“What specific effects can I expect from running Search Ads?”
“I started running Search Ads, but my budget is just disappearing… Is it really effective?”
This article is written for you, who might be skeptical about the effectiveness of Search Ads.
It’s natural to feel uncertain if you have no prior experience with ad management.
If you think, “I’ve never bought a product through Search Ads,” your doubts might be even stronger.
However, rest assured that Search Ads are widely used by both large and small businesses, and their effectiveness is well-documented.
Of course, the suitability of Search Ads can vary depending on the industry, but with proper knowledge and appropriate management, you can expect results.
This article will explain the benefits of Search Ads and tips for effective management.
If you are a business owner considering starting Search Ads, be sure to read on.
Table of contents
What Are the Three Key Benefits of Search Ads?
Search Ads offer the following three benefits:
Benefit 1: Increase in Website Traffic
Search Ads can significantly increase the traffic to your website from search engines.
Since Search Ads appear above organic search results (SEO) on the results page, they are particularly effective for capturing high-intent audiences.
If your website is new or you haven’t yet focused on SEO, Search Ads can ensure immediate visibility in search results.
This allows you to quickly secure traffic from targeted keywords.
Benefit 2: Boost in Inquiries and Product Purchases
Search Ads can also lead to an increase in inquiries and product purchases.
This is because Search Ads are displayed based on the keywords users input into search engines.
Ads relevant to user needs are shown, making it easier to attract their interest and convert them into customers.
For example, when searching for “lactic acid bacteria supplement online,” an ad featuring products containing lactic acid bacteria available for online purchase will appear.
Since users search with interest already in mind, this often leads to an increase in product purchases and inquiries.
Benefit 3: Improved Brand Awareness
Search Ads can also enhance brand awareness.
This is because they appear at the top of search engine results pages.
A 2013 Google study on “The Impact of Search Ads on Brand Awareness” found that even when users didn’t click on the ads, they still positively influenced brand awareness.
Reference: New Research Shows Search Ads Drive Brand Awareness – Think with Google
Because Search Ads are the first thing users see on the results page, they naturally contribute to increased brand awareness.
The Pros and Cons of Using Search Ads
Search Ads have both advantages and disadvantages.
Here are the pros and cons of using Search Ads for lead generation:
- Quick to start and stop
- Reach users with high purchase intent
- Fast traffic acquisition leading to results
- Flexibility to adjust ad copy and keywords
- Relatively low budget required
- Real-time performance monitoring and improvements
- Not ideal for broad brand awareness
- Costs can increase with high competition
- Requires specialized management skills
- Ongoing operational costs
It’s essential to weigh both sides and assess compatibility with your own products or services.
Is Search Ads Really Effective?
Whether Search Ads yield results depends on various factors such as the product, budget, and ad quality. Therefore, it cannot be conclusively said that they always produce results.
If you use products that are not suitable for Search Ads or have an insufficient budget, you may not achieve the desired effects.
However, if you manage Search Ads effectively, it is possible to maximize their benefits and generate significant profits.
To achieve results with Search Ads, it is essential to choose the right products, allocate sufficient budget, and continually improve the ads.
In the following sections, we will introduce products suitable for Search Ads and strategies to generate results. Please take a look.
Products Suitable for Search Ads
The following are examples of products suitable for Search Ads:
High Unit Price or Gross Profit Products
Products with high unit prices or gross profits are well-suited for Search Ads.
The larger the profit margin relative to ad costs, the easier it is to generate profits.
For example, consider a product priced at $3.
If the cost per click is $1, a loss occurs after three or more clicks.
However, if the product is priced at $30, it will not incur losses unless it receives over 30 clicks.
Moreover, effective management can lead to revenue surpassing ad costs with fewer clicks.
Products with Potential for Repeat Purchases
While high unit price products are ideal, there are exceptions.
Products with low unit prices but high potential for repeat purchases are also suitable for Search Ads.
Repeat purchases can lead to sufficient revenue to cover ad costs.
Products with a Competitive Advantage
Products with a competitive edge over rivals are also suitable for Search Ads.
For example, the following points are advantages:
Products Difficult to Rank High in SEO
Search Ads are also recommended for products that are challenging to rank high in SEO due to heavy competition.
Effective Search Ads management can place your ad above SEO articles.
For example, health products often see major companies dominating top SEO positions, making it difficult to rank high organically.
However, Search Ads have the advantage of appearing above SEO articles and offer immediacy for deployment.
While effective management is crucial, industries where SEO ranking is tough should consider Search Ads.
Products with High Urgency
Search Ads are particularly effective for high-urgency products, as they target users with immediate needs.
For instance, users searching for terms like “lost key” or “water leak 24 hours” are in urgent situations and want immediate solutions.
Such users are highly likely to click the top Search Ads and use the services.
- Key repair
- Plumbing repair
- Pest control
Conversely, products unsuitable for Search Ads include:
- Industries with no search demand
- Industries with search demand but no web-based conversions
- Industries with low unit price and profit margins
For more details, check the link below:
Cost Required to Achieve Results
Search Ads vary in effectiveness depending on the product or service and the operational methods used, making it difficult to determine a standard cost necessary to achieve results.
While higher advertising budgets tend to lead to better visibility, if the quality of the ads or operational methods is inappropriate, they may fail to deliver the desired outcomes.
Additionally, the costs differ depending on the product or service, making it challenging to provide accurate figures.
However, understanding the average CPC (Cost Per Click) for each product based on its unit price can help estimate the budget needed for Search Ads.
Below is a table summarizing the average CPC across industries for 2024.
Please feel free to use it as a reference.
Industry | Average CPC |
Arts & Entertainment | $1.72 |
Apparel / Fashion & Jewelry | $3.39 |
Sports & Recreation | $2.34 |
Travel | $1.92 |
Restaurants & Food | $2.18 |
Real Estate | $2.10 |
Shopping, Collectibles, Gifts (General) | $2.61 |
Automotive (Sales) | $2.34 |
Furniture | $3.29 |
Animals & Pets | $3.90 |
Education & Training | $4.39 |
Automotive (Repairs, Services, Parts) | $3.39 |
Personal Services (Weddings, Cleaning, etc.) | $4.95 |
Doctors & Surgeons | $4.76 |
Reference: Online Advertising Benchmarks | WordStream | |
If you’d like to know more about average CPA by industry, please refer to the article below.
What is the average CPA in your industry? Tips for improving CPA explained -webma-
Case Studies of Effective Search Ads
Here are some examples of successful Search Ads management handled by our company.
Case Study 1: Healthcare
The first example is from the healthcare sector.
This was a request from a dental clinic owner.
Industry | Healthcare (Dental Clinic) |
Operation Period | 7 months |
Advertising Goal | Increase Invisalign treatment sign-ups |
Target | Users considering orthodontic treatment in the local area |
Hypothesis & Actions | Operations during the first 1–3 months [Hypothesis] ↓ [Action] |
Operations during months 4–7 [Hypothesis] ↓ [Action] | |
Results |
|
Case Study 2: Recruitment (Mid-Career)
This example involves using Search Ads to increase completed applications for taxi driver recruitment.
In addition to Search Ads, Display Ads were used as needed depending on the situation.
Industry | Recruitment (Mid-Career) |
Operation Period | 7 months |
Advertising Goal | Increase completed applications |
Target | Men aged 40–60 considering career changes or second careers |
Hypothesis & Actions | Operations during the first 1–3 months [Hypothesis] ↓ [Action] |
Operations during months 4–7 [Hypothesis] ↓ [Action] | |
Results | First 1–3 months
|
Months 4–7 (compared to results from months 1–3)
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Strategies to Enhance the Effectiveness of Search Ads
To improve the effectiveness of Search Ads, the following strategies are necessary.
- Narrow down your target audience
- Set keyword match types
- Configure negative keywords
- Optimize ad text and headlines
- Improve your website and landing pages
Check each one and apply them to your operations.
Strategy 1. Narrow Down Your Target Audience
Focus on users who are likely to purchase or use your products or services.
Narrowing your audience helps you achieve results without incurring unnecessary costs.
For example, imagine a dental clinic in Saitama Prefecture running Search Ads nationwide to increase the number of patients.
While many users may see the ads, targeting regions like Kyushu or Shikoku would not lead to new patients for the clinic.
This reduces the likelihood of achieving results relative to ad spend.
When running Search Ads, it is crucial to identify users who are likely to engage with your products and achieve results efficiently.
When defining your target audience, create a “persona” and incorporate it into your ad settings.
For more details on personas and targeting in Search Ads, check out the article below.
What Targeting Settings Are Possible in Search Ads? A Clear Explanation of the Types -webma-
Strategy 2. Set Keyword Match Types
Setting keyword match types allows you to avoid unnecessarily broadening your audience’s needs.
Match types determine how closely a user’s search query must match your specified keywords for your ad to appear.
Depending on the match type, ads may appear for keywords that differ significantly from your intended ones.
If your ad doesn’t align with users’ needs, achieving results may become challenging, so exercise caution.
There are three types of match types: “Exact Match,” “Phrase Match,” and “Broad Match (Intent Match).” For those new to Search Ads, we recommend starting with “Phrase Match.”
The degree of keyword expansion increases in the following order: Exact Match < Phrase Match < Broad Match (Intent Match).
Phrase Match strikes a balance by not being overly restrictive like Exact Match nor excessively broad like Broad Match.
This makes it a beginner-friendly match type for Search Ads.
Start with Phrase Match and gradually incorporate other match types as you gain experience in ad management.
Strategy 3. Configure Negative Keywords
For keywords not excluded through match types or those you don’t want associated with your ads, configure them as “Negative Keywords.”
Negative keywords prevent your ads from being displayed for specific keywords, even if users search for them.
By registering keywords that are problematic for your business, your ads won’t be shown for those terms.
For example, consider setting negative keywords for unrelated services, negative terms, or regions unlikely to convert.
To learn more about negative keywords, refer to the article below.
A Beginner’s Guide to Selecting Negative Keywords and Match Types -webma-
Strategy 4. Improve Headlines and Ad Copy
Always work on improving your ad headlines and ad copy.
To achieve results, you need to capture users’ interest through your headlines and ad copy.
To enhance your ad text, it’s essential to conduct A/B testing consistently and determine which parts of your ads are appealing to users.
A/B testing involves running two or more ads simultaneously to identify which one performs better.
By changing and comparing parts of the headlines or ad copy, you can discover what attracts users to click on the ad.
In addition to conducting A/B testing, it’s also beneficial to learn “writing techniques” to make your product more attractive.
Strategy 5. Optimize Your Website and Landing Pages
It’s not just about the ads; you also need to improve your website and landing pages (LPs).
Websites with low usability have a higher likelihood of users leaving.
Here are some characteristics of websites with low usability:
When users have negative emotions, they are likely to leave the website, reducing the chance of making a purchase.
Therefore, it’s crucial to continually optimize not only your ads but also your website and LPs.
Frequently Asked Questions About Search Ads
Lastly, here are some common questions about the effectiveness of Search Ads.
1. Which is more effective, Google Ads or Yahoo! Ads?
It’s hard to say definitively which is more effective.
You need to consider the attributes of your target audience and the compatibility of the products or services.
If your target audience frequently uses Google, Google Ads may be more effective. If they use Yahoo! more, then Yahoo! Ads might be better.
That said, you won’t know for sure until you run the ads, so it’s recommended to start with a small budget, test both, and choose the one with better cost-effectiveness.
2. How long does it take for Search Ads to show results?
Search Ads can deliver results in as little as a few days to a month.
However, initially, you’ll likely need to invest more in ad spend to secure conversions (CVs).
As CVs increase, you’ll accumulate data and eventually recover the ad spend.
In any case, it’s essential to refine your strategy over time, and you should plan for at least three months to evaluate cost-effectiveness.
3. Are ads displayed at the bottom of the page ineffective?
It’s not that they’re ineffective, but like SEO, ads that appear higher in search results tend to have higher click-through rates.
You need to aim for higher placements through ad quality improvements and bid adjustments.
4. Does combining Search Ads with SEO provide synergy?
Running Search Ads doesn’t directly improve your SEO rankings.
However, since Search Ads and SEO are distinct methods for attracting customers, it’s recommended to use them together.
By combining Search Ads, which are strong for short-term results, and SEO, which is better for long-term results, you can leverage their respective strengths and offset their weaknesses.
[Summary] The Effectiveness of Search Ads Depends on Factors Like Products and Management Methods
In this article, we’ve explained the potential effects of Search Ads and how to improve them.
Search Ads can deliver the following three effects:
- Narrow your target audience
- Set keyword match types
- Define negative keywords
- Improve ad copy and headlines
- Optimize your website and landing pages
When managing ads, you might wonder, “Am I doing this correctly?” or “I still don’t understand after reading various guides.”
If you feel uncertain about running Search Ads, consider outsourcing to an advertising agency.
Advertising agencies have professionals who can manage your web ads and help you achieve results more efficiently.
Our company specializes in Search Ads and various other advertising services, so feel free to contact us via the button below if you’re interested.
