How Marketers Are Calculating Google Ads Budgets for 2019
Google recently changed the name of its advertising product from Google AdWords to Google Ads, but that hasn’t changed the money flowing into it. Marketers we surveyed are spending 22% of their overall budgets into Google Ads budgets, mostly on search and display advertising.
Over 40% of respondents are budgeting for Google search ads, and another 21% are investing in display. While Google offers other ad products, Google Shopping, video and in-app ads all came in at 10% or lower.
This data comes from a survey we did of Target Marketing readers about how they're building their 2019 marketing budgets. We asked about both their overall budgeting plans and allocations for three key areas: social media marketing, content marketing and Google Ads budgets. This article summarizes the Google Ad portion for that survey, look for the rest in future articles.
The New Way to Find New Names
The reason Google Ads budgets are such a high percentage of the overall budget is — and the search and display ads in particular — is that those provide one of the best ways (along with Facebook) to reach new audiences. Over 80% of the marketers responding to our survey said that customer acquisition was a high or the highest priority for that investment. Other top goals were increasing sales, increasing Web traffic and Lead Generation; all essential elements of customer acquisition.
As laws and consumer sentiment have turned against cold email (often seen as spam) and telemarketing (often seen as scams), Google Ads has emerged as one of the most important marketing channels for business growth.
All the Digital Advertising Advantages
Google Ads really benefit from all the digital bells and whistles. The ability to target based on searcher intent and retarget based on past behavior allows digital marketers to ramp up ad efficiency, while programmatic buying lets marketers run those ads as close to market rate as possible.
These features aren't necessarily unique to Google, but Google's reach and ubiquity make it one of the preferred digital marking channels for ROI and overall efficiency. That's why Google Ads is a must-use channel for brands with high acquisition goals.