Online marketplaces are quickly becoming crowded. Without a solid advertising plan such as Google Ads pay per click marketing, your business can get buried in online searches. Amazon PPC and eCommerce PPC can help retailers gain visibility, drive traffic and conversion and outperform their competitors.
You’ve probably seen Google Ads (formerly called Google AdWords) displayed on top of search engine result pages (SERPs) and wondered, “How much do Google Ads cost?” or “How much is each Google AdWords cost per click?” or “Is the cost of a Google ad expensive?” or “What is the optimal cost of Google AdWords?”
Before you start your Google AdWords campaign, it is important to understand Google Ads pricing and address relevant questions concerning Google pay per click ads so you can plan a good Google PPC strategy around them:
• What is Google AdWords?
• How much do Google Ads cost and how does Google Ads pricing work?
• Should you invest in Google advertising?
• How much do businesses spend on Google PPC costs?
• How can Google Ads pay per click marketing help your business?
• How can you lower your Google AdWords cost per click?
What is Google AdWords?
Google Ads (also known as Google AdWords) is a Google advertising platform that allows advertisers to display concise advertisements, videos, product listings or service offerings to users. Web users can find these Google PPC ads on search engines, non-search sites, videos and mobile apps.
Advertisers do not pay the cost of Google AdWords when the Google PPC ad is displayed. They only start paying the Google AdWords cost when users click the ad to contact the company or to be routed to the company’s landing page.
How Much Does Google AdWords Cost?
Various case studies have shown how company sales surge because of a successful PPC campaign. This probably makes you wonder: “How much does Google AdWords cost?” and “How much are Google Ads able to increase your sales?”
It is important to note that several variables affect the cost of Google AdWords campaigns. In that sense, there is no fixed amount to answer the question “How much does a Google ad cost?”
The Google AdWords platform allows marketers to curate their Google pay per click ads, select keywords to bid on and decide on their Google PPC budget.
Because you are allowed to decide how much you’re willing to spend per click and when to spend money on your Google pay per click ads, there is no one-size-fits-all answer to “How much do Google Ads cost?”
Another factor that influences the cost of a Google ad is the Google Ads auction among you and your competitors. Understanding how this works helps answer the question, “How much does a Google ad cost?” It also helps you design an effective Google Ads pay per click strategy that fits your budget.
When you plan your budget, aside from just asking, “How much does Google AdWords cost?” you’ll also want to consider PPC management software costs or agency fees in case you want to hire a professional digital marketing agency.
What is Google AdWords Auction?
Google Ads auction determines your Google PPC ad placement and the cost for your selected keywords. You need to have an overview of the process to understand the cost of Google ads better. When a user performs a search query, Google checks if this query has keywords that Google Ads advertisers are bidding on. If so, an auction among eligible ads takes place.
In the auction, advertisers’ ad ranks determine the placement of their ads and the Google Ads cost per click. The ad rank of your advertisement is contingent on your ad quality and maximum bid for that keyword. This is the ad rank formula:
Ad Rank = (Ad maximum CPC bid) x (Ad quality score)
Google Ads cost per click is computed this way:
(Ad Rank of the ad below yours) / (Ad quality score) + $0.01
While certain variables, such as your competitors’ bid and their ads, are outside of your control, you can work on your maximum Google PPC ads cost-per-click and ad quality. By keeping an exemplary ad quality score, you can spend less on Google Ads cost yet still get a higher ad position. This is a good way of keeping your cost of Google Ads within your desired budget.
How Much Should You Invest in Google Advertising?
The average Google AdWords cost per click is about $1 to $2 on the Google Search network. Your cost-per-click is contingent on factors such as your type of industry, current trends and your product or service costs.
Google Ads pricing and Google advertising cost vary across different industries. Real estate, legal or accounting companies, for example, may gain $1000 to $10000 per client, so a $40 CPC is a reasonable investment. Companies in the arts and entertainment industry, on the other hand, have lower CPC.
In case you’re wondering how much companies are willing to spend on Google PPC costs, it’s approximately $9000 to $10,000 per month. In highly competitive industries that generate more revenue per client, companies are willing to spend beyond $10 per click.
If you are new to Google PPC ads and want to have a conservative start, you can begin with a low daily budget. You can later increase this when you start to see a better return on investment (ROI). Such flexibility, which is a benefit of advertising online with Google Ads, allows businesses to explore which PPC strategy will be most cost-effective fully.
Before you consider spending more on Google advertising cost, there are a couple of creative ways to generate high-converting leads while paying lower Google Ad Words cost:
• Curate attention-grabbing, high-quality ad copies.
• Select slightly different yet relevant keywords that have less competition.
What Is an Optimal Budget For Google AdWords Cost?
Your basis for your pricing may be through ad performance, budget restrictions, business growth decisions, and your industry as a whole. To help you decide on your budget and forecast your ROI vis-a-vis your Google Ad Words cost, you can use the Google Ads Cost Calculator.
Google AdWords has budget control features that allow you to adjust your cost of Google Ads. As any budget-driven company would, you’re probably asking how much your profit-driven budget should be and what limit you should set for your Google Ad Words cost.
The Google Ads cost calculator helps you make sound decisions on your Google advertising cost. By looking into different scenarios, you will be able to identify how much to allocate for Google PPC costs.
The Google Ads Cost Calculator can generate how much your return on ad spend (ROAS) would be, which helps you determine if the cost of a Google ad is too high. With this tool, you can assess whether increasing your ad spend by a certain percentage will generate more money or incur losses.
Aside from getting your ROAS, this tool can also deliver estimates of relevant data, such as the number of sales per month, gross revenue per month, gross profit per month and return on marketing investment.
You can download this tool from Mediaboom for free and input data from your existing campaigns, such as your monthly ad spends and average CPC, into the tool. You can then play around with variables that you want to test. The variables that are commonly tested are monthly budget, conversion rate and CPC.
The Benefits of Advertising Online With Google Ads
You’ve probably searched “Which is a benefit of advertising online with Google Ads?” wondering how different this advertising method is compared to traditional ad campaigns.
Is it a wise decision to pay for higher Google AdWords cost in exchange for high-converting leads (which is a benefit of advertising online with Google Ads)? How much are Google Ads going to contribute to the online success of your business?
Targeted ads reach your ideal audience. This poses a high potential for lead generation and sales. A well-planned and properly executed digital marketing campaign can help you generate significant returns for every Google AdWords cost you spend. Here are some of the benefits of advertising online with Google Ads:
• The top three sites on SERPs acquire 46 percent of clicks (WordStream).
• There are over 167 billion searches per month on Google (Search Engine Land).
• It is easier to track paid searches and measure ad success.
• Google PPC does not need to be continuously maintained.
• PPC click conversion rate is 1.5X that of organic search clicks (Moz).
• Google Ads pay per click marketing allows you to target local communities online.
• You can control the cost of Google AdWords campaigns.
Seeing how companies can significantly benefit from this search engine marketing approach, business owners should not be focused solely on the question “How much does a Google ad cost?” but should instead see the opportunity and ask, instead, “How much are Google Ads going to help my business?” and “How much should I invest in Google PPC to increase my web traffic, which is a benefit of advertising online with Google Ads?”
How you develop, implement and maintain your Google Ads campaigns determines the returns you get on the cost of an ad on Google. Some companies can generate a return of $8 for every $1 cost of an ad on Google. Others can generate even higher returns.
A comprehensive and ongoing Google Ads campaign or a full-scope PPC campaign is best executed by hiring a digital marketing agency with expertise in this area, like Thrive Internet Marketing Agency.
At Thrive, we have a team of experts who specifically focus on Google Ads campaigns for our clients. Our technical expertise and experience can help you gain high returns on every cost of an ad on Google spent.
We can help you supercharge your digital marketing efforts to increase your leads with a conversion-focused Google Ad campaign that fits your budget. Contact our PPC team today to get a free quote on your project.