Why Google’s 2% Hike in Advertising Costs Shouldn’t Put You Off PPC

It’s been a bumper year for US tech giants. Despite Covid-19 taking its toll on much of the economy, the ‘Big Four’ tech companies – Apple, Amazon, Facebook and Google – have enjoyed earnings of over $5tn in this year’s second quarter. (Yes, that’s five trillion dollars.)

One could be forgiven, then, for cheering the UK government’s new digital earnings tax. By applying a 2% levy on “revenue from search engines, social media platforms and online marketplaces”, the UK treasury hopes to bring the notoriously tax-averse tech giants to heel. At last, some protection for small and medium-sized businesses and the high street.

Except the plan seems to have backfired.

Last week, Google announced it will pass the cost of the digital services tax on to sellers. From November, any business or individual selling through Google Ads or YouTube will have to pay a 2% fee. This follows Amazon’s recent decision to slap a 2% charge on all third-party sellers. Facebook, too, is expected to follow suit.

The bottom line is that Google Ads are about to become more expensive. But a 2% hike in costs is a drop in the ocean when compared to the return on investment that well-run PPC campaigns provide. A smart Google Ads strategy will reach the audiences that matter most to your business – and help to leapfrog your competitors.

So, instead of grumbling about the tech titans’ latest move, why not implement some easy fixes that may boost your Google Ads performance and ensure your business has the last laugh? Here’s a few tips from our in-house PPC experts…

Tip 1: Make use of Google’s ad credits and grants

Google has never been shy of offering freebies to both new and existing Google Ads customers. New customers are now eligible for a £120 credit when they sign up and spend £120. Meanwhile, existing Ads customers can cash in on a $340 million credit pot for small and medium-sized businesses, rolled out in response to the Covid-19 pandemic. Eligible businesses will have started to see these credits appearing in their accounts from 1st July – make sure you are using yours.

Google’s philanthropy doesn’t stop there. Non-profit organisations can apply for a special Google Ad Grant worth up to $10,000 (£7,770) per month, matched in-kind on their Ads spending. 

Tip 2: Use appropriate keyword matching 

Incorrect keyword matching is one of the most common issues we uncover when auditing our clients’ Google Ads campaigns. It’s a pet peeve of ours and a sure-fire way to waste your PPC budget. But what is keyword matching?

Simply put, keyword matching is used to control which searches on Google will trigger your ad. Choosing the correct match type – either broad, phrase or exact – can help make or break your campaign. For customers on tight budgets, we suggest avoiding broad match keywords in favour of phrase and exact match keywords. If in doubt, be specific.

Of course, Google Ads keyword matching is only part of a successful PPC mix. Read our PPC services page to learn about the importance of in-depth keyword research.

Tip 3: Stop wasting budget on keywords that don’t convert

Another golden rule: individual keywords don’t always perform consistently over time. Keywords that brought in droves of customers last year may struggle to repeat the trick in 2020. You need to keep an eye on any keywords that have not converted for a while, and be ready to pause them.

Let’s use a Fantasy Football analogy: imagine your star midfielder has failed to provide a goal or an assist all season. He may have earned hundreds of points last year, but your loyalty to him is now hurting the team. A savvy manager would swap him out for a new, in-form player. It’s the same with keyword budgeting (although not quite as much fun…)

All Google Ads campaigns need sufficient time to draw conclusions on the performance data. But if certain keywords still aren’t converting, it pays to be ruthless.

P.S. Don’t forget to negative match all inappropriate keywords. There’s no surer way to waste an ad budget than to use similar keywords that are completely unrelated to your business.

Our door is always open to new customers looking to improve their PPC performance. Whether you require an professional audit of your current Google Ads campaigns or need a whole new campaign set up from scratch, Carcia Media is here to help. You can reach us via our contact page or call directly on 01798 873635.