Google AdWords FAQ: Questions from E-Commerce CMO’s

Google AdWords FAQ: Questions from E-Commerce CMO’s

While working with eCommerce companies on launching PPC marketing campaigns, we’ve noticed that many of our clients have the same questions. In order to help you better understand the requirements of the Google Ads and help you decide if you can manage it on your own, here are answers to these commonly asked questions. 

What are the benefits of outsourcing Google Ads management?

If you choose to outsource Google ads, you can launch immediately without the need to hire a dedicated full-time campaign manager. It also typically results in a higher ROI since the ads agencies have more experience and specialized domain knowledge. 

What are the challenges of outsourcing Google Ads management?

Some of the key challenges businesses have reported encountering when outsourcing Google Ads management are:

Lack of industry expertise

Not all agencies or freelancers specialize in your niche. While they may excel in running successful campaigns in general, their lack of familiarity with your specific market could lead to underperforming ads. 

Scalability challenges

Some agencies aren't equipped to scale with your business. For instance, if your needs grow suddenly—such as wanting to run campaigns in new regions or launching a new product line—the agency you’re working with may lack the resources or expertise to adjust quickly.

Cookie-cutter approaches

Certain agencies take a "one-size-fits-all" approach, applying the same strategies across different clients regardless of their unique needs. While these cookie-cutter strategies might yield successful campaigns in the short run, they rarely drive sustainable growth or long-lasting results.

How do you evaluate a potential digital marketing agency?

To tell if an agency is a good first, consider the following factors: 

Experience in eCommerce

Work with a team that understands the nuances of eCommerce and your specific industry. This includes aspects like shopping campaigns, remarketing, and product feed optimizations. 

Proven track record

Ask for case studies, testimonials, or examples of their work with similar brands. Look for measurable results, not just promises. 

Technical knowledge 

Ensure the advertising agency is certified in Google Ads. In addition to being a Google Partner, their team should use advanced tools for audience segmentation, bidding strategies, and conversion tracking and have the ability to handle large data sets.  

Effective communication and transparency 

A trustworthy agency will be transparent about performance metrics and share real-time data via dashboards and reports. They should ably the same level of openness when it comes to communication. Look for responsiveness and a clear process across communication platforms that you typically use. 

How do Google Ads work? How do I explain it to an executive?

Google Ads can be explained in the following three major points:

  1. Potential clients in your target market search for the products they need by typing descriptive keywords into the Google search engine.
  2. Using the Google Ads platform, you bid on those keywords and present a compelling ad designed to attract the attention of these potential clients. Your ad shows up either on the top or the right side of their search results, depending on your bid and quality score.
  3. Users who click on the ads and are taken to the landing page for your product. If they find what they are looking for, they may convert by making an inquiry or purchase. You get charged for the click.

Which information do we need before launching a Google ads campaign?

You should prepare by gathering information about the following categories:

Keyword targeting 

Make a list of words that your target audience members are likely to enter into the search engine. This largely depends on what buying stage your target market will be in to help you reach your goals. If they are in the research stage, you can use broad keywords that focus on the problems your audience may be trying to solve. If they are in the comparison stage, you will need specific keywords such as product types or specifications.

Geographical targeting 

Make a list of locations in which you operate or in which you would like to test your market. You have the ability to drill down by country, state, city, and/or zip code. Before launching, we recommend that you map out the areas in which you operate and understand the potential search volumes before you make a decision about where to target.

Ad copy 

Gather product information, problems it solves, comparable ads from other campaigns, etc.

Landing page

Even though it’s not required, we highly recommend that you have a separate landing page for each campaign.

How do you determine the duration of the program?

We recommend you use one of the following two approaches:

Budget-focused approach

Calculate your potential monthly budget by determining the monthly search volume for targeted keywords. Apply a 2% click-through rate to estimate the number of clicks you can expect, and multiply the number of clicks by the cost per click for each targeted keyword. Then, divide your approved Google Ads budget by your estimated monthly ad spend to get the approximate duration of the program.

Volume-focused approach

This is the opposite of a budget- focused approach and more applicable if your campaign goals are focused on search volume. Calculate your monthly ad spend using the method above and then determine what portion of the market you need to reach.

How do you measure success? 

You can measure the success of your PPC marketing campaigns by how well they met one or more of the following business goals, depending on its intent:

  • Improved brand awareness (an increase in clicks and impressions from the target audience and geographies)
  • Sales (an increase in the number of orders coming directly from campaigns)
  • Cost per action (a decrease in cost per order or cost per lead, while maintaining the order or lead volume)

How does reporting work?

Google Ads has flexible reporting capabilities and convenient data exporting. Reports can be exported in CSV, XLS, or PDF formats and can be scheduled to run automatically. Data can be cut and segmented by campaign, geography, time, search terms and other variations.

When is outsourcing Google Ads to an agency the right move?

If you’re deciding between using an internal team of outsourcing Google Ads to an external team of experts, let the following two criteria guide you: 

  • Size of campaign: PPC campaigns are complex. If the size of your campaign justifies hiring a full-time person dedicated to managing it, using your internal marketing team  may be your best option.
  • Speed to market: If the speed to market is not an issue and you can wait at least six months for an in-house campaign manager to learn PPC campaigns, then an in-house manager may be your best option. Alternatively, outsourcing to a company that specializes in PPC campaigns may be the most efficient and cost-effective choice.

Google Ads Billing and Budget Questions

How are we charged for the ads?

You are charged on a per-click basis. This means that you are only charged when someone clicks on your ad.

Can we control the budget so we don’t spend the whole budget in one day?

Yes. With Google Ads you can set up a daily budget limit per campaign to limit your risk.

Do I need other tools for campaign optimization?

We recommend integrating your Google Ads account with Google Analytics. Google Analytics gives you a deeper understanding of user behavior after they land on your website. You can use it to discover things like:

  • Conversion data (leads, eCommerce revenue, shopping cart or even checkout behavior)
  • Audience data (e.g. audience members’ locations, devices, browsers, and operating system)
  • User behavior data (pages visited, time spent on each page, sequence of visits of your users)

Do we need bid automation software?

No. We recommend that you manage your PPC marketing campaigns using the tools Google Ads provides. Their bidding algorithms are far better than anyone in the market as they have all of the access to the user intent data. 

I’ve heard stories of companies losing money with PPC marketing campaigns. Why does this happen?

Losing money using Google Ads is possible if:

  • Your keyword or geographical targeting is too broad.
  • Your ads don’t match the targeted keywords.
  • Your landing pages don’t match the ads.
  • Your offer is not competitive compared to others selling similar products.
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