Is Your Business Ready for Google Ads? Here’s What You Need to Know Before You Start

(Some of these apply to all forms of marketing!)

Google Ads can be a powerful tool for growing your business, driving traffic, and increasing sales. However, it’s not just about setting up a campaign and hoping for the best. Like any investment, success with Google Ads depends on having the right foundations in place before you even spend a penny. Whether you’re a small local business or an e-commerce giant, making sure your website is optimised, setting clear goals, and understanding how much you can afford to spend per lead are all critical to ensuring your campaigns are effective.

1. Is Your Website Up to the Task?

Your website is often the first interaction someone has with your business—it can be your best salesperson! Make sure it ticks the following boxes:

• • • Does it meet your customer’s needs and offer a solution?
      Your content should clearly address the pain points of your target audience and present your product or service as the solution.
    • Is the language appropriate for your audience?
      Avoid overloading your site with technical jargon or industry terms that might confuse visitors. Speak in a way that resonates with your target market.
    • Is there a clear, single call to action (CTA)?
      Keep it simple. Too many CTAs can overwhelm users and lead to confusion. Aim for one clear action, or two at most, to guide users through their journey.
    • Is your site easy to navigate on all devices?
      Whether your users are on desktops, tablets, or mobiles, navigation needs to be intuitive. Be mindful of small screens—check that links aren’t too close together for fingers to click easily.
    • How fast is it to load?
      If your website is slow, you will be losing customers. Enter your domain here to find out how mobile friendly your website is and gain valuable insight on how to improve it: Google Mobile Friendly Test
    • Is the site responsive and mobile-friendly?
      Ensure that the layout adjusts well on mobile devices. Are text sizes readable? Do images resize properly? Are phone numbers clickable for easy contact? Test it thoroughly across various devices.
    • Maximise the “Above the Fold” Section
      The above-the-fold section (what visitors see before they need to scroll) is the most valuable part of your website. It should instantly show visitors that they’ve landed on the right site and that you can solve their problem. Make sure it includes:
      • • • A headline that grabs attention.
          • A subheading that explains your value.
          • A clear CTA to encourage the next step.
     

2. Track the Most Valuable Actions

It’s not enough to just drive traffic; you need to track the actions that matter most to your business. Focus on setting up tracking for key conversions, such as:

• • • Phone Calls: Are visitors calling you directly from your site?

    • Form Submissions: How many users are completing enquiry or contact forms?

    • Downloads: If you offer valuable resources like PDFs, are visitors downloading them?

    • Purchases: For e-commerce businesses, tracking sales is essential.

    • Subscriptions: If you run a subscription service, track how many users sign up.

By tracking these valuable actions, you can better understand where your leads and sales are coming from and optimise your campaigns to focus on the most profitable activities. Avoid tracking metrics like page views or clicks that don’t directly impact your bottom line—they can give a false sense of success. Instead, concentrate on conversions that align with your business goals.

3. Understand the Long-Term Value (LTV) of Your Clients

Knowing the lifetime value of your clients is key to making informed decisions about your ad spend. The LTV represents the total revenue you can expect from a client over their relationship with your business, typically over 2–3 years.

To calculate this, consider:

• • Average Purchase Value: How much does a client spend per transaction?

  • Purchase Frequency: How often do they return to buy again?

  • Customer Retention: How long do clients typically stay with you?

Once you know the LTV, combine it with your lead-to-conversion rate (the percentage of leads that become paying customers). This helps you work out how much you can afford to spend on acquiring each client through advertising.

Example: How to Calculate What You Should Spend Per Lead

Let’s break this down step-by-step:

1. Calculate the Lifetime Value (LTV) of a Client

To start, you need to work out the total value a client brings to your business over the course of their relationship with you. This involves knowing a few key metrics:

• • • Average Purchase Value: £200
      (This is the average amount each client spends per transaction.)
    • Purchase Frequency: 3 times per year
      (On average, each client buys from you 3 times a year.)
    • Customer Retention Period: 3 years
      (Clients typically stay with your business for 3 years.)

So, the Lifetime Value (LTV) is calculated like this:

This means that, over three years, the average client will bring in £1,800 in revenue.

2. Determine Your Lead-to-Conversion Rate

Next, you need to know your lead-to-conversion rate, which is the percentage of leads (people who express interest) that become paying clients.

Let’s say your lead-to-conversion rate is 10%. This means that for every 10 leads you generate, 1 of them will convert into a paying client.

3. Calculate the Maximum Cost-Per-Lead You Can Afford

Now, to work out how much you can afford to spend on Google Ads per lead, you’ll need to decide what portion of the client’s LTV you’re willing to invest in acquiring them. Let’s assume you’re comfortable spending 20% of the LTV on acquisition costs.

So, here’s how you calculate your maximum cost per lead:

Since only 1 in 10 leads converts to a client, the maximum cost per lead should be:

In this example, you can afford to spend up to £36 per lead on Google Ads, knowing that, on average, 1 in 10 leads will convert into a client worth £1,800 over their lifetime. 

Knowing your LTV and lead-to-conversion rate gives you the foundation to make informed decisions about where to spend your entire marketing budget. This step ensures that your marketing spend—whether on PPC, social media, or other advertising avenues—is focused on generating a positive return on investment and not just throwing money at ads with no clear strategy. By following this approach, you can confidently optimise your marketing efforts and ensure that every penny spent is driving profitable growth.

4. Know Your Goals and Assess Your Budget

Have a clear understanding of your business goals and how your ads will help you achieve them. Ask yourself:

• • • What are you trying to achieve?
      Are you looking to drive sales, generate leads, increase website traffic, or raise brand awareness? Defining these goals will shape your campaigns and set the right expectations for success.

    • How will you measure success?
      Set measurable objectives, such as “increase sales by 20%” or “generate 50 leads per month.” This way, you can track performance and focus on outcomes that truly matter to your business.  Be realistic!

    • Is your budget realistic?
      To give your campaigns the best chance to perform, you’ll ideally need a budget of at least £1,000 per month (around £32 per day). This allows Google enough scope to serve your ads consistently and generate the clicks needed for the algorithm to learn and optimise for conversions. While it’s possible to run ads with a lower budget, it’s only viable if your targeting is extremely niche—such as focusing on a small geographic area or low-competition keywords.

    • How long are you willing to invest?
      Google Ads isn’t an overnight solution. Commit to at least three months of ad spend to allow for proper learning and optimisation. This timeframe will give you enough data to test and refine elements such as keywords, ad copy, and landing pages, ensuring your campaigns are set up for success.

5. Build a Funnel Strategy

It’s important to think beyond the first interaction when visitors land on your site—whether they convert or not. Consider how to maximise the value of your traffic (and your ad spend!). Create a clear funnel strategy that keeps your brand top-of-mind and nurtures leads over time.  Here’s what you should be planning:

• • • What happens after visitors leave?
      Not every visitor will convert on their first visit, so it’s vital to have a plan for re-engaging them. Think about using remarketing campaigns to target these users with ads as they browse other sites or platforms. Remind them of your offering and encourage them to come back to complete their journey.
    • How will you nurture interested users?
      For visitors who show interest but don’t convert (e.g., by visiting key product pages or adding items to a basket), consider how you will nurture them. Can you set up automated email follow-ups, exit intent pop ups or remarketing ads to keep them engaged with useful content or special offers?
    • Have you segmented your audience in your funnel?
      Every visitor is different, and not all are ready to buy right away. Consider segmenting your audience:
      • Top-of-funnel visitors are just becoming aware of your brand and may benefit from educational content or resources.
      • Mid-funnel visitors are exploring their options and may respond well to product comparisons, testimonials, or case studies.
      • Bottom-of-funnel visitors are closer to making a decision, so think about how you can nudge them with strong calls to action or limited-time offers.
    • How will you build brand loyalty?
      Once someone has converted, how will you keep them coming back? Remarketing isn’t just for first-time visitors—think about using it to re-engage past customers with personalised offers, loyalty programs, or updates about new products and services.
    • Are you prepared to track and optimise?
      Just like your ad campaigns, your funnel strategy should be continuously monitored and refined. Consider how you’ll track user behaviour, measure engagement, and tweak your approach based on what’s working. This will help ensure you’re keeping potential leads engaged and driving them back to your site.

Final Thoughts: Laying the Groundwork for Google Ads Success

Google Ads can be an incredibly effective way to grow your business, but it’s essential to get the basics right before you start spending. Ensuring your website is ready, setting clear goals, understanding your budget, and planning how to nurture leads are all crucial steps to maximise your return on investment. By taking the time to lay a solid foundation, you’ll not only run more effective campaigns but also build a sustainable marketing strategy that supports your long-term growth. Ready to get started? With the right preparation, Google Ads could be the tool that takes your business to the next level.

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