Why Small Business Should NOT Advertise on Google
Last lecture was all about Search Industry and how Google makes money by selling ads. We talked about different ways to sell ads by (for impressions or for clicks) and the different types of ads (based on location and depth of search pages). Favorable ads should have value to most companies but their value is based on whether or not they actually result in sales. This point is something that we did not discuss in class but this article by David Rodnitzky in The Entrepreneur advises that small business do not advertise their products through Google for a variety of reasons.
Rodnitzky’s first point is that if a business is selling some unique product, then purchasing Google ads would not increase sales because no one is searching for the product in the first place. Keyword based advertising is a concept that we discussed in class where certain ads come up on the page when they are related to the search that the user made. It is true that if someone created a brand new invention, it would not be relevant to any current Google searches as the only people who know about the product is the company itself. On the other hand, if your product is similar to others on the market then Rodnitzky believes that your economics do not stand a chance against the competitors. Buyers will always be able to find another alternative product that is slightly cheaper or more reliable. In the same sense, there will always be a larger company that is willing to bid high amounts of money for a favorable ad spot. This results in your ad being placed in a bottom spot with very minimal clicks.
The last concept has to do with experience. Rodnitzky writes that small companies simply do not have the experience with search engine marketing. If a company’s product qualifies to have some potential sales from Google advertising, then there is probably another business out there that has better marketing resources and knows how to better sell products and bid for advertisements.
Article: https://www.entrepreneur.com/article/238919