If you want to beat the competition and get immediate attention online today, nothing can help you as fast as Google Ads. Google Ads can be an extremely effective lead and sales generation machine for businesses. That’s the reason all newcomers to paid search and most of the business owners want to figure out, how much does Google Ads cost?

Basically, they all want to know how much they’ll be expected to shell out to Google advertisements, and whether they can even afford it or not!

If you are one of those people struggling with questions like:

  • How much does Google Ads cost?
  • How much are you charged for a click on your google ads?
  • How can you make the most out of your Google advertising cost?

Congratulations, you have landed on the right page, we are going to answer all these questions. Before moving to Google advertising cost description let’s first understand What is Google Ads?

What is Google Ads?

Google Ads is Google’s online advertising program, allows businesses to create online ads to promote their business and reach audiences that are interested in the products and services they offer. Google Ads operates on a pay-per-click (PPC) model, in which advertisers bid on keywords and pay a Google ads cost for each click on their advertisements.

How Much Does Google AdWords Cost?

Unfortunately, you can’t find the exact answer to this question, because the cost of Google Ads depends on several variables. As a general estimation, companies spend $9000 to $10,000 per month on Google Ads.

Yet you can figure out an approx. estimation by understanding the factors, deciding google ads cost. Google Ads cost works on an auction system, Google Ads auction determines your Google ad placement and the cost you have to pay for your selected keywords. Inside the Google Ads auction, your ad ranks determine the placement of your ads and the Google Ads cost per click you will have to pay.

But don’t worry, you don’t need a big budget to compete as Ad Rank depends on two factors: your ad’s quality score and your maximum bid. However, your competitors’ bids are outside of your control, but you can work on your ad quality to improve your quality score.

So, now let’s move on to the Quality Score.

What is a quality score and how can you improve that?

The Quality Score is Google’s rating of the overall user experience that your ads or landing pages provide when users search for the keyword(s) that you have bidding on. Quality score lies between 1-10, where 1 is the lowest and 10 being the highest. You may check your Quality Score by looking at your keywords performance report.

The three most important factors that affect Quality Score are- expected click-through rate (CTR), ad relevance, and landing page experience. With a high-quality score, you can minimize your Google advertising cost yet still get a higher ad position.

Quality score again depends on certain features such as:

  • Ad relevance
  • Landing page relevance
  • User experience on your landing page
  • Auction-time quality
  • The devices, locations
  • Context of users’ searches
  • Bidding methods
  • Alternative ad formats

By optimising your ad copy as per the above listed factors, you can improve your ad quality score and reduce Google advertising costs.

How much are you charged for a click on your google ads?

Once your Quality Score and Ad Rank have been calculated by Google, it uses this data to determine your google ads cost that you’ll pay each time someone clicks on one of your ads.
Here is the formula for determining your actual Google advertising cost:

So, probably your next question would be….

How Much Should You Spend On Google Ads?

Well, again the answer to this question is extremely subjective. How much do google ads cost you, is contingent on factors such as industry type, market demands, current trends, your product or service costs, and type. Majorly depends on the expected revenue that can be generated via each lead.

Let’s try to understand this with an example:

As we all know, Real estate, legal, or accounting industries generally have a higher percentage of revenue generated per sale so their average Google advertising cost ranges to $40 per click and few other highly competitive industries that can generate more revenue per client, advertisers are typically willing to spend $10 per click on average. Whereas for industries with low-profit margin, google ads cost range lies between $1-$2 per advertisement.

If you are new to Google Ads platforms and starting out, it’s better for you to start with a low daily budget. And optimise your campaign performance, so that you can have a better idea of how much you can make out of your investment and you can later increase your budget when you start to see a better return on investment (ROI).

There are few tools that can help you decide your budget and Google Ad Words cost, Google Ads Cost Calculator is one of the best among those, helping businesses to advertise on their platform cost-effectively.

Once you get an idea of your return from a new customer purchasing from you, the Google Ads Cost Calculator can calculate how much your return on ad spend (ROAS) would be. This tool can help you figure out whether increasing your ad spend by a certain percentage will generate more profit or incur losses.

Effective Tips to Reduce Google Ads Cost

Now that you understand how Google determines ad costs, the factors impacting that cost, now it’s time to look at what you can do to keep Google search engine ads cost low.

  • Set Daily Budget: If not sure about campaign performance, start with a low budget and prefer to set a daily budget limit.
  • Optimised Ad Performance: Optimise your ad campaign performance on a daily basis and figure out what works best for your ad to improve ROI.
  • Use Geo-Targeting: Based on business requirements and reach, better to use geo-targeting, it makes sure that your money is not spending on people, who will never become customers
  • Use Negative Keywords: Using negative keywords can help you reduce your overall ad spend and prevent your ad from getting visible to irrelevant audiences.
  • Improve your quality score: as we discussed above, you have no control over your competitor bidding but by improving your quality score, you can stay competitive and get better visibility even with a low bidding rate.

Final Thoughts On Google Ads Cost

Google Ads is a fantastic advertising platform for businesses out there but you need to strategize carefully if you really want to make most of your investment.

The right Google Ads cost or your ads spend per click depends on numerous factors, including ad performance, quality score, your industry, targeting, bidding strategy, and more.

You can keep the Google advertising costs down by creating the most relevant ads and improving your quality score. Follow the below-listed practices to keep a cap on your ad spend:

  • Set daily budget
  • Optimise Ad campaign
  • Use Geo-targeting
  • Use negative keywords
  • Improve quality score

Start with a low budget and increase your budget when ensuring that your ad generates positive ROI. If you’re looking for help setting a Google Ads campaign to make the most out of your investment, our PPC management services for Google Ads can help. You can reach JanBask Digital Design to speak with an experienced PPC strategist about Google Ads pricing for your business!

If you want to know anything about Google Ads Cost? Let me know in the comments! We’d be glad to reply!