Is Running Google Adwords Ads Effective?

Is running Google Adwords ads effective? It’s a question shared by many advertisers and shop owners/businesses. It matters even more to newcomers. Since it’s such a pressing need, let The7 help you find the answer in the article below.

Should You Run Google Adwords Ads?

Types of Google ads.

To understand Google better, you should also be familiar with these 4 specific types of Google advertising:

  • Google Adwords (keyword ads)
  • GDN ads (Display Network ads)
  • Remarketing Google Ads (remarketing ads)
  • Google Shopping ads.
Types of Google ads
Types of Google ads.

>>> See more related articles: A guide to running Google ads on Adwords effectively yourself

Advantages of Running Google Adwords Ads

Google Adwords ads are popular with so many advertisers because they come with plenty of advantages, such as:

Easy access to customers

As mentioned above, as many as 80% of users search for information online before buying a product or service. That’s why, when you advertise on Google Adwords, customers can find your products much more easily.

Advantages of running Google Adwords ads
Advantages of running Google Adwords ads

Appears across many Google channels

To give users a better experience across the Google ecosystem, Google Adwords ads don’t appear only on Google itself, but also on partner platforms, including the Search Network, forums, YouTube videos and many other websites.

More engagement with paid ads

Google only charges for ads that users actually interact with, such as clicking on product/service information, clicking through to a website or calling a hotline. As a result, paid ad formats tend to generate high engagement from users.

More effective budget control

Another advantage of running Google Adwords ads is easy budget control. This lets advertisers or companies/businesses adjust their ad budget based on the budget they currently have.

Collecting customer data to support Remarketing campaigns

One benefit you definitely shouldn’t overlook when running Google Ads is the ability to collect customer data for future remarketing purposes. With Google Analytics, you can easily analyze and measure how effective your campaign is, then adjust your costs and bids so they make sense.

Comparing Google Adwords Ads With Other Advertising Formats

Versus Facebook Ads

When comparing Google Adwords with other advertising channels, the first one to come to mind is Facebook Ads. In reality, the two ad formats differ greatly, not in effectiveness but in the factors surrounding them.

Comparing Google Adwords ads with Facebook Ads
Comparing Google Adwords ads with Facebook Ads

Example:

  • Facebook Ads delivers ads proactively, while Google Ads is passive.
  • Facebook Ads delivers by age, gender, location, demographics, interests, behaviors and so on, while Google Ads delivers by search keywords.

The key to measuring how effective these 2 advertising services are is the number of orders. From the number of orders you can work out revenue and sales. From revenue and investment you can work out profit, then compare that figure across the 2 channels.

But if you compare order performance, you also need to consider other factors outside the control of your ads, such as the quality of your Facebook Page, pricing, website, customer care and consulting.

In addition, you need to consider which types of goods and products suit Facebook Ads better than Google Ads, and conversely, which products suit Google Ads but not Facebook Ads.

In short, you shouldn’t compare Facebook Ads and Google Ads to decide whether running Google Adwords ads is effective. It’s a comparison that doesn’t give you an accurate answer or result.

Versus GDN and Google Shopping

Versus GDN

First, what is GDN? GDN targets both sales and branding, while the main goal of Google Ads is sales.

When it comes to generating conversions, Google Ads has a slight edge. But when it comes to ad bids, most GDN campaigns have a lower cost per click than Google Ads.

GDN and Google Ads share the goal of driving sales, but their approaches to reaching customers are completely different. GDN is proactive, while Google Ads waits for potential customers to come find you.

There’s no accurate yardstick for comparing the effectiveness of these two formats either, not to mention that GDN helps build your brand and introduce new products.

Comparing Google Adwords ads with GDN
Comparing Google Adwords ads with GDN

Versus Google Shopping

The two formats are nearly identical in every respect, differing only in content and display mechanism. Google Ads displays ads based on: ad quality score, location, keywords, bids and so on. Google Shopping works differently: every ad that meets the display criteria is shown at random.

Comparing Google Adwords ads with Google Shopping
Comparing Google Adwords ads with Google Shopping

Currently, many studies show that Google Shopping ad metrics are 25 – 30% higher than Google Ads. That is only a comparison of metrics; when it comes to orders, you need to measure them from a campaign with specific products.

So which is more effective, Google Ads or Google Shopping? You’ll only get an answer by running a specific strategy.

Why Isn’t Google Adwords Effective?

Which industries is Google Ads especially effective for?

Drawing on extensive experience in online marketing, The7 believes the following industries are extremely well suited to running Google Ads:

Which industries is Google Ads especially effective for?
Which industries is Google Ads especially effective for?
  • Beauty – Aesthetics
  • Real Estate
  • Household Goods
  • Tech Devices
  • Accessories – Fashion
  • Pharmaceuticals – Medical Services

Most customers use Google Search to look up information about a product/service before making a purchase decision. The more competitive an industry is, the more it needs to strengthen its brand presence online.

When you run Google Ads, your business’s ad is displayed in the right position at exactly the moment users search for relevant keywords. If your ad meets the customer’s needs and intent, it makes a strong impression that helps customers remember you for longer. That in turn helps increase your purchase conversion rate and your business’s sales.

Why isn’t running Google Adwords ads effective?

The factors that negatively affect Google Adwords performance include:

  • Advertising a product/service that isn’t truly a good fit.
  • Ads that lack a detailed strategy to fully tap into the needs of your target customers
  • A website whose quality, pricing and persuasiveness aren’t up to par
  • Google Adwords ads that don’t use keyword matching. Keyword matching helps you control when your ad appears as customers type in keywords. There are currently 3 basic match types: phrase match, exact match and broad match.
  • An unoptimized Google Adwords Quality Score, a factor that directly affects your Google Ads costs.
  • Google Adwords ad creatives that aren’t truly good. For example, wordy content that doesn’t focus on the main message you want to advertise.
  • A slow-loading main page, which reduces ad performance
  • Not truly mastering the basics of Google Adwords.
  • Never having tried the other ad formats Google offers.
Why isn't running Google Adwords ads effective?
Why isn’t running Google Adwords ads effective?

>>>> See more:

Is running Google Adwords ads effective? It depends on many subjective and objective factors. So don’t rush to blame Google; look for the best way to optimize your own ads instead. Or, if you need support from a reputable full-service marketing agency, contact The7 via hotline: 084.397.77.77 or website: https://the7digital.com.

Nguyễn Đình Bảo

As CEO of The7, I am committed to sharing practical, useful knowledge with every reader. Every article on The7 is based on my 7 years of hands-on experience in marketing — Facebook advertising, LinkedIn advertising, Google advertising, and marketing strategy. I hope you take away plenty of insight from these posts and apply it successfully in practice.

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