B2B Google Ads: How To Know If Google Is The Right Channel For Your SaaS

Share
This is some text inside of a div block.
copy
Silvio Perez

Hey there B2B SaaS marketer! Are you getting FOMO around Google Ads? 

Every day thousands of SaaS businesses are converting clicks into profitable pipeline on Google Ads, and conversely thousands are burning clicks into wasted ad budgets. 

After $10M in Google Ads spend management for incredible SaaS companies like ActiveCampaign, Mixpanel, and others, I’ve developed a criteria for Google Ads success.

I call it the Google Ads Sweet Spot. If you want Google to be a significant driver in your pipeline generation you need to make sure your SaaS company checks these 3 criteria. 

After reviewing, it’ll be clear if Google is right for you, let’s dive into it 👇

TABLE OF CONTENTS: 

Proven Concept

The first criteria in the Google Ads Sweet Spot is a Proven Concept. 

You see, in order to succeed with Google Ads your product has to be built on a time-tested and proven concept. 

Imagine running Google ads for a generative AI product before the invention of ChatGPT. 

Because AI products still hadn’t gained popularity, you probably would have struggled to generate sufficient searches and clicks on your ads. 

If you create an innovative product in a new category that no one understands, you likely won’t see a great return on effort from Google.

In this case, it’d make more sense to focus on educating the market about the problem you solve via demand gen channels such as paid and organic social. 

Existing Demand

The second criteria of the Google Ads Sweet Spot is Existing Demand. 

This is directly connected to the first criteria: you won’t generate pipeline or revenue if people aren’t actively looking for your solution. 

If you only have, for example, 100 people searching for your product every month, it’s going to be impossible to generate significant results from Google. 

For example, assuming the industry average conversion rate of 3%, and 5% clickthrough rate (CTR) you’re looking at 5 clicks from the 100 impressions, and you need a minimum of 33 clicks to generate a single lead. At 100 impressions/month it will take you six and a half months to generate ONE lead 🤯– extreme example but I hope you get the point. 

You need enough search volume, so you have enough clicks, and ultimately conversions. 

To verify that you have sufficient search volume, you can use the Google Ads keyword planner. 

Let’s say you want to bid on the term Google Ads courses within the United States. You can see that there are approximately 2,900 searches every month for this specific term, which validates that there’s sufficient search volume to have a chance at success. 

Google Ads keyword research for B2B SaaS course marketing, showing ‘Google Ads Courses’ with 2,900 monthly searches.

Keep in mind monthly searches in the keyword planner are just an average and always changing – use them to inform your estimates but take them with a grain of salt. 

Sufficient Margin

The third criteria of the Google Ads Sweet Spot is Sufficient Margin.

You SHOULD NOT run Google Ads if you don’t have enough margin, or in other words, a high enough lifetime value (LTV) to offset acquisition costs. Without a high enough LTV, Google will never become a profitable channel for your company. 

Here’s an example: 

Let’s say you have an LTV of $100 per user, and your average cost per click is $10. In this case, the likelihood of running profitable campaigns is slim – you’d have to convert 10% of your total traffic just to break even 😅 (when the industry average conv rate is 3-5%). 

If you’re selling a variety of products and you have a small budget (<$10K/month), I recommend running ads for the products with the highest lifetime value to maximize your chances of profitability. 

If your campaigns aren’t profitable right away, that’s okay, as long as you know you’ll recoup your investment 3-6 months down the line. 

If you want to see if the math adds up to run Google Ads profitably for your company, check out our free Google Ads Budget calculator

I hope you found this article helpful!

Google Ads definitely is not for everyone but if your SaaS meets these three criteria your chances of success are far greater than not based on my experience. 

If you have any questions, feel free to connect with me on LinkedIn. 

From Clicks to Conversions: Master Google Ads for B2B 🔥

If you want to become a Google Ads pro, check out our free B2B Google Ads courses, where you'll learn how to launch, optimize, and scale your campaigns to drive pipeline and revenue.

B2B Google Ads 101-103 course by Silvio Perez, founder of AdConversion, featuring Google Ads strategies for businesses.

Here's what you'll learn in each course: 

⚙️ B2B Google Ads 101 - How to Launch Dangerously Effective Campaigns for Beginners

  • The Googleverse: The Game You're Playing & How To Win
  • Measurement: How to Make Sure You're Profitable
  • Targeting: How to Show Up For the Right Searcher
  • Planning: Putting It All Together

🎯 Google Ads 102 - How to Clicks Into Profit

  • Visibility: How To Find the Hole Sucking Profits
  • Workflows: How to Optimize On a Daily, Weekly, Monthly & Quarterly Basis
  • Experimentation: How to Test & Automate Profitability
  • Troubleshooting: How To Solve Inevitable Problems

🚀 Google Ads 103 - How to Scale Google Ads For Advanced Advertisers

  • Methodology: How to Vertically Scale Google Ads From A-Z
  • Campaigns: Scaling Horizontally Through Campaign Themes
  • Channels: Scaling Outside of Paid Search

Click Here to Join 1,000+ B2B Marketers Today and start leveling up your advertising skill set.

Takes < 90 seconds to sign up (seriously we timed it 😂)

Silvio Perez
Want to level up your B2B advertising skill set?
AdConversion was created to help B2B marketers master advertising with free courses, articles, resources, and templates created by the world best practitioners.
☝️Takes <  90 seconds
Share
This is some text inside of a div block.
copy

Join 1,000+ B2B marketers leveling up their paid advertising skill set! 🚀