Which Industries Are Best Suited for Search Ads? 3 Key Traits to Know Before Advertising

Search Ads are effective for attracting web traffic across various industries.

However, did you know there are some industries where Search Ads may not be suitable?

If you are considering using Search Ads without knowing whether they are suitable for your business, please read this article before launching your campaigns.

If your business is not a good fit for Search Ads, you might end up wasting your advertising budget.

Moreover, some industries cannot use Search Ads at all.

This article will explain the following three points in detail:

Additionally, we introduce alternative advertising options for industries unsuitable for or unable to use Search Ads.

If you’re a web manager aiming to succeed in attracting customers online, this article is a must-read.

Three Characteristics of Industries Suited for Search Ads

Industries suitable for Search Ads often share three common characteristics.

Check if your business fits these criteria.

Industries with these traits are recommended to utilize Search Ads.

Let’s explore these three characteristics in detail.

1. Low Competition

Industries with fewer competitors running Search Ads tend to have lower CPC (Cost Per Click), making Search Ads a viable option.

Search Ads operate on an auction system where CPC is determined.

Industries with high competition typically have higher CPCs.

For example, keywords in highly competitive industries like credit cards can exceed a CPC of 3,000 yen.

In contrast, industries with low competition or few competitors running Search Ads tend to have lower CPCs.

Examples of industries with lower CPCs compared to credit cards include:

However, remember that as more competitors enter the Search Ads space, CPCs may increase.

A key benchmark is whether the CPC is affordable relative to the price and profit margin of your products or services.

In such cases, Search Ads can be effective.

2. Unique, Niche, or Urgent Needs

Industries that are niche or have urgent needs tend to see higher CVRs (Conversion Rates), making Search Ads highly effective.

This is because Search Ads, displayed on search engines, appeal directly to users already aware of their needs and looking for immediate solutions.

You may have experienced situations like these:

“You realize you’ve lost your house key right outside your door.”

“Your home’s plumbing starts leaking unexpectedly late at night.”

In such situations, users often search for keywords like “lost key” or “water leak 24 hours” and click on Search Ads to use the service.

Because users already know the keywords and are actively seeking a solution, Search Ads are particularly effective for these cases.

While niche or specialized industries may have fewer search users, those users are often highly motivated to act, resulting in higher CVRs.

Examples of industries with high urgency include:

If your industry is unique, niche, or has urgent needs, Search Ads are likely to yield results.

3. Difficult to Achieve High Rankings in SEO

Industries where achieving high SEO rankings is challenging can also benefit greatly from Search Ads.

There are two main reasons:

For certain keywords and industries, SEO rankings are dominated by large corporations, making it nearly impossible for newcomers to rank highly.

By using Search Ads, you can display ads above organic SEO content positions on search engines.

For example, industries like health supplements or finance are dominated by big companies in SEO rankings, making it tough for new entrants to succeed.

Attempting to compete in such competitive SEO fields may require enormous time and costs.

Given these factors, running Search Ads may offer better cost performance.

Additionally, companies unable to invest in SEO strategies may find Search Ads an attractive option.

SEO requires long-term effort, and companies without sufficient budgets may run out of resources before seeing results.

In contrast, Search Ads are short-term strategies that are relatively cost-effective and easy to implement.

Thus, Search Ads are highly recommended for businesses unable to budget for SEO.

However, keep in mind that some industries are inherently unsuitable for Search Ads and should avoid them altogether.

Industries Unsuitable for Search Ads

Search Ads are not a one-size-fits-all solution and may not be suitable for certain industries.

If your industry meets any of the following three conditions, we do not recommend using Search Ads.

Let’s dive into the details.

1. Industries Not Searched at All

Industries that are not searched on search engines are unsuitable for Search Ads.

Since Search Ads are displayed to users utilizing search engines, there is no point in advertising if there is no search activity.

Examples of such industries include:

Such industries lack recognition, making them unsearchable.

Thus, industries that are not searched are not suitable for Search Ads.

If you feel that your industry might fall into this category, try searching for it on a search engine.

If no relevant web pages other than your own appear, it indicates that Search Ads may not be suitable for your industry.

Even for recognized industries, it’s essential to consider the following:

Although Search Ads operate on a cost-per-click basis and incur no charges unless clicked, investing time and resources in unsearchable keywords can result in wasted efforts. Therefore, it’s crucial to perform these checks beforehand.

2. Industries That Cannot Set Conversions Online

Even if an industry is searched, it is unsuitable for Search Ads if online conversions (e.g., sales or inquiries) cannot be set up.

Without conversions, you cannot establish goals for your web strategies.

The primary purpose of web marketing is to generate leads. Without conversions to capture potential customer data, there’s little value in running Search Ads.

Additionally, lack of conversions prevents accurate measurement of ad performance, making it impossible to determine the effectiveness of your investment.

The strength of web advertising lies in its ability to measure and optimize ad performance for maximum results. However, this benefit is lost if conversions cannot be set.

For example, a distance learning service might use requests for brochures as a conversion metric. In contrast, a burger chain without an online purchase page would struggle to benefit from Search Ads due to the absence of measurable conversions.

Check if your industry can set meaningful conversions online before proceeding with Search Ads.

3. Industries With Low Profit Margins and Unit Prices

Even industries that generate searches and conversions may not be suitable for Search Ads if they have low profit margins or unit prices.

For example, selling condominiums with high unit prices and decent profit margins can benefit from Search Ads. However, selling pastries with low unit prices and profit margins might struggle to justify the advertising costs.

Industries operating on thin margins are generally incompatible with Search Ads due to the difficulty in covering ad costs with profits.

If your industry falls into this category, we do not recommend using Search Ads.

Note: Industries Prohibited from Search Ads

Some industries are prohibited from using Search Ads due to inappropriate products or services.

Industries Prohibited by Google Ads

Google Ads prohibits certain industries under its advertising policies, such as:

For more details, refer to the Google Ads Policy Help.

Conclusion: Choose the Right Strategy for Your Business

While Search Ads are a powerful tool for web marketing, they are not suitable for every industry.

Understanding whether your business aligns with Search Ads is key to maximizing effectiveness and profitability.

If not, explore alternative strategies that align with your business model and goals to succeed in web marketing.