Is Google Ads worth it for a small business?

Most small business owners have heard both stories about Google Ads. One friend says it fills their diary. Another says they spent a few thousand dollars and got nothing but clicks from people who never called. Both can be true, and the difference is rarely luck.

This guide helps you answer the question for your own business: when Google Ads is worth it, when it isn’t, how to do the numbers before you spend, and how to run a fair test.

Why Google Ads can work so well for local businesses

Most advertising interrupts people. Google Ads shows your ad when someone types what they want, such as “emergency plumber Parramatta” or “bookkeeper near me”. That person already has a problem and wants it fixed, so you are not creating demand. You are in front of people ready to call someone today, and you pay only when they click.

You also stay in control: you choose the searches, suburbs, hours and daily budget, and you can pause at any time.

When Google Ads is usually worth it

Google Ads tends to pay off when most of these are true for your business:

• People search for what you do. Plumbers, electricians, cleaners, physios, accountants, removalists and lawyers all get searched for every day. If customers look for your service on Google, you can be there.
• A new customer is worth a fair amount. If one job, or one customer over a year, is worth several hundred dollars or more, you have room to pay for clicks and still come out ahead.
• You can take on more work. If your diary is already full, more leads just mean more people to turn away.
• Someone answers the phone. A lead that rings out or waits days for an email reply is money spent for nothing. Fast, friendly follow-up is half the result.
• Your website makes it easy to say yes. The ad gets the click. Your landing page has to win the call, with clear services, your area, proof of your work and a phone number that is easy to tap.

When it probably isn’t worth it (yet)

Google Ads is not the right first step for every business. Hold off, or fix the basics first, if:

• Nobody searches for your product. If you sell something new that people don’t know to look for, search ads have little to work with. Social media ads or word of mouth may suit you better.
• Each sale is very small. If a customer is worth a few dollars, click costs can swallow your margin.
• Your budget is tiny compared with your competitors. In busy city trades clicks can be expensive, and a handful of clicks a week gives you too little data to judge.
• Your website is the weak link. If visitors already land on your site and leave without calling, ads will only send more people to the same leaky page. Work through these 7 checks for websites that get visitors but no enquiries first.

Do the maths before you spend a dollar

You can answer most of the “is it worth it” question on the back of an envelope. You need three numbers.

1. What a new customer is worth to you

Use the profit from a typical job, not the invoice total, plus a sensible amount for repeat work and referrals.

2. How many enquiries turn into paying customers

Of the last 20 people who called or filled in your form, how many became customers? Ten means a close rate of about half; four means about one in five.

3. What you can afford to pay for one enquiry

Multiply the customer value by your close rate. That is roughly the most an enquiry can cost before you stop making money.

Here is a simple example with made-up numbers. Say a typical job leaves you $600 profit and you win one in three enquiries. Each enquiry is worth about $200 to you. If your ads bring in enquiries for less than that, Google Ads is paying its way. If they cost more, something needs to change: the keywords, the ads, the landing page or the follow-up.

Your real numbers will differ, but once you know them you can judge results calmly. For help choosing a starting budget, read how much a small business should spend on Google Ads.

Why some businesses say Google Ads didn’t work

When an owner tells us Google Ads was a waste, the account usually has one or more of the same problems:

• Broad keywords. The ads showed for loosely related searches, including people looking for jobs, DIY guides or free advice.
• Few or no negative keywords. Nobody told Google which searches to stay away from.
• No conversion tracking. There was no reliable way to see which clicks became calls or forms, so nobody could tell what was working.
• Ads on the Display Network by default. Budget went to banner placements on apps and websites instead of searches.
• Every ad pointed at the home page. Visitors had to hunt for the service they searched for.
• Set and forget. The campaign was built once and never reviewed.

None of these mean Google Ads can’t work for you; the account was just set up to struggle. Our Google Ads audit checklist walks through ten of these warning signs if you want to check an existing account.

How to run a fair test

If the maths looks promising, treat your first campaign as a test with clear rules.

1. Start narrow. Pick your most profitable service and the suburbs you most want to work in. One focused campaign beats five thin ones.
2. Use tight keywords. Choose searches that show clear intent to hire, and add negative keywords for jobs, training, DIY and free.
3. Send clicks to a matching page. Someone who searched for “blocked drain” should land on a page about blocked drains with a big call button.
4. Track calls and forms from day one. Without tracking you are judging by gut feel.
5. Set a budget you are comfortable spending to learn. Decide in advance how much you will spend on the test, then stick to it.
6. Judge on enquiries and jobs, not clicks. Clicks and impressions are only a means to an end. Count the calls, the quotes and the jobs you actually won.

Give the test enough clicks to tell you something. A slow first week is normal while Google learns.

Should you run it yourself or get help?

You can run your own campaigns if you enjoy the detail and have time each week to check search terms and test ads. The catch is that Google’s defaults and automatic suggestions often favour spending more, and mistakes cost real money while you learn.

A good manager should save you more than they charge by cutting wasted spend. Ask any agency how they report results and whether there is a lock-in contract, and make sure you own your Google Ads account.

At EMC2 we are a Google Partner, and our Google Ads management for local service businesses starts from $490 a month + GST, plus your ad spend, which you pay to Google directly.

Want a straight answer for your business?

If you are weighing up Google Ads, or you already run ads and aren’t sure they are paying off, talk to us. We will look at your service, your area and your numbers and tell you honestly whether Google Ads makes sense for you, and how we would set it up.

See our Google Ads management →