I hopped on the zoom call, excited to see if I could use Google ads to help grow my business from an idea to a cash flow masterpiece. We talked about my services and how Google ads could help both my business and my customers’ business, and then the salesman on the other end of the call came to the close: we can get started today for just $2000 in ad spend.

Wait, what!?!

Google Ads Management Cost to Break the Bank

Many businesses won’t blink at $2,000 dollars a month in ads cost. Most agencies are focused on those businesses; I hear other copywriters and ads managers say that they will never work for anyone for less than $2,000 a month.

Or more.

When 82% of failed businesses report lack of cashflow as the reason for failure and the average income for a one-person business is $44,000, ad agencies who refuse to work for less than half the average income of a business owner are a huge part of the reason that 82% of businesses fail.

Trying to find white-label partners was a key motivating factor for building Paul Davis Solutions’ real-time marketing services.

Reducing Costs through Reducing Variables

A typical advertising system includes the following:

  • Google Ads – Ad spend plus managing fees
  • Facebook Ads – Ad spend plus managing fees
  • Content Marketing – Creative plus costs for sponsored content
  • Video Content and Advertisements – Scriptwriting costs, voice actor costs, editor and publisher costs plus ad spend.
  • SEO – On-Page SEO and Off-Page SEO
  • Marketing Strategy

When each of these areas of a typical marketing strategy costs $2,000 or more per month, a quality campaign will end up costing $12,000 or more a month. In other words, the typical costs an agency or freelance marketer passes on to their clients means that the vast majority of small businesses are stuck doing it all themselves or pay for only one of those services and do not get a return on their investment because they have an incomplete marketing plan.

Reducing variables by doing less is one way to reduce costs but it is not a good way to get a return on investment.

Reducing Costs through the Farming Principle

There is something about the type of person who wakes up at 4 am to feed the cows, spends his or her day working, either at a day job to make ends meet or doing a laundry list of chores a mile long.

Most marketers start their business in order to have the freedom that comes from being their own boss. Most small business owners who use our real-time marketing services are in business because it is something they love. My tax clients get to have some freedom when taxes are done, yes. But January through April (on a typical year, this year is something else entirely) they are working 12 hours a day 6 or 7 days a week.

A marketing agency that produces Google ads for small businesses has to understand that there is a time and a place for everything and apportion marketing budgets accordingly. Some of my clients only get Google ads during peak seasons, others only get Google ads when they have a promotion.

What do we do when we are not running ads for them? We take the ad spend and use it to create videos, write more content, build a new social media page or create strategy.

In other words, like any organism, our real-time marketing services respond to the need of the day and focus on specific activities that are needed in real-time.

Budgeting for Google Ads

We include advertisement costs in all our ads. Sometimes our customers increase spending. But, I have seen tremendous return for my customers on as little as $2 a day for local Google ads.

So, what budget should you set for your business’s Google ads campaigns?

My answer, like so much of marketing is “it depends.”

To talk more (with a free 1 hour ad strategy call), fill out the contact form below and let’s chat!