Google Ads can be an incredibly powerful marketing tool—when it works. But here’s the thing: It doesn’t work for everyone. As a digital marketing agency that works with a lot of small businesses, we get this question all the time:

“Should I run Google Ads?”

And our honest answer is always:

“It depends.”

This isn’t a cop-out. It’s the start of a deeper conversation. Whether Google Ads is worth it for your business depends on a number of factors—your margins, your offer, your budget, and most importantly, your ability to handle the ups and downs. In this article, we’ll walk you through how to find your answer using real numbers and practical insight.

We’ll also share a powerful way to calculate real returns from your Google Ads so you can make informed decisions rather than taking wild guesses. And if you decide Google Ads might be a good fit, we’re here to help.

Step 1: Understand Customer Lifetime Value (CLV)

Before you even think about spending a dollar on Ads, you need to understand what a customer is worth to you over time. That’s called Customer Lifetime Value, or CLV.

Here’s how you can calculate it:

Let’s say your average customer spends $30 per order.

They order once a month.

On average, they stick around for 7 years.

In this case, your CLV is:

$30 x 12 months x 7 years = $2,520

That’s $2,520 in total revenue from just one loyal customer over their “lifetime” with you. If you’re a small business that relies on repeat customers (restaurants, pet services, beauty salons, etc.), this number is your golden compass.

Once you know your CLV, you can now judge how much it’s okay to spend to acquire a new customer.

Step 2: Estimate Your Return on Ad Spend (ROAS)

Now that we know what a customer is worth let’s see what kind of return we can expect from your Google Ads.

Say you’re thinking of spending $900 a month on Ads.

Based on results we’ve seen with other clients, maybe you get 10 new customers a month. But only 3 of those stick around and become loyal customers. The other 7 order once and disappear.

Here’s the math:

• 7 customers x $30 (one-time purchase) = $210
• 3 customers x $2,520 (CLV each) = $7,560

Total revenue from your ads = $7,560 + $210 = $7,770

Now let’s calculate your ROAS (Return on Ad Spend):

$7,770 ÷ $900 = 8.63

That’s a pretty solid return. For every dollar you’re spending, you’re getting over $8 back.

But before you get too excited—let’s slow down and talk about the real world.

The Reality Check: True ROAS Isn’t Just Math

While the numbers above look great, they don’t tell the full story. The truth is, your true ROAS will likely be lower. Why?

Because you’ll need to run discounts to attract customers. You’ll have slow weeks. You might get bad leads. Sometimes, your Ads won’t perform. Sometimes, a competitor will undercut you. And don’t forget—you’re not just paying for Ads, you may also need landing pages, creative assets, and a manager to run those campaigns properly.

So, while the math says 8X ROAS, in the real world, you might see closer to 2X or 3X. And that’s still very good.

Can You Afford the Monthly Investment?

Here’s the next big question: even if Ads are a good long-term investment, can you afford the upfront cost?

Let’s be honest—spending $900 or even $500 a month isn’t easy for many small businesses. Especially if you don’t get instant results. And unfortunately, Google Ads is not a one-month magic bullet.

In our experience, businesses that are successful with Ads are the ones that can:

• Sustain 3–6 months of consistent spend
• Tolerate slow weeks without panic
• Track and refine their campaigns over time

We’ve seen it time and again:

Some clients try Google Ads for one month, don’t get results, and quit. They almost always fail.

Others stick with it, adjust their offers, tweak their targeting, and ride out the ups and downs. They’re the ones still with us five years later, and their businesses have quadrupled.

If you’re not in a place where you can handle that kind of financial rhythm, it might be better to wait—or try more organic strategies first.

The Unpredictability Factor

Another thing small business owners need to understand about Google Ads is that it’s not a smooth ride. Ads can be volatile.

Some weeks, your Ads will be on fire. Others, they’ll flop. There could be factors outside your control: algorithm changes, search trends, competitors bidding more aggressively, seasonal drops, and even weather.

You need to ask yourself:

• Can I handle the mental stress of unpredictability?
• Can I let my budget ride out the bad weeks without pulling the plug too soon?

Because Google Ads is more like investing in the stock market than depositing money in a savings account.

If you’re okay with some bumps along the way and you see the big picture, then Ads could be a great growth tool for your business. If not, it could be an expensive headache.

Ads Alone Don’t Win Customers — Offers Do

Here’s one more insight we’ve learned over the years: Ads perform significantly better when paired with a strong offer.

If your ad just says, “We’re open! Come try us!”—you’ll get crickets.

But if it says “First Order Free” or “Buy 1 Get 1 Free This Week Only”—suddenly, clicks turn into customers.

So, while the mechanics of CLV and ROAS matter, your actual offer is often the key difference between success and failure.

We’ll cover how to craft irresistible offers in another article, but for now, just know this:

A great Google Ads strategy without a compelling offer is like a sports car with no fuel.

How to Decide If Google Ads Is Right for You

Here’s a quick checklist to help you make the decision:

You’ve calculated your Customer’s Lifetime Value

You can comfortably spend for 3–6 months without expecting immediate returns

You understand ROAS and are okay with a return that might take time

You’re ready to ride through unpredictability

You have (or are willing to create) strong offers

You’re tracking conversions—not just clicks

If you said “yes” to most of these, then it might be time to get serious about Google Ads. But if you said “no” to a few, it’s okay to wait until your business is in a better position.

Final Thoughts

Google Ads can be a growth machine—but only for the right business at the right time. It requires commitment, patience, budget, and a willingness to test and tweak.

At Ellipsis Marketing, we’ve worked with businesses who gave up too early—and those who hung in there and thrived. The difference? Understanding the math, setting the right expectations, and staying consistent.

If you’re thinking about running Google Ads, don’t just jump in blind. Start with the numbers. Look at your CLV. Think long-term. And if you need help, we’re just a click away.

Let’s make sure your Ads are working for you—not against your bank account.