As an SME entrepreneur, you want every euro you spend on marketing to pay off. With Google Ads, you can quickly be visible to your target audience, but how do you make sure these campaigns are really profitable? In this article, we will explain how to use Google Ads cleverly, which KPIs you need to keep an eye on and how your campaigns yield a structural return. 

What is ROAS and why is it important? 

A key KPI within Google Ads is ROAS (Return On Ad Spend). This figure shows how much revenue you earn back for every euro you put into ads. 

Formula:
Sales ÷ advertising costs = ROAS 

An ROAS of 1.0 means that you earn back your advertising costs exactly. But it only becomes profitable if you set a target ROAS that also covers your other costs as well as leaving a margin. For SMEs, it is smart to calculate this per product group or service, as margins can vary considerably. 

Step 1: Preparation is key 

A profitable campaign starts with a strong foundation. 

• Define your goals: do you want to generate leads, sell products or just increase brand awareness? 

• Know your target audience: how do they search, what triggers convince them? 

• Know your CPA (Cost per Acquisition): how much should a sale or lead cost? 

• Analyse your competitors: learn from their ads and landing pages. 

• Highlight your USPs: without distinction, your ad disappears into the crowd. 

💡 Tip: always align your Google Ads strategy with your overall marketing approach. SEA works optimally when it fits within your entire funnel. 

Step 2: Set up your account smartly 

A logical structure in your Google Ads account makes campaigns more measurable and relevant. 

• Use your website structure as a base (categories → subcategories). 

• Split campaigns by product group or region. 

• Get keywords, ads and landing pages right. 

• Keep space to add new keywords and ad groups. 

📊 The more relevant the format, the higher the quality score - and the lower your cost-per-click. 

Step 3: Measuring is knowing 

Many SMEs advertise without proper tracking. As a result, they drive on clicks instead of results. 

• Use Google Tag Manager To measure conversions properly. 

• Break down goals: primary goals (sales, lead) and secondary goals (click phone number, whitepaper download). 

• Also measure the value per conversion: that way you can see which campaigns are really profitable. 

Without good data, you risk spending money on traffic that never converts. 

Step 4: Ensure sufficient budget 

Too small a budget often makes campaigns unprofitable. If you are already out of visibility in the afternoon, you are missing out on the very visitors who convert later in the day. 

• Aim for a display share of 80% or higher. 

• Use ad scheduling to target times and days that yield the most. 

• Do you have a limited budget? Then opt for a smaller region or limit yourself to the best-performing campaigns. 

Step 5: Optimise your website 

Google Ads brings visitors to your website - but your site needs to convince them to become customers. 

• Provide a fast, user-friendly website. 

• Have your landing pages perfectly aligned with the ad. 

• Use clear call-to-actions (CTAs). 

• Optimise your forms and checkout process. 

A good website increases your conversion rate as well as improving your quality score in Google Ads, which in turn leads to lower costs per click. 

How do you keep Google Ads profitable? 

A profitable campaign requires continuous maintenance and optimisation. 

• Check your account regularly: steer on keywords and bids. 

• Test and improve: customise ads, visuals and landing pages based on data. 

• Focus on the top 20% keywords: these often yield 80% of your conversions. 

• Monitor your competitors via the auction insights. 

💡 Example: a client of ours achieved 70% of conversions from just three keyword groups. By focusing on these, profitability doubled without any extra budget. 

Frequently asked questions about profitable Google Ads 

How do you make Google Ads profitable? 

By setting clear goals in advance, setting up your account smartly, measuring conversions properly and actively optimising campaigns. 

What is a good ROAS? 

This is a personal objective that varies by your company's industry, business, margin and cost structure. For greater profitability, you aim for a higher ROAS, while companies with higher margins may already be profitable at a lower ROAS. 

How much budget do you need for Google Ads? 

There is no set Google Ads budget; it depends on your goals, the competition in your industry, the value of your product or service, and the desired results. 

Which is more important: clicks or conversions? 

Conversions are more important than clicks because conversions contribute directly to the success of a business by generating leads or sales, while clicks by themselves have little value if they do not lead to the desired action. 

How often should you optimise Google Ads? 

Your Google Ads should be at least weekly optimise, but daily monitoring and adjustments may also be necessary, depending on your budget, competition and campaign performance. 

Conclusion 

Google Ads can be a powerful way for SMEs to generate leads and sales. But it only becomes profitable when you Focus on ROAS, smart budget management and continuous optimisation of campaigns. 

👉 Want to know how we help SMEs make their Google Ads campaigns profitable? Contact us we are happy to look at it with you.