Google Ads — previously known as Google Adwords — is one of the most powerful online advertising platforms available. It offers businesses the ability to reach potential customers at the exact moment they’re searching for products or services. That said, when it comes to Google Ads or even other forms of paid advertising, many small businesses are unsure whether it is a worthwhile investment.
This is a legitimate concern, considering that managing and running Google ads effectively requires a certain level of expertise, time and financial investment. So, that brings us to the question — are Google Ads worth it for small businesses?
The short answer is yes, but it can depend on several factors. In this article, we’ll break down how Google Ads Campaigns work, their pros and cons as well as everything you should know. Let’s jump in!
How Does Google Ads Work
Google Ads operates on a pay-per-click (PPC) model, meaning advertisers only pay when someone clicks on their ad. Businesses bid on keywords related to their products/services, and then Google determines which ads appear based on a few factors — bid amount, ad relevance and quality score. These adverts are then displayed in the paid SERPS (search engine result pages).
Key elements of Google Ads include:
Keywords: Targeting the right search terms (keywords) that users search for to match user intent.
Bidding: Setting a maximum cost-per-click (CPC) to control spending.
Ad Formats: The different ad types — search ads, display ads, shopping ads, etc.
Audience Targeting: Allows businesses to target specific locations, demographics and interests.
The flexibility of Google Search Ads means businesses can start with small-ish budgets, test different strategies and scale based on performance. However, while that is true, your budget amount does play a massive role in whether it is a good option to invest in Google Ads — but more on that later on.

5 Benefits of Running Google Ads For Small Businesses
Here’s a quick look at the advantages small business owners can expect from investing in Google Ads:
1. Highly Targeted Advertising
Unlike traditional advertising, Google Ads allows businesses to target users actively searching for their products online. But, what does this really mean? Well, in simple terms, this translates to higher intent traffic and increased chances of conversions.
Instead of displaying ads to a broad audience who may or may not be interested, Google Ads ensures your business appears in front of people who are already looking for what you offer. This means your marketing budget is spent more efficiently, reaching users who are more likely to engage with your brand, inquire about your services or make a purchase.
2. Send Potential Customers to High Converting Landing Pages
A great advantage of running PPC ads is that you get to send users to a specific landing page instead of directing them to your website. While there is technically nothing wrong with sending ad traffic to your website, it can cause you to miss out on conversions.
Allow me to explain: when users get directed to a company’s website, they may get distracted by multiple pages, navigation menus or unrelated content that causes them to leave without taking action. However, with a well-optimised landing page, the primary focus is to get users to convert.
Simply put, a properly designed landing page eliminates unnecessary distractions and reduces friction opportunities to guide the user toward the desired outcome. By taking this approach, you increase your chances of a conversion taking place and get a better return on your ad spend.
3. Potential For Quick Results
A significant benefit of investing in Google Ads for your business is that you can quickly see results. When you compare this with paid advertising’s organic counterpart (SEO), the same can not be said. Search engine optimisation is a long-term strategy that takes consistent effort before you can start reaping the rewards.
While running Google Ads effectively also takes consistent effort, the timeframe in which you can see results are much quicker than SEO. In other words, once a campaign is set up, ads can start appearing within hours, driving immediate traffic to your website.

4. Target Users Based on Location
One of the biggest advantages of paid search ads is its ability to target users based on location. Whether you run a local business or sell nationwide, you can ensure your ads are only shown to people in relevant areas, maximising your ad spend.
Think about it: why advertise to someone hundreds of miles away if they can’t visit your store or use your services? With location targeting, you can focus on specific countries, states, cities or even set a custom radius around your business. This ensures your ads reach people who are actually likely to convert.
Why does this matter?
Local businesses can target nearby customers who are most likely to visit.
E-commerce stores can prioritise areas where demand or shipping speed is highest.
Multi-location businesses can run separate campaigns tailored to each region.
Exclude irrelevant areas to prevent wasted ad spend on users outside your market.
Google Ads also allows location bid adjustments, so if certain areas perform better, you can increase bids to prioritise them. In short, location targeting ensures your ads are working smarter, not harder by reaching the right people in the right places — as cliché as that might sound.

5. Measurable ROI
Another massive advantage that Google Ads offer is that you are able to track every dollar spent. Unlike traditional advertising, where results are often difficult to measure, Google Ads provides detailed insights into key metrics that show you how your campaigns are performing.
Now, while that sounds great, why should that matter to small businesses? Well, it’s simple — every marketing dollar counts, especially to companies with smaller budgets. With Google Ads, you’re not left guessing whether your efforts are paying off. You can see exactly how many people saw your ad, clicked on it and took action.
Furthermore, Google Ads allows you to A/B test different ad creatives, headlines and keywords. If something isn’t working, you can quickly tweak your strategy instead of continuing to pour money into campaigns that are ineffective. This level of control ensures your ad spend is used as efficiently as possible. In layman’s terms, all of this helps you maximise results without breaking the bank.
The Downsides of Running Google Ads for Small Businesses
While Google Ads have several pros that make them worth it for smaller organisations, there are some factors you need to keep in mind:
Cost Can Quickly Add Up
Google Ads can be incredibly effective, but it’s not always cheap — especially in competitive industries where the cost per click (CPC) can be high. For small businesses with limited budgets, this can be a challenge.
Without proper management, costs can escalate fast, and if your campaigns aren’t optimised, you might end up spending more than you’re making. Clicking “launch” on an ad isn’t enough. You need to monitor performance, refine your targeting and adjust bids regularly to ensure you’re getting real value from your investment.
Otherwise, you risk pouring money into ads that provide little to no return. The good news? With a solid strategy in place or an expert Google Ads Agency to guide the way, small businesses can maintain control over costs while maximising their ROI
Learning Curve
Google Ads is an incredibly powerful tool, but it’s not something you can pick up and master overnight. There’s a learning curve when it comes to understanding how everything works. Therefore, newcomers to the ad network can often find themselves overwhelmed with trying to figure out all the different complexities. Unfortunately, all of this can lead to mistakes that result in poor-performing campaigns and wasted ad spend.
Without a deep understanding of how the different elements — keyword research, bidding strategies, ad copywriting, conversion tracking, etc. — work together, campaign optimisation can quickly become a real challenge.
This is why so many small businesses decide to outsource their paid advertising needs to trained experts. This way they can have peace of mind knowing their ads are not only reaching the right audience but are also performing at their best.
It’s Not Just About Running Ads
Don’t fall into the trap of thinking that Google Ads is something you can simply set up and forget about. Unfortunately, it’s not that easy. To truly see results, ongoing monitoring and optimisation are essential. After the initial setup, businesses must regularly analyse performance, adjust bids, test ad variations and refine targeting to get the most out of their paid efforts.
In reality, much of the value you get from running ads comes after the campaigns are live. To put it simply, the performance data you gather provides insights into what’s working and what isn’t, allowing you to make informed adjustments.
Without these regular tweaks, campaigns can quickly become outdated, leading to wasted spend on ads that aren’t performing. This continuous effort ensures that your ads stay relevant, cost-efficient, and most importantly, deliver the best possible return on investment.
How Big Does The Budget Need to Be?
The truth is, that there is no straight answer to this. Everyone has a different opinion on the matter. Some recommend that you need around £3000 ($3754,50) and more whereas others say it’s much lower than that. According to research, where 10.44% of businesses were surveyed, these organisations spent between $100 to $10,000 a month on Google ads.
Here at Snowball Creations, we recommend you start with a budget of £2000 to £2500 ($2503 – $3130). Now these numbers are not just grabbed out of thin air, the reason for this is simple — data. With a minimum budget of £2000, you have enough ad spend to get reliable data to assess the performance of your campaigns.
We have found that with this budget, you can comfortably assess which campaigns are doing well and which ones are not. Allowing you to cut back on the losing ones and scale on the winners. Now, this is not to say that you can’t get started with a smaller budget.
You can, but you just need to be aware that the rate at which you gather data and see results will be much slower. Also meaning, your campaigns won’t be as effective. If you are looking for a more detailed budget breakdown, you can check out one of our previous blogs where we take a deep dive into this.

Conclusion: Are Google Ads Worth It For Smaller Businesses?
Absolutely! Google Ads can be a game-changer for small businesses when done right. It gives you the ability to target customers who are actively searching for what you offer, making your advertising more efficient. While it requires an investment of both time and money, the results can be well worth it.
However, keep in mind, that it’s not a “set it and forget it” thing. Regular optimisation and adjustments are needed to make the most out of your budget. Furthermore, starting with a budget of £2000–£2500 gives you enough room to comfortably gather data and make the necessary fine-tuned adjustments to help your campaigns get the best results.
If you’re ready to level up your marketing efforts, Google Ads could be just what you need. Reach out to us today to get started and see how we can use Google Ads to grow your business to new heights.