How Does Google Advertising Work?

Google Advertising, also known as Google Ads, is an online advertising platform that allows businesses to place ads on Google’s search engine results pages, as well as on other websites and platforms that are part of the Google Ad network. Google Ads uses a pay-per-click (PPC) model, meaning that advertisers only pay when someone clicks on their ads. By using Google Ads, businesses can drive targeted traffic to their website and increase sales. However, running a successful Google Ads campaign requires careful planning, monitoring, and optimization. This can be time-consuming, costly, and challenging for small business owners who are already juggling multiple responsibilities.

To free up cash flow and prepare for an increase in sales, you may need to utilize inventory financing. As you may already know, inventory financing can be expensive and hard to qualify for, but it doesn’t have to be. Kickfurther is a small business committed to helping other small businesses and entrepreneurs by maintaining a platform that allows businesses to fund inventory on consignment. Because you should stay in control of the business you’ve dedicated your life to build, inventory funding through Kickfurther is debt-free and allows you to maintain full ownership. The list of reasons why you should use Kickfurther goes on to include affordability, flexible payment terms, and a community of entrepreneurs here to support you.

Ready to grow your business? Here’s what you should know about how Google Advertising works.

What is Google Advertising?

Google Advertising is a marketing platform created by Google that allows businesses to display ads on its search engine results pages (SERPs), on other websites that participate in the Google Ads program (known as the Google Display Network), and on YouTube videos. This platform is designed to help businesses of all sizes to reach their target audience and drive traffic to their website or physical store. Google Ads operates on a pay-per-click (PPC) model, meaning that businesses only pay when a user clicks on their ad. The platform uses a bidding system in which businesses bid on specific keywords and ad placements to determine how much they will pay per click.

How do Google Ads work?

Google Ads works by allowing businesses to create ads, target specific audiences, bid on keywords, and pay for clicks. By using this platform, businesses can reach a wider audience and increase their online visibility, leading to more leads and sales.

Here is how Google Ads works:

#1. Create an account: First, businesses must create a Google Ads account and set up a campaign. They can choose their budget, targeting options, ad format, and keywords to bid on.

#2. Set a budget: Advertisers set a daily or monthly budget, which determines how much they are willing to spend on their ads.

#3. Choose keywords: Advertisers choose specific keywords that are relevant to their business and target audience. They bid on these keywords, and the amount they bid determines how likely their ad is to appear when someone searches for those keywords.

#4. Create ad groups: Advertisers create ad groups that contain one or more ads and relevant keywords. Each ad group targets a specific audience and contains ads that are tailored to that audience.

#5. Write ads: Advertisers write ad copy that appears on the SERP when someone searches for the relevant keyword. The ad copy should be compelling and encourage the user to click on the ad.

#6. Launch the campaign: Once the campaign is set up, advertisers can launch their ads and start bidding on keywords. Google’s system will automatically show the ads that are most relevant to the user’s search query and that have the highest bid.

#7. Measure and optimize: Advertisers can measure the performance of their ads using Google Ads analytics tools. They can track metrics like clicks, impressions, and conversions, and use that data to optimize their campaigns to get better results.

How do I create a Google Ads account?

To create a Google Ads account, follow these steps:

  1. Go to the Google Ads website at https://ads.google.com/.
  2. Click on the “Start now” button.
  3. Choose the Google Account you want to use for Google Ads or create a new one if you don’t have one.
  4. Follow the prompts to set up your account. You will need to provide information such as your business name, website, location, and payment details.
  5. Once you have provided all the necessary information, click on the “Submit” button to create your account.

After creating your account, you can start creating your first Google Ads campaign by following the instructions provided by Google Ads. Remember to set up your targeting options, choose your keywords, write your ads, and set your budget and bids.

What are the different types of Google Ads, and how do I choose the right type for my business?

There are several types of Google Ads that you can use to promote your business, and choosing the right type depends on your business goals, target audience, and budget. Here are some of the most common types of Google Ads:

  • Search Ads: These are the most common type of ads that appear at the top and bottom of Google search results. They are text-based ads that target specific keywords and search phrases.
  • Display Ads: These are image-based ads that appear on websites across the internet that are part of the Google Display Network. They can be targeted based on demographics, interests, and behavior.
  • Video Ads: These are video-based ads that can be shown on YouTube and other websites across the internet. They can be skippable or non-skippable and can be targeted based on demographics, interests, and behavior.
  • Shopping Ads: These are ads that feature product listings and appear at the top of Google search results when someone searches for a particular product. They are targeted based on product data and can be used by online retailers.
  • App Ads: These are ads that promote mobile apps and can appear in Google search results, Google Play, and other mobile apps. They can be targeted based on app data and user behavior.

To choose the right type of Google Ads for your business, consider your goals and budget. If you want to increase website traffic and sales, search and shopping ads may be the best option. If you want to build brand awareness, display and video ads may be more effective. If you have a mobile app, app ads can help you acquire new users. Ultimately, it’s important to test different types of ads to see which ones perform best for your business.

How to set a Google Ads budget

To set a Google Ads budget, consider following these steps:

  • Determine your advertising goals: Before you set your budget, you should have a clear understanding of what you want to achieve with your Google Ads campaign. Your goals will help you determine how much you need to spend.
  • Choose your bidding strategy: Google Ads offers different bidding strategies that allow you to control how your budget is spent. You can choose to pay for clicks (CPC), impressions (CPM), conversions (CPA), or maximize clicks or conversions.
  • Estimate your costs: Use the Google Ads Keyword Planner tool to estimate the cost of your keywords and get an idea of how much you need to spend to achieve your advertising goals.
  • Set your budget: Once you have a clear understanding of your advertising goals, bidding strategy, and estimated costs, you can set your budget. Start with a conservative budget and adjust it as you monitor your campaign performance.
  • Monitor your campaign performance: It’s important to monitor your campaign performance regularly to ensure that you are getting a good return on investment (ROI). Adjust your budget as necessary to improve your results.

Remember that your budget is just one part of your Google Ads strategy. To get the best results, you should also focus on targeting the right audience, choosing the right keywords, and creating compelling ad copy.

Tips for choosing keywords for your Google Ads campaign

Choosing the right keywords is crucial for the success of your Google Ads campaign. The world of Google Ads can be confusing so don’t be ashamed if you need to hire a professional to help. It’s better to invest and do things the right way rather than take on more than you can handle. Should you choose to execute your own Google Ads, learn as much as you can about keywords.

Here are some tips for selecting effective keywords:

  • Use keyword research tools: Use keyword research tools such as Google’s Keyword Planner to identify relevant keywords for your business. These tools can help you identify search volume, competition, and estimated cost-per-click (CPC) for each keyword.
  • Consider intent: Choose keywords that align with the intent of your target audience. For example, if you are a plumber, you might use keywords such as “emergency plumbing services” or “leaky pipe repair” to target people who need immediate plumbing help.
  • Focus on relevancy: Choose keywords that are relevant to your business and your landing page. Avoid broad or generic keywords that are not specific to your business.
  • Use long-tail keywords: Long-tail keywords are more specific and less competitive than broad keywords. They are often cheaper and more effective at driving relevant traffic to your website.
  • Monitor and refine: Monitor the performance of your keywords regularly and refine your list as necessary. Remove underperforming keywords and add new ones that are driving relevant traffic to your website.
  • Consider negative keywords: Use negative keywords to exclude irrelevant searches that may trigger your ads. This will help you avoid wasting your budget on clicks that are unlikely to convert.

How to create effective ad copy for Google Ads

Creating effective ad copy for your Google Ads campaign is essential for driving traffic to your website and converting leads into customers. Here are some tips for creating compelling ad copy:

  • Use a clear and concise headline
  • Highlight your unique selling proposition (USP)
  • Use persuasive language
  • Include a call-to-action (CTA)
  • Use ad extensions
  • Test and refine

Remember that your ad copy should be relevant to your target audience and aligned with your landing page. By creating compelling ad copy that resonates with your target audience, you can increase the effectiveness of your Google Ads campaign and drive more traffic to your website.

Tracking Google Ads performance

Tracking the performance of your Google Ads campaign is important to ensure that you are getting a good return on investment (ROI). Here are some key metrics to track and tools to use:

  • Click-through rate (CTR): CTR measures the number of clicks your ads receive divided by the number of impressions. A higher CTR indicates that your ads are relevant and engaging to your target audience.
  • Conversion rate: Conversion rate measures the percentage of clicks that result in a desired action, such as a purchase or a sign-up. A higher conversion rate indicates that your ads are effectively driving conversions.
  • Cost-per-click (CPC): CPC measures the cost of each click on your ads. A lower CPC indicates that you are getting more clicks for your budget.
  • Return on investment (ROI): ROI measures the revenue generated by your ads divided by the cost of your ads. A positive ROI indicates that your ads are generating more revenue than they cost.
  • Google Ads reporting: Use the reporting features in your Google Ads account to track your campaign performance. You can create custom reports that show data for specific time periods, campaigns, and keywords.
  • Google Analytics: Google Analytics provides additional data about your website visitors and can help you track conversions and ROI.

Remember to regularly monitor your campaign performance and adjust your strategy as necessary to improve your ROI. By tracking your Google Ads performance, you can make data-driven decisions that improve the effectiveness of your campaigns.

How Kickfurther can help

Google Ads campaigns can drive a lot of traffic to a business’s website, but this traffic won’t convert into sales if the business doesn’t have enough inventory to meet demand. Kickfurther can help with small business inventory funding that’s affordable and easily accessible. Free up the cash flow you need to grow your business all while ensuring you have enough inventory on hand. At Kickfurther you can get inventory now and pay later – and yes, it’s really that simple.

Closing thoughts

With a successful Google Advertising campaign, you should see an uptick in sales. To free up cash flow to invest in the campaign all the while stocking enough inventory for the increase in demand, we encourage you to use inventory funding.

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you control. Our unique funding platform can fund your entire order(s) each time you need more inventory, so you can put your capital on hand to work growing your business without adding debt or giving up equity.

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application

#3. Review a potential deal with one of our account reps & get funded in minutes

5 eCommerce Funding Solutions for Startups Seeking Growth

In business, liquidity is the ace up your sleeve. Without it, your startup might miss out on critical growth opportunities, struggle with operational costs, or fail to adapt to market changes swiftly. If you’re looking to beef up your web-based retail or wholesale operation, one critical strategy is getting additional funds. But where do you find the right financing that won’t hinder your growth with stifling fund limits, lengthy processes, or high costs? Here, we’ve gathered some eCommerce funding options to help you grow and scale your business.

eCommerce Funding Solutions: Understanding Your Options

Explore these funding solutions for your eCommerce business, weigh the pros and cons, and find the right option for you:

1. Traditional bank loans

Traditional bank loans have a fixed interest rate and require regular repayments over a set period. Most are amortized loans, which means you pay the same amount every time.

Pros:
  • Substantial eCommerce seller funding – Potential loan amounts can reach up to $5 million for small businesses.
  • Lower annual percentage rates (APRs) – Traditional bank loans have APRs that often start in the single digits, from 3% to 8%.
  • Longer repayment terms – A typical repayment period usually ranges from 5 to 7 years. However, this can vary based on the financial institution, the type of loan, and your credit standing.
  • Establishes creditworthiness – Regular, on-time loan payments get recorded, which contributes to a strong business credit profile.
Cons:
  • Bias toward a healthy credit history – Traditional banks often favor businesses with solid financial statements.
  • Collateral requirement – You may be asked for collateral like real estate or equipment.
  • Rigorous application process – Application processes are lengthy and require extensive documentation, including business plans, tax returns, etc.
  • Lower approval rates for small or online businesses – Banks may view these businesses as higher risk due to their size or unproven business models.

2. Conventional lines of credit

Lines of credit offered by banks, credit unions, and other lending institutions allow you to access up to a specific amount of money as needed. You can repeatedly borrow from it provided you haven’t maxed out your credit limit.

Pros:
  • Flexibility – Choose when to draw out the money and only pay interest on the amount used. Upon payment, the balance replenishes, so you get continuous access to funds.
  • Higher credit limits – Avail of credit limits of up to 3 million dollars or more, depending on your company’s financial strength.
Cons:
  • Risk of overspending – The flexibility and continuous access to funds can lead to borrowing more than you can comfortably repay.
  • Variable interest rates – Rates tend to be variable and can adjust according to market conditions.

3. Crowdfunding platforms

Crowdfunding platforms are online services that allow startups to secure eCommerce startup funding as donations, or in exchange for rewards and equity. This method is particularly effective if your business has a unique or strong concept.

Pros:
  • No credit checks – Bypass traditional gatekeepers like banks and venture capitalists and pitch ideas directly to the public.
  • No repayment obligations – Reward-based crowdfunding doesn’t require financial repayment, unlike loans.
  • Validation – You can access a broad audience to test consumer interest in your product or service and generate significant publicity.
Cons:
  • No guarantee of success – Meeting your eCommerce funding target relies heavily on your campaign’s effectiveness and your project’s appeal.
  • Potentially costly and labor-intensive – Crowdfunding requires marketing, constant updates, and rewards fulfillment.
  • Intellectual property exposure – Sharing your idea or product on a public platform before securing intellectual property protection can be risky.

4. Equity-based financing

Equity-based financing involves raising capital from various sources, such as angel investors, venture capitalists, or private equity firms, by selling shares or stakes in a business.

Pros:
  • No repayment schedule – This type of eCommerce funding doesn’t require monthly repayments, alleviating pressure on a growing business.
  • Access to large capital – You can secure significant funding, potentially more than what you can get from other types of financing.
  • Valuable partnerships and expertise – Investors often bring industry expertise, business connections, and additional resources beyond just capital.
  • Distributed risk – You share the risk with investors, so you don’t have to repay them if your business doesn’t succeed.
Cons:
  • Ownership dilution – Raising capital through equity financing means you have to give up some ownership and control in the company. This can result in  conflicts if your investors have different views or strategies.
  • Pressure for growth – Investors typically seek a high and swift return on their investment – To achieve this, you might rush decisions, overextend resources, or engage in unsustainable business practices.
  • Exit strategy condition – The exit expectation from investors can force you into paths you might not be ready for or interested in, such as going public (IPO).

5. Inventory financing

Inventory financing is a type of short-term financing that advances a large portion of the cost of production to you even before your customers pay. You’ll find this type of eCommerce funding ideal if your business is experiencing unexpected growth or faces seasonal fluctuations.

Pros:
  • Reduced opportunity costs – By freeing up cash flow tied up in inventory, you can allocate resources to other vital areas, such as marketing, product development, or expanding operations.
  • Quick access to capital – The upfront cash allows you to take on larger orders than you could otherwise handle, supporting your growth and scalability. This also empowers you to negotiate better supplier terms.
  • No standard collateral needed – The inventory or purchase orders act as collateral, making this option more accessible than traditional loans.
  • Streamlined approval process – If you have a clear inventory record and established sales history, your approval process will be straightforward and fast.
Cons:
  • Risk of overstocking – Relying too heavily on inventory as collateral can lead to the risk of overstocking, as this inventory can become outdated or lose value.
  • High costs – The interest rates and finance fees can be burdensome and strain finances.
  • Dependence on inventory quality and sales – The value and saleability of your inventory directly affect your financing terms and the amount of eCommerce startup funding. ​

How to Choose Your eCommerce Funding

When selecting funding for your eCommerce business, be guided by these essential  considerations:

  • Identify the exact reasons you need funding to target the right financing source.
  • Determine the eCommerce startup funding you need by assessing the scale of your operations, business activities, and future growth plans.
  • Look for providers who offer expedited application approval and fund disbursement.
  • Pick an option that matches your financial capacity and won’t strain your profit margins​.
  • Scrutinize all the details, from the costs and repayment structures to the interest rates, potential hidden fees, and even any equity requirements.
  • Go for a solution that offers flexibility on fund usage and repayment terms.

Drive eCommerce Success with Smart Inventory Funding

Why waste any growth opportunity just because your cash flow can’t keep up with your sales? Get the eCommerce funding you need to free up working capital and promptly stock up and meet customer demands. With eCommerce inventory funding, you can enhance customer satisfaction and strategically outpace the competition.

Looking for a reliable partner to fund your inventory needs and support your long-term growth? Look no further than Kickfurther—the innovative company that can help take your business to the next level.

Why Kickfurther?

With Kickfurther, eliminate stockouts, keep up with demand, and move into growth mode. Here’s what we offer:

  • No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
  • Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital—even lower your business’s valuation if you are looking at venture capital or a sale.
  • Quick access: Get the capital you need when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most brands. By funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it—product development, advertising, and expanding your team.

Interested to know how you can secure inventory funding from Kickfurther? Just follow these easy steps:

  1. Create your free business account.
  2. Complete the online application.
  3. Review a potential deal with one of our account reps to get funded in minutes.

Close your cash flow gap between paying your supplier and receiving future revenue with Kickfurther, and strike at opportunities as they arise. Join our funding marketplace today!