Google Ad Grants Expectations VS. Reality

• Ad Grants
• Tips
• 27. 05. 2025

Over the years, we’ve worked with many nonprofits eager to take advantage of the $10,000/month in free advertising that Google Ad Grants offers. However, we’ve also noticed a recurring theme: many organizations enter the program expecting their Ad Grants account to perform like a standard commercial Google Ads account.

While the two platforms may look similar on the surface, with nearly identical interfaces and campaign tools, they operate under very different rules and limitations. These differences can lead to confusion or disappointment if expectations aren’t properly aligned from the start.

In this article, we’ll break down how Google Ad Grants really works, highlight its unique opportunities and limitations, and provide a clear picture of what nonprofits can realistically expect when managing their account. Whether you’re just getting started or struggling to make the most of your grant, this guide will help set the right foundation.

Separate Ad Auction

Google Ad Grants accounts operate in an ad auction separate from commercial Google Ads accounts. This means that the grant ads compete only with other Ad Grants ads, not with paying advertisers. Commercial advertisers serve their ads in a commercial auction, which is prominently placed on the top of the Google search results page. Ad grantees can only occupy the ad slots that aren’t sold to any commercial advertiser.

Higher Cost-Per-Click (CPC) Threshold

It’s normal to see higher cost-per-click (CPC) in Ad Grants accounts. Since ad grantees only compete with other nonprofits and don’t pay out of pocket, most seek to maximize the grant utilization and thus use maximum possible bids. On top of that, the program requires nonprofits to use automated bidding strategies (like maximize conversions), which means you don’t directly control the bids. Instead, the system automatically bids higher on keywords with strong conversion potential to maximize performance.

Lower CPCs often come from (incompliant) manual bidding strategies, which limit performance. While they may seem efficient, they usually lead to fewer clicks, poor ad visibility, and underutilization of the available $10,000 monthly grant budget. The goal isn’t low CPC, it’s to get results. Competitive bids are necessary for your ads to show and convert.

Most Relevant Keywords Are Often The Most Competitive Ones

The keywords that are the most relevant to your nonprofit’s mission are often the same ones targeted by commercial advertisers, think terms like “donate,” “support,” or “volunteer”. These are highly competitive, and since commercial advertisers are paying real dollars for each click, Google gives them priority in the ad auction. That means Ad Grants ads often don’t get shown for these high-demand search terms, no matter how relevant they are to your cause.

In our agency, we usually start by casting a wide net, testing a broad mix of long-tail and mission-related keywords. Right from the beginning, we set up conversion tracking so we can see what’s actually working (and what’s not) within the limitations of Google Ad Grants. We then refine the account by focusing on keywords that bring real results, adding similar terms, optimizing ad copy, supporting content creation, and adjusting bids and budgets accordingly.

2-3 Months To Gain Traction & Not Suitable For Short-Term Promotions

Ad Grants campaigns typically need 2–3 months to gather enough conversion data for smart bidding algorithms to perform effectively, so patience is key during this initial learning phase. Because of this ramp-up period, Ad Grants are not well-suited for short-term promotions like one-time events or urgent campaigns, where immediate results are needed.

Ad Grants Helps Build Awareness, Not Instant Sales

Since Google Ad Grants campaigns tend to perform best with less competitive keywords, they’re great for building brand awareness and driving top-of-funnel engagement, like newsletter signups, social media clicks, and general website traffic. But if you’re hoping for instant sales or a quick return, you might be setting yourself up for disappointment. The truth is, hard sales conversions usually require more than just the grant. That’s where paid channels, like commercial retargeting campaigns, come in. (We dive deeper into this multi-channel strategy in our Fundraising webinar.)

Ad Grants Works Best Long-Term

While the initial setup of a Google Ad Grants account may not yield immediate returns, its long-term impact can be significant, provided the account remains in compliance with program policies. Over time, the grant drives consistent brand awareness, generates valuable engagement-based conversions, and helps build retargeting audiences and lower the cost of commercial campaigns. In many cases, less competitive keywords can be shifted from paid campaigns to the Ad Grants account, effectively stretching your marketing budget further.

Grants As A Starting Point Of Your Online Strategy

Think of Google Ad Grants not as a standalone solution, but as the starting point of a well-rounded online marketing strategy. It’s an incredible resource providing up to $10,000 a month in free search advertising, but due to its above mentioned limitations, it might be challenging to use it on its own to drive instant revenue or high-impact conversions.

If your nonprofit’s goals include fundraising, ticket sales, program sign-ups, or other bottom-of-funnel conversions, you’ll need to complement your Ad Grants activity with additional channels, whether that’s paid Google Ads, social media ads, SEO, or email marketing. These work together to nurture and convert the traffic that Ad Grants campaigns bring in.

The chart below illustrates 3 common conversion stages (awareness creation, relationship building and monetary conversions) and channels recommended to use on each conversion stage. Note that while Ad Grants are efficient in early conversion stages, involvement of other marketing channels is often needed to drive more complex conversions.

Managing Expectations Prevents Frustration

One of the most important steps in making the most of Google Ad Grants is understanding what it is, and what it isn’t. Unlike commercial Google Ads accounts, Ad Grants comes with a set of built-in limitations: ads only show on Google Search, you’re confined to a $329 daily spend cap, and you’re competing in a separate auction with other grant recipients, often without full control over bidding. Because it’s a free product, you simply can’t expect the same aggressive performance or immediate ROI as paid accounts.

Curious what happens when you mix Google Ad Grants with paid Google Ads? WaterAid’s story says it all.

Limitations Of Google Ad Grants

• Compliance requirements
  Google Ad Grants is an incredible resource, but it comes with a rulebook. To keep your free ad credits flowing, you must strictly follow Google’s guidelines. If you fail to do so, your account risks suspension, or worse, it might even get deactivated entirely.
• Limited ad formats
  Unlike commercial Google Ads, Google Ad Grants only supports text ads on Google Search, that essentially means no banners, video, Gmail placements, or retargeting options. While that does limit your toolbox, it also sharpens your focus.
• Limited competitiveness: Google Ad Grants is a tool that gives you access to a large audience of users searching on Google. But it doesn’t mean that your ads will always show up at the top of the search results. In fact, Google Ad Grants ads have a lower priority than paid ads from commercial advertisers. That means your ads could appear lower or in some cases not at all, especially if there are several other advertisers competing for the same keywords.

Conclusion

Despite its limitations, Google Ad Grants remains one of the most valuable tools available to nonprofits looking to grow their digital presence. While it’s not a silver bullet for instant results or revenue, it offers something equally important – free traffic, soft (engagement) conversions, brand recognition, creation of retargeting audiences and more.

Furthermore, Ad Grants program isn’t limited by time or the total amount. Once set up correctly, your organization can benefit from these free campaigns in years to come (assuming you keep an eye on account compliance).

Understanding how Ad Grants works, and what it can and can’t do, is key to setting your nonprofit up for success. When approached with the right expectations and a clear strategy, Ad Grants can fuel brand awareness, build engaged audiences, and lay a strong foundation for your broader marketing efforts.

If you’re ready to make the most of this $10,000/month opportunity but don’t want to navigate it alone, our team is here to help. Schedule a free consultation!