Earlier quoted context omitted.
Not surprised. My wife started a local franchise that provides a service and I've been doing the Internet marketing. I ran local ads on Google...lots of clicks and cost lots of money...but no one came in saying they were referred by Google. Other owners I've talked to told me to use Facebook, it's more effective.
Respectfully without knowing your background, I hear this sort of anecdotal story a lot. Often times it is from people who ran a tiny amount of spend, didn't have their account properly setup, didn't have solid conversion tracking setting for the areas that matter, and then arrived at the conclusion that it failed because it "drove lots of clicks and cost lots of money" without any mention of whether they reached sta…
In regards to measuring performance - discounts were offered if they mentioned the 'web special'. Zilch. We actually spent money on Direct Mail, and mailing out coupons within those packs in an envelope. Direct Mail...is not cheap...thousands of dollars. Other franchise owners said word of mouth will drive the most customers.
We only had 1 customer come in with a coupon, and she was already with communication with my wife prior and just wanted to know if she could stack it with another promotion.
My wife has been up and running for 3 months, and every customer is by word of mouth. It is a franchise, so their friends and family have used it. They would drive by and see the pylon sign, or searched online and found our location. The amount of customers is say, 60 over 3 months. It is a service that families pay reoccurring.
The service, without being specific, is tutoring. So the customer base would be say, within 5 mile radius with kids in elementary - high school. Ads were targeted to the 3 zip codes that surround and specific key words were used, including generic "math classes", to competitor's brand, to the local school names. We've had luck by sponsoring a school, as well.
I don't know what metric is most telling, or if you have time. But I pasted some censored metrics here (http://imgur.com/a/j69Qv). I would be open to giving Google ads another shot if you feel I can tweak it for better performance...and any resources you feel would help would be appreciated.
Thanks!