Can small businesses compete on Google Ads anymore?

Paid advertising, particularly through Google Ads, is a cornerstone marketing channel for businesses of all sizes.

However, there is no denying that with big brands dominating the platform, it’s becoming harder for smaller and mid-sized businesses to see success.

In fact, more than 50% of respondents to a recent poll said small businesses have been priced out of advertising on Google Ads.

Here are just a handful of the difficulties that small businesses face when advertising on Google Ads compared to bigger brands:

• Rising costs: With CPCs on the rise, it’s becoming more expensive for small businesses to drive potential customers to their websites.
  • With their Google Ads budgets no longer stretching as far as they once did, smaller businesses are missing out on opportunities to generate customers, while bigger brands are more likely to have the flexibility to increase their spend.
• Data volumes: Google Ads features such as automated bid strategies and RSAs (Responsive Search Ads) work more effectively when sufficient data is running through the account.
  • However, for smaller businesses with modest campaign budgets, lower data volumes can result in it taking much longer for the system to learn. This means that they need to be more patient when waiting to see results, often needing to wait months before their account runs more effectively, a privilege that not all small businesses can afford. 
• Account management: Using the correct bid strategy, implementing best practices while building an account unique to your business, navigating keywords and match types… There is an endless list of things to consider in order to run an efficient Google Ads campaign.
  • While bigger brands are likely to have an expert on hand (if not a whole team or department), smaller businesses are less likely to have these skills in-house or be able to afford to have an agency run campaigns on their behalf. As such, many small businesses are not using Google Ads to its full potential. 
• Brand awareness: Even with the best product or service in the market, brand awareness can make or break PPC efforts.
  • Bigger brands typically benefit from stronger brand awareness among their target audience. and this recognition can drastically improve their click-through rate and conversion rate. People are more likely to purchase from brands that they are already familiar with.
  • In comparison, smaller businesses often do not have a strong level of awareness or visibility, leaving potential customers unaware of their existence. They therefore face an uphill battle of building awareness, trust, credibility and recognition, to persuade people to engage with them, and not the market leader.

Despite these challenges, there is still hope for small businesses.

While the PPC playing field favors bigger brands, small businesses can still compete, as long as they do so with well-rounded strategies, smart targeting, and a willingness to…