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Majority of advertisers on Google lose money. "According to a study, 40 percent of small business owners stated that their Google Ads campaign yielded no leads
by pcurve 3y ago
Majority of advertisers on Google lose money.
"According to a study, 40 percent of small business owners stated that their Google Ads campaign yielded no leads. Whereas, an additional 33% of business owners noted that these campaigns produced very few leads."
I've worked at large companies and every single one of them saw negative returns on their campaigns.
It's a big wealth transfer mechanism.
- whimsicalism 3y agoIt's very easy to run incrementality studies and you should be doing this if you are a large company.
- chrismarlow9 3y agoYou have to optimize and test constantly for AdWords to pay off (disable content network advertising, geographic targeting on a schedule that follows the sun, a/b testing copy) and build methods of retaining users that don't buy to eventually convert (email newsletters, add us on Facebook, sign-up for this free ebook, blah blah). My guess is small business doesn't have the time to tweak all these things. There are also small tricks about writing copy to make it economical. Social media sites have the retention mechanics built for you so I'm not surprised they convert better. Just my 2 cents as a guy who does marketing for some spare pocket change.
- scrollaway 3y agoCan you send me an email, or put yours in your profile?
- bagacrap 3y agoTrust me bro
- cm2012 3y agoYep, people spend $120b a year on Google ads, crushing the old ad industry, because it doesn't work. It's just idiots in marketing departments all the way down. (I've worked with 50+ company ad accounts and any large business will have profitable campaigns at x level spend)
- ipaddr 3y agoThose are not small businesses.
- chasebank 3y agoSmall business by definition in the US is much larger than you'd think. IIRC, it's under 250 employees and under $40M in annual revenue.
- ipaddr 3y agoEnterprises can be classified in different categories according to their size; for this purpose, different criteria may be used, but the most common is number of people employed. In small and medium-sized enterprises (SMEs) employ fewer than 250 people. SMEs are further subdivided into micro enterprises (fewer than 10 employees), small enterprises (10 to 49 employees), medium-sized enterprises (50 to 249 employees). Large enterprises employ 250 or more people
- jamilton 3y agoThis might be saying more about small businesses than Google Ads.
- tourmalinetaco 3y agoAnd what might that be? Because all I see is what it says on the tin: Google Ads are innately unprofitable, and as others added require intense optimization to even reach profitability.
- jamilton 3y agoIt might be the case that most small businesses lose money on ads because most small businesses fail in general.