Lithuania is the largest economy among the three Baltic countries. It ranks 14th in the world for ease of doing business. 95% of all investments in Lithuania come from the European Union, and Sweden is one of the largest investors in the country, with a share of 20-30% of all investments. The population of the country is 2.7 million people with a GDP per capita of $42,091. All this makes starting a business and setting up contextual advertising in Lithuania very profitable and promising.
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Peculiarities of setting up contextual advertising in Lithuania
Before setting up a Google Ads campaign in Lithuania, we advise you to study the local culture, business climate and other factors. This will allow you to spend your advertising budget more efficiently and get more conversions.
Pendulum migration
Vilnius is the capital of Lithuania, with a population of 526 thousand people. This city is the center of business activity, because thousands of residents of the suburbs and villages located nearby come here every day. They go to Vilnius both for work purposes and for shopping.
This needs to be taken into account when setting up location targeting in our advertising campaign. It will not be uncommon for a user to look for hairdresser services in the Lithuanian city of Trakai during the day while in Vilnius and vice versa. Accordingly, an advertiser who runs a campaign for a beauty salon in Trakai must set impressions, including for users located in Vilnius.
Emphasis on local business
Hundreds of thousands of tourists visit the Baltic States every year. Lithuania is no exception among them. In addition, the country regularly hosts international events in the field of science, business, medicine, politics, which attracts a large flow of guests representing this or that business area.
All this makes it profitable to organize a local business in Lithuania, which requires a specific approach in terms of setting up an advertising campaign. Be sure to sign up for a Google My Business account – most users looking for a restaurant or hotel will read reviews before applying. They usually look for them on Google Maps. My Business allows businesses to be featured on the map and users to rate and write reviews.
Take a look at local Google Ads campaigns. They allow you to show ads on Google Maps, on sites included in the Google Display Network, and search for the target audience that is located in the immediate vicinity of your company’s office.
High cost of advertising
Lithuania is part of the European Union, and the local population has a fairly high level of income. This contributes to the development of competition among local advertisers, which affects the increase in the cost per click. Therefore, when setting up contextual advertising for Lithuania, it is better to use only the most effective tools that allow you to get conversions at the lowest possible price:
- Advertising on Google search. Most often, blocks of keywords with an identified need, brand-model traffic, phrases containing geolocation and queries on competitors are launched first. They allow you to get the “hottest” traffic, which brings the majority of conversions. These requests should be divided into different groups to track the effectiveness of each of them. General and informational keywords should only be used if your niche has a fairly high margin.
- Google Shopping. Suitable exclusively for online stores. But at the same time, in some cases, it allows you to get the cost of conversion to a sale up to 40% lower than from a search. This is an ad that allows you to immediately show the price and photo of the product being sold in the ad, which allows the user to evaluate the offer even from the search results page without going to the advertiser’s website.
- Multilevel remarketing. It performs well for Lithuania, as the cost of advertising traffic from this country is quite high. Remarketing allows you to work with those users who visited the site, but did not place an order. The most effective solution would be to divide them into groups (depending on the stage of the sales funnel where they are) and show them personalized ads that encourage them to return to the site and leave a request.
Cost of contextual advertising Google Ads for Lithuania
It is important to remember that if a contextual advertising agency or a PPC specialist gives you the cost of their work without having studied the range of tasks for the project, then you can expect an unprofessional solution from him. The cost of setting up Google AdWords in Lithuania is influenced by many factors. Among them are the number of customizable advertising tools, the number of languages spoken by the target audience, the number of product categories on the site, and so on.
The second factor that influences the advertising budget is the cost of traffic from Google Ads for your niche. This could be CPC for search campaigns or CPM for display ads. Below is the cost per site for queries from popular business areas, taken from the Google Keyword Planner as of July 2022:
- washing machine repair – $0.58;
- ventilation cleaning – $1.07;
- Korean cosmetics – $0.73;
- dog food – $0.88;
- fertilizers for plants – $0.42;
- carpet cleaning – $1.05;
- permanent makeup – $0.99;
- dentist – $0.87;
- Plumbing services – $0.83;
- manicure – $0.44;
- refrigerators – $0.55.
It’s important to remember! The final cost per click in your account may differ by +-40% from the predicted one, since it is influenced by many parameters. Among them are the quality of the landing page, the quality of the ad, the expected CTR and other factors that are influenced by the quality of the support of the contextual advertising campaign.
Using these prices and knowing the approximate volume of traffic in the subject, you can independently calculate the payback period of the project in the contextual advertising calculator on our website.
What is the market share of search engines in Lithuania taken by Google?
Out of the total Lithuanian population of 2.71 million people, 82% are active Internet users:
Lithuanians actively use search engines, search for goods and services on the Internet, and place orders online. The first place among search engines in Lithuania is occupied by Google. It is used by as many as 97.14% of Lithuanians. This makes this search engine almost a monopolist in the market:
Google’s closest competitors, Bing and Yahoo combined, don’t collect even 2% of search traffic. Their share is 1.79% and 0.15% respectively. Other search engines are even less popular.
That’s why contextual advertising in Google Ads in Lithuania is so effective – it allows you to reach almost all available target audience in this country.