Setting up a successful Google Ads campaign on a budget in Sacramento area

Google Ads has become an indispensable tool for local businesses looking to attract customers in our area. For businesses in Sacramento, where competition can vary by industry, it provides an opportunity to appear right where your potential clients are searching.

However, running a campaign requires a careful approach. Not every business benefits equally from Google Ads, and understanding when it makes sense – and when it doesn’t – is crucial.

This article will explore how to set up a campaign that drives results without overspending, tailored specifically to the Sacramento market.

Industries where it makes sense

Certain industries thrive on Google Ads because of the value they derive from a single customer or lead. For example:

• Construction: With high-value projects like home building or renovations, a single client can justify weeks of ad spend. Potential customers often search for “best contractors near me” or “construction companies in Sacramento,” making targeted ads effective.
• Remodeling: Similar to construction, remodeling businesses often benefit from local searches like “kitchen remodeling in Sacramento.” Each project has a significant return, allowing ad budgets to stretch further.
• Photography: Whether for weddings, family portraits, or professional shoots, photographers can attract local clients through highly targeted campaigns. Searches for “event photographers near Sacramento” are prime opportunities to stand out.

Budget considerations for these industries

• Initial budget ranges: These industries generally require a higher initial budget for testing, refining keywords, and generating leads. Budgets might start as low as $1000–$2000 per month but could scale higher for more competitive niches.
• Ongoing campaign costs: Once campaigns are optimized, maintaining a steady flow of leads might cost less, with a focus on high-performing keywords and ads.

Forecasting results

Businesses in these industries can expect to see returns based on their average cost-per-click (CPC) and conversion rates. For instance:

Construction and remodeling businesses might spend $3–$4 per click but convert leads that result in projects worth thousands of dollars.

Photographers might see CPCs of $2–$5 with leads converting to bookings for sessions priced between $200–$1,000.

Industries where it probably doesn’t make sense

While Google Ads is a powerful tool, it’s not suitable for every business, especially those with low-ticket services or limited repeat customer potential. Here are examples of industries where running ads might not yield a positive return on ad spend (ROAS):

Financial advisors: If you’re making a 10% comission on a $500 sale that you will then receive during a year – Google ads might not be your best choise:

Haircut services: With low service costs and frequent competition, it’s challenging to justify ad spend. A single haircut doesn’t typically cover the cost of acquiring a customer through ads.

Shoe repair: Similar to haircut services, shoe repair businesses operate with low margins, making it difficult to achieve a profitable ROAS. Local SEO or partnerships with other businesses often provide better value.

For these industries, demand is too low and the cost-per-click is often too high relative to the revenue generated, resulting in ROAS below 1. Instead of ads, these businesses may find greater success in leveraging social media, referrals, or organic search rankings to drive traffic without incurring significant costs.

Practical advice for identifying whether your business fits into the “good fit” category

To determine whether Google Ads is a good investment for your business, consider these questions:

1. What is the value of a single customer to your business?
   • If your typical customer generates significant revenue (e.g., construction projects, high-end photography sessions), Google Ads might deliver a strong ROI.
   • For low-ticket services, calculate how many customers you’d need to convert to break even on your ad spend. If that number feels unrealistic, Google Ads may not be ideal.
2. How competitive is your industry in your area?
   • Use Google’s keyword planner to check the cost-per-click for your industry in Sacramento. If competition drives CPCs too high for your budget, it could be a warning sign.
3. Does your service align with search behavior?
   • Some industries naturally benefit from Google Ads because people often search for them online (e.g., “kitchen remodeling near me”). Others, like haircut services or shoe repair, may rely more on word-of-mouth, google maps or simply foot traffic.
4. Can your business handle the leads?
   • Google Ads can generate significant traffic if executed well. Make sure you have the capacity to respond to inquiries quickly, especially if your campaigns target high-demand services.
5. What is your long-term marketing strategy?
   • If you’re looking for immediate results and have the budget to test and optimize campaigns, Google Ads might be a good fit.

If you’re unsure whether your business is a good candidate for Google Ads, consulting a professional PPC agency can make all the difference.

At our company, we help businesses evaluate their Google Ads potential by breaking down the costs of running ads, calculating ROI and ROAS, and estimating the number of customers you can generate through your website. A clear plan can ensure your ad spend is put to the best possible use.

Targeting Sacramento Customers Effectively

One of the key benefits of Google Ads is the ability to target specific geographic areas, making it ideal for businesses focused on local markets like Sacramento. Here’s how to make your campaigns more effective for this region:

1. Use precise location targeting

• Set up radius targeting to focus on specific neighborhoods or distances around your business, such as Downtown Sacramento, East Sacramento, or Midtown.
• Use zip code targeting for hyper-localized campaigns.
• Exclude areas where your services aren’t relevant or where leads are unlikely to convert, helping you save on ad spend.

2. Highlight local relevance in ad copy

• Incorporate references to local landmarks, neighborhoods, or events in your ad text. For instance, “Serving Midtown Sacramento with expert kitchen remodeling” or “Top-rated photographer near East Sacramento.”
• Use location extensions to display your address and make it easier for customers to find your business.

3. Leverage audience demographics

• Use demographic targeting to focus on groups that align with your ideal customer base. For example, targeting homeowners for remodeling services or young professionals for photography sessions.
• Combine location and demographic targeting to refine your audience further.

4. Optimize for mobile searches

• Many local searches happen on mobile devices. Ensure your ads are mobile-optimized and link to a responsive website that provides key information, such as services offered, business hours, and contact details.

5. Make use of Google My Business (GMB)

• Connect your GMB account to your Google Ads campaign to enhance visibility. This integration allows your ads to display with location information, reviews, and directions, which are especially useful for customers searching locally.

Monitoring and Adjusting

Effective Google Ads campaigns require constant monitoring and fine-tuning to ensure optimal performance. By analyzing key metrics and making data-driven adjustments, you can maximize your results while keeping costs under control. Here’s how to stay on top of your campaign:

1. Track the right metrics

• Click-through rate (CTR): Indicates how compelling your ads are. A low CTR might signal that your ad copy needs improvement or your targeting isn’t precise enough.
• Cost-per-click (CPC): Helps monitor how much you’re paying for each click. Aim to balance CPC with the quality of leads.
• Conversion rate: Measures how many clicks turn into actions, such as form submissions, calls, or bookings. This metric reflects the effectiveness of both your ads and landing pages.
• Impression share: Shows how often your ads are appearing compared to competitors. A low impression share might mean your budget or bids are too low.

2. Identify underperforming elements

• Pinpoint ads, keywords, or ad groups that aren’t delivering results. Common issues include low CTR, high CPC, or poor conversions.
• Pause or adjust ineffective components to prevent budget waste.

3. Reallocate budget to high performers

• Increase spend on ads and keywords that consistently generate quality leads or conversions.
• Focus on locations or demographics where engagement is strongest, such as specific Sacramento neighborhoods.

4. Test and refine your strategy

• A/B test ads: Experiment with different headlines, descriptions, and CTAs to identify the most effective combinations.
• Adjust keywords: Add new high-performing keywords and update your negative keyword list to filter out irrelevant traffic.
• Experiment with bidding strategies: If manual CPC isn’t delivering results, test automated options like “maximize conversions” to optimize based on Google’s data.