Have you ever wondered how much it costs to put ads on Google? We reached to several small business owners who have the same question. Furthermore, the price isn’t always the same – it depends on who you want to reach.
We remember a conversation with John, the owner of an electronics repair store. He needed new clients but had a limited advertising budget.
Consequently, seeing how often people search online, he decided to place his ads there. With Google, he discovered that he could target his ads to specific locations or to people with particular interests. However not everyone searches for “phone repair” every day.
John considered the types of devices that his regular customers typically brought in for repair, such as laptops or game consoles.
As a result, when he made ads targeted towards those products and locations near his shop, more people started finding his business.
In the end, the Google ads cost depends on finding and understanding your target customer and their search interest.
Ultimately, digital advertising plays a crucial role in any small business’s marketing strategy and Google is the ultimate platform to connect with your customers.
How much do Google Ads cost ?
So, are you wondering how much it costs to run ads on Google, the biggest search engine out there?
Consequently, the price may change and depends on a few things. However, typically, if you want your ad to appear in Google search results, it costs between $1 and $2 each time someone clicks on it.
Furthermore, if you want your ad to appear on other websites, it usually costs less than $1 per click.
Alternatively, some really popular words can cost more than $50 per click. These are often words that companies in industries like law and insurance fight over because their clients can add so much value over time.
For example, big stores can spend up to $50 million a year on Google ads. Smaller businesses typically spend between $1,000 and $10,000 each month, which adds up to between $12,000 and $120,000 in a year.
What are the factors that impact Google Ads pricing ?
As we discussed above (and the reason we created this guide), there is no simple or single answer to how much Google Ads will cost your business.
Consequently, as mentioned previously, the cost of Google Ads can vary depending on the type of business you have. Your customer lifecycle, current trends, and how well you manage your account.
Imagine you’re in the business services industry, perhaps legal, accounting, or real estate. Consequently, there is a difficult audience in Google Ads, and everyone is competing for the top spot.
Similarly, this competition usually means you’re looking for higher costs per click (CPC) and costs per lead (CPL).
However, here’s the thing: In the professional services industry, a new client could be worth between $1,000 and $10,000 to your business.
So if you think about it, shelling out $10 for a click might attract that big customer? It’s a minor investment for securing that customer.
In contrast, businesses operating in the arts and entertainment sector experience a lower cost per click (CPC).
However, they require a significantly larger customer base to reach the $1,000 to $10,000 revenue goal. Therefore, advertising approaches need to be tailored based on industry characteristics and target markets.
Picture this you’re going on a trip with your client. Specifically, it is not a short walk, but a great adventure, especially if it involves expensive items.
Similarly, your potential customers are not impulsive buyers. They take their time, think about their choices, and consider the good and bad points. You are like their trusted tour guide and you stay with them at all times.
For example, they may visit your website many times, download some of your content, or even join a webinar or two. It’s like they’re dropping hints while making their final decision.
Consequently, and you must be there for them during this journey (your business needs to stay on top throughout that journey). You are like their guiding star, helping them navigate through their decision-making process.
Imagine you are surfing on the waves of consumer trends and online advertising platforms. They are never at the state of rest; they are always changing.
Consequently, it is important to stay on top of what is happening in your industry and your niche, both in terms of sentiments and facts.
Let’s take an example that a thunderstorm that represents a sudden surge in interest in electric cars.
During this “storm,” consequently, the average cost per click for the automotive industry could have been around $1.40.
Subsequently, as the storm drop down in April, more people look to buy and the cost drops to $0.70. In May, it drizzles constantly and the cost is $0.89.
This hypothetical scenario demonstrates how costs can fluctuate based on current events and market conditions. Monitoring such trends allows advertisers to adjust spending accordingly to maximize ROI.
How will you manage your account ?
A recent study by Google showed that average ROI on Google ads is 800%- that is for every 1 dollar you spend on Google Ads, you get eight dollars back.
However, it’s not as simple as just turning on your ads and sitting back. Consequently, if you want to keep your costs down and your profits up, there are things you need to do:
- Keep a well-organized Google Ads account. Optimizing your online presence involves the strategic selection of campaign type, ad group level, and keywords, coupled with compelling ad copy and effective ad extensions.”
- Periodically review your performance and make adjustments based on the data.
- Keep your keyword list up to date.
- Perform frequent audits of your account and more.
Additionally, continuous testing and optimization is key. You must consistently monitor results and refine your strategy accordingly. Only by proactively managing your account over time can you maximize ROI from Google Ads. The returns prove it’s worth the effort if done right.
How to determine your average daily budget ?
To calculate your daily budget, simply take your monthly budget for that campaign and divide it by 30.4. However, how can you determine the appropriate monthly budget? It depends on some factors:
- Your total budget for Google Ads.
- The average cost per click for the keywords you’re bidding money for (you can find this out using Google Keyword Planner or another tool that helps you find keywords).
- How important that campaign is compared to your other campaigns.
For example, you may want to spend more money on Campaign A, which advertises your best-selling product, than on Campaign B, which shows content to potential customers at the beginning of their purchasing process.
You can test different daily budget amounts in the budget report to see how your expenses would change for the month.
- The Google Ads Budget Report lets you see how much of your budget is being used each day.
- You can also try changing your daily budget to see how it would change your spending for the month.
How much does a average click cost in Google Ads ?
Now that you understand how Google Ads works and how to plan your budget, you may be wondering, “How much does an average click cost on Google Ads?” Consequently, the answer may be a bit complicated, but we’re here to help you understand it.
The main factor affecting the cost in Google Ads are keywords
You can think of PPC advertising like purchasing an ad in a magazine or newspaper. Similarly, a large, colorful ad in a famous magazine would cost more than a small ad in a local newspaper.
However, with digital marketing, like Google Ads, the cost doesn’t depend on the size or appearance of the ads.
Rather, it’s about the words you’re bidding money for and how many other companies want those same words.
For example, in some areas, such as law and accounting, where many companies compete for the same words, the cost may be higher.
If you look at the average cost per click for all different types of businesses and keywords in the US, the average cost per click (CPC) on Google Ads is between $1 and $2. Specifically, this is for the Search Network.
On the Google Display Network, where ads are shown on other websites, clicks are usually cheaper, often less than $1.
What is the cost per click for long tail keywords ?
Sometimes people think that large, fancy keyword categories are a good example of how expensive Google Ads can be.
However, in reality, these keyword categories are only a small part of all the searches people perform.
Similarly, most of the time, people use long-tail keywords, which are longer, more specific phrases.
Specifically, long-tail keywords are longer, more specific phrases that individuals utilize during their online searches for example see the example in photographs.
Sushi as can be seen below is a short tail keyword however “Sushi Sandwich Recipe” is a classic example of the long tail intent for the keyword “Sushi”.
In other words, they are usually cheaper than shorter, more general keywords. Additionally, the best part is that these long-tail keywords can often tell us as much, or even more, about user intent.
What are the most expensive PPC keywords ?
Some of the most expensive pay per click (PPC) keywords are those related to very popular and in-demand products, services, and industries.
Keywords that get extremely high search volumes but also have very competitive markets with many advertisers bidding on them will increase costs.
Examples of keywords that tend to be among the most expensive include:
|Keyword||Cost Per click (CPC)|
How much should you spend on Google Ads ?
The cost of Google Ads can vary and is often based on the revenue you expect to earn from a new customer.
Similarly, companies in competitive fields that earn more per customer might be willing to spend more than $10 per click.
Furthermore, it’s important to balance the revenue you get from each customer with how much you’re willing to spend on ads.
For example, if you’re new to Google Ads, start with a small daily budget. Additionally, pay attention to how your ads are performing if they give you a good return on investment (ROI), you can increase your budget.
Alternatively, one of the best things about online ads is that you can keep changing them.
As a result, you can see what works and what doesn’t, helping you get the best return on investment. This is not something you can do with traditional print ads.
Before you start spending money on Google Ads, here are some things to keep in mind:
- Make sure your ads are eye-catching and high quality.
- Conduct keyword research, paying attention to what your customers and potential customers click on in your industry.
- Spend some time improving the landing pages for your products and services. A better landing page can help convert someone who clicks on your ad into a customer.
- Analyze your competitors’ marketing and sales tactics. If something works for you, think about how you can do something similar or even better.
How do Google Ads work ?
Google Ads is like a big game where everyone tries to win by bidding, like an auction.
Similarly, but the good thing is that the person who bids the most doesn’t always win. Furthermore and even if he wins, they won’t always have to pay the highest bid.
So, how does this work? Well, Google Ads has its own way of choosing winners and deciding how much they should pay for each click.
Imagine you are searching for something on Google. Google checks to see if any companies offer things related to what you are looking for.
Consequently, if so, it’s like a mini competition begins. Google puts all related ads in this contest.
The first thing Google does to choose a winner is give each ad a score, called a Quality Score.
This score is a figure that falls between 1 and 10. Specifically, it is based on how closely the ad and the web page it leads to match what you are searching for, how likely people are to click on it (based on how well it has been done in the past). Explore the quality of the web page this link directs to.
Google gives each ad a score, called Ad Rank, to decide if and where your ad will appear in the paid results section.
Furthermore, your ad rank is your quality score (the score from 1 to 10 we talked about earlier) multiplied by your maximum bid (Your maximum CPC bid) x (Your ad’s Quality Score) the most you’re willing to pay for each click on your Ad.
Think of it as a game. Specifically the ads with the highest scores in this game, the highest ad rank scores, are the ones shown.
Cost per Click
If your ad is shown, you will only have to pay if someone clicks on it. Furthermore, it is not always necessary to pay the highest offer.
It goes like this: Google looks at the ad score below yours and divides it by your Quality Score and then adds a cent. Consequently, that’s what you pay for each click.
Think of it as a game of basketball. Even if you’re not the tallest (or in this case, the one with the most money), you can still win if you’re good at the game.
However, that’s why even advertisers with a small budget can compete with big spenders on Google.
- There are a few other things that can change your ad rank and how much you spend, but maximum bid and Quality Score are the main ones you need to know.
- Furthermore, there are also other factors that can change your costs, but we won’t go into all of them now.
- The significance and user-friendliness of your landing page.
- Quality of your ad during auction process.
- The device used the location, and the context of the user’s search.
- Different ways of bidding.
- Various formats for ads.
Does Google Ads provide a good return on investment ?
Imagine, you’re looking for information and where do you go? Naturally, Google of course! It is like the largest library in the world and holds 85.55% of the global search market.
Consequently, that’s why brands love Google Ads: it’s like having a billboard in the busiest area of the city!
Similarly, did you know that 63% of us have clicked on a Google ad? That’s more than half! It’s like walking past a bakery and not being able to resist the smell of freshly baked bread.
Furthermore, and with 33% of mobile advertising spend going to Google, it’s clear that brands are very happy to spend on Google ads.
Studies show that PPC advertising generates twice as many visitors as SEO this makes it a good choice if you’re looking for fast results.
Also, 65% of people click on Google ads when they are ready to buy. If your ad is the answer to your search, it’s like finding the perfect pair of shoes in your size: means that customers might click on your ad and potentially make a purchase.
So, Google Ads is worth investing and Putting your money into Google Ads is definitely a smart move and totally worth it.
In conclusion, the cost of Google Ads varies greatly and depends on your target audience and you’re bidding strategy.
Similarly, it’s like a game of chess, where strategic moves can lead to victory. Furthermore, even with a small budget, you can compete with the big players.
Consequently, the key is to understand your customers and their search interests. Additionally, with Google Ads, you’re not only spending money; you’re also investing in the growth of your business.
Overall, whether you’re a small business owner like John or a big spender, Google Ads offers a platform to connect with customers and expand your reach.
Above all, keep in mind; it’s not always about the amount you invest, but rather the strategy behind your spending!
Frequently Asked Question’s (FAQ’s)
Small businesses use PPC (pay per click) to advertise. Specifically, the cost varies: real estate, home services, and healthcare spend between $1,000 and $3,000 on Google Ads monthly. In comparison, larger companies spend more, between $7,000 and $30,000. On average, businesses spend around $9,813 per month on PPC.
The cost of a Google Ads campaign varies depending on several factors, including industry, target market, and keywords. However, on average, businesses spend between $1,000 and $10,000 per month on Google Ads campaigns.
The cost of a Google sponsored ad, also known as a pay-per-click (PPC) ad, varies depending on a number of factors, including your industry, target market, and keywords. However, on average, advertisers pay between $1 and $2 per click on the Google Search Network. The cost per click on the Google Display Network is typically lower, around $0.50 per click.