Take a minute and ask yourself this question: When was the last time you intentionally clicked on a Google Ad? And did that click lead to a sign-up, purchase, or other action a marketer would care about? For many people, the only interaction they have with Google Ads is clicking them accidentally as they seek out other content, which inevitably leads to a bounce.
To be fair, advertising via Google search ads was once an immensely powerful tool for marketers to use, and for many brands and businesses, it does still make sense. Google Ads allow highly specialized customization, letting you target specific audiences. They also have excellent metrics that let you track the success of an ad, and allow for easy control of an ad campaign’s budget.
The issue is that said budget can quickly balloon, becoming too much for a company’s coffers. Even when Google Ads do yield initial success, all too often, marketers will see their campaigns plateau and then flame out as the channel gets exhausted.
With all of that said, then, is Google Ads right for your next marketing campaign? Let’s look at the pros and cons to figure out if Google Ads is worth it in 2025.
When and For Whom Do Google Ads Work?
“‘Google Ads can be incredibly effective, but they’re not the right fit for every business, especially for small companies with tight budgets,” says Chris Coussons, CEO and founder of Visionary Marketing. “A lot of businesses dive into PPC (pay-per-click) thinking it’s a guaranteed way to bring in customers, but without the right strategy, it can burn through a budget quickly, with little return. The reality is that Google Ads work best when you have a clear offer, strong landing pages, and a well-structured campaign. Otherwise, you’re just paying for clicks that don’t convert.’’
So, when is Google Ads worth it?
Companies That Have the Cash to Spend
Cost per mille (CPM) refers to the amount of money a marketer has to spend to generate 1,000 impressions. With Google search ads, the average CPM is just under $40 at the time of this writing. That’s impressions, not conversions, mind you. Google can get your ads seen by a lot of people, but at a cost that starts high and can get ever more expensive if you’re in a competitive field. “Google Ads can get pricey!” warns Domante Gerdauske, digital advertising team lead at Omnisend. “If you’re an SMB (small or medium business) or on a budget, not having enough to spend on Google won’t leave you anything to optimize, and you’ll only manage to get a small fraction of the specific search market share.”
Brands That Already Have a Strong Online Presence
“Google Ads is best suited for well-established businesses with solid funnels and solid brand awareness,” says Maggie Swift, co-founder and CEO of Unframed Digital. In other words, a readily recognizable brand is much more likely to get a click, as users are already familiar with them. A smaller company that most customers have never heard of is unlikely to draw attention, even when its ads pop up near the top of a search page.
Companies with a Clearly Defined Target Audience
Google Ads can be a great marketing tool for brands that have a clearly defined customer. As these ads allow for so much customization, you can design them to be served to a narrower, much more targeted slice of the marketplace, potentially leading to a higher return on investment for the advertiser.
Why Google Ads Won’t Work
As mentioned above, Google Ads can get expensive, making them a poor choice for smaller outfits with limited budgets. I’ll expand on that below, but know that price is not the only reason Google Ads might not be the right choice for a given marketer.
Brands That Have Small Budgets
“The hard truth is that Google’s auction model favors established players with huge budgets,” says Neal K. Shah, chairman of Counterforce Health and CEO of CareYaya. “For many firms, the keywords they need to target often cost between $20 and $100 per click, which makes their customer acquisition costs unsustainable. Yet we see countless promising startups pouring money into Google Ads because they’re under the illusion that it’s a viable go-to-market strategy. I’ve yet to see a single one of these companies succeed.”
Marketers in Highly Competitive Fields
If you’re trying to sell a very similar product or service as scores of other brands, Google Ads probably won’t help you do it. “In highly competitive businesses, the high cost-per-click (CPC) can swiftly deplete resources without producing long-lasting effects,” says Muhammad Ummar Rashid, SEO specialist at Digital Willow. When the playing field is packed, you need to stand out with more creative approaches to advertising and unique performance marketing tactics.
The Relevant Keywords Are Common
On a related note, if you’re trying to market something commonplace, like cookies or shoes, good luck seeing any ROI with Google Ads. “Competition for keywords is fierce,” says Nikita Khandheria, owner of Eria. “Broad terms like ‘bread’ or ‘crackers’ are dominated by larger companies with bigger budgets, making it difficult for small businesses to rank effectively. Unlike SEO, which helps build organic visibility over time, paid search doesn’t necessarily give you a competitive edge — it often just captures users who were already searching for you.”
Brands That Need Fast Results
Need to spread the word fast? Then don’t do it via Google Ads. “The truth is, Google Ads isn’t as plug-and-play as they make it seem,” says Stephanie Kaufman, founder and managing director at UPBEAT. “Google’s algorithm needs time to learn and optimize ad performance — as does the human continuously managing and optimizing the campaign — and many small businesses don’t have the budget or bandwidth to wait it out.” Indeed, unless you’re using a tool that utilizes AI to optimize campaigns in real time, you’re always going to struggle to see fast results.
Diminishing Results Due to Audience Fatigue
Even for a company that has a robust marketing budget, Google Ads still might not be the best use of that cash. The reason is simple: If customers keep seeing the same ad popping up over and over again, eventually, it will stop being relevant, even though it’s visible. Audience fatigue can mean you’re spending your money for no real reason, producing the same (lack of) results again and again with ever-diminishing returns on that investment.
Key Takeaways
“Google Ads is usually a costly gamble rather than a surefire growth strategy for small businesses with limited budgets,” reiterates Swift. “PPC advertising provides instant exposure, but it also has major drawbacks, such as increasing keyword competition, volatile prices, and no lasting effect once the budget exhausts itself. The majority of small businesses become victims of assuming that Google Ads would drive leads through keyword bidding, but with suboptimal landing pages, poor conversion funnels, and constant budget shifting, they spend money without driving long-term profits.”
Unless your company has budgeting for a long-term ad spend and already has a well-established online presence, then, Google Ads is probably a poor idea. But just sticking to social media advertising isn’t a good idea, either — not these days, when those platforms are wildly crowded and their users are likely to fly right by most ads.
AI-assisted and highly-targeted performance advertising can lead to much better results, maximizing conversion rates and making the most of a marketing budget. Google Ads may once have been the best place to find and attract leads, but now it’s better to meet your desired audience where they already are.
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Frequently Asked Questions (FAQs)
Is it worth paying for Google Ads?
It’s only worth investing in Google Ads if you can keep paying for them over the long run, if you don’t need quick results, and if you aren’t in a highly competitive field. “Google Ads can be very expensive and must be used strategically, especially when you’re a small business with a modest advertising budget,” says Lou Haverty, owner of Skid Retailer. “For smaller businesses, the best way to start out with Google Ads is by running small, targeted campaigns first and gradually expanding the campaign based on your results.”
Is $100 enough for Google Ads?
In most cases, no, $100 is not enough for a positive experience with Google Ads. “Google’s system cannot gather enough data with severely restricted budgets,” says Fergal Glynn, chief marketing officer and AI security advocate of Mindgard. “So, it’s possible that your ad won’t find the right audience.”
What are the negatives of Google Ads?
Aside from the obvious potential for wasted money — not to mention time wasted crafting a Google Ads campaign that doesn’t produce the desired results — there can be other drawbacks to Google Ads. The slow speed with which they begin to generate impressions is another major negative. It’s also a heavy lift to create a decent Google Ad, including keyword research, audience segmentation, schedule planning, and more.
Is $500 dollars enough for Google Ads?
$500 can be enough for some success with Google Ads, especially for a smaller business with very customized ads, or for a marketer who just wants to test the platform. But the efficacy of any Google Ads campaign depends on the industry, the marketer’s goals, and the level of competition for the target keywords. Highly competitive markets will require a larger spend than $500 to see meaningful results.
