You may have heard that Google plans to provide small and medium-sized businesses all over the world with $340 million in Google Ad credits to assist during the COVID-19 crisis. On April 20, Google finally revealed much of the highly sought-after details regarding the program. Here is the breakdown.
Who is eligible?
The main eligibility requirement of advertisers is they must have spent money on Google Ads in 10 out of the last 12 months in 2019 AND in January and/or February of this year. So, if you haven’t spent anything in your Google Ads account in 2020, you will be ineligible. Brand-new accounts in 2020 will also be ineligible.
How much do businesses get?
Each eligible advertiser gets 1 ad credit. What is 1 credit worth? The value of each credit will vary by customer. Google hasn’t released specific details on how this calculation is made, but has specified that it’s based on the account’s historic ad spend, their country, and currency.
When and how will it work?
Starting in late May 2020, ad credits will begin rolling out to eligible customers in phases over the coming months. Ad credits will be automatically applied to eligible customers’ accounts, and they will receive a notification of the addition. This means there is no application process and no need to apply. The credits can be used from the time they are received through the end of December 2020. Credits can be used toward anything on the Google Ads platform, including search ads, display ads, and YouTube, and can utilize all specialized ad and targeting types.
With the first week of May right around the corner, we expect to start seeing the ad credits across our client accounts very soon. If you would like more details on what Google had to say, you can read their full explanation here.
What if I’ve paused all of my PPC campaigns right now?
We know some businesses have either already cut their advertising budgets, or at least paused campaigns for the time being. However, there is ample opportunity right now. So before you make the decision to cut your advertising spend, consider these facts:
- Social media engagement is up 70%
- Organizations and people are still heavily searching on Google
- Competition is declining, resulting in decreased advertising costs
If you’re eligible for the Google Ad credit but aren’t sure how to spend it, or if you want to learn more about how to pivot you paid advertising budget to take advantage to the current opportunities, check out our recent webinar, Pivoting Your Paid Advertising Budgets.