Achieving ROAS with Google Ads: 6 Things to Know

Dec 24, 2020

Achieving Positive ROAS with Google Ads: Things to Know

Small businesses that want to attract new buyers have a lot of tools at their disposal. One avenue is using paid search ads on Google. This tactic can be highly competitive, so you’ll need a strategic approach to make it worth your investment. Achieving positive ROAS (return on ad spend) with Google Ads is possible. Here are a few things you should know before you begin spending.

What Are Google Ads?

Google Ads is an advertising platform that allows businesses to bid for keywords and create ads. When a user searches using those keywords, depending on your bid for the word, the quality of your ad, and other factors, your ad then may appear in the results.

What Is ROAS?

First, it’s critical to define ROAS. It’s a marketing metric that measures the revenue you bring in for every $1 spent on ads. In simple terms, it calculates how effective your advertising is in converting buyers. The higher your ROAS, the better your advertising is performing. The formula for ROAS is conversion value (revenue)/ad costs.

Targeting the ‘Right’ Keywords

Defining what keywords to target depends on several things. Most organizations start with a keyword master list that includes data around the volume of searches per month and competition for both paid and organic. Competition is a number between 0 and 1. The closer to 1, the more competitive it is. Higher competition also means higher bidding.

To optimally target, you need a group of keywords that have sufficient volume and low to medium competition. They should also be applicable to your service or solution. If you are in an ultra-competitive industry, you may find that almost all keywords have numbers close to 1. That doesn’t mean you can’t achieve ROAS with Google Ads — you’ll just have to be extremely strategic.

Creating Compelling Ad Copy

Google Ads are very restrictive on character count, so your ads should be short, sweet, and to the point. They also need to use the keywords in a natural way and speak to your audience. Local businesses will also want to include cities, zip codes, or other geo-specific language.

The reality is that most people searching on Google are aware of what the ads are versus the organic results. They are savvy, but that doesn’t mean they won’t click your ad. You’ve just got to give them a compelling reason. In just a few short lines, you need to convey credibility, which you can do by adding language that supports this, such as “voted top home builder in Massachusetts.”

Another way to convince people to click is to offer a discount or a promotion that they’ll only get if they select your ad. Additionally, ads need to be descriptive of what you do. You’ll want to make sure your ads have a high Quality Score, calculated based on relevancy and historical performance. The better your score, the better position you’ll gain.

Providing a Relevant Landing Page

When users click your ad, where do they go? They should go to a conversion-focused landing page that uses the same keywords and offers of the ad. If you send people to your homepage, there’s no clear action for them to take, and they could abandon your page. You’ll pay for the click but have no return. To achieve positive ROAS with Google Ads, you need to ensure the landing page meets the buyer’s expectations.

Google Ads Management: Get Help from Pros

Google Ads management can be a full-time job, even for a small business. It requires a lot of tweaking and perfecting to get the bidding and copy right. It can be overwhelming for those without digital marketing experience. We make it simple and easy for our clients. Learn more about how we can manage your Google Ads and give you the best shot at positive ROAS.

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