How Much Does Google Ads Cost?

The question posed in the title is one that business owners face regularly, and with good reason. Google Ads is a service that every company, no matter how small or large, needs. The question of how much they should spend on paid marketing and PPC is understandable, especially given that many people who are new to the world of paid advertising will have to figure out how much they can afford to spend on that.

Unfortunately, there isn’t a simple answer that can be found on any website. All you can do is figure out how Google Ads works and learn about it, after which you can decide whether or not you want to use the services. In this article, we hope to accomplish the same thing. We will provide you with sufficient information about their services to make an informed decision about whether or not to use them.

Here are some things that are going to be explained further in the article:

  1. How Google Ads Auction works
  2. All the variables that might affect the price of your Google Ads campaign.
  3. All the concepts that govern your budget for a realistic Google Ads plan.

If you’re still not sure, do some more research because it never hurts? But first, let’s start with the basics.

Why Is There No Clear Answer To “How Much Does Google Ads Cost?”

Google Ads Cost

Numerous variables can influence the cost of Google Ads, including your industry, current trends, and the length of time a customer has been a customer.

Here’s how:

  1. Your Industry

Your industry matters because it is what decides the cost per click. For example, all business services industries such as legal and accounting are the most expensive for the cost per click CPC. It is one of the most competitive vertical ads in Google Ads because the services are so costly. A click could mean a good amount of revenue. Meanwhile, the arts and entertainment industry needs many more clicks to earn the same amount of money from their customers.

  1. Customer Lifecycle

Customer lifecycle refers to the steps that a customer takes before buying a product. These steps include visiting the website a couple of times, talking to people about it, reading reviews, and even using and maintaining their good faith in the product/service. At each step, the company has to be on top of its game. This also affects the price of Google Ads.

  1. Current Trends

The trends that are happening around the world definitely have an impact on the cost of Google Ads. For example, due to the ongoing pandemic, the discussion about fashion in online spaces has increased. Therefore, the price of every click has dropped. Then, some industries have been hit particularly hard by the pandemic, such as travel and tourism. So the impact of a current trend can be either terrible for a company or great.

How Does Google Ads Work?

Google Ads Work

To get an idea of how much you should spend on Google Ads, you first need to understand how the platform works for businesses. Many think that the more money you spend on Google Ads, the better it is, but that’s a misconception. Although it doesn’t hurt to have a hefty budget for the platform, money is not such a significant factor, and every business can face the same problems.

Google Ads Auction

Google Ads Auction

This auction is like any other auction that you have experienced before. When you set your bid, you essentially tell Google that it is the maximum amount of money you are willing to spend on every click. You can change your bid any time, and in reality, many end up paying a lesser amount anyway. Your ads also have to be of great quality because if not, then the ad will now make through.

When a user searches a keyword in their search bar, Google Ads goes through all the ads with that keyword and filters them out based on eligibility, geographical area, Google Ad Rank, the context of each person’s search, etc. It is also great to have ad extensions such as phone number, address, etc., as they will help Google decide how the ad’s performance will be affected by them. So even if your competitors have more bids, you can still rank higher because of relevant keywords, high-quality ads, and the right extensions.

Ad Rank

Ad Rank

Google will calculate your ad rank, which depends on your highest bid and quality score. The quality score depends on many variables. It is the score that Google gives both your PPC ads and your keywords. The factors on which the score depends are as follows:

  1. Your click-through rate.
  2. The relevance of each keyword to its ad group.
  3. The quality of your landing page and its relevance.
  4. The quality of your actual ad text.
  5. Your previous Google Ads performance.

We can only tell you the components, but no one knows how much they weigh to improve the quality score. However, we do know that the most essential component is the CTR or click-through rate. This means that the more people click through your ad, it sends a strong indication to Google that your ad is highly relevant and helpful to people.

How Is Your Google Ads Budget Spent?

Google Ads Budget Spent

A common problem amongst many platform users is that the money they set aside for it is spent way too quickly than they had expected. When businesses see their hard-earned money being spent in a matter of days, it leads people to believe that Google Ads is not a very useful platform for return on investments.

When deciding on your Google Ads budget, it is essential to understand that it is like any other budget. You have to decide on one amount that you think will be spent and then add some more if things do not go as planned. You can determine the budget according to each campaign and each day.

Daily budgets are essential to look into because that is what determines the expenditure you do all month. Every campaign you run has a daily budget that you can set and change in the settings tab. Suppose you are someone who has multiple campaigns running simultaneously. In that case, you also need to decide and prioritize amongst all of them so that each of them gets the required budget.

Factors That Influence Google Ads Expenditure

Google Ads Expenditure

When you read how the budget is spent, it sounds simple enough for anyone. But it is not so because many variables influence this expenditure. If you CPC at a certain amount, you have to multiply that with the number of clicks you want in a month. That will give you your monthly expenditure.

The other factors on which the expenditure depends are:

  1. Dayparting – You can use this tool to specify the time window when you want your ads displayed. Your ads will go through the auction process on other hours and only show when you want. This is helpful for local businesses that want to attract customers only within a specific time frame. For example, if you are a restaurant that only remains open for dine-in and delivery at some hours of the day, you would not want to show your ads past that time because that would not be of any use.
  1. Geo-targetingGeo-targeting is a tool that allows you to target customers in a particular area by prioritizing searches coming from there. The area you specify can be as small or big and as far or close to your business as you want. It is an amazing way of catering to all the shopping habits that the customers these days have.
  1. Device targeting – This is an excellent trick for everyone whose ads are displayed on multiple desktop and mobile devices. To decide which device to target, you need to ensure where all your leads are coming from. From there, you can allocate your budget to any one device depending on what you are advertising.
Takeaway

Apart from all of these things, you also have to make sure that your keywords are relevant. They are the key influence in deciding how well your ad fares. Before deciding to use Google Ads, there are other factors that you need to consider, such as all the additional costs that go into having a Google Ads account. You also need to pay for an agency and pay-per-click management software, an expenditure that not many articles will talk about.

In the end, it depends on you how much you want to spend on your Google Ads budget. But before you decide on it, you need to make sure that you understand it thoroughly to make the most of it. You will also get the best results if you are well researched and know every aspect. For that, you can read this article and many others that you will find on the internet. That will not only give you profound knowledge about the subject but also help you make better decisions.

Looking For A Certified Google Ad Expert?

Google Ad Expert

You can get in touch with JDM Web Technologies, where Google Ads experts can assist you in launching your first Google Ad campaign. Many business owners have benefited from the expertise of JDM Google Ad professionals in managing and improving their marketing strategies.

It is possible to generate leads with Google Ads, increase website traffic, and raise brand awareness all at the same time. All of this is accomplished at a cost that is within your budget while delivering excellent results.

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