Google Ads (PPC) what is the return on investment (ROI)?
Our Experience of Google Ads (PPC)
Our bread and butter workload over the last 10 years has been website design, website development and search engine optimisation. We have always run or set up Google Ads campaigns for numerous clients. More recently App design and build is a growing work stream.
We have come across many clients who had previously been ripped off by scam agencies. These agencies sold them Pay Per Click packages that did not work. Other clients had attempted to rum their own Google Ads campaigns but did not achieve a return on their investment. These clients are then looking to SEO to achieve results via organic search.
Combine SEO with PPC For Better Results
In assessing the best approach for a client regards SEO or PPC or SEO+PPC there are a number of factors which need to be taken into consideration. How fast the Client needs results and how tough the online competition is are two key considerations. Size of budget is clearly another but we have recently had a very interesting case which raises some interesting questions and which is potentially very important for start-up businesses and new product launches.
In the first 3 months of last year we spent, on behalf of a client, a total of circa $90,000 on Google Ads for a USA based new venture.
The truth is we are unsure of the return on this investment which may seem incompetent at first sight but we are about to do it again with a similar new venture.
How It Worked Out
The actual money put up-front for Google Ads was $3000.
The first $3000 spent on our Ads campaign produced a gross income of just under $4000. Having paid for product our client was left with almost all of the original $3000 to reinvest in Ads.
We actually repeated this cycle around 30 times in the three month period. We spent a total of $92,000 on Google Ads.
At the end of three months this new business had the grand total of $4250 in cash and had paid for all product used and had paid fees for on-line payment. The Client had $1250 plus the original $3000.
It seemed that we and the client were working hard to make money for Google and PayPal.
A return of only $1250 for three months part time work, not yet time to order a new Ferarri.
Why Spending Money On PPC Is Worth While
However, we believe that this investment and repeated re-investment in Google Ads was absolutely the right thing to do. Many of the customers attracted through Google Ads have become returning customers and some have become subscription customers. After the initial 3 months a fledgling customer base had been built and the SEO work on the website was gaining traction, and sales from organic search were doubling month on month.
PPC Accelerates Growth When Done Right
The actual cash investment in Google Ads was only $3000 and like a good day on the roulette table we could repeatedly play with this money. By month 11 this business was delivering healthy profits and continuing to grow a niche position driven by search engine optimisation. The unknown is where would we have been if we had not repeatedly invested in Google Ads. Our belief is that this business model very significantly accelerated customer growth and monthly income.
The point is that whilst you need expertise and experience to effectively manage Google Ads campaigns, or risk losing all your funds pretty rapidly, this pump priming approach has been very effective in this case and will work for other similar projects.
Speak to us today
If you want to discuss how to take a new business or product from a standing start using a mix of Search Engine Optimisation and Pay Per Click give us a call to arrange a meeting.