Home News Google Inc's AdWords fails to deliver value to struggling SMEs
Google Inc's AdWords fails to deliver value to struggling SMEs
Tuesday, 18 October 2011 10:50

Many businesses are unable to track the link between the money they put in Google Adwords and the revenue they get out.

Less than a fifth (18 per cent) of SMEs using Google Inc's (NASDAQ:GOOG) AdWords recoup the cost of their investment, according to research published today. The remaining 82 per cent are either not recouping their cost in terms of online sales, or simply don't know if they are, or not.  

Google AdWords are promoted widely to SMEs as a direct and cost-effective way of raising brand awareness and boosting sales of products and services. But the survey by Workbooks.com of more than 500 small business leaders across the UK suggests that this message is lost on many, as they are unable to track the link between the money they put in and the revenue they get out.

John Cheney, CEO of Workbooks.com, comments: "These results echo the conversations we are having with many of our customers. SMEs feel they need to be 'seen' on Google, but they just don't have the tools to measure the effectiveness of their investment.  

"With Google AdWords now well established as one of the world's leading advertising media, offering enormous potential for a more level playing field between SMEs and their larger competitors, it is a real shame that many firms are still struggling to quantify the benefits.

"One company found that for every £1 they spent on Google AdWords they generated a mere 18 pence in sales. Smaller firms have limited marketing budgets and they want to spend it in the way that will generate the greatest return. With just 10 per cent of survey respondents saying that Google AdWords had led directly to sales and new clients in the last 12 months, it is important that SMEs have access to tools that help them to make the best possible decisions about where to invest their funds."

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