Australian Small Business Guide to Google Ads in 2023

If you are a small business owner in Western Sydney and you have been thinking about trying Google Ads, you are not alone. Google Ads is one of the most effective ways to get your business in front of people who are actively searching for what you offer. But it can also be a quick way to waste money if you do not know what you are doing.

This guide will walk you through the basics of Google Ads for Australian small businesses in 2023, including how to get started, what to expect, and how to avoid the most common mistakes.

Why Google Ads Works for Local Business

Unlike social media advertising, where you are interrupting someone scrolling through their feed, Google Ads puts your business in front of people at the exact moment they are searching for your products or services.

When someone in Parramatta types “emergency plumber near me” or “best cafe in Blacktown,” they have immediate intent. They are looking for a solution right now. That is what makes Google Ads so powerful for local businesses.

Understanding Google Ads Campaign Types

Google offers several types of campaigns, and choosing the right one matters. Here are the main options relevant to local businesses:

Search Campaigns

These are the text ads that appear at the top of Google search results. They are triggered by specific keywords that you choose. For most local businesses, search campaigns are the best starting point because they target people who are actively searching for your services.

Local Campaigns

Local campaigns are designed to drive foot traffic and phone calls. They show your business across Google Search, Maps, YouTube, and the Display Network. If you have a physical location that customers visit, local campaigns can be very effective.

Display Campaigns

Display ads are the banner ads you see on websites across the internet. They are better for brand awareness than direct response. For most small businesses with limited budgets, search campaigns deliver better returns than display.

Shopping Campaigns

If you sell physical products online, Shopping campaigns show your products with images and prices directly in search results. These require a Google Merchant Center account and a product feed.

How Much Should You Spend?

This is the question every small business owner asks first. The answer depends on your industry, location, and goals, but here are some general guidelines for Australian small businesses.

Starting budget: $500 to $1,500 per month is a reasonable starting point for most local businesses. This gives you enough data to learn what works without risking too much.

Cost per click: In Australia, the average cost per click varies widely by industry. Service industries like plumbing, electrical, or legal services can see costs of $5 to $15 or more per click. Less competitive industries might pay $1 to $5 per click.

Important: You set your own daily budget, and Google will never spend more than your monthly budget (your daily budget multiplied by 30.4). You are always in control.

Setting Up Your First Search Campaign

Here is a simplified step-by-step process for creating your first search campaign:

Step 1: Define Your Goal

What do you want people to do? Call your business? Fill out a contact form? Visit your shop? Your goal determines how you structure your campaign.

Step 2: Choose Your Keywords

Keywords are the search terms that trigger your ads. For a local business, focus on keywords that include:

• Your service plus your location (e.g., “roof repair Penrith”)
• Your service plus “near me”
• Specific services you offer (e.g., “blocked drain plumber Western Sydney”)

Use Google Keyword Planner (free inside Google Ads) to research keywords and see estimated costs.

Step 3: Write Your Ads

Google now uses Responsive Search Ads, where you provide multiple headlines and descriptions, and Google tests different combinations. Write at least ten headlines and four descriptions that highlight your services, location, and unique selling points.

Tips for writing effective ads:

• Include your location in at least one headline
• Mention a specific benefit or offer
• Include a clear call to action
• Use numbers where possible (e.g., “20 Years Experience” or “Free Quotes”)

Step 4: Set Your Location Targeting

This is critical for local businesses. Set your ads to show only to people in your service area. You can target by suburb, city, radius around your business, or specific postcodes.

Important tip: Under location settings, select “Presence: People in or regularly in your targeted locations” rather than the default “Presence or interest,” which can show your ads to people outside your area.

Step 5: Set Your Budget and Bids

Start with a modest daily budget and let your campaign run for at least two to four weeks before making major changes. Google needs time to gather data and optimise.

For most small businesses, automated bidding strategies like “Maximise Conversions” work well once you have some conversion data. When starting out, “Maximise Clicks” can help you gather data quickly.

Common Google Ads Mistakes to Avoid

Mistake 1: Targeting Too Broadly

If you serve Western Sydney, do not target all of New South Wales. Be specific with your location targeting to avoid paying for clicks from people who will never become customers.

Mistake 2: Not Using Negative Keywords

Negative keywords prevent your ads from showing for irrelevant searches. For example, if you are a premium landscaper, you might add “cheap,” “DIY,” and “free” as negative keywords. Review your search terms report regularly and add negatives as needed.

Mistake 3: Sending Traffic to Your Homepage

Create dedicated landing pages for your ads that match the search intent. If someone searches for “kitchen renovation Blacktown,” they should land on a page about kitchen renovations, not your generic homepage.

Mistake 4: Not Tracking Conversions

Without conversion tracking, you have no way of knowing which keywords and ads are actually generating leads. Set up conversion tracking for phone calls, form submissions, and other key actions before you start spending.

Mistake 5: Setting and Forgetting

Google Ads requires ongoing management. Check your campaigns at least weekly, review your search terms, adjust bids, pause underperforming keywords, and test new ad copy.

Measuring Your Return on Investment

To know whether Google Ads is working for your business, you need to track:

• Cost per click: How much you pay each time someone clicks your ad
• Cost per conversion: How much you pay for each lead or sale
• Conversion rate: The percentage of clicks that result in a lead or sale
• Return on ad spend: The revenue generated compared to your ad spend

If you are a service business, calculate your average customer value and compare it to your cost per conversion. For example, if a new customer is worth $500 to your business and your cost per conversion is $50, that is a strong return.

Should You Manage Google Ads Yourself?

Google Ads is straightforward to set up but takes skill and experience to manage effectively. Many small business owners start by managing their own campaigns, which is a great way to learn. However, as your budget grows, working with an experienced Google Ads manager can often save you more than their fee by reducing wasted spend and improving performance.

Signs you might need professional help:

• You are spending more than $1,000 per month
• Your cost per lead is higher than you would like
• You do not have time to check and optimise campaigns regularly
• You are not sure if your campaigns are set up correctly

Getting Started

If you have been on the fence about Google Ads, 2023 is a great year to give it a try. Start small, track your results, and build from there. The businesses that succeed with Google Ads are the ones that treat it as an ongoing investment, not a one-time experiment.

Need Help With Google Ads?

Cosmo Web Tech manages Google Ads campaigns for local businesses across Western Sydney. We handle everything from keyword research to ad creation to ongoing optimisation, so you can focus on running your business. Contact us for a free consultation and find out how Google Ads can work for your business.

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Cosmos Web Tech operates under the Ganda Tech Services umbrella, delivering end-to-end technology solutions for Australian businesses.