💰 Don’t Blow Your Budget on Google Ads

What I’m about to tell you is really rogue advice.

Despite all the years I’ve spent convincing companies to invest in Google Ads, I’m going to try to convince you not to run Google Ads for your online store.

Well, not until you fully understand the role Google Ads has in your customer acquisition strategy.

Let me set the scene:

Two of my friends are launching their first ecomm business, and they’re excited – like, new logo, product samples, and shiny website excited.

They’re ready to invest in ads and, naturally, they assume Google Ads is the way to go. I mean, it’s Google, right?

Then came the moment of truth.

I had to break it to them: “Actually, you might want to skip Google Ads for now…”

Cue the shocked silence.

They stared at me like I’d just told them Santa Claus isn't real 🎅👀

But here’s the thing – if you're not an established brand or in a niche with high organic search traffic, Google Ads might not be the best place to spend your ad budget.

Why Google Ads Might Be a Trap for New Stores

Google Ads are brilliant at demand capture.

They work best when someone already knows what they’re looking for and types it into the search bar.

Think high intent searches; ‘Accountants near me’, ‘dining table for small spaces’, ‘hotels near LAX airport’.

However for new ecommerce stores, these types of searches are unlikely to reach you.

Unless you’ve already got a massive amount of brand awareness or you’re selling something so niche that people are actively hunting for it (and I mean actively), Google Ads could be more of a budget-burner than a sales booster.

With high Cost Per Click (CPC) and competition from other brands, the platform can chew through your cash quickly especially if you’re managing the campaign yourself.

Why Meta Ads Make More Sense (Especially with a Tight Budget)

Here’s why I’m Team Meta for newbies: Meta Ads (Facebook/Instagram) are built for demand generation.

They don’t need someone to search for you. They help you create that demand.

When you’re just starting out, you want to be in people’s feeds, getting in front of those who didn’t know they wanted your product – until you showed them.

Meta lets you do that with creative flexibility, social proof, and highly accurate audience targeting.

Meta is much more friendly to small budgets.

Unlike Google, where broad keywords can drain your budget fast, Meta allows you to control spend, test quickly, and see results within days.

Got a social following? Even better. Start retargeting them right out of the gate.

Demand Generation vs. Demand Capture: The Big Difference

Let’s break this down:

• Demand Generation (Meta Ads): Here, you’re sparking interest. People aren’t necessarily looking for your product yet, but through paid media you can create that desire. You’re getting in front of potential customers, before they consider alternative solutions. 

• Demand Capture (Google Ads): This is about showing up to people who already have a clear intent. They know what they need, and you’re to persuade them at the last minute to choose your product over another.

Both strategies are powerful, but if no one’s searching for you yet, Meta Ads (demand generation) are where you need to be.

When Google Ads Make Sense

Don’t get me wrong, Google Ads can (and will) be a money making machine for you but they’re most effective for brands that:

1. Already have strong brand recognition (people are already searching for your name or product).

2. Operate in high-demand niches where search volume is high such as furniture and hardware supplies.

3. Sell high-intent products, like emergency services or needs-based products (think plumbers or “buy now” type services).

For newer stores? Meta Ads are your friend. Think fashion, beauty, home goods, gadgets, or anything that can spark an impulse buy.

For the experts out there, yes, Google Ads does offer Demand Generation campaigns, but their effectiveness is not as strong as Meta when starting out

Ramping up to Google Ads

Once your brand has some traction and people are searching for you, that’s when Google Ads can pay off.

Start with Search ads, which allow you to closely view what search terms convert and how much it costs to do so.

Shopping Ads (a.k.a., Performance Max) will likely drive most of your sales down the line, but they can be tricky for new Google Ads users. Reporting and insights are very limited.

So, start small with Meta, learn what works, and scale your brand awareness. When the time is right, move across to Google.

Until next time, keep living the dream,

Luke 

One last thing: As The Sellout Newsletter takes over the world (okay, maybe just a few inboxes), I’d love to hear where you are on your business journey. Let me know in the poll below: