Maximizing Google Search Ads for Local Businesses

Maximize the potential of Google Search Ads for local businesses. Learn about strategies and key performance metrics to evaluate success.

A survey revealed that most participants reported that their conversion rate for search ads is between 3.1 and 6%. This means that local businesses can achieve the best possible results by implementing refined strategies for search advertising campaigns.

Source: Databox.

Key Takeaways

• Google search ads are a powerful tool for small businesses to expand online visibility and drive customer engagement.
• Targeted advertising allows local businesses to implement proven marketing strategies and effectively connect with nearby potential customers.

TABLE OF CONTENTS

• Key Takeaways
• Why Use Search Ads for Local Business?
• Steps to Set Up Search Ads Campaign
• How to Maximize Google Search Ads for Local Business
• Key Performance Indicators to Evaluate Ads Performance
• Case Study: Ad Campaign for a Veterinary Clinic in Las Vegas
• Conclusion
• FAQs

Why Use Search Ads for Local Business?

Search ads provide numerous benefits for local businesses because they ensure your services are visible to nearby customers who are actively searching for what you offer.

For example, if someone in your area is Google’s “best SEO services Melbourne,” your ad can appear right at the top of search engine results.

This visibility increases traffic, calls or consultations. Plus, you pay only when someone clicks. 

Furthermore, with its precise targeting, you can focus on customers ready to take action, making them an excellent choice for local businesses aiming for growth.

Find out more by having an expert from Pay-Per-Click (PPC) services can help businesses set up effective local search ads.

Steps to Set Up Search Ads Campaign

Here are the essential steps in creating an ad that reaches the right audience and drives conversions:

Create a Search Campaign

Open your Google Ads account and click the blue plus icon to create a new search campaign. Businesses have the options for their campaign goals — Sales, Leads, or Website Traffic. On a good note, search ads can be used for all these objectives.

Select Campaign Settings

Set a daily budget and select a bidding strategy. But, business can start with one of Google’s recommended Smart Bidding options, like Conversions. Over time, ad experts can optimize campaigns by setting a target cost per action (CPA) or switching to manual bidding.

For businesses wanting a search-only campaign, opt out of the Google Display Network and Google Partners. Select your targeting options, such as locations, audiences, and languages, to fine-tune your reach.

Choose Ad Groups

It’s also critical to add targeted keywords to each ad group. To improve campaign efficiency and relevance, consider organizing keywords into separate ad groups based on theme or topic.

Build Search Ads

Create your search ad by entering a headline, description, and display URL. Google Ads may combine multiple headlines and descriptions, so make sure they work well together. Add ad extensions to enhance performance.

Remember, Google will review the ad, which may take several days. Therefore, it’s important to review your campaign before launching. Once approved and goes live, monitor their metric performance.

How to Maximize Google Search Ads for Local Business

Running local search ads can drive real results. So, whether you’re new to PPC or want to optimize your campaigns, understanding the best practices can save time and money. 

Here is a comprehensive guide to maximize search ads on Google:

Target the right keyword match types

Google search ads have three primary match types — broad match, phrase match, and exact match — offering varying levels of control over which user searches trigger an ad. The right match type depends on your advertising goals and objectives:

• Broad Match: Ideal for maximizing reach and attracting a wide audience, especially when combined with Smart Bidding to maintain relevance.
• Phrase Match: Best for balancing reach and precision, allowing ads to appear for searches that include the keyword’s meaning.
• Exact Match: Recommended for targeting a specific audience with precise search intent, ensuring ads appear only for exact or closely related searches.

Source: Google Search Ads.

Utilize the character limits

Search ads have character limits — 30 for headlines and 90 for descriptions. So, it’s crucial to utilize every character wisely to convey the right message, including keywords. 

TIP: Create multiple versions of each element to let Google Ads test combinations and prioritize the most effective ones.

Set up Conversion Tracking

Before launching a campaign, set up Conversion tracking to measure ad performance. Also, monitoring post-click actions can help you optimize performance and Return-On-Investment (ROI) effectively.

Update Ads Periodically

Consistent monitoring is essential for long-term success. Avoid making frequent changes — for example, more than once a week — as it can disrupt Google Ads’ learning phase. Instead, review and update your campaigns every two weeks or whenever you notice significant changes in cost or conversions.

Key Performance Indicators to Evaluate Ads Performance

Fortunately, Google Ads feature reporting tools to measure the effectiveness of your ad campaigns.

Specifically, businesses and PPC services experts can evaluate the following performance metrics below:

Cost Per Click (CPC)

It’s the amount paid by advertisers for each click on their ad. Monitoring CPC helps businesses to manage their budget effectively and evaluate the efficiency of their bidding strategies.

CPC = Total Ad Spend / Total Clicks

Click-Through Rate (CTR)

This key metric refers to the percentage of users who clicked on ads after seeing it. A higher CTR means that the ad is relevant and appealing to its target audience, leading to better ad placements and lower costs.

CTR = Number of Clicks / Number of Impressions x 100%

Conversion Rate

CVR indicates the percentage of users who completed their desired actions after clicking the ad. This metric helps advertisers how an ad drives users actions effectively. 

Conversion Rate = Number of Conversions / Total Number of Clicks x 100%

Cost Per Lead

CPL measures the total cost incurred to acquire a lead through an ad. This performance metric is vital for evaluating the efficiency of lead generation campaigns.

CPL = Total Ad Spend / Number of Leads

Return On Ad Spend 

ROAS is the generated revenue for every dollar spent on ads. A higher Return On Ad Spend indicates a more effective campaign effort. 

ROAS = Total Ad Revenue / Total Ad Spend 

The average ROAS across all industries is 200% or a 2:1 ratio but, some businesses aim 400% or 4:1 for a more profitable return.

Cost Per Conversion

This KPI evaluates how much it costs to achieve a specific conversion goal, helping businesses understand the profitability of their campaign.

Cost Per Conversion = Total Cost of Advertising / Number of Conversions

Cost Per Acquisition

CPA is measured by the cost associated with acquiring a new customer through an ad. A lower CPA means a more efficient marketing strategy.

CPA = Total Cost of Conversions / Total Number of Conversions

Case Study: Ad Campaign for a Veterinary Clinic in Las Vegas

A veterinary clinic in Las Vegas leveraged a well-optimized ad campaign to drive traffic, generate leads, and convert visitors into loyal customers.

Campaign Objective

Goal: Traffic, Leads, and Conversions

Target Audience: People Owners, Pet Care, Veterinary Clinics and Animal Hospitals

Location: Las Vegas, USA

Campaign Type: Search

Solutions

Our PPC management services specialists utilized the following strategies:

• Keyword targeting: Focused on localized and service-specific keywords to attract relevant traffic.
• Compelling Ad Copy: Crafted ads emphasizing compassionate care and professional services to resonate with their target audience.
• Targeted Specific Location: Geo-targeted individuals in Las Vegas with interests in pets, pet care, veterinary clinics, and animal hospitals.

Results

Top performing keywords generated significant results, with 3,983 impressions, 96 clicks, and 14 conversions at a cost of $373.09, the highest.

In terms of CTR, the entire ad campaign achieved a 4.43% Click-Through Rate from 3,028 impressions. 

Check out the full ad campaign report here: Google AdWords Campaign for a Veterinary Clinic in Las Vegas

Conclusion

Overall, Google search ads are an invaluable tool for small businesses looking to expand their online reach and drive customer engagement. With targeted advertising and proven marketing strategies, local businesses can effectively connect with nearby potential customers.

Frequently Asked Questions About Search Ads

How quickly can I see results from Google Search Ads?

Results can be seen almost immediately after launching your campaign, as ads start appearing in search results right away.

What is the minimum budget required for Search Ads?

The minimum budget required for search ads can actually vary based on several factors, including CPC in your industry and specific goals. Advertisers can set a daily budget as low as $5, making Google Ads accessible for all sizes.

Can I adjust my ads after they go live?

Yes, you can modify your ads at any time based on performance data or changes in strategy.

Do I need a website to run Search Ads?

While having a website is beneficial for providing information and capturing leads, it is not strictly necessary if you are using features like call-only ads.

What types of businesses benefit most from Search Ads?

Any local business that offers services or products can benefit from Google Search Ads, particularly those in competitive markets or with specific geographic targets.