OVERVIEW:
Jason A. Duprat, Entrepreneur, Healthcare Practitioner and Host of the Healthcare Entrepreneur Academy podcast discusses how to evaluate the cost of running Google Ads to determine if they’re a good option for your business.
EPISODE HIGHLIGHTS:
- Before buying Google Ads, there are numbers you should be aware of. For instance, know the cost of your product or service to determine your return.
- Impressions won’t make you any money when it comes to Google Ads. You need to understand how this impacts your overall ROI.
- Jason shares a mathematical evaluation based on a $1000 ad spend for 1000 impressions at $1.00/per impression.
- To determine if you’re creating positive ROI, understand the lifetime value of your customers. This allows you to analyze the cost of your product/service to the cost of the ad spend.
- Return on ad spend is the total amount of dollars you made (total conversion value in dollars) divided by how much you spent on ads.
- Despite the low return, ads may bring a bigger value to your business. This is especially true if you’re selling a digital product. As an example, you can build your brand and your email list as well.
- The best way to know if Google Ads work for you is to just try it. Don’t be afraid to test out different visuals and copy.
3 KEY POINTS:
- The reason for running Google Ads is to either make a return or widen your funnel. You need to know your numbers and be smart with your numbers.
- Running Google Ads requires a full understanding on how to evaluate the math in order for you to maximize the money you've invested. Be aware of the following: impressions, click-through rates (CTR), customer acquisition cost (CAC) and return on ad spend (ROAS).
- Sometimes, you may have to run test ads in order to know if Google Ads will work for your business. It’s all part of the process to build your brand and generate more revenue.
TWEETABLE QUOTES:
“Various niches have various customer acquisition costs.” - Jason Duprat
“The more competitive the particular arena is (in which you’re running ads), the more expensive it’s going to be.” - Jason Duprat
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