• Frank Aol

Google Ads Cost

A topic coming into mind for most marketers it the cost of PPC advertising online. This post examines the cost for Google Ads which are displayed on top of Google’s search engine result pages (SERPs). Google Ads allows businesses to display advertisements, videos, product listings or service offerings to potential customers and these Google PPCs will appear when ever persons are searching with matching keywords. The cost per click fee varies depending on several factors that can influence the final charge.

One factor determining the cost is the type of industry, which is chosen especially newer niches can be lower in cost. As of 2021, the average cost per click for Google Ads across all industries is 2.69 USD. Advertisers can control the performance of campaigns by selecting the most effective keywords for a niche and setting a daily Google PPC budget.

The biggest factor that influences the cost of a Google ad is the Google Ads auction which makes it necessary to check what competitors are paying per click for the same keywords. Based on this, marketers can decide to bid more for the same keyword or not. Short, Google Ads auction determines a Google ad placement and the cost a marketer is willing to pay for the selected keywords.

An advertiser’s rant is furthermore based on the ad quality and maximum current bid for that keyword. While the bids of competitors cannot be influenced, marketers are always able to work on their ad quality score. With a quality store it is even possible to get a higher-ranking ad position with less money spent. A quality score can be achieved by considering several quality factors like the creation of high-quality contents, very careful research and selection of keywords, campaign-matching websites or better landing-pages, attentive observation of favorable competitor contents, smaller ad groups and others.

Google Ads bases its pricing on the expected revenue advertisers will generate from a newer customer. The higher the potential profit for an ad, the higher the ad cost will be. In real life this means that a business making a profit of 1000 USD will be willing to pay 40 USD for the ad, while for a low profit business not even advertisement costs of 5 USD may be acceptable.

Contrary to traditional printing ads, the efficiency of online advertising can always be measured through data analysis and adjusted constantly towards a better return of investment (ROI). In order to keep being flexible with this, a daily budget-based approach is recommendable for novices on Google Ads.

Furthermore, the Google Ads Cost Calculator and other budget control features can be used to make decisions on the budget easier and to calculate the cost of Google Ads per each day. Once a marketer knows the typical return from a new purchasing customer, the Google Ads Cost Calculator can generate how much your return on ad spend (ROAS) would be. With this tool it is possible to assess, if increasing the ad spend by a certain percentage will generate more money or incur losses. Google Ads Cost Calculator can also deliver estimates of relevant data, such as the number of sales per month, gross revenue per month, gross profit per month and your return on advertising investment.

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