5 Ways to Determine if Google Ads Are Right For Your Business

1. Demand capture vs. demand generation

Are people actively searching for your product or service?

Before throwing dolla dolla bills into Google Ads, check the search volume for what you sell. If nobody is searching for it, your ads won't work. Google Search is demand capture. You can check volume in Google Ads under Tools > Keyword Planner > Get search volume and forecasts. A Google Ads account is free to open, even if you never spend a dollar.

Watch my YouTube video on using Keyword Planner to forecast search volume:

Say you sell eco-friendly home cleaning products with no harsh chemicals. You might find that few people search for "natural household cleaning sprays" compared with general cleaning products. Then your first job is raising awareness of chemical-free cleaning, and search ads for direct conversions come later.

Start with educational content or social campaigns that teach your audience about eco-friendly cleaning. Google Ads may not be your main channel at first, but awareness builds demand over time, and that eventually shows up as search volume.

Whatever you create for each channel should solve a real problem, like a cleaning product that's safe for your family. Boom!

Alternatives:

1. Social ads (Facebook, Instagram): Eye-catching ads can reach people who don't know about eco-friendly cleaning yet, like parents of kids under five who touch everything.
2. Content marketing and SEO: Blog posts and videos about the risks of chemical cleaners and the benefits of green alternatives build organic traffic and interest over time.
3. YouTube videos: You don't need a big production. Shoot a video on your iPhone or with Loom about the problem your product solves, and show it to people interested in sustainable living or home improvement.

2. The buying journey

Where is your audience in their buying journey?

Marketers see the sales funnel differently, and some prefer models like the flywheel. Either way, knowing the customer lifecycle tells you which inbound or outbound tactics to use.

Google search ads usually reach people who already know they want something. They're mid-to-bottom funnel.

If your business is new, you may need awareness first. YouTube and display ads help at the top of the funnel.

Say you sell medicine kits for international travel. People may not know they need one. Your job is to show travelers how the kit helps them prepare, so the funnel starts with awareness and education instead of a direct sale.

Alternatives:

1. YouTube ads: educational or awareness videos aimed at people watching travel content.
2. Email marketing: build a list and nurture leads through the funnel.
3. Native ads: put your content on networks like Outbrain or Taboola to reach people who don't know they need your product yet.

3. Competition

Who are you competing with?

Competition is one of the biggest factors in whether Google Ads make sense. If you run a small e-commerce store selling tennis shoes, you're up against Nike, Adidas and New Balance. They own the important keywords, which drives up cost per click and squeezes small businesses out.

Get specific with keywords. Instead of "tennis shoes," go after long-tail terms that fit your product, like "eco-friendly tennis shoes" or "tennis shoes for arch support."

If competition is still too stiff for your budget, look at channels with cheaper clicks and fewer competitors.

Alternatives:

1. Microsoft (Bing) Ads: usually cheaper per click than Google. Smaller market share, but still millions of users. See Search Engine Journal's comparison of Google and Bing.
2. Amazon Ads: for e-commerce products already listed on Amazon, this can be a big help.
3. Pinterest Ads: great for visual products that drive interest and purchases.

4. Budget and return

Do you have the budget to compete?

Google Ads get expensive, especially in competitive industries or for high-value keywords. On a tight budget, check whether Google Ads will produce a good return on ad spend (ROAS).

Look past cost per click. For e-commerce, look at profit on ad spend (POAS). If your margin can't cover ad costs, you lose money on every sale.

You also want at least 30 conversions in 30 days so the algorithm can optimize. Without that, your cost per acquisition goes up.

If budget is tight, test smaller channels first. Less competition can mean a better return.

Alternatives:

1. Email marketing: use your first-party data to reach your ideal customers for less.
2. LinkedIn Ads: for B2B, LinkedIn reaches decision-makers precisely. It isn't always cheaper than Google, but the right audience can make it worth it.
3. Remarketing: reach people who already visited your site, on Google or other platforms, to cut wasted spend.
4. Influencer marketing: partner with people in your niche to reach an engaged audience without paying per click.

5. Audience targeting

How well do you know your audience?

Google Ads lets you target by demographics, interests and behavior. If your audience is very niche, though, Google may not be precise enough, and Meta or LinkedIn may target better.

Alternatives:

1. Meta lookalike audiences: build audiences that resemble your current customers. Sometimes Meta is cheaper than Google, too.
2. Reddit Ads: reach people in specific subreddits who are already discussing products like yours.
3. Quora Ads: reach people asking questions about your industry.

The bottom line

Google Ads can work very well, but they don't fit every business. Weigh search volume, where your buyers are in their journey, competition and budget before you dive in.

If Google Ads aren't right for you yet, there are plenty of other channels that can work alongside them or in their place, often for less. Book a chat with Demand Beacon to talk through your marketing mix. If you're already running Google Ads with an agency, here are the questions to ask them.