Podcast Summary: The Paid Search Podcast | Episode 447 – "How Successful are Ads on Google?"

Host: Chris Schaefer, Certified Google Ads Specialist
Release Date: January 27, 2025
Podcast Title: The Paid Search Podcast | A Weekly Podcast About Google Ads and Online Marketing

Overview

In Episode 447 of The Paid Search Podcast, host Chris Schaefer delves into the effectiveness of Google Ads, exploring how successful advertising campaigns typically are on the platform. The episode addresses common challenges faced by new and seasoned advertisers, provides actionable advice through listener questions, and culminates in a comprehensive analysis based on Chris's extensive experience in managing Google Ads accounts.

Listener Questions

1. Taking Over a New Google Ads Account with Limited Structure

Listener: Jordan
Timestamp: [07:30]

Question:
Jordan, a marketing company owner transitioning from Yelp PPC to Google Ads, seeks advice on managing a new client account that spends over $20,000 monthly but contains only one ad group. He is particularly concerned about setting up appropriate conversion tracking, as the former company utilized a landing page for conversions.

Chris’s Response:

• Initial Assessment:
  Chris advises against assuming the account is broken. Instead, approach it methodically to understand existing structures and performance metrics.
  “Never walk into an account assuming that everything is broken... you just want to improve it.” [08:15]

• Conversion Tracking Importance:
  Emphasizes the necessity of verifying whether the account currently tracks meaningful conversions. If conversions exist, leverage existing data carefully before making changes.
  “If it has conversions, start very slowly, use the data that you have to try and make some decisions.” [09:00]

• Segmentation Strategy:
  Recommends dividing the single ad group into multiple ad groups based on different services or value points, enabling more precise tracking and optimization.
  “Segment this client's services in a way that helps you to determine value.” [12:45]

• Gradual Optimization:
  Suggests implementing small, controlled experiments to gather data without disrupting the entire campaign.
  “Start little experiments here and there in small places, seeing how it does and then reviewing the results.” [15:10]

Takeaway:
When inheriting a Google Ads account, prioritize understanding existing data, implement robust conversion tracking, and segment campaigns to enhance performance insights and optimization.

2. Dealing with Hidden Search Terms in Reports

Listener: Rudra
Timestamp: [23:50]

Question:
Rudra reports that in his Google Ads account based in New York, about 90% of conversions stem from "other search terms" that remain hidden. He seeks methods to uncover these hidden search terms or alternative strategies to manage them effectively.

Chris’s Response:

• Understanding the Limitation:
  Chris acknowledges the challenge, explaining that Google has restricted access to certain search terms deemed too private, especially in sensitive industries like healthcare or law.
  “Other search terms are hidden... Google considers some search terms too private.” [24:30]

• Potential Workarounds:
  While recognizing the limitations within Google Ads, Chris suggests exploring Google Analytics for additional insights, though he admits there are no foolproof solutions.
  “Check searches on Google... maybe other people smarter than me in analytics have mapped out a way.” [26:00]

• Strategic Adjustments:
  Recommends enhancing campaign segmentation and utilizing automated bidding strategies to optimize performance despite limited visibility into all search terms.
  “Lean into more segmented campaigns... use automated bidding to guide performance.” [28:15]

Takeaway:
When faced with hidden search terms, focus on meticulous campaign segmentation and leverage automated bidding to compensate for the lack of detailed search term data. Additionally, consider integrating Google Analytics for supplementary insights.

Main Discussion: How Successful are Ads on Google?

Timestamp: [35:00]

In the core segment of the episode, Chris Schaefer addresses the pivotal question: "How successful are ads on Google?" Drawing from over two decades of experience, he provides a nuanced perspective on the effectiveness of Google Ads across various accounts.

Success Metrics Breakdown

Chris categorizes Google Ads account performance into three distinct segments:

1. Bottom Tier (Approximately 30%) – Wasting Money

   • Characteristics:
     A significant portion of accounts fail to generate meaningful returns, often due to lack of proper management or understanding.
     “About 30% of the accounts out there are wasting most, if not all of their money on Google.” [36:45]

   • Common Issues:

     • Turning on campaigns without proper tracking or strategy.
     • Relying solely on Google Ads for traffic without measuring conversion quality.
     • Mismanagement by inexperienced advertisers.

2. Middle Tier (Approximately 50%) – Breaking Even or Slightly Profitable

   • Characteristics:
     The majority of accounts fall into this category, where advertisers at least recuperate their investment, often marginally increasing it.
     “About 50%... are breaking even or slightly profitable.” [40:10]

   • Success Factors:

     • Basic conversion tracking in place.
     • Moderate understanding of Google Ads metrics.
     • Incremental optimizations leading to sustained performance.

3. Top Tier (Approximately 20%) – Highly Profitable

   • Characteristics:
     A minority of accounts achieve substantial returns, often experiencing 3x to 5x ROI or higher.
     “10 to 20% of the accounts out there are making very good returns, 3x5x and higher returns.” [43:25]

   • Success Factors:

     • Advanced conversion tracking and measurement.
     • Strategic segmentation and bidding.
     • Continuous optimization and in-depth performance analysis.

Key Insights and Recommendations

• Conversion Tracking is Paramount:
  Chris underscores that robust conversion tracking differentiates successful campaigns from unsuccessful ones.
  “Track your conversions. Track the actions that are happening on your site that matter.” [49:10]

• Quality Over Quantity in Traffic:
  Highlighting that not all traffic is equal, he warns against viewing Google Ads merely as a traffic generator without assessing the quality of leads or conversions.
  “Google Ads is just a system to generate traffic. Not all traffic is created equal.” [39:00]

• Avoiding the Bottom Tier:
  To prevent wasting money, advertisers must implement effective tracking, understand their conversion values, and make informed adjustments based on data.
  “Know what you're paying for, know what you're getting out of what you're paying for and make adjustments accordingly.” [55:30]

• Perception vs. Reality:
  Many advertisers in the bottom and middle tiers may not realize their true performance due to insufficient tracking and analysis, leading to misplaced confidence in their campaign effectiveness.
  “More people don't really know the true value of what they're getting in Google Ads.” [47:50]

Notable Quotes with Timestamps

• “I know enough to be dangerous. I cannot tell you how many times I hear that phrase.” – Chris Schaefer [10:00]

• “Traffic that is searching for their own company name... minimal value from new generated sales.” – Chris Schaefer [41:15]

• “A lot of these companies have people managing for them and believe their agency.” – Chris Schaefer [44:40]

Conclusion

Chris Schaefer concludes the episode by reiterating the critical importance of diligent tracking and informed management in achieving Google Ads success. He encourages advertisers to move beyond superficial metrics and focus on meaningful conversions and return on ad spend (ROAS). For those struggling with their campaigns, Chris offers his expertise in Google Ads management and personalized coaching to help navigate the complexities of online advertising effectively.

“If that sounds like a massive headache and you are frustrated and confused, well, that's what I'm here for.” – Chris Schaefer [57:30]

Final Thoughts

Episode 447 of The Paid Search Podcast serves as an essential guide for advertisers seeking to evaluate and enhance the performance of their Google Ads campaigns. Through practical advice and insightful analysis, Chris Schaefer equips listeners with the knowledge to avoid common pitfalls and strive towards higher efficiency and profitability in their online marketing efforts.

For more insights and personalized assistance, listeners are encouraged to reach out to Chris Schaefer through his website.

Note: This summary omits promotional segments and focuses solely on the substantive content discussed during the episode.