CPC. Ads that are highly relevant to the search query and user intent tend to have lower CPCs because Google rewards them with better ad positions and lower costs. A higher Quality Score, which is a metric that measures the overall quality of your ad, can also lead to lower CPCs.
Competition: The number of advertisers bidding on the same keywords directly affects CPC. The more advertisers competing for ad positions, the higher the CPC will likely be.
Location: Geographic targeting can impact CPC. In areas with higher competition or higher average income levels, CPCs might be higher due to increased demand and willingness to pay more. The cost of a keyword will change drastically between, say, the USA, France, and Vietnam.
Bidding Strategy: Your approach to bidding on keywords can significantly influence CPC. Manual bidding gives you more control over your CPC, but it requires careful monitoring and adjustments. Automated bidding strategies, such as Target CPA or Target ROAS, can help you optimize your bids based on specific goals. However, the CPC will vary depending on the chosen strategy and the campaign’s performance.

Google Ads Best Practices

Now that we know how much and when to spend Google Ads budget, let’s talk about how to best optimize your Google Ads campaigns, for lower CPC and higher CTR and conversions:

Keyword Research: Effective keyword research is essential for identifying relevant terms that align with your target audience’s search intent. Use tools like Google Keyword Planner and Google Trends to discover high-volume, low-competition keywords. Consider long-tail keywords, which are more specific and often have lower competition. Additionally, explore related keywords and synonyms to broaden your reach.
Ad Quality: Creating compelling and informative ads is crucial for attracting clicks and driving conversions. Ensure your ad copy is relevant to the search query, highlights your unique value proposition, and includes a strong call to action. Use ad extensions to provide additional information, such as sitelinks, callouts, and structured snippets, which can improve your ad’s visibility and click-through rate.
Landing Page Optimization: Your landing page should be designed to seamlessly follow up on the promise made in your ad. Ensure it’s relevant to the ad’s message, loads quickly, and is easy to navigate. Optimize your landing page for conversions by including clear calls to action, compelling visuals, and social proof elements. Test different landing page variations to determine which elements are most effective.
Tracking and Analysis: Regularly monitor your campaign performance to identify areas for improvement. Use Google Analytics and Google Ads to track key metrics such as impressions, clicks, CTR, conversions, and cost per conversion. Analyze this data to identify trends, identify underperforming keywords or ad groups, and make data-driven adjustments to your campaign.
A/B Testing: Experiment with different ad variations to find the most effective ones. A/B testing allows you to compare different versions of your ads, landing pages, or other campaign elements to determine which performs better. By testing different elements, you can optimize your campaigns for maximum results.

Partnering with Knok Studios for SEM Success

At Knok Studios, we specialize in helping businesses achieve their online marketing goals through effective SEM campaigns. Here is how we work with you to develop Google Ads campaigns:

Make Assumptions: We conduct a keyword audit and/or study your Google Search Console data to gather insights.
Create Google Ads account: We guide you through your Google Ads account setup process, including billing and admin access.
Test campaigns: We launch test campaigns to identify optimal strategies.
Measure and improve: We offer ongoing support to refine the strategy, update keywords, adapt budget, and improve targeting.

Don’t miss out on the opportunity to grow your business through targeted SEM campaigns. Contact Knok Studios today and let’s get started!

SEM FAQ: Learn More

How does Google Ads CPC compare to Facebook and other alternatives in terms of CPC?

CPC on Google Ads tends to be higher, especially for highly competitive keywords and industries. This is because advertisers are bidding on search terms that users actively seek out, indicating a higher intent to purchase, while ads on Instagram and Facebook are not intent-based.

What industries have the best chance to engage customers on Google Ads?

The top 3 industries that are clicked the most are #1: Travel and Tourism, #2: Vehicles, and #3: Dining & Nightlife. The bottom 3 industries are: Law & Government, followed by Computers & Electronics and Finance, with 2 times less engagement.

Source: Instapage.com

What are the average CPC based on industry?

Industries like insurance, online education, and legal services have significantly higher CPCs compared to others, and can be well above the $10 mark. However, industries such as electronics and pharmaceuticals have lower CPCs, around $1 only per click.

average-google-ads-cpc-in-industries — Source: SmartyAds.com

How does location affect Google Ads CPC?

The U.S. is the golden standard, as the CPC is higher there. Following the U.S., the next most expensive locations to advertise are the United Kingdom, Australia, Brazil, and Chile (1 to 20% cheaper than the U.S.). Then, we find countries such as Canada, Italy, Turkey, Norway, Finland, and Ireland, which are 21% to 40% cheaper. Spain, Portugal, Mexico, Algeria, Saudi Arabia, or Japan range in the 41% to 60% cheaper. Finally, in the lower brackets (61% cheaper and over), we will find places such as India, Vietnam, Indonesia, Argentina, Morocco, Egypt, Russia, etc.