5 Reasons Why Google AdWords is New Bad Word for Startups

Everyone and their moms think that Google AdWords can help them drive a torrent of traffic to their site, quickly and easily.

It’s no wonder:

Because AdWords can drive about 80% of internet users to your site. It is easy to launch and set a budget. And, ads are placed at the right place during the right time.

Or at least, that’s the perception.

What if I tell you that Google AdWords is a little overrated?

You’ll say it’s just a tall claim?

But stay with me here.

What exactly am I talking about here?

Well, no I ain’t a Google AdWords hater! On the contrary, I love Google and certainly love AdWords. It’s an incredible tool and can be very useful for businesses of all types.

But despite the fact that I love Adwords and recommend people spend dollars running Adwords campaigns, it’s not for everyone, especially startups.

I’m sure:

You’d probably be pumped to know if Google AdWords is good for you or not.

Lucky for you, that’s exactly what I’m going to share with you in this post: 5 reasons why Google AdWords is amongst the top ‘Bad Words’ for startups and new businesses.

Keep reading…

1. Higher Cost per Click Rates

You probably already know:

AdWords is Google’s paid advertising campaign where you pay for the clicks that you get on your search ads.

But here’s what you don’t know:

Search ads are perhaps the most expensive ad types on Google’s search ecosystem.

Here’s comes the real shocker:

Average Cost Per Click For AdWords

The average cost per click in AdWords search ad campaigns across all industries is around $2.32.

What does this mean for you?

This means that you’ll need to shell out around $2.32 every time someone clicks on your search ads, on an average.

Sure, the average CTR (click through-rate) for AdWords campaigns is higher and will drive more traffic to your site. But that doesn’t guarantee an increased conversion rate because irrespective of whether you’re able to crack a sale or not, you’ll still need to pay Google for every click.

This gets worse:

When a large number of visitors, without any intent of buying your products or services, click on your search ads to just look up for information.

Bottom line?

If you’re a new business, Google AdWords isn’t really worth your investment because the cost incurred is much higher as compared to the revenue that you’re able to generate from your search ads.

2. Cut-throat Competition with Big Brand


You already know that Google AdWords is expensive. And since it is expensive, it becomes too difficult a task for startups with smaller budget to compete with larger companies with relatively bigger budget for AdWords campaigns.

What does this mean for you?

There are strong chances that by the time you’re ready to launch Google AdWords campaign for startup, all of your relevant, targeted keywords are taken.

This, in turn, will raise the bid amount for the keywords you’re targeting. This means that you’ll need to shell as much as $5-7 per click for a keyword that you wish to rank on. And it could easily ruin the otherwise smooth cash flow of your startup when competing with a bigger brand.

Bottom line?

If you’re a new business trying to level the playing field, you’ll need to explore other options that aren’t as expensive.

3. Tight Limit on the Character Count

I’m sure you already know this:

The total number of characters that you’re allowed to use in your Google AdWords campaign is limited to; two 30 character headlines and one consolidated 80 character description.

Google AdWords Character Limit

A large number of marketers and search engine professionals believe that the character limit restriction makes it difficult to use AdWords.

What does this mean for you?

You’ll need to brainstorm and pen down the best headlines, carefully insert keywords, include the advantages of your products and services and add a powerful call-to-action.

Well, it could very well prove to be a challenging task to fit in the name of your product, service or company, if it’s a little longer than what AdWords allows.

Bottom line?

Choose Google AdWords very carefully. Remember, character count may easily kill the appeal of your ads and you may end up wasting a substantial chunk of cash on nothing.

4. Small Mistakes Cost a Fortune

Here’s the brutal truth that I’m sure you’ll agree with:

Almost everyone, even the most seasoned of experts with decades of experience, make mistakes, time and again.

As it turns out:

People make mistakes when optimizing, running and managing Google AdWords campaigns too.

Sadly, making even a small mistake in your Google AdWords campaign can cost you a lot of headache and a thousand of dollars.

Bold statement? Definitely.

Let me explain:

You may end up spending thousands of dollars on ad spend if you forget to turn your ads off. Similarly, if you end up making a simple typo or a spelling error in your keyword in your Google AdWords campaign, you may end up losing on the exact match keywords.

Remember, exact match keywords convert way better than broad match and phrase match keywords.

Google AdWords Exact Match Vs. Broad & Phrase Match Keywords

It gets worse:

The Big G will penalize you because Google only lists high- quality websites and drops low-quality ones like a stone.

Bottom line?

A simple oversight in your Google AdWords campaign may not only drain up thousands of your hard-earned dollars, but you may also end up losing the race to conversions. So if you don’t have the resources and time to carefully optimize your Google AdWords campaign, don’t go for it.

5. Search Ads Don’t Convert Well

Here’s what you’ll agree with:

Conversion is single highest leverage point for any business, be it new or old, big or small.

But here’s the shocker:

Optimizing conversions is no mean feat. And it’s nowhere truer than in Google AdWords campaigns.

You’ll be surprised:

Conversion rates are usually much lower with paid visitors as compared to non-paid visitors.

Remember, people who click on your ads are more skeptical than those who discover your site organically on Google.

If you aren’t in a really, low-competition market, you are most likely to score CPC (Cost-per-Click) between $.50 and $5.00. The standard conversion rate typically dwindles between 1 and 2%, across industries and verticals.

Google AdWords Conversion Table

This means your Google AdWords campaign is likely to have a CPA (Cost-per-Acquisition) in between $25 and $400. And that translates to more than $20 per user.

Bottom line?

Don’t fall for Google AdWords simply because it worked well for someone else. Start by optimizing your websites conversion rate. Go responsive, build great landing pages, optimize your call to action and embrace innovative SEO tricks to rank higher and convert better, without having to spend through your nose for search ad campaigns.

What do You Think?

You just saw 5 reasons why Google AdWords may not be the best strategy for your startup.

I’d love to hear what you think? Or maybe you have a question about something you read.

Either way, let me know by leaving a quick comment below right now.

Sangeeta Singh

Sangeeta Singh is an independent woman who loves Life and enjoys living it Full! She is attracted to intelligence, a witty presence of mind; people with novel ideas, and doesn't really believe in blindly following the band. She celebrates 'Originality' and stays true to it! Sangeeta has a fair hand at writing for different domains and she's full of energy at work. When not writing, she loves sneaking a few peeks at social media updates, technology news, and socio-political issues to stay updated and inspired.

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