Thursday, September 1, 2022

How long does it take for a Google Ads campaign to become profitable?


 

How long does it take for a Google Ads campaign to become profitable?

 

There are many factors that affect the potential profitability of a Google Ads campaign. The quality of the ad, the profitability of the product, the demand, the competition, the budget, etc. There are many products that do not make sense to start with Google Ads because each sale generates a loss. Selling is more expensive than not selling.

I won't talk about that today. I assume you've done your homework. In my experience, your product margin should be greater than 40%. In this way you can reduce it by 10-15% with your online advertising campaigns.

Even with numbers in your favor, 20% to 40% of your products may not be promoted through Google Ads, and the reasons are not always easy to determine. Sometimes there is nothing to do. 10-20% of products generate very short-term returns within a few days. The rest of the products take weeks or even a month.

If you've been using Google Ads for 3 weeks or more and the numbers still don't show the profitability you're looking for, you're not alone. Here, you should consider the following:

Index

1.    Total budget spent.

2.    Campaign optimization level.

3.    Now is not the time for your product.

4.    In summary:

Total budget spent.

If you talk to a Google salesperson, they will tell you that the best thing you can do is spend 10,000 euros a month. In reality, much less can be achieved with good results, but don't be surprised if you spend 300 euros and the optimization level is still insufficient.

Campaign optimization level.

If you're creating a Google Ads campaign for the first time, a lot can go wrong. There may be 10x between doing it as a beginner and turning it over to a professional agency. That said, an experienced person can generate up to 10x more clicks for the same budget.

Now is not the time for your product.

Sometimes this refers to more than just seasonal issues. Probably a lot of people are at the information stage but haven't bought it yet. You may have picked the wrong time to sell.

In summary:

most campaigns take 4 weeks or more to reach an adequate level of optimization. Budget affects speed. There are some products that you can't monetize with Google Ads no matter how much you spend for a variety of reasons.

Obviously the data I just gave you is very relative. The best way to find out is to put yourself to the test. It is also very useful to exchange experiences with other professionals in your sector to learn about their experiences.

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