Does Google Ads Work for Small Business?
If you’re running your own small business, you’ve probably asked yourself: does Google Ads work for small business, or is it just another expense?
It’s a fair question.
In this blog post, I’m going to walk you through the key things you need to look out for, the commercial realities behind Google Ads, and when it genuinely makes sense to invest in it. I’ll also explain when it probably doesn’t.
Do Small Businesses Actually Run Google Ads?
Yes, many do.
However, the ones that succeed tend to have something in common: decent margins.
Margin is one of the most important factors when deciding whether Google Ads will work for you.
Let’s break that down.
If you’re getting a £2 return on something that costs £10, it’s probably not worth running Google Ads. The return on ad spend would need to be extremely high just to break even, let alone make profit.
On the other hand:
If you sell something for £20
It costs £2 to produce or deliver
And you have room to spend £5 to £8 to acquire a customer
Now we’re talking.
That’s strong margin. That gives you room to test, optimise, and scale without being squeezed.
In my experience managing campaigns for small businesses, margin is often the difference between campaigns that thrive and campaigns that struggle.
The Biggest Factor: Can You Afford Customer Acquisition?
Google Ads is essentially a customer acquisition tool.
You are paying to bring in:
Leads
Phone calls
Online sales
Enquiries
If your business model cannot afford paid acquisition, Google Ads will feel expensive.
You need to know:
What is your average sale value?
What is your gross profit per sale?
What is your lifetime customer value?
How much can you realistically spend to acquire one customer?
Without those numbers, you’re guessing.
And guessing with paid ads usually ends up costing money.
If you’re wondering on the minimum you should spend on Google Ads, check out my blog post on the matter here.
You Shouldn’t Rely Only on Google Ads
This is something I strongly recommend.
Do not run ads if that is the only way you can generate leads or sales.
Google Ads should be part of a broader marketing approach, not your only source of income.
Alongside PPC, you should be investing in:
Organic content
Email marketing
Social media
Traditional marketing such as print if relevant
This doesn’t mean you shouldn’t do Google Ads.
It simply means your business becomes far more stable when you’re not relying on one traffic source. If ad costs increase or competition rises, you’re not left exposed.
In my experience, businesses that combine SEO and Google Ads tend to be in a much stronger position long term.
Where Google Ads Works for Small Business
There are clear situations where Google Ads can be extremely effective.
It Works Well When:
You have strong profit margins
You sell a high-value service
You have a unique product
There’s a gap in the market
Competitors are not bidding aggressively
You have a respectable testing budget
Your website converts properly
Budget is important here.
The worst thing you can do is be too cautious with spend. Google’s AI systems work best when they have enough data. If your daily budget is too small, the algorithm simply cannot optimise properly.
You don’t need a huge budget, but you do need enough to generate meaningful data.
If you go in with realistic expectations and allow proper testing time, Google Ads can absolutely generate consistent leads and sales for small businesses.
Where Google Ads Does Not Work
There are also situations where it is unlikely to succeed.
It Usually Struggles When:
Your margins are too tight
Your budget is extremely small
You do not have a website
Your website does not convert
You are in an oversaturated market with huge competitors
You expect instant profit with no testing phase
You don’t track conversions properly
Not having a website is a major issue.
While you can technically run ads to other destinations, I always recommend having a proper, conversion-focused website. It gives you control, credibility, and data.
If you are in a very competitive industry with national brands spending heavily, a small budget may struggle unless you niche down or target specific locations.
The Reality: It’s About Commercial Viability
The question isn’t really “does Google Ads work for small business?”
The real question is:
Does it work for your business model?
If you have:
Healthy margins
A clear offer
A decent budget
Proper tracking
A solid website
A long-term mindset
Then yes, it can absolutely work.
If those foundations are not in place, it will feel like a gamble.
Conclusion: Is Google Ads Worth It for Small Business?
Google Ads does work for small businesses. Many use it successfully.
But it works best when the numbers make sense.
You need:
Strong margins
A realistic budget
Proper tracking
A good website
Other marketing channels supporting it
It is not a magic switch. It’s a scalable acquisition tool when used correctly.
If you're interested in professional PPC management to grow your business, feel free to get in touch via my contact page at jonnyswiftppc.com/contact. I'd be happy to discuss how PPC can work for you.
