Why understanding the fundamentals of Google Ads can help your B2C business

It’s easy to waste money on Google Ads if you’re not careful. You could spend on underperforming placements, non-converting keywords, or even irrelevant products. Worse still, if your tracking is flawed, you might as well be handing money to the platforms with no way to gauge returns.

Why understanding the fundamentals of Google Ads can help your B2C business
Sami Sanullari
Senior Consultant
October 23, 2024
3
min read

It’s easy to waste money on Google Ads if you’re not careful. You could spend on underperforming placements, non-converting keywords, or even irrelevant products. Worse still, if your tracking is flawed, you might as well be handing money to the platforms with no way to gauge returns.

The bottom line: if you don't track properly, you're essentially flying blind. Platforms won’t be able to identify who converts, how valuable those conversions are, or your overall ROI. Give the platform the best data possible, and your business will reap the rewards.

Let’s dive in a few “simple” actions, that you can focus on to make sure that your B2C

Keywords and Search Terms

Google Ads thrives when you get your keywords right. For B2C businesses, it’s crucial to target keywords that align directly with your products and services. By optimizing search terms, you’ll position your business to capture intent-driven traffic - those actively looking for what you sell.

Constantly reviewing keyword performance and refining your list is essential to ensure that your budget is going to the right places.

We like to use the phrase “harvesting search terms/keywords”, which just means that you look through your keywords and exclude bad performers and thus making sure that you spend your money on keywords that are actually generating performance and creating cheaper conversions for you.



Focusing on Your Best-Selling Products

One of the quickest ways to waste your ad budget is by promoting the wrong products. Not every item in your catalog deserves an equal share of your ad spend. Focus on your top-performing or most profitable products first. By honing in on these, you’re not just maximizing ad efficiency - you’re giving customers what they’re already showing interest in. A good way to do this is by creating a good product segmentation. Our CPO & Partner, Jimmi Mortensen has written a good piece about what this means. Read the blog post here.

Tracking the Right Metrics

Accurate tracking is the backbone of any Google Ads strategy. The better the data, the better the decisions you can make. Ensure that you're measuring key metrics such as hard conversions, revenue, and customer lifetime value. It's highly important to track softer signals, such as click-through rates (CTR) and time spent on-site. These insights can highlight where your funnel might need refining or where more investment could be beneficial.

The Power of Micro-Conversions

Micro-conversions are the smaller actions potential customers take before a purchase, such as signing up for a newsletter or engaging with a product page or just spending time on your page. While they might not directly bring in revenue, tracking these can provide valuable insights into customer behavior and intent. Micro-conversions can help you understand if users are warming up to your brand and whether they're likely to convert down the line. This is highly important if you are lacking conversions and insights on your keywords. It is important because it gives the algorithm conversions to work with. 

Conclusion

The fundamentals of Google Ads aren’t just about understanding how to run ads - they’re about ensuring you’re running the right ads for your business. With a focus on tracking, keyword optimization, product prioritization, and harnessing micro-conversions, your Google Ads strategy can transform from a cost center into a profit driver. Keep testing, refining, and most importantly, learning from your data.

Do you want to get tips and tricks on how to gain even more from your Google Ads activities?

Then reach out to me on email, ss@profoundnorth.com, or by phone, +45 93 93 03 43.

Or reach us through the form below 👇

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