Should your business be using Google Ads?

Boxers & Briefs Podcast #33: What are Google Ads and why you should be using them with Leighton Wilson

Ever wondered if you could game the system by bidding on your competitor’s business name? Or whether someone could sabotage your ad campaign by clicking on your ads all day? Google Ads expert Leighton Wilson from Ladder and Co joined us on Boxes and Briefs to unpack the mysteries of Google advertising and share some surprising insights about how the platform really works.

The basics of Google Ads explained

Before diving into the sneaky stuff, let’s cover the fundamentals. Leighton describes Google Ads as “a storefront to your website” that helps relevant people find your business online. Given that Google controls 95% of the search market, you’re already focusing on the vast majority of potential customers.

The system works on a triangle concept. When someone searches for ‘leaky pipes,’ they see a text ad that might read “We’re a local plumber who fixes leaky sink pipes.” If they click, they land on a specific page about pipe repairs. Leighton explains this triangle as keyword, text ad, and landing page, and when all three points match properly, Google rewards you with a better ‘quality score.’

This quality score matters because it affects how much you pay. If you try to bid on a competitor’s keyword but send people to an irrelevant landing page, you’ll pay a premium for the poor user experience.

Can you really sabotage a competitor’s ads?

Here’s where it gets interesting. Theoretically, you could spend all day clicking on a competitor’s ads to drain their budget. But Wilson points out this would require serious dedication and technical know-how.

“You’d need a lot of time, and you’d have to get technical. You need a group of people with different IP addresses and different locations,” he explains. More importantly, Google will refund advertisers if they detect this kind of fraudulent clicking, as the platform can identify suspicious patterns.

Leighton notes that while this kind of sabotage happens in some markets overseas, it’s not something they’ve encountered in New Zealand. Our business culture seems a bit more civilised in this regard.

The creepy side of retargeting

You know that feeling when an ad follows you around the internet after you visit a website? That’s retargeting, and Leighton admits it can feel intrusive.

“It is creepy in some degree,” he acknowledges, “but we don’t pay to use Facebook or Google, so our data is our payment for using those platforms.” It’s essentially a trade-off between free access to these services and allowing them to use your browsing behaviour for advertising.

There are different types of retargeting too. Beyond just tracking website visitors, Google can target people based on the email address they use to log into their browser, or even target people who are ‘in market’ for certain purchases based on their search history.

Long-term strategy or quick cash injection?

Ten years ago, many experts positioned Google Ads as purely a short-term strategy for quick results while you built up your organic search rankings. Leighton’s take is more nuanced.

“It can be both,” he explains. You can use Google Ads to quickly identify which keywords convert well, then apply those insights to your SEO strategy. However, this approach doesn’t account for changing trends, seasonality, or shifting market conditions.

His recommendation? Use a mix of strategies. Even if you rank well organically, paid ads will always appear in the top three positions on a search results page. Someone could still pay to appear above your organic listing after all your SEO efforts.

The auction model reality

Google Ads operates on an auction system, and Leighton confirms what many business owners fear – costs are rising. “Over time, the cost per click is getting more expensive because it’s an auction model.”

But here’s the clever bit. If bidding on ‘lights’ becomes too expensive, you can pivot to more specific terms like ‘halogen lights,’ ‘kitchen lights,’ or ‘bathroom lights.’ You’re still reaching the same customers but potentially at a lower cost per acquisition.

The key insight Leighton shares is focusing on cost per acquisition rather than just cost per click. “Clicks don’t pay your rent,” he points out. It’s better to pay more for clicks that actually result in customer inquiries than to pay less for clicks that go nowhere.

Common mistakes businesses make

The biggest problem Leighton sees with DIY Google Ads campaigns is poor conversion tracking. Many businesses track a ‘contact page view’ as a conversion, even if the person never actually submits a form or makes a call.

“You can’t manage what you don’t measure,” he emphasises. Without proper tracking, you’re essentially throwing money into the dark and hoping something happens.

Another common mistake is thinking too literally about keywords. If you’re a plumber, people might not search for ‘leaky pipes.’ They might search for ‘flooded bathroom’ or ‘water damage.’ Leighton suggests focusing on outcomes rather than inputs, putting yourself in the customer’s shoes and thinking about what they’d actually type into Google.

The AI factor

With artificial intelligence increasingly integrated into advertising platforms, Leighton offers a measured perspective on its current impact. The AI tools within Google Ads can help generate ad descriptions, titles, and keyword suggestions, but he finds they’re more useful as starting points than complete solutions.

“It’s better to understand what the client actually wants and tailor the aspects of the ads to the client,” he explains. AI can help when you’re stuck for keyword ideas or need synonyms, but it’s more of an iterative tool than a game-changer at this point.

However, Leighton predicts that AI platforms will eventually need to find ways to monetise through advertising, just like Google and Facebook do today. “Some way of monetising AI will be the future at some point.”

Making Google Ads work for your business

Leighton’s advice for businesses considering Google Ads is refreshingly straightforward. Keep experimenting with different approaches. Don’t just focus on the obvious keywords – think about what problems your customers are actually trying to solve.

Use Google’s Keyword Planner tool to understand market size and costs for different search terms. You can see seasonal trends, geographic breakdowns, and historical conversion ratios to help inform your strategy.

Most importantly, don’t expect immediate perfection. “It’s not give it a go and if it doesn’t work then leave it,” Leighton cautions. “Testing and learning is very important.”

Whether you’re looking for quick results or building a long-term marketing strategy, Google Ads can play a valuable role in your business growth. Just remember to set up proper tracking, think like your customers, and be prepared to experiment until you find what works for your specific market.

The key is understanding that while Google Ads might seem complex on the surface, the fundamentals are quite straightforward. Focus on relevance, measure what matters, and remember that the goal isn’t just clicks – it’s customers.

This article and podcast is proudly brought to you by Gilligan Sheppard, the problem solvers in business who believe in thinking differently.