When asked about Google, Bryan Clayton issued a familiar lament among small business owners.
GreenPal CEO Clayton said: “You are constantly squeezed in search results pages.” The company runs apps that help homeowners find lawn care products. “As a startup, you don’t have a million-dollar advertising budget.”
The US Justice Department filed an anti-competitive lawsuit against Google on October 20, claiming that the company’s dominant position in online search and advertising has harmed competitors and consumers.
Wine owners such as Clayton also have different beef. They say that what is unfair to Google is that it allows the companies that spend the most on advertising to play the biggest role in search results.
The company is eager to rank first in Google search results, the top ranked page and the top of subsequent pages. However, if too many companies compete for one of these attractions, then for small businesses, the cost may exceed the cost, just like the price of prime-time TV advertising.
Google controls 90% of Internet searches worldwide. The US Department of Justice sued Google on Tuesday, accusing it of using monopoly power to curb competition. Business owners’ concerns about advertising costs are not directly related to the government’s litigation, although the company’s dominance in the search market is said to be a factor in the increase in the price of advertising purchases in its vast digital marketing network.
But even if the price is lower than the current level, in theory, big companies that have more money to spend can always bid for small businesses that compete for the best advertising space on Google.
There are two main ways for businesses to try to make their listings higher in Google rankings. One is to buy the ads seen at the top of the search results page; the cost of the ads depends on how often computer users click the ads and the company is willing to pay for each click. The more the company pays, the greater the chance of getting search results. Google has different types of advertisements, and whether the advertisements are displayed locally or nationally will also affect pricing. The time of day of the ad can also be displayed.
There is also the so-called paid search, where companies bid on keywords to get higher rankings. For example, a sporting goods store might bid for terms such as “baseball” and “hockey” in order to obtain higher search results and make it easier for customers looking for sports equipment to see. The problem for companies is that companies with strong financial resources may defeat them. Therefore, a sporting goods store that can only afford a word of 2 US dollars (about 150 rupees) may lose to a store that can pay 10 US dollars (about 750 rupees).
Mark Aselstine spends as much as US$30,000 (approximately Rs 22,29,900) on Google ads each year, but he is not sure whether his wine gift basket company can afford Google ads this holiday season . He predicted that as more and more wine retailers search for customers on the Internet due to the coronavirus outbreak and use Google ads to increase their visibility, the already competitive time of the year will become more intense.
“I don’t think we will run a single Google ad this year. I suspect this will be beyond our price range.” said Aselstine, owner of Uncorked Ventures in El Cerrito, California.
If Aselstine can’t afford Google, then he has other options. Microsoft’s Bing search engine is cheaper, but it is not popular among computer users. Aselstine can also increase his use of Google’s free search. Like the paid version, he will use keywords that potential customers may search for in his ads; according to the terms he chooses, he may get a better ranking, although the ranking will still be lower than the ads and paid lists.
RJ Huebert bought Google ads on behalf of clients’ law firms, manufacturers and credit unions, but due to competition between advertisers, prices have also increased, but the owner of HBT Digital Consulting said: “I think this is operating costs.”
Huebert’s company is based in Pittsburgh, and because of its influence, he sees Google as an important tool for small businesses. When people start searching on Google, they are already interested in products or services; they have high intentions, and they are likely to buy goods. Moreover, they are more likely to buy than people who scroll through ads on Facebook.
Atherstein said that if he can’t afford Google, he will advertise on Facebook and Instagram, although he may get more sales from people searching on Google.
He said: “Those people are more willing to buy that day.”
GreenPal CEO Clayton (Clayton) spends about $100,000 annually on Google advertising. For a small company, this is a large number. GreenPal has 23 employees, but Clayton lists the giants Angie’s List and HomeAdviser among competitors with larger advertising budgets. Headquartered in Nashville, Tennessee, GreenPal provides services to homeowners in most states and costs about $3 to $4 per click on an ad.
However, Clayton said: “It is getting harder and harder to advertise and prices are rising.”
Tommy Fang tried to get Google to advertise the market research company he had established for a year, but the cost far exceeded the business he hoped to bring.
Fang (Fang), the co-founder of Eureka Surveys, a New York-based company, said: “We put a few ads, but they didn’t work well for us.” The company runs a website where people can Which participated in the survey.
Fang is looking for other possibilities, such as advertising that Apple sells for mobile devices. However, Fang’s business involves finding participants in company surveys. The business is mainly focused on PCs. He said people are more willing to answer survey questions.
However, some small businesses have not retreated to higher prices. Even for some Huebert law firm’s clients, it makes sense to advertise on Google. They usually spend between US$8 (about 600 rupees) and US$12 (about 900 rupees) per click. Each click can cost up to $35 (approximately Rs 2,600) because they can make money from a single case.
But he said: “But you are selling socks for 5 US dollars (about 400 rupees), and it makes no sense to pay 35 US dollars (about 2600 rupees).”
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