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Digital Marketing for Businesses: How It Increases Return-on-Ad-Spend

Digital Marketing for Businesses: How It Increases Return-on-Ad-Spend

Written by Les Seow May 2023

While there are almost 2 billion websites on the internet, less than 200 million of them are active. If you want to have any chance against this competition, you’ll have to think about your digital marketing strategy. To enhance your business’s digital marketing, incorporating online Ads (i.e., Google Ads or Facebook Ads) is one of the most effective strategies.

You can make this easier by increasing your return-on-Ad spend.  But how can you do this? What steps can you take to boost your profits after running Ads?

return of ad spend formula

Continue reading and discover ways to enhance your Google Ads and Facebook Ads, along with your lead generation efforts.

Reduce the Cost of your Ads

Ad pricing can vary depending on the type of Ad you’re paying for. Some might cost a few cents every time the Ad shows up or gets clicked on. More advanced Ads may cost several dollars or more.

If you’re trying to run a digital marketing campaign, you don’t want to drain your wallet into Ads. It’s crucial to ensure that your advertisements generate a favorable return. Otherwise, they’ll act as a black hole for your finances.

This is why you need to keep track of your digital marketing spend. It’s important to carefully monitor the amount of money being spent on Ads. You can then use that number to determine your measure of success.


Key metrics in measuring digital marketing ad spend infographic


If you spend a lot of money on Ads and get very little in return, this is a problem. The issue might be related to the type of Ads you are utilizing. Or it’s possible that there’s an issue with your digital marketing campaign.

How It Works

Identify the underlying issue and determine why your Ads are not performing as expected. Once you do that, you can choose better Ads. To optimize your budget, it’s recommended to reduce spending on advertisements.

Spending less is always ideal. This is because there is a better chance that you will generate a better return compared to what you spent on your Ads. This is the goal when paying for Ads.

Once you get a larger return, you can use that money to invest back in more Ad spend. By keeping this cycle going, you’ll be able to rapidly enhance your business. Browse around until you find Ads that fit your budget and are efficient at the same time.

Improve the Conversions Your Ads Generate

Ads are all about conversions. The meaning of “conversion” varies depending on the type of Ad you’re running. An Ad conversion might be something as simple as someone clicking on the Ad and going to your website.


4 common types of conversions in digital marketing


A conversion might include someone interacting with the Ad in another way. When someone clicks on your Ad and lands on your website, it’s always a positive outcome. You want as many of these conversions as possible.

This is because these conversions will bring more business to your site. When people arrive at your site, there is a chance that they will like what they see. They may browse your products or services and decide that they are in the market for those things.

Once they buy something from you, this is the start of something very significant.

Attracting More Customers

If one person is interested in your products, there is a good chance that many other people will be too. This will lead to a steady stream of income from new customers.

Some of them may become repeat customers and give you even more business. This could make your business a serious success. It all begins with a few straightforward Ad conversions.

To improve your return-on-Ad spend, focus on enhancing your conversions. Enhancing the appeal of your advertisements can help accomplish this. The more eye-catching your Ads appear, the more appealing they will be to potential customers.

5 hacks to enhance the appeal of your Digital Ads to Prospects

But if your Ads are bland and uninformative, you might have a hard time making conversions. It’s possible that you may need to experiment with different approaches before finding the ideal formula for your advertisements. You can then narrow down your options and see which Ads work best.

This should help you improve your conversions and your return-on-Ad spend.

Take a Closer Look at the Data

The data that your Ads generate can be very helpful for improving your return-on-Ad spend. Consider how this data changes over time. How many impressions do your Ads get?

How many conversions do they get? Do certain types of Ads do better than others? Suppose your Google Ads do much better than your Facebook Ads. It would make sense to stop advertising on Facebook and put more of your energy into Google Ads.

This would allow you to focus your funds and energy in one place. By doing this, you can increase the potential success of your Ads. This is an easy way to make more money with your Ads.

This allows you to easily break even on what you paid for the Ads with what you earned. You can then put the extra money back into more Ads and expand your success.

How to Improve Your Return-on-Ad Spend

If you improve your return-on-Ad spend, it will make it much easier and affordable for you to keep advertising. Start by investing in more affordable Ads and examining Ad data.

Improve the conversions your Ads generate as well. All this will attract more high quality traffic, more sales and more money. Are you prepared to begin your digital marketing journey for your business?

Discover how our profitable Google and Facebook Ads services can take your business to the next level. Book a free 30 min discovery session now.

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Top 10 Reasons Why You Should Use Google Ads

Top 10 Reasons Why You Should Use Google Ads

Updated By Les. Nov 2023

In the ever-evolving landscape of digital marketing, Google Ads remains an indispensable tool for businesses of all sizes. Whether you’re a burgeoning startup or a well-established enterprise, Google Ads offers a versatile platform for generating leads and enhancing brand awareness. In this article, we’ll delve into the existing reasons for embracing Google Ads, while introducing three new compelling factors that make it a must-have for businesses in today’s competitive market.

Existing Reasons to Embrace Google Ads

Before we explore the new reasons, let’s recap why Google Ads has already been a game-changer for businesses:

1. Search intent dominance

When it comes to search intent, Google Search out ranks all other search engines like Bing, Yahoo or Baidu. In 2021, Google Search has taken almost 90% of the of the search engine market while Bing has 2.48%, Yahoo has 1.5% and Baidu 0.29% (source

The annual global growth of Google Search is now 8.2% ( This translates to roughly 40,000 search queries per second (

According to further research statistics: –

  • 80% of all companies focus on Google Ads for PPC (WebFX, 2020)
  • Online ads can increase brand awareness by up to 80% (WebFX, 2019)
  • Two in five small-to-midsize businesses are running a PPC campaign (WebFX, 2019)
  • More than 7,000,000 advertisers use Google Ads PPC (KlientBoost, 2019)
  • Google Ads is currently the biggest provider of search advertising on the market (Statista, 2020)

Everyday more and more people are using Google Search to research products and services.

Paid search, exemplified by Google Ads, offers a distinct advantage in terms of cost-effectiveness. This advantage is attributed to its efficient mechanism of bidding on specific keywords, enabling your business to secure prime real estate at the top of search results pages. In stark contrast, the realm of organic search demands an investment of time, patience, and relentless effort before you can witness the fruits of your labor. With paid search, your business can promptly and precisely target its audience, making it an ideal choice for those seeking swift and targeted results. In the case of organic search, the path to success involves cultivating your online presence through a marathon of strategies and optimizations, but the long-term rewards are often well worth the wait.

In a nutshell, Google Search’s unrivaled dominance in the search engine market, with a staggering 90% share, ensures that your ads reach an audience with genuine search intent. With millions of searches conducted daily, Google Ads provides a golden opportunity to tap into a vast user base.

Search engine global stats

2. Effective cost control

When comparing the advertising landscape, Google Ads shines as a beacon of cost-effectiveness in stark contrast to traditional marketing channels like print ads, radio, or TV. The fundamental disparity lies in the precision of audience targeting and budget management. Traditional methods cast a wide net, reaching a broad spectrum of individuals, regardless of their affinity for your product or service. The costs associated with such broad-reaching campaigns can be exorbitant, while the return on investment (ROI) often remains disappointingly elusive. This financial burden is particularly challenging for small businesses that typically lack the substantial resources required for conventional marketing endeavors.

In the realm of Google Ads, the narrative takes a different, more cost-effective turn. Here, you wield the power to define a monthly budget that aligns seamlessly with your business objectives, without fear of overreaching financial constraints. Your ads are not merely flung into the digital ether; they are carefully tailored to reach a receptive audience, ensuring that every advertising dollar is an investment, not an expense. Moreover, Google Ads allows for daily budget adjustments, which means you can allocate more resources to days that promise higher conversion opportunities. The result is a flexible advertising strategy that adapts to real-time market fluctuations. An ingenious approach is the creation of a shared budget that can be seamlessly distributed across relevant campaigns. This approach streamlines the budget management process, necessitating changes in just one location, ensuring consistency across campaigns sharing the same budget and maintaining overall monthly spending within an impressive +/- 5% margin.

Google Ads keyword-based targeting strategy is excellent for targeting customers with specific interests. This strategy also ensures the budget is spent on relevant searches and shown to those who are specifically in the market to acquire your product or service.

Google Ads Shared Budgets snapshot

If you are concerned of going over budget, Google Ads allows you to set a spend limit. This way you will never go over budget.

Google Ads Spend limit snapshot

3. Keyword-based targeting

Google Ads’ keyword-based targeting lets you reach potential customers precisely when they’re searching for your products or services. This precision ensures that your budget is spent on highly relevant searches, maximizing your chances of conversion.

Unlocking the power of keyword-based targeting on Google Search stands as one of the most accessible and effective means to connect with potential customers. This strategy revolves around the art of selecting precise keywords that encapsulate the essence of your product or service, thereby directing your message to the right audience. Let’s illustrate this with an everyday scenario: imagine you find yourself in Perth, urgently needing a tow truck service to transport your vehicle from one location to another. In this moment, you instinctively turn to the trusty Google Search and input the search term ‘tow truck Perth.’ The magic unfolds as Google’s search algorithms diligently get to work, fetching results that align perfectly with your search criteria. The search results prominently feature Google Ads, which are thoughtfully tailored to match your immediate need by showcasing ads from relevant service providers.

Google Ads’ keyword-based targeting strategy is, without a doubt, a formidable asset in your marketing arsenal. This approach not only aids in precision targeting but also ensures that your advertising budget is allocated judiciously, exclusively to searches that harbor genuine intent to acquire your specific product or service. It’s the digital equivalent of catching the attention of a prospect at the precise moment when they’re poised to make a purchase decision. With keyword-based targeting, your marketing strategy evolves into an efficient, laser-focused force that engages potential customers with a heightened sense of relevancy and purpose.

This approach not only aids in precision targeting but also ensures that your advertising budget is allocated judiciously, exclusively to searches that harbor genuine intent to acquire your specific product or service. It’s the digital equivalent of catching the attention of a prospect at the precise moment when they’re poised to make a purchase decision. With keyword-based targeting, your marketing strategy evolves into an efficient, laser-focused force that engages potential customers with a heightened sense of relevancy and purpose.

google search tow truck snapshot

4. Geo-location targeting

Geo-location targeting is often overlooked but can be a game-changer. It allows you to reach customers based on their physical location, targeting your audience with greater precision and optimizing your campaign budget.

In Google ads, this can be either set by country or state or city. Google Ads also provides the option of using a radius setting around a certain area such as shown below.

google ads location setting snapshot

Geo-location targeting is a strategic powerhouse with a trio of paramount objectives: propelling foot traffic, amplifying sales, and heightening the quality of customer service by delivering meticulously relevant search results to individuals in a precise location. This dynamic approach enables digital marketers to orchestrate their advertising symphony with the precision of a maestro, ensuring that their audience is served with ads perfectly harmonized to their geographical context.

Beyond the salient objectives, there’s an invaluable dividend to geo-location targeting – the optimized allocation of your campaign budget. With this strategy in place, your advertising expenditure is concentrated like a laser beam on the most coveted customer segments residing within your specific target location. The beauty of this precision lies in its ability to spare your budget from unnecessary squandering on prospects who fall outside your target audience. By avoiding ad spend wastage, geo-location targeting affords your campaigns the fiscal discipline they need to yield remarkable ROI and conversion rates. It’s the fine art of smart budget management, making every dollar you invest in advertising a calculated step towards success.

5. Ad copy control

With complete control over ad copy, you can craft compelling headlines, descriptions, and keywords to capture your audience’s attention. A well-optimized ad with clear benefits can significantly enhance your click-through rate and conversions.

Google Ads empowers advertisers with a formidable arsenal for crafting compelling ad copy that is bound to captivate their audience. It’s not just about putting words on a digital canvas; it’s about creating a symphony of persuasion. In this virtuoso performance, headlines take center stage – concise, impactful, and highly descriptive. Their mission is to kindle the sparks of curiosity and ignite interest in your product or service. Each word in the headline must count, inviting users to explore further.

Complementing the headline’s tantalizing introduction is the description – a canvas where the benefits for your customers unfurl in crystal clarity. This is your chance to communicate precisely what awaits those who click on your ad. Every detail is meticulously honed to serve as a beacon of information, guiding potential customers through their journey. Moreover, it’s not just about words; it’s about keywords. Keywords used in both the headlines and descriptions should be meticulously chosen to establish an unwavering connection with individuals actively seeking products or services akin to what you offer. This strategic alignment ensures that your ad appears like a shining beacon, directing users to your virtual doorstep. Every element, from the description down to the URL, plays a pivotal role in your ad’s performance, demanding perfection.

This extraordinary degree of control is indispensable to advertisers seeking to fine-tune their campaigns for optimal ranking results. It’s the meticulous craftsmanship of each ad component that dictates its resonance with the audience, ensuring that every ad dollar spent serves as a catalyst for driving conversions and success.

google ads responsive search ad snapshot

6. Landing page metrics

Landing pages are the webpages visitors land on after clicking on a link from a search engine like Google Search. Websites and single standalone webpages are considered landing pages. A website is just a more detailed elaborate landing page with navigation menus serving up different webpages for the website. If visitors can’t find what they are looking for or if they don’t like what they see, many will bounce off the landing page and never return to the site. Integrating Google Analytics with your Google Ads campaigns offers a wealth of data to analyze landing page performance. Metrics like bounce rate, session duration, and percentage of new sessions help fine-tune your landing pages for better results.

Google Analytics is the most commonly used website analysis tool for understanding website visitor behavior. It provides comprehensive insights about visitors, goals and conversions. Through Google Analytics, advertisers can measure how long visitors stay on their landing pages and analyse the bounce rate (i.e. it is the percentage of visitors who enter the site and then leave (“bounce”) without doing anything).

By linking Google Analytics to Google Ads, advertisers can track traffic from paid ads. Advertisers can then figure out which landing pages are most effective with which audiences respond to positively by submitted leads and can optimize accordingly.

Google Analytics link to Google Ads snapshot

Linking your Google Analytics to your Google Ads campaigns unlocks a treasure trove of invaluable data insights that can significantly bolster your campaign’s performance. Among these insights, three key metrics take the spotlight: landing page bounce rate, percentage of new sessions, and average session duration.

The landing page bounce rate acts as a litmus test for the landing page’s efficacy. A high bounce rate or a brief average session duration can be telling indicators that the page may not be optimally tailored for the specific audience segment it’s meant to engage. These metrics provide a compelling narrative, revealing whether visitors are finding what they seek or quickly losing interest. On the flip side, a low bounce rate and a lengthy average session duration signal an optimized landing page that seamlessly resonates with the target audience, holding their attention and guiding them deeper into the user journey.

The percentage of new sessions is a vital gauge of fresh visitor influx. It illustrates the proportion of new visitors arriving at the landing page. This metric provides valuable insights into the landing page’s ability to attract and engage a constantly evolving audience, potentially opening the doors to expanding your customer base. In essence, these Google Analytics metrics, when harnessed effectively, unveil the narrative of user engagement, guiding you to optimize your landing page for superior campaign performance.

Google Analytics data in Google Ads snapshot

7. Monitor and optimise

Google Ads provides a range of metrics to track and analyze campaign performance, including clicks, click-through rates, impressions, costs, and conversions. Regular monitoring allows you to optimize your campaigns to achieve the best results.

Google Ads offers a plethora of different metrics to analyze. Apart from bounce rates, average session duration and percentage of new sessions, advertisers should analyse these metrics as well:

  • Clicks (Sum of clicks on the ad.)
  • Click-Through-Rate (CTR) (Measures how often people click your ad after it’s shown to them, which can help you understand the effectiveness of your ad.)
  • Impressions (An impression is counted each time your ad is shown, which tells you how often your ad is shown. The aim is for high impressions.)
  • Cost (Cost is the sum of campaign spend during the reporting period.)
  • Average Cost (Average cost is the average amount that an advertiser paid per interaction.)
  • Average Cost-Per-Click (CPC) (Average cost-per-click is the amount that was paid for the ad divided by its total clicks, this tells how much is being paid on each click. The aim is to maximise impressions and clicks with the lowest CPCs.)
  • Conversions (Shows the number of conversions or lead submissions received after ad interactions.)
  • Cost per conversion (Shows the average cost of a conversion i.e. cost divided by conversions.)

Google Ads campaign statistics snapshot

New Reasons to Choose Google Ads

Now, let’s introduce three new compelling reasons why Google Ads is an essential tool for businesses of all sizes:

8. Dynamic Ad Extensions

Google Ads introduces a groundbreaking feature that’s set to transform your advertising strategy: dynamic ad extensions. These innovative extensions have the ability to automatically showcase supplementary information, meticulously fine-tuned according to the user’s behavior and intent. This dynamic approach doesn’t just enhance the relevance of your ads; it’s a strategic marvel that creates a more engaging and captivating ad experience for your audience, while concurrently catapulting your ad’s visibility to new heights.

This groundbreaking feature heralds a seismic shift in the way your ads interact with users. No longer static, they adapt and evolve based on the individual’s online journey. For instance, if a user is exploring a range of products on your e-commerce site, dynamic ad extensions may spotlight your best-selling items, special promotions, or even highlight product reviews to bolster their purchasing decision. It’s a personalized touch that resonates with users, making them feel like your brand understands their unique needs. This level of interaction can significantly boost user engagement, making your ad not just a message but a valuable resource tailored to each user. The result? More compelling ads, happier users, and an ad campaign that truly stands out in a crowded digital landscape.

9. AI-Powered Targeting

Embrace the full potential of Google’s cutting-edge artificial intelligence to supercharge your targeting strategies. With the ever-evolving landscape of digital advertising, Google Ads emerges as the ultimate ally. It empowers you with the capability to delve deep into user data and behavior, unearthing insights that go beyond the surface level. This profound analysis furnishes you with a treasure trove of audience segments, meticulously crafted to home in on individuals who are not just interested but highly likely to convert. This transformative approach not only injects a new level of efficiency into your campaigns but also ushers in a profound era of cost-effectiveness.

The dynamic synergy between Google’s AI and your advertising strategy manifests in the form of hyper-personalized campaigns. It’s akin to having a virtual assistant that can decode the intricate web of user preferences and behaviors, deciphering patterns that might have eluded human observation. Armed with this in-depth knowledge, you can fine-tune your targeting strategies to create laser-focused ads that resonate with users on a profound level. This kind of precision doesn’t just save ad spend; it ensures that every dollar invested yields a remarkable ROI. With Google Ads and its AI-powered insights, you’re not merely advertising; you’re forging meaningful connections with your audience, delivering exactly what they seek, and achieving a level of efficiency that redefines the digital advertising game.

10. Enhanced Local Services Ads

Google Ads extends a vital lifeline to brick-and-mortar businesses with its groundbreaking feature: enhanced local services ads. This innovation has the power to seamlessly bridge the gap between you and local customers, facilitating swift and effortless connections. In a digital realm teeming with options, these ads serve as beacons of accessibility and information, providing crucial details that guide potential customers to your doorstep with ease. From pivotal information like business hours and service areas to the invaluable insights encapsulated in customer reviews, these ads constitute a comprehensive resource that simplifies the decision-making process for your audience, increasing the likelihood of them choosing your services over the competition.

In an era where convenience reigns supreme, enhanced local services ads set you on the path to be the first choice for local customers. With a quick glance, they can discern your operating hours, grasp the scope of your service area, and gain confidence through authentic customer feedback. This level of transparency and accessibility isn’t just an enhancement; it’s a beacon of trust and convenience that significantly boosts your local appeal. In essence, these ads become the digital handshake, the welcoming sign, and the treasure trove of information that guides local customers to your business, ensuring they choose you with confidence.


In conclusion, Google Ads remains an indispensable asset for businesses, offering a multitude of benefits that extend beyond traditional advertising methods. With search intent focus, cost control, precise targeting, ad copy control, landing page optimization, and continuous monitoring, Google Ads is already a powerful tool. The introduction of dynamic ad extensions, AI-powered targeting, and enhanced local services ads further solidify its position as a must-have for businesses of all sizes. Embrace Google Ads and propel your business towards greater success in the digital landscape.

If you are looking to understand the components of a digital marketing strategy, feel free to read this blog.

We also have a Google Ads case study which you can view first hand how effective Google Ads is in lead generation.

Discover how out Google Adwords Perth agency can help boost your business lead generation. Book a free 30 min discovery session now.

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Google Ads Case Study: How To Boost Sales Leads

Google Ads Case Study: How To Boost Sales Leads

Home » google ads

Updated By Les. Jan 2022

This Google Ads case study demonstrates how Google Ads was used to effectively boost sales leads across a 2 month period while achieving lower costs to maximise return on ad spend.

The success of the campaigns was as a result of sticking to a proven routine of doing things the right way with very regular monitoring to identify improvement opportunities. Small, incremental changes can add up to significant improvements over time.

Read on this Google Ads case study to find out how we did it.

The Background

Our client, Kennedys Aust Pty Ltd, is a family business operating in Victoria Australia. Their core business service offerings are commercial plumbing and asbestos removal. They operate a number of strategically located branches in Victoria. The business has a comprehensive website with web forms and excellent relevant web content including case studies with rich videos.

The objective of this Google Ads project was to boost their sales leads at their Geelong branch and surrounding areas as soon as possible over a 2 month run window.

The Challenge Ahead

Restricted Budget Spend$25/day
Campaign TypeSearch Only
Duration2 months
Audience GeographyLocation restricted to 50 kms radius of Geelong, Victoria
Ads Campaign FocusCommercial plumbing and asbestos removal
ConversionAs many and as fast as possible
Target MarketHighly competitive narrow B2B commercial plumbing and asbestos verticals saturated with many small to medium sized businesses
Brand RecognitionZero brand recognition or brand awareness for commercial plumbing and asbestos in Geelong

The Results

After the first month run, the campaigns yielded 3 conversions. Refer to the snapshots from Google Ads below.

The second month campaign run yielded 7 conversions, more than double of that in the first month.

The snapshots above highlight the following key achievements in comparison to the previous period: –

  1. Clicks grew by 62%
  2. CTR improved by 50%
  3. Impression grew by 8%
  4. Conversions grew by 133%
  5. Conversion rate improved by 44%
  6. Average Cost decreased by 5%
  7. Search impression share decreased by 23% but still produced more conversions

The Solution

To meet the challenges and deliver the positive results, we implemented a number of creative and innovative techniques to maximizing Return On Ad Spend (ROAS):-

  1. All campaigns used manual bidding as this strategy offered the best method to control cost per click to fit in with the limited daily budget of $25. This technique also allowed us to get the best out of Google Ads. With manual bidding, we adjusted bids to minimize spend simultaneously maximizing impressions, clicks, conversions and lowering CPC.
  2. Ad group relevance and highly targeted Ad creatives that focused on commercial plumbing and asbestos removal were created. Each Ad creative included a Call-To-Action. Ads comprised of a combination of Expanded Text Search Ads and Responsive Search Ads.
  3. To further enhance Ad strength, Ad extensions were implemented including Sitelink, Structured Snippets, Call-Out, Location and Call extensions.
  4. Implemented landing page split testing using the existing company website and custom landing pages with web forms.
  5. Organised campaigns using different geographic implementation techniques including location restricted by postcodes, location restricted by radius and Melbourne wide with further restrictions in some campaigns using a combination of in-market and affinity audiences, and profitable keywords.
  6. Ads split testing with different creatives to keep the campaigns fresh to overcome any Ad fatigue.
  7. Extensive keyword research lead to a combination of broad, broad modified and phrase match relevant targeted keywords that were implemented across the campaigns.
  8. Set up conversion tracking for web form submissions, call from Ads, calls from extensions and calls from website.
  9. Implemented shared budget that spread the $25/day budget across all campaigns.
  10. Daily campaign monitoring and optimization to identify problems and opportunities for overall improvement.

Looking for really useful Google Ads tips, then download our 6 Top Google Ads Tips here.

You can also find more details about our Google Ads management service here.

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