Why Google Ads Beginners Burn Budget on the Wrong Clicks

All right, if you are good at Google Ads, beginner, and you just starting out with Google Ads, then this video is for you because I will show you the main principles you need to understand about Google Ads, how it works, how to avoid burning a budget, avoid critical beginner mistakes so you can scale your store, your business, and your offer as quickly and as smoothly as possible. So, without further ado, let's dive into it. And let's check it out. The main and

most important difference you need to understand first and foremost is compared compared to meta ads, compared to TikTok ads, Google Ads works on a pay-per-click basis. At least the most commonly used campaign types, Google Search and Google Shopping. And what that means for you, let's check it out. A very simple process how it usually looks like. Someone searches for something, right? Something that's relevant for your business, hopefully. Step two, they click on your ad, and only then you pay, right? Once they click on your ad, you pay cost-per-click. So, you pay for the click. And step four, hopefully, they buy. And what that means for you, and why that's relevant for you, is you want to avoid people that are not in your target audience, that are not looking for what's relevant for your offer, that are not relevant for your business.

You don't want them to click in the first place, right? So, that's where you lose money. Nobody minds paying for somebody who is their dream customer, and hopefully, in step four, buys, right? Or reaches out to you, whatever. Books a call. But, you want to avoid people that

are not relevant for your business, that are not serious buyers. You don't want them to click, right? Because that's where you burn money then. If you get 100 clicks a day from people who are not serious, that might be 100, 200 euros in wasted ad spend, right? So, that's very critical in terms of mindset. You don't want everybody to see your ads. You don't want to be for everyone. You don't want everyone to click. You want to have something like a negative framing as well, right? You want to be very clear about what your ad is about, and who it's not for, ideally, right? You want to avoid those people, basically.

So, you want to be very clear, very specific in your ad. Doesn't matter if it's a search ad or a shopping ad. Even with a shopping ad, right? You want to show your product very clearly. You want to have a very clear and descriptive product title. It helps with the targeting, but also for people to see, "Ah, okay, this is what it's all about, right?" You don't want to have like something random and vague to be mysterious or whatever kind of ideas you have. You want to be very specific, so only people who are relevant for your business actually click on the ad. Because it costs you money, right?

So, that's super important to understand. That's the first and most important principle. Then next, a great ad beats a

higher bid. So, what that means is there are obviously a lot of variables that go into it, and it's not just about who has the biggest budget and can bid the most, right? The quality of your ad, your landing page, your offer, the whole thing matters a lot more in various different ways. So, let's look at it. All right. First of all, the keyword, right? The search term they are looking for. All these three things that you see here, it needs to tie in together in order for you to have a high quality score, right? So, there's the keyword, the search term, the ad copy, or even with shopping ads, right?

Like, okay, the product title, how well the whole listing fits to what they're looking for, and then the landing page, right? That needs to fit. If those three things don't converge, you don't have a high quality score, and you get punished with a higher cost per click, higher cost per traffic, right? For example, if it's like a a random keyword on a random ad, and they still click, and it goes to a random or a generic landing page, right? This is not high quality in in terms of Google's eyes, and even if those people click, and even if Google shows you with a higher cost per click, it most likely won't convert it well, either, right?

If everything is random. So, you want to be aligned like the keyword, the search term, what they are looking for needs to align and match with the ad, with the ad copy, with the product listing, whatever, And it needs to match with the ad as well. So, those three things need to be aligned in order for you to have a better cost per traffic and a better conversion rate down the line. That's important. So, you need to understand it's not just about the ad and what you do in Google Ads, it's about all those three things matching, right? And then again, if you want them to convert on your landing page, and that's something we will get into later as well, they need to have a great offer.

Everything needs to be well optimized. Do you build trust? Do you remove uncertainty? anxiety, right? So, they check out in the first place. A lot of things that go into it. All right. Yeah, just a quick thing about keywords. So, maybe if

you've started with Google Ads already and you're familiar with search campaigns, you notice something between broad and exact keywords. So, I don't want to like spend too much time on it. Rather, I want to focus more on the bigger principles behind it. But you want to keep it very lean and very specific in the beginning. That's kind of the overarching principle, right? Google will push it to broad match. They will say, "Hey, it will show you to more people." But again, you remember what we said in the beginning of the video, we don't want to be seen by more people, we want to be seen by the right people, right?

That's kind of a big misunderstanding in this online age, also in social media, right? People always get very excited if they have a lot of views, but it doesn't matter for your business, right? It doesn't matter when you run ads, either. You don't need a lot of views. You don't need to go viral. You want to be seen by the right If you get seen by 100 people only, but those 100 people are the right people, right? And you get 30 buyers from that, that's perfect. You don't need a million views. And same, that's kind of like the overarching principle again. So, you want to be very exact with the keywords that they're using.

So, don't use broad keywords like broad generic keywords in general. Be very specific and then use exact match type, right? So, that's something you will get more familiar with that if you checked it out. If you want to understand better, "Hey, how to set up these campaigns in general and how to run it, what is exact match exactly? I need a tutorial, right? I need to understand how how to set up these campaigns. Feel free to join the school community. We have a free course section there as well. It shows you how to set up tracking, how to set up the campaigns, how to pick the right keywords, and so on.

Join there. It's free to join. Google Ads Ecom Lab. It's more focused on ecom businesses, but everybody who's into Google Ads is welcome, and I think you will benefit a lot from the principles shown in the course section there as well. That will give you the opportunity to dive deeper into it. So, again, link is in the description below. Join, and I will see you there. Let's move on. All right. One thing that's super important to understand for beginners is the learning phase. So, what that means? A lot of

people have wrong expectations about how it will work when you start to run ads, right? They think, "All right, I'm running ads. I have a budget." Whatever budget it is, maybe it's a big budget as well. But, they think they will see a return on investment immediately. And that's rarely the case. It is possible, you know, I've seen it before. I've run ads like that before. I've worked with businesses before. Launched a campaign, and we saw almost immediate returns. It is possible, but it is very unlikely, right? That's only when everything aligns already. Again, usually not how it works. The way it works for 99% of the businesses is that you have to go through a learning phase, where you need to gather some data, right?

To help the algorithm, to help Google understand, "Hey, what is this whole thing about? Who do they want to attract?" And then, when you get the first few conversions in, Google understands and learns better, "Ah, okay, we need to go more into that direction." So, there are multiple variables in that case for the algorithm to understand better what works and what doesn't work. And then, also for you to understand what works and what doesn't work, right? Because you also go through a learning phase. When you start running ads, you will realize after some time, "All right, I see. This is working." You will double down more on that.

But, you will also see, "Okay, like this is not working, right?" You will see, "Hey, I will get some clicks here that doesn't make sense. Maybe let's exclude that. Or maybe I have to tweak my offer, right? It's like not good and I don't get the desired results yet. And again, I will show you in a second even in this video on how to do that in a very simple fashion, right? But you also will have a learning phase where you see, "Hey, this is working. This is not working." Don't start to tweak things too early on. You need to be patient. You need to give it some time.

You don't want to overreact on very little data input, right? It takes some time. Exactly how that works is you will set a budget. You don't touch anything for quite some time, right? It says wait the full month, but it's honestly not about time, right? It's about data. And again, if you spend 2K a day, let's say, you will acquire way more data than somebody who has a budget of 20 bucks a day, right? It's a very different. So, it's about budget. It's about money in the end and about how much data you can acquire. So, if you can cut the learning phase and acquire more data, if you have a higher budget, sure you can move quicker.

But the same principle kind of applies. Don't touch it too early on, right? Get some data first. See what's working, what's not working. Don't touch anything in the beginning. It will reset the learning phase and you need to give it some time. Buy the data, right? So, in the beginning it's all about getting the data, not sales yet. Don't optimize on the perfect profit yet, on the perfect return on investment. We will not get the perfect leads yet in the beginning, right? So, you have to understand that. You want to optimize for early input signals. Again, what you're buying in the beginning is data, right?

Not sales. Super im portant. That's the mindset you need to have to understand to scale effectively later on and also to not get emotional in the beginning. All right,

so what can we check now in the beginning? What are early because we still need to see something, right? Okay, we are buying data, Chris. Great. What does that mean? What can I look at? How do I understand if I get the right data to see if I go in the right direction, right? And things are working or not. So, we're looking at three soft metrics primarily, soft metrics and KPIs. For us it's quite a KPI already, I would say. But anyway, we will look at the click-through rate, which means how many people that see your ad actually click on the ad. Again, get it shown to the right people, and how interesting it is for them to click it, right?

For example, if extreme example, if my ad gets shown to 100,000 people, but just one person clicks on it, there might be something wrong with it, right? Like, what the am I doing with my ad here? So, click-through rate, how interesting is it, how relevant is it, how many people are clicking on my ad, right? A good ad has a higher click-through rate. It attracts more people. Makes it impossible not to click, right? Then, more important, once they click, and now pay-per-click, right? Now, we paid already. What are they doing on the site? Are they converting? Again, let's go back to our example. If we have 100 people actually seeing the ad, let's say 90 actually click, that's insane, right?

That's good. But, not a single person buys, that's quite concerning, right? I mean, 90 people, again, not that much, so maybe let's crank up the crank up the numbers again. If we have 9,000 people clicking on the ad, visiting the site, and not a single person buys, that's problematic, right? Then, it's like, okay, am I attracting the right people? Do I have the right offer? Is something wrong with the offer, right? Am I not building trust? Am I not removing anxiety? Like, something is off on the site, right? You have to like see yourself in the shoes of the buyer. Every single one of us is a buyer themselves, right?

We also buy from other businesses on a daily basis. So, try to see it more from a buyer perspective instead of like a business owner perspective, or like just focusing purely on on like data and and numbers, right? That helps usually, especially if you're a beginner. And the last but not least is obviously like the ROAS, or the

ROI, to keep it simple, so the return on ad spend, right? Or the return on investment. So, if you have good click-through rate, good conversion rate, what do I get out of it, right? Another variable that's relevant there for the ROAS is also the AOV, the average order value, right? So, even if, let's say, people click, people buy, but you have cost per traffic and average order value is relevant there as well for the ROAS, right? Because if they click, and even if they buy, if the cost per traffic is very high, but your average order value is quite low, you might still not get desired return on investment.

So, that's something to to keep in mind as as well. It's a formula, you have to crank the numbers. So, for ROAS, again, I have not written it down here anywhere, but it's basically the cost per traffic matters, then the conversion rate matters in the end. Pay for the traffic, how well does it convert on your site, and then the AOV, right? Those three variables kind of make up the ROAS primarily. So, you need to tweak them. You need to focus on them. I will repeat it one more time, super important. Cost per traffic, conversion rate, and AOV, that makes up the ROAS in its most simple form, right?

Without overcomplicating it too much. That's actually quite advanced for beginner video, all right? To keep it more simple, very straightforward, what

to fix and how to fix. Again, if you have a low click-through rate, you need to fix the ad. Why are they not clicking? Is something wrong? Am I like attracting the the wrong audience? Is my copywriting maybe not good enough, right? So, they don't click on the ad in the first place, even if I'm getting shown to the right people. So, again, am I getting shown to the right people? Am I convincing enough so they click in the first place? And then, low conversion rate, something is off with the page, right? Now, they click. Now, they are on the website. But, what if I have a high bounce rate?

What if nobody even adds products to the cart or checks out? What's wrong there, right? So, you need to see, hey, is my page speed good, or are they leaving before they even land on the site properly? Then again, trust signals. Do I have good social proof? Do I build trust, or am I not trustworthy enough? Do I not have good guarantees? So, that there's a lot that actually goes into it, right? I don't want to like overcomplicate it for you from a marketing perspective. Again, try to keep Keep right? Every single one of us is a buyer. So, just try to think from your point of view, right?

If you buy it in other business, what are you looking for, right? It's the same thing. Hey, I'm looking for good offers. So, price obviously is relevant as well in a lot of cases. Is this a trustworthy seller, right? Do I know this brand? Do I not know this brand? If I don't know this brand, so like how can I check if they are trustworthy, right? Those things quite simple actually. Nothing too complicated. And if you want to take it to the next level and you're serious and you run ads already maybe, then join in the school community. Link is in the description below. Again, it's free to join Google Ads Ecom Lab.

Primarily focused on ecom brands, ecom businesses. Even drop shippers as well. Everybody who runs Google Ads. But again, there's a lot of content. The principles are usually always the same. So, regardless of a niche, regardless of your business, there's a lot for you to learn there. And you're surrounded like-minded people who are also scaling with Google Ads. So, thanks for watching and see you >> [music]