Advertisements or online marketing have become a norm these days to show your online business’s presence. In this tech age, every size of business can generate a greater ROI but before that, it requires online marketing. The more your online marketing is effective, the more it will increase your potential customers.
You must have seen the Ads placed on different platforms, the reason is businesses use them to attract customers. For strong advertisement, Google AdWords plays a leading role. You can take your business to the next level with its help. It seems like your business lacks a major gateway to success if you miss an advertising platform – Google Ads (Google AdWords).
They work under a Pay-per-click strategy to direct your audience to your web page. By placing them on top of search engine result pages (SERPs), your audience visits your website through a click. Sounds WOW, right? Want to enhance your online business’s visibility through it?
ESP Inspire as a digital marketing agency provides you with the best PPC management services to run paid Ads for your online business on the search engine Google. With the help of unique result-driven strategies, we make your Ads clickable in the competition market, which helps to reach your target audience easily.
Well, let’s discuss the ins and outs of Google Adwords and how much it costs to show your Ads on search engines.
What does Google AdWords mean?
Google Ads is also called Google AdWords. It is Google’s advertising platform where advertisers place Ads about their services or products.
The whole system depends on an auction. Advertisers bid on certain keywords and as users search on Google, these Ads appear on SERPs based on the relevancy of the keywords. After clicking the Ad, the click drives the users to the page where they can take a specific action like purchasing.
The owners of the Ads pay every time their Ads get clicked. The best feature of this advertisement is that you set up your budget yourself for each click. But also remember, the Ads with the higher bid are prioritized to display to users.
How much does Google Ads cost?
Just because it is a customizable platform so you can manage it according to your budget. But the average cost per click lies from 1$ to 2$ for the Google search Network and below 1$ for the Google Display Network.
Also, the most valuable keywords in Adwords demand 50$ or above every time the Ad gets clicked. Many businesses spend ad costs from 9,000$ to higher than 30,000$ on monthly basis. But as you can customize the budget so, this flexibility is all about budget-friendly. Many other factors affect the costs accordingly.
What are the factors that impact Google advertising costs?
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Industry
This is one of the major factors that impact the cost. The more an industry is in high demand, the more its keywords will be expensive to click. For example, Law, Retail businesses, Insurance, Furniture, and more. Many keywords can demand 100$ or more but that can be fruitful if the click directs the visitors to the product or service of 1000$.
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Market trends
Online advertising trends don’t stay still. So, it is important to stay up to date in your niche. You need to conduct research before stepping into your niche. The inside-out research will let you know the whole scenario, which will help you to touch the most expected benefits.
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Ad Category
There are different categories of Ads including:
Search Ads: These Ads have a great worth with the highest CPC.
Shopping Ads: These Ads are displayed to show your products for sale and that is the reason they can be costly as per product type.
Display Network Ads: This advertising category is more inexpensive than others and is the least productive.
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Schedule (Dayparting)
The schedule also impacts the matter of costly ads. If every advertiser in your industry has chosen the same time to show their Ads to the users, this will take the competition to a high level, and as a result, ad costs will be increased.
Also, it is essential to figure out the time carefully when users would be clicking mostly. Because displaying the ads when no one views them is all in vain, and this can damage your campaign as well.
Local businesses can get benefit from Dayparting. They can attract customers to their bricks and mortar store or shop through it. Say, you have a toy store that closes at 8 pm, so by specifying the time, you will tell Google to not display your Ads after 8 pm. But, because there is leverage in time management, you can specify any period in the whole day to display your ads.
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Customer lifecycle
The customer lifecycle depends on different stages such as awareness, consideration, conversion, and loyalty stage. Every stage requires different advertising strategies, which can impact the CPC of ads. So, businesses need to stay focused on the correct type of Ad at each stage.
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Geographic targeting
Same as Dayparting, you can also specify the location to display your ads. You can tell Google where you want to show your ads, whether nearby your shop or throughout the state. So, as per targeting the different locations, Google ads’ costs vary differently.
Just because everyone searches on Google before visiting a specific location so, you can also set more budgets for the relevant searches in your area or a specific city. Also, the expensive living areas could demand a higher cost of ads.
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Device targeting
The pocket-sized technology has beaten the desktop browsers. These days, consumers use different devices to search queries on Google. That means you should focus on the device type where there are greater chances of attracting prospects. And targeting the right platform can help to hook the most valuable leads.
For example, you want to target both devices; mobile phones and desktops to show your ads. In that regard, you can set your budget accordingly; a small amount of budget for desktops and a large amount for mobile phones.
Study unearths that more than half of traffic comes from mobile phones for shopping.
So, targeting mobile phones can be fruitful in generating a greater ROI. But you can also specify the mobile’s type based on your ad’s type.
Do costs for hiring a PPC agency pay you off?
If you want to begin an effective Ads campaign on Google and are not experienced, you can hire a PPC agency. The agencies stay up to date with the industry trends and play a key role to outrank your competitor(s) with unique tactics, as well as keep you away from costly errors.
We can help you in this regard. From strong keyword research to advanced bidding strategy, our AdWords experts are well-versed in PMax Campaign Management. They show their proficiency to prominent your Ads on Google, which leads to more clicks and conversions. Our PPC management costs are budget-friendly and that help to yield a higher ROI with quick results.
By creating an Fpd Audience, we can target the specific group of people who seem most interested in your products or services. This way, we can help to create more personalized ads based on the interests of your target audience.
What are some additional factors to influence the Google ads costs?
These factors can be:
Budget – the cost that you want to pay on daily basis for 30 days.
Bid – the cost that you want to pay when your ad gets clicked
Keywords – broad keyword targeting demands a higher cost per click
Ad Rank – includes bid amount and quality score (higher ad rank is all about higher CPC)
Quality Score – higher quality score means lower CPCs
What are Google Advertising costs as per different industries?
Google advertising costs vary from industry to industry. Many companies spend even 10,000$ each month on Google Ads but that is because of the industry’s high demand. Let’s have a glance at different companies with different CPCs.
E-commerce = $1.16 (Avg. Search Network) and $0.45 (Avg. Display Network)
Insurance = $3.44 (Avg. Search Network) and $0.86 (Avg. Display Network)
Health and Medical = $2.62(Avg. Search Network) and $0.63(Avg. Display Network)
Real Estate = $2.37 (Avg. Search Network) and $0.75 (Avg. Display Network)
Technology = $3.80(Avg. Search Network) and $0.51(Avg. Display Network)
How does Google AdWords work?
Along with its cost, you also need to know about the platform’s working. This platform works under an auction system. In this auction, Google discloses which ad will be displayed on SERPs to users. As users go for searching on Google, the auction takes place.
Advertisers bid on specific keywords to show their ads. If users’ search query matches those specific keywords, ads with those keywords take a part in the auction.
Then Ad rank appears in the auction to announce your CPC and ad placement. For that reason, Ad rank follows the given formula:
Ad rank = Maximum bid (the highest CPC you want for ad) x your quality score (1-10)
Your quality score depends on different factors such as the Ad’s relevancy to the target keywords, the quality of your landing page where users land, and the expected click-through rate (CTR). Google gives a quality score from 1 to 10 numbers. To put it simply, here we go with the formula:
Your Quality score = Expected CTR + Ads relevance + user experience on the landing page
How Google calculates your cost per click (CPC)?
Google uses the formula based on your quality score and ad rank to determine your CPC.
And that is:
CPC = Ad rank of other advertisers below your ad / your quality score + $0.01
CPC = 32 / 8 + $0.01
What are the benefits of using Google AdWords?
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Increased online visibility
Every day, when any question pops up in your mind, most expectedly the first phrase you think about is “Google it”. Almost every other person lands on Google to find the answers to their queries, and that’s why Google tackles billions of queries every day. This is the worth of Google and if you display your Ads on Google, it can help to increase your brand’s awareness and conversion rates.
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Quick results
The study exposes that PPC gives quicker results than other marketing strategies like SEO. All you have to do is set up your campaign and see the conversions. Moreover, you only pay when your Ads are clicked, and that’s another beneficial point to enjoy.
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Audience’s preference
The study unearths that 65% of the consumers chose Google ads to make a purchase. Thus, if you display your ads on Google with the right strategies, customers will surely opt to click on them for purchase.
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Prospects from mobile phones
Almost everyone is well-familiar with the Google search engine these days and due to that reason, they use mobile phones to continue their search journey on Google rather than any other search engine. The study says that more than half of customers use mobile phones to make a purchase online. And displaying Ads on Google can help to attract more customers from mobile phones.
Make your Google Ads campaign effective with ESP INSPIRE
ESP Inspire being a Pay per click agency can help you in Google ads management with profitable schemes and strategies. Our AdWords specialists are committed to increasing your brand awareness and potential customers with the help of Ads. By providing you with monthly base reports, we’ll let you know your campaign’s performance with the best results.
Our experts target the right PPC audience to ensure your Ads are reaching the right people. This helps to attract the only customers that are interested in your Ads. We can also optimize your landing page to ensure that it is ready to drive the customers for a better user experience.
FAQs:
What are Google Ads?
Google Ads is also known as Google Adwords. It is the online platform of Google to advertise your products or services on Google’s search results.
What is the auction system in Google Ads?
Google Ads work according to an auction system. In the auction, Google determines which ads will be displayed against the users’ queries. The Advertisers bid on specific keywords and if those keywords match the users’ search query, then eligible ads come in the auction. Some other factors in the auction are bid amount, ad relevance, landing page quality, and CTR (click-through rate). The highest ad rank is the final consideration to display an ad.
What is the Quality score in Google ads?
Quality score is a numerical score that is assigned by Google, based on ad relevancy, landing page quality, and expected CTR. The more an advertiser has a higher quality score, the more it will help to lower the CPCs and higher the ad rank.
Your Quality score = Expected CTR + Ads relevance + user experience on the landing page
What is the average cost of Google ads and what factors impact the costs?
The average Google advertising cost per click for the search network is from 1$ to 2$ and under 1$ for the Display network. But different factors can impact the cost such as Industry, Market trends, Dayparting, Geo-targeting, Device targeting, and more.