Google Adwords; help or hindrance?

 A recent survey has shown that most businesses who attempt to utilise Google AdWords usually fail at the first attempt. The study was commissioned by Workbooks.com business, that provides management tools to companies, and commissioned a study to look at how small businesses were using Google AdWords.

The company stated they were very surprised to find that less than one in 10 people felt that Google AdWords was effective in bringing new customers to their business. The study also found that of all the businesses advertised, 60 percent of them weren’t utilising the advertising programme from Google, which is something that the company says is a wasted opportunity.

Around 25 percent of businesses did say that they had managed to attract at least some sales from the Google ad words but the vast majority said that the cost of the advertising was greater than the increased profit than they gained from the sales. The survey showed that of 200 companies who used AdWords, only 34 actually make a profit from using it, 86 said they definitely lost money and a further 80 were unsure of what the current situation was.

One of the most important rules of marketing for small businesses is that if you can’t measure the success you are getting from a certain advertising medium then you shouldn’t do it. It is clear that Google services are not perfect for every company but in many cases it can be a good choice.

The survey also showed, rather interestingly, that it is not just for increasing sales that some people use Google AdWords, andin many cases it was simply to increase brand awareness. Companies who organised marketing campaigns particularly enjoyed branding ones as they can essentially charge what they like because the results cannot be quantified.

Many companies have achieved great success because of brand marketing, such as Apple and Coca-Cola, but this is not something most small businesses can hope to achieve. If you are a small business owner and think that Google AdWords would be beneficial for promoting your brand then you are not going to be able to quantify it. Therefore you should not do this as it could well end up being a very expensive process.

Generally, you should wait until you have experienced a great amount of success in sales before considering brand marketing. The few companies we mentioned above who have achieved success with brand marketing first made sure they were successful businesses.

One of the most depressing things that was revealed by the survey was that the decision-makers who decided to use Google AdWords were unaware whether they profited from it or not. In many cases the reason they didn’t know this was because they were purposefully turning a blind eye towards it, as they feared there would be significant losses.

Of the businesses that did use AdWords, amazingly around one in three of them said that they had no idea how much the adverts were costing them. It seems as if these were the only ones willing to admit their mistakes, and it is very likely that many of the survey respondents didn’t want to admit how much money they had lost.

Google allows you to measure your advertising effectiveness very easily so the fact that so many people turn a blind eye to this is simply a waste of money. It is possible that these people still have the old mindset that advertising is something you just have to throw money into but with today’s Internet advertising, results are something that can be actively quantified and an advertising campaign adjusted appropriately.