In the hyper-competitive world of ecommerce startups, establishing a solid online presence and attracting customers can be a daunting task. Many marketing strategies are available, but one has consistently proven its worth: Google Ads.
Google Ads is an online advertising platform where businesses pay to display brief advertisements, service offerings, product listings, and video content to web users. In September 2021, Google held around 92% of the global search engine market share, making Google Ads an incredibly powerful tool for reaching potential customers. In this guide, we will explore five compelling reasons why every ecommerce startup should use Google Ads.
What Type of Ads Are There?
When you search for a product or service on Google, you’re likely to see three types of results: Shopping Ads, Search Ads, and Organic Results.
Shopping Ads, or Product Listing Ads (PLAs), appear when a user performs a product-related search on Google. These ads are highly visual and typically include a product image, title, price, store name, and sometimes, product ratings.
Shopping Ads use a cost-per-click (CPC) model, where businesses are charged each time a user clicks on their ad. These ads are created through Google Merchant Center and managed through Google Ads, using product data feeds that you provide.
Search Ads, also known as Pay-Per-Click (PPC) ads, appear at the top or bottom of the Google search results page, above or below the organic listings. They are typically text-based and include a headline, URL, and description. Some search ads may also feature extensions, such as call buttons, location information, or links to specific parts of your website.
Organic results are listings that appear in Google search results due to their relevance to the search terms, as determined by Google’s search algorithm. Unlike Shopping Ads or Search Ads, organic traffic is not paid. Instead, it’s earned through effective Search Engine Optimization (SEO) practices, such as using relevant keywords, creating high-quality content, and earning backlinks from reputable sites.
Here is the visual representation of the difference between Shopping Ads, Search Ads & Organic result on Google.
5 Reasons Why Every Ecommerce Startup Should Use Google Ads
So why should ecommerce startups use Google Ads? Here are a few reasons why.
1. High Intent Traffic
Google Ads function primarily on keywords, which users input during their search queries. This enables Google Ads to present your advertisements to an audience that’s actively looking for products or services similar to what your ecommerce business offers. Essentially, Google Ads doesn’t just drive traffic—it drives the right kind of traffic.
A 2021 report by Google Economic Impact stated that businesses generally make an average of $2 in revenue for every $1 they spend on Google Ads. This impressive return on investment can be attributed to the ‘high intent’ nature of the users your ads are reaching. These users are already searching for products or services like yours, which means they’re more likely to convert than an audience reached through more passive advertising channels. By tapping into this high intent traffic, you can maximize your advertising effectiveness and improve your conversion rates.
2. Remarketing Capabilities
Remarketing, also known as retargeting, is a strategy that involves showing ads to individuals who have previously interacted with your website or mobile app. With Google Ads, you can strategically place your ads to be visible to these users as they browse other websites or use other mobile apps.
A study by CMO by Adobe suggests that remarketing can boost ad response by up to 400%. This strategy is essential because, typically, only around 2-3% of first-time site visitors actually convert. Remarketing allows you to continuously engage with the other 97%, reminding them of their interest in your products and nudging them towards a purchase. This strategy can significantly improve your conversion rates and overall advertising return on investment.
3. Detailed Analytics and Insights
Google Ads comes with a powerful analytics suite that provides a wealth of data about your ad performance. This data includes key metrics like click-through rates (CTR), conversion rates, cost per click (CPC), and cost per conversion. These metrics can help you gauge the effectiveness of your ads and identify areas for improvement.
In 2021, it was reported that Google Ads reaches 90% of the global internet users, and processes over 40,000 search queries per second. With such a vast user base, Google Ads can provide a treasure trove of data that you can use to fine-tune your advertising strategies and optimize your ad spend. These analytics and insights are invaluable for making data-driven decisions and improving your return on investment.
4. Speed and Scalability
One of the primary advantages of Google Ads is that it provides immediate visibility on Google’s search results pages. While organic search engine optimization (SEO) is a critical long-term strategy, it can take several months to see tangible results. With Google Ads, you can bypass the organic competition and get your ads displayed prominently, driving immediate traffic to your ecommerce site.
Furthermore, Google Ads is highly scalable. If an ad campaign is performing well, you can increase your ad spend to reach more users and drive more conversions. Conversely, if a campaign is underperforming, you can reduce your ad spend or pause the campaign to minimize losses. This flexibility allows you to adapt your advertising strategy based on performance and business growth.
5. Competitive Advantage
Utilizing Google Ads can provide your ecommerce startup with a substantial competitive advantage. By bidding on keywords that are relevant to your products or services—including those your competitors are ranking for—you can ensure your ads are displayed to users who are likely to be interested in what you offer.
According to a study from Google, search ads can increase brand awareness by as much as 80%. This means even when users don’t click on your ads, they’re still exposed to your brand. This increased brand awareness can lead to higher organic traffic and conversions in the future. In a competitive ecommerce landscape, staying top-of-mind for potential customers can give you a significant advantage.
Conclusion
Google Ads presents an array of benefits for ecommerce startups, from tapping into high intent traffic to offering detailed analytics and insights. This robust advertising platform allows businesses to strategically position their products in front of potential customers, increase brand awareness, and gain a competitive edge.
Whether you’re launching a new product or looking to expand your reach, Google Ads offers speed, scalability, and a high potential return on investment. As the digital marketplace continues to evolve, leveraging tools like Google Ads is no longer optional; it’s a necessity for ecommerce success.