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How Much Do Google Ads Cost? Our Wallet-Saving Breakdown

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How Much Do Google Ads Cost?

So, finally, you are thinking of running advertisements, and your first thought is, “How much does Google Ads cost?” Obviously, you want to save money while making the most out of your campaigns. Don’t worry, we understand that and are here to provide you with a comprehensive guide on Google Advertising costs. 

Today, you will learn the factors affecting these costs and how to set up a budget. We will take a look at how to use keyword planner and performance planner to predict Google Ads campaign cost. By using these tools, you get an estimate before investing even a penny. Sounds too good to be true but, it isn’t.

 

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Now, fasten your seatbelt, and let’s dive deep into this topic.

Factors That Affect Google Ads Cost

How much do Google Ads cost you ask? To understand that, take a look at these factors that’ll help answer that question:

 

Google ads budgeting tools


Competitiveness of Your Industry

Not all industries have the same level of competition. Some have more competition while others “enjoy easier growth” (yeah, not kidding). A few examples of industries with high costs-per-click (CPC) are real estate, insurance, and legal services. That’s because businesses in these industries are bidding on the same keywords. In such a case, you might have to bid higher so that your ads are shown to users. A hard pill to swallow!

But bidding higher means more advertising costs. Not good for you, right? So, it all boils down to deciding according to your Google Ads budget and the importance of a certain keyword.

You can alternatively use the Google Display Network (instead of the Google Search Network) to cut costs, but this definitely won’t provide the solid leads you’re looking for.

Quality Score

You sure want to maintain a higher quality score for better ad positions and lower Google Ads costs. That depends on keyword relevance, your ad’s click-through rate (CTR), and, surprisingly, your landing page’s quality. Google assigns a quality score on this basis, which shows the relevancy and usefulness of your ads to the user.

Your Google Ads Campaign Settings

Wait, the settings? Yeah, they also affect your Google Ads cost. You can make bid adjustments for certain situations or target your ads for specific devices, times, or geographic locations. All these settings will affect the costs.

Ad Spend

Okay, here’s the obvious thing that impacts the cost. By setting a daily budget for your Google Ads campaign, you are telling Google to spend within that limit. But don’t expect that your daily spending will be fixed. It can vary slightly because of factors like your ad’s quality and your bidding keywords’ competitiveness.

Your Google Ads spend can be up to twice your set daily ad spend that you’ve set, so make sure you’re monitoring this if you’re spending a lot.

Google Ads Pricing Insights – Setting a Budget

 

Google ads budget tools


Some people literally throw away their budget by not understanding these tips:

How Does Google Ads Determine Your Budget

Do you want to go for a daily, weekly, or monthly budget? Decide on that first. Then, determine the maximum amount for spending without breaking the bank. We suggest setting a daily budget to test things first.

Understand the Google Ads Auction System

Google Ads determines your show rate based on an ad auction system. Suppose a user searches for something. Now, Google will run an auction to decide the ads to display and their order on the search results. So, you have to bid against your competitors who are also targeting the same keywords.

Set Your Bid

It’s in your hands to decide the amount you pay to Google when someone clicks on your ad. This is what CPC is. With a relevant ad and a competitive bid, you have a better chance of getting your ad in front of users.

Pay for Results

In PPC (pay-per-click) advertising, you don’t need to pay anything if nobody clicks on your ad. But if someone does call your business or visit your site, then Google needs a cut. The sad part is that some people will click on your ads just for fun. If your a clumsy as I am, you’ll even manage to click your own sponsored ads ever now and then…

Monitor and Adjust

Regularly analysing your results is important in every field, and so is in your campaigns. Spending Google Ads budget quickly or not getting results as per your liking? Then, you might need to change your bid or budget.

Using Google Keyword Planner to Estimate Ads Campaign Costs

 

Google ads keyword planner tools


You can use the Keyword Planner to predict the Google Ads cost of your campaign before even spending a dime. Here’s how:

Find Keywords

Your first step is to search for those keywords that are actually relevant to your business. But what does relevant mean? Let’s explain that. Your potential customers type in some words/phrases to look for your products/services on Google. Now, think from your customer’s point of view and enter those phrases in the Keyword Planner. You will then get suggestions for related keywords. 

See Estimated Bids

The Google Keyword Planner’s job is to show an estimated bid for every keyword you get. This is an estimate for the bidding amount to display the ad to a user who types that keyword. The CPC of the keyword determines the estimated bid. And your ads’ quality and competition for that keyword determine the CPC. Keep that in mind!

Determine Average CPC

The Google Keyword Planner also tells you the average CPC for your keywords. Okay, things seem to be getting a bit technical here, so let’s make it easier for you. The average CPC gives you a ballpark figure about the amount you need to spend when someone sees your ad.

Estimate Your Google Ads Budget

Now, you have both the average CPC and the estimated bids. It’s time to get an estimate of your campaign costs. Let’s say the average CPC for your selected keywords is $0.5. You want users to click your ads 50 times a day. So, the daily budget for your campaign comes out to be 0.5 x 50 = $25. This will account for your clicks, but might not give you much insight into the amount of leads or sales you’ll make from those clicks.

Refine Your Keywords

The estimated Google Ads cost doesn’t look that high in our example above. But let’s suppose there comes out to be a high cost for you. So, you need to refine your keywords. You can opt for a more specific audience to narrow down your keywords for targeting. Alternatively, you can go for less competitive keywords. Both these techniques will still help you reach your prospects and lower costs.

Using Performance Planner (different to keyword planner)

 

google ads performance planner


Predict Google Ads cost and improve performance by using the performance planner. Let’s take a look at how you can do that:

Predicting Google Ads Cost

Before putting your hands in any campaign, it’s great to get an estimate of the costs. For that, the Performance Planner works like a helpful assistant and analyses historical data and trends. Enter different budget scenarios, and the tool provides predicted costs for each scenario. You can then select a Google Ads budget that suits you.

Predicting Performance

You can also get predictions about how changes to your budget or ads can affect your campaign’s performance. The Performance Planner does that by running different scenarios on your inputs. Again, you get an estimate (not real figures) about key metrics like impressions, conversions, and clicks. But this undoubtedly helps you have an idea before you dive into your campaign.

Optimising Campaigns

Apart from predicting performance and Google Ads cost, the Performance Planner is also good at suggesting campaign optimisations. The suggestions can include reallocation of the budget or adjustment of bids. But what’s the benefit of getting these suggestions? Well, you can make your campaigns more effective. It also helps to predict ad rank, which will in turn help you know how much you’ll be paying to advertise.

Planning for Seasonality

Seasonal trends have the potential to turn out ugly for your ad campaigns. Use the predictions of the Performance Planner to account for seasonal trends. So, if an event or holiday is coming up, you will have an idea about how users might behave during that time. Yup, humans are like that!

Quality Score and User Experience

Make sure that you are not just aiming to generate clicks on your Google Ads. That’s a serious waste of money. Instead, your goal should be to attract prospects who are genuinely interested in your offerings (usually this means using max conversions instead of max clicks as a bidding strategy).

Your quality score depends significantly on user experience. Google considers the experience visitors have when they click your ad and find your landing page. Factors that can affect the user experience are:

  • Your site’s overall design

  • Loading speed of the landing page

  • Ease of navigation

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Work on these factors, and you get a better chance of improving the user experience and, ultimately, the quality score.

What Next?

Now, you clearly have an idea about how much Google Ads costs. You are also somewhat of a pro at Google Ads, so it’s time to consider what to do next. Don’t expect miracles because understanding the basics is different from applying the knowledge. You can learn faster with experimentation and keeping up-to-date with the latest trends. The digital landscape is always changing, and you should be on your feet.

Additionally, explore other strategies like email marketing, social media advertising, content marketing, and SEO. Combine these strategies with effective Google Ads campaigns, and you can reach a wider audience. Hooray! 

Finally, don’t neglect the power of measuring results and getting their insights. Tools like Google Analytics are great for tracking your ad performance. Monitor, analyse, test, and repeat. That’s what will make you a good marketer. 

So, are Google Ads profitable? They actually should be, as long as you know how to spend wisely, not extravagantly.

Good luck becoming a pro at lowering Google Ads costs!

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