With the average price of few dollars per click it’s almost impossible to many any profit from marketing, as that is typical price for CPL (cost per lead) and as everyone who works with online marketing knows that only 10%–20% of traffic from Google will convert. So you are heavily overpaying. Usually money spend on Google Adwords is greater that whole amount of sale, ad it should be less than your margin, in order for you to make any money.
Fake clicks and high bounce rate
The of fake clicks coming from Google ads is huge, which drops the conversion rate significantly. High amount of fake clicks comes from the way people use Google. If they search for example “lawyer” they will click on all the 10 ads that will come up, and then after looking on each website shorty, will close 9 of them. This means 90% of advertisers did not get any valid traffic, but still paid for the clicks. This is also the reason why bounce rate is so high on Google Adwords traffic.
Quality and conversion rate
I have measured conversion rate on Google Adwords several times and compared it to conversion rate from Email or SMS traffic. Usually Google Adwords had 5–10 time lower conversion rate. It never got the better or even the same results as Email or SMS traffic. This compared to higher price of Google Adwords, there’s absolutely no reason to use it.
Who uses Google Adwords then?
Big corporations who have no idea now online marketing should be done. First of all they still use online marketing same way as they use TV marketing, which is only for brand exposure. They hardly ever measure results the same way that the online marketing experts do, that is from click to order. They measure online marketing completely opposite way, that is total marketing budget spend and total sales got. This might sound wise, but if you take into account that even with zero marketing they would still sell quite a lot, it means in the end that money spend on Google Adwords bring less money in sale.
Are there any benefits of Google Adwords?
Yes there is one benefit. That is that no one will complaint about marketing. This is the sole reason why big corporations like Google Adwords, because all they worry about is their fake reputation. However if you don’t do any marketing you will also not get any complains, and will also not lose money. Therefore the benefit of Google Adwords is quite minimal.