Market Research

You Are Here: Home » How to Validate Business Ideas with Google AdWords

How to Validate Business Ideas with Google AdWords

by | Apr 2, 2019

Many business ideas come from in-depth insight into a specific industry, but most of the time, these ideas come from intuition or inspiration. While some of these ideas go on to become a huge success, others may be unable to appeal to consumer needs.

Even relatively big brands might think they know what consumers are looking for, but may soon realise that they missed a key factor.

The point here is that to guarantee success, new products or service launches should be backed up by reliable research data.

Before making an investment, it is crucial to be absolutely sure what consumers are looking for, or at least predict correctly, how they are likely to come in contact with the new products or services, and the best marketing methods to use to ensure this.


What is Micro Testing?

In the context of a new product or service launch, micro and macro testing consider the various stages of investigating a market.

By creating a sample group, the test finds out:

  • What features users are looking for in a new launch
  • How they will search for new products and/or services
  • The marketing strategies that prove most effective

Micro testing reduces investment risks by measuring the potential viability of an idea. By facilitating small, tightly designed time-bound tests in the live market, it provides greater detail on how best to proceed.


Why Use Google AdWords to Micro-Test Your Product/Service Ideas?

It costs money, time, and effort to handle marketing strategy with focus groups for untested ideas. For start-ups and small businesses with a tight budget, even when new ideas are viable, the cost of engaging a focus group may cut into the funds for the development of the new idea.

Google Adwords provides a cost effective alternative to focus groups. Businesses can easily micro test and uncover demand, and demand volume, for new products/services.

Get detailed data on best marketing techniques long before product/service launch.

You can test:

  • Location
  • Keywords
  • Compelling offers
  • Logos
  • Ad copy
  • Landing page structure
  • Price range; and so much more


Google Adwords & Other Useful Tools to Investigate Demand

You need to find out if the demand for a new product or service idea exists, and if it does, is it sufficient to go ahead with development? Here are some tools you can use:

  • Google Trends

Begin your initial research with Google Trends. This free tool analyses the approximate search volume for trending terms and topics over time. It reveals the potential seasonal demand and slow periods for products or services categories.

Google Trends can reveal if there has been a growing interest in a topic. You will find this useful if your industry is relatively new, such as when you intend to serve a market gap or create something revolutionary.


Google AdWords Keyword Planner

After looking at the big picture with Google Trends, gather more accurate demand data with Google AdWords Keyword planner. It is located in the tools tab on the Google AdWords dashboard, under the keyword planner tab.

Experts in Search Engine Optimization, believe that a marketing campaign is all about being found in the right place at the right time.

Google Adwords keyword planner enables you to search for keywords and discover search volumes, identify demand for a new product or service, and know how users might find for your new product. You can also get related keyword ideas and their accurate search volumes.

To avoid getting highly inflated demand figures for your intended market, target a specific location to get more accurate results. Even if your new product or service will be launched internationally, it will be beneficial to compare demand by country or region – you can then focus your marketing efforts on areas of high demand and gradually spread out.

Unfortunately, Google AdWords Keyword planner now provides accurate search volume data only to current advertisers already running an AdWords campaign, and new advertiser with live accounts in their arsenal. You can however still build excellent keyword lists for your research, but search volume will be displayed in wide ranges.

Fortunately, there are free keyword planner tools that you can still use to discover search volume, such as Mangools Keyword Finder and SERPS keyword planner tool.


Google Correlate

Find out who your target market really is with Google Correlate. Discover other correlating interests they may have that would facilitate your marketing strategies. You can compare correlating search peaks and drops over time, and identify different user personas when you inspect the search results closely.


Is Your New Idea Worth the Investment?

You have discovered the validity and demand for your new idea. It is now time to find out if the development is really worth your time and financial investment.

New ideas succeed when they improve an existing product or fill a gap in the market. The problem with the latter is that users might not know what the product is or realise that they need it. This means that demand does not yet exist and would have to be created.

On the other hand, you could be faced with strong competition in the market space when improving on an existing product. You have to be sure that you can keep up.

You can gain useful insight in either case with Google AdWords’ tools. The budget and forecasts tool estimates how many clicks you would receive for a theoretical budget and the keyword planner tool displays estimated CPC for terms.

You should note that the forecasts provided by these tools are based on previous findings, which might have changed. They do however offer a guide on potential CPC.



Committing a marketing budget to an AdWords campaign is a lot more affordable than engaging focus groups. You can run a modest campaign and still gather excellent data.

When micro testing with Google Adwords, create separate campaigns/Ad groups for the various test elements you are researching, keep your message simple in your test ads, and be careful not to mix existing product campaigns with test campaigns.


Submit a Comment

Get a FREE Consultation

9 + 14 =