Here’s What You Need To Know About Google Ads COVID-19 Credits
On June 18th, JEMSU clients started receiving notifications that their Google Ads COVID-19 credit had arrived. Currently, we have seen 40 accounts receive the credit in amounts ranging from $100 to $750. When Google first announced the credit, little was known about who would qualify and what each recipient would actually get. Now that we have more information available, we wanted to share our findings.
What is the Google Ads COVID-19 credit?
Google announced in March that they would be issuing over $340 million in ad relief for small and medium-sized businesses. Initial reports suggested that each advertiser would get $300 in credit added to their accounts. Google’s official information on the credit states that credits can go up to $1000.
How do I qualify for the credit?
Unfortunately, there’s nothing you can do now to increase your chances to get a larger credit, or even a credit at all. The program is based on 2019 spends, and qualifying advertisers needed to spend in 10 out of 12 months in 2019.
How much money will I receive?
This all depends on how much you spent in 2019. Google never seemed to release official numbers telling advertisers where they would fall on the credit scale. We’ve crunched some numbers based on JEMSU clients and what they received, and have come up with these preliminary numbers.
$100 Credit
JEMSU accounts that received the $100 credits ranged in spends from $1,800 to $3,000 in 2019. This averaged to spending $150 to $250 monthly for the year. Four of our accounts received this credit.
$300 Credit
This is the most common amount awarded to our clients, with 80% of our accounts getting this amount. These accounts ranged in 2019 spend from $4,500 on the low end to $33,000 on the high end. For monthly ad spends, this would range from $375 to almost $3,000.
$750 Credit
Our accounts that received this account were some of the largest clients we have at JEMSU. These accounts ranged in 2019 spend from $43,000 to $450,000.
$1000 Credit
No JEMSU clients qualified for the $1000 ad credit.
How do I use the credit?
The credit is automatically applied to your account, so there is no extra work needed to redeem the credit. It starts getting used immediately, so don’t plan on saving that credit for a rainy day. From our understanding, Google will use up your ad credit first, and then start billing your card normally for any ad spend. Accounts have until the end of 2020 to use the credit.
Google’s generous offer to help small and medium-sized businesses at a time when money is tight has great intentions. However, in reality, these credits are just a drop in the bucket for some of these clients. A $300 credit only averages to be 1-2% of most client yearly advertising budgets. Clients would be incorrect to think that this credit will save their business. It’s best to look at this credit as a little bit of free money to help lighten the load.
If you have received a Google Ads credit and would like help managing your account, our team of experts can help audit your account and help you make the most of your credit.