In the latest of our COVID-19 marketing updates, we look at the Google announcement that they will be offering ‘Google Ads Credits’ to

‘Help alleviate some of the cost for small and medium-sized businesses (SMEs) to stay in touch with their customers during this challenging time’

What does that mean?

Google will be giving SMEs worldwide US$340 million in ad credits

Who qualifies for these credits?

Credits will be available to SMEs ‘with active accounts since the beginning of 2019’.

According to Search Engine Journal (20 April) this will include any advertiser who has spent money on Google Ads:

– ‘in 10 out 12 months in 2019’
AND
– ‘in January and/or February in 2020’

How much might an SME get?

There is no information on how they might allocate this fund or how they define an SME. Apparently, SMEs have been ‘pre-identified’ by Google and credits will reflect ‘historic ad spend levels’.

When will we find out if we have credits?

Credits will be allocated in late-May.

How long do we have to use credits?

Any credits must be used before 31 December 2020.

Is this pure altruism by Google?

Well, do turkeys vote for Christmas?

Yes, Google are concerned about businesses, but they are also aware that in the absence of competition in keywords the CPC has fallen by up to 65% in some sectors.

In a scenario where advertisers have cut budgets, it costs Google nothing to boost supply. By injecting ‘cash’, they can increase competition and increase CPC, which benefits them.

Application to the ski industry

This timing actually work wells for the ski industry as while Conversion Rates are poor now, they are likely to continue to rise the closer we get to the season.

While everything is subject to change these days, my advice is to hold onto any credits until at least September when we (hopefully) have more clarification about freedom to travel.

#WeWillSkiAgain