How much does Google Ads cost? A guide to Google Ads Pricing and Budget
How much does Google Ads cost? It all depends on the type of company and the number of clicks you want to reach.
An ad campaign in Google Ads (previously known as Google Adwords), can range between $ 3 per click within the Search Network system.
If you hire a Display Network in countries like the United States, it can cost you around $ 0.94. Take into account that certain keywords tend to have a higher price, which on average is not less than $ 47 per click.
One important thing to know is an exact Google Ads campaign’s price, especially for small companies or SMEs, is almost impossible to estimate.
That’s because these budgets were created based on your key objectives.
On the other hand, the costs of a Google Adwords campaign will be determined by the keywords, the country and audience you want to target.
In this post, we’ll explain all the factors that intervene in the cost of a Google Ads (Google Adwords) campaign. If you are a newbie to PPC or CPC terms, keep reading to learn more about the world of Google Ads.
How much is a business expected to pay to advertise on Google? Before anything, you must first answer this question to then create your marketing campaign. However, there is no one simple answer that will fit every business or company. That’s why the cost of Google Ads is based on a business’ specific needs.
Looking for a Google Ad company in Toronto? Contact us to create a budget that meets your business needs.
Click here to fill out the form.
Next, we will detail the factors that influence the price of Google Ads.
Google Ads: What determines the cost of your ad?
- The type of product or service you want to sell.
- The popularity of the keywords you want to use.
- The size of your business
- The quality rating of your ads.
We will now explain what this means so that you have an idea about the approximate budget of Google Ads. However, if you want to know the cost of your marketing campaign from BluCactus Google Ads Services Agency, we invite you to contact us for a free quote.
In the next chart, we’ll show you an approximate price for an Ads campaign
GENERAL CONCEPTS |
INITIAL |
BASIC |
PROFESSIONAL |
ADVANCED |
Direct investment budget in Ads.The monthly budget is the average amount that you are willing to invest each month in this campaign by creating an account that Google bills directly. |
Up to $500 a month | $500 to
2,000 |
More than $2.00 up to 5,000 | $5,000 to 7,000 |
Ad groupsThe number of ad groups is an estimate. Your personal SEM marketing consultant, to increase the relevance and efficiency of the account, can increase this number. However, this depends on the type of campaign and strategy. |
10 | 20 | 20-40 | 40-60 |
Ads by each ad groupThe number of ads is an estimate. Your personal SEM marketing consultant will create and rotate different ads. These, in turn, will depend on your strategy to grab people’s attention. As a result, you will be able to determine which ads are best suited to the conversion of your business. |
3 | 3 | 4 | 4 |
|
50 | 200 | 400 | 800 |
Not every company has the same price. Because of this, you must take into account the factors that we described above. This way you’ll know how much money you’ll be investing in your search engine marketing strategy.
Advertising on Google and Prices: Variables to know how much a Google Ads campaign costs
The cost of the service known as Google Ads (Google Adwords) depends on several variables.
In this article, we will explain what these variables are and their influence on the cost of your ads. For this, we will classify the concepts you need to know to create a realistic budget for your Google Ads marketing campaigns.
If you’re reading this blog, you might know almost nothing about PPC and as a result, you have a lot of questions about how this service works. Thus, let’s first define what PPC is.
PPC is short for Pay Per Click. In a PPC ad service, like Google Ads, you only pay each time a user clicks on your ads.
Keep reading to learn all about how Google Ads works and its price. Besides, no matter what your question is, we are here to help you understand how this popular Google ad system works. Thus, you can leave us your questions in this contact form and we will respond as soon as possible.
There are two questions that our users frequently ask us: How much does a Google Ads campaign cost? And how much does it cost to advertise on Google? As we said before, giving a concrete answer to these questions depends on the particular situation of each company.
We will describe these factors in detail below. However, to answer the question, we created this guide. Thanks to it, you will be able to know how much money you will invest in your first digital marketing campaign.
Google Ads Price: Overview of the factors that influence the cost of Google Ads
Before we start, we are going to summarize in simple terms every point we will touch throughout the text. These are the factors that influence its cost:
Google Ads (Google Adwords) is based on an auction system. Because of this, it rewards businesses with high-quality ad campaigns. How does it reward them? With lower prices and better ad positioning. Besides, they can exercise control in all aspects of how their Google Ads budget is being used.
Some tactics to accomplish this are ad scheduling, geographic specification, and limiting your ads to certain devices.
The average cost per click in Google Ads is between $1 and $3 on the Search Network.
The average cost per click on the Display Network is one dollar. On the other hand, the Search Network shows your ads on the search engine, while the Display Network shows them on sites affiliated with Google.
The most expensive keywords
The most expensive keywords in Google Ads can cost up to $48 or more per click.
These are highly competitive keywords in areas that generally have high consumer value. For example, law firms or insurance companies.
Large corporations spend over $47 billion annually on paid Google Ads searches.
On average, midsize businesses can spend between $8,482 and $9,423 per month on their Google Ads campaigns.
As a result, this can add up from $54,063 to $113,086 a year.
Top 10 of the most expensive words in Google Ads
KEYWORD |
PPC |
| Houston maritime attorney | $ 1,090.00 |
| Offshore accident attorney | $ 815.00 |
| Best motorcycle accident lawyer | $ 770.00 |
| Urgent care EMR | $ 90.00 |
| Alcohol detox hospital | $ 65.00 |
| Dermatological problem | $ 65.00 |
| What are the marketing channels? | $ 165.00 |
| Call tracking marketing | $ 125.00 |
| Marketing your law firm | $ 120.00 |
| SEO and social media marketing services | $ 115.00 |
| Free affiliate marketing software | $ 110.00 |
| What does CPM mean in advertising | $ 95.00 |
| 3 p of marketing | $ 95.00 |
| Cloud marketing software | $ 90.00 |
Now that we’ve defined the general cost points for Google, we can answer the key question. For this, we are going to offer you a complete answer that allows you to make an exact calculation of what you need to invest and how much you can earn.
Cost per click pricing by industry
Although the most expensive words for networks are constantly changing, this can change which are the ones that people request the most. However, here we collect some of the words that have a higher CPC according to the industry to which they belong:
Legal
The legal industry is one of the ones with the biggest CPC of all right now.
This is because of the high level of competition that exists between lawyers and legal forms.
As a result, the highest CPC is $1,090.00 while the average is $6.45.
Medicine and health
This is one of the sectors with the highest growth and relevance in recent years.
The most common words that many users look for within this industry are urgent care and detox programs.
Thus, its highest CPC is $ 90.00 and the average is $ 2.62
Marketing
This is yet another industry on the rise.
Professionals in this field handle these tools very well and use them for advertising campaigns while keeping costs low.
However, this doesn’t prohibit some words from being much more expensive than others.
Because of this, the highest CPC is $ 165.00 and the average is $ 3.33
Software
For this industry, the most expensive keywords are involved with the business sector and in creating web pages for organizations.
Thus, the highest CPCs range between $ 95.00, and the average is $ 3.80
Real estate
Another sector with some of the most demanded keywords within Google Ads is the real estate industry.
Here, many of the words focus on the search for real estate agents and the services they offer.
Thus, the highest CPC is $ 95.00 and the average CPC is $ 2.37.
Finance
In the financial area, you can find keywords related to banking, credit, debt, loans, mortgages, and more.
On the other hand, the common theme among the high CPC keywords was debt relief or loan acquisition.
Its highest CPC is $ 320 and the average is $ 3.44.
How much does a Google Ads campaign cost? There is no single price.
Depending on the industry your business belongs to, there can be either very cheap or very expensive keywords. As a result, if you are looking for popular keywords with many searches per month, you can expect to pay a lot of money for each click. One of the main mistakes when campaigning on a PPC service is not doing the necessary research before starting.
As we said, depending on your industry you can pay as little as $ 0.94 per click. However, you can also pay more than $ 4.96 per click. It depends, to a large extent, on what you are advertising. Thus, to get the best out of this Google platform, we recommend obtaining as much information as possible about it. In this sense, you should mainly research the individual keywords that your business is going to focus on.
How much does a business spend on Google Ads?
A budget to run Google Ads campaigns will vary depending on the specifications and plans you want to use. However, if it’s your first time working with this advertising tool, it’s best to invest around $700 to $ 2,000 per month.
However, you can change this according to what you really need. Nonetheless, this is the budget recommended by some experts.
Understanding how Google Ads works.
To know how much a Google Ads campaign costs you need to know how the platform works and how to buy your ads.
A common misconception about Google Ads is that whoever has the most money is the one with the most influence. However, although having a bigger budget doesn’t harm you, other factors influence how you can advertise your business on Google.
Besides, as you already know, Google Ads works as if it were an auction. Now, we’ll show you how this process unfolds to determine in which keywords your will ads show up.
Ads Price: The Ads Auction
Everything is based on the ad auction. Added to this, it begins when a user enters a search term.
Google then determines if your search term includes keywords that advertisers are bidding on. If advertisers have bid on any of the user’s search keywords, the ad auction begins.
The purpose of the auction is to determine the Ad rank or ad position. Here you decide where each ad will be positioned. Then, the auction determines the inclusion and ad position according to the Ad Rank formula.
The Ad Rank formula is based on two main factors that we will talk about later: maximum bid and value rating. Once your Ad Rank and Value Score have been calculated, Google will use this information to determine how much you are going to pay each time someone clicks on your ads.
Ad auctions vary depending on the keyword’s popularity
When it comes to paid searches, there are certain keywords that everyone will want to bid on. Because of this, most of these keywords are usually popular with large companies.
When this happens, what results is a bidding war between two giants. As a result, when you have two International businesses trying to beat their offers, you can only expect one thing: high prices.
On the one hand, you have very cheap keywords that you can use to advertise for pennies. However, it isn’t always the best idea to advertise with them. On the other hand, there are expensive and popular keywords that can cost you up to hundreds of dollars per click.
But don’t worry, these expensive keywords are only for certain industries, and chances are you won’t have to pay as much for your ads.
Some of the most expensive keywords are for areas such as legal consulting, insurance, and finance. For example, on here you can find law firms, insurance companies, and banks. Besides, these keywords are very expensive because those who use them are looking for customers with a high purchasing power.
Some of the most popular keywords, for instance, medical insurance, can cost up to $ 248 per click. Speaking of expensive keywords, how do you know how much each keyword costs?
It all depends on the keyword.
If you are thinking of starting a campaign in Google Ads, you may want to have an idea of how much it’s going to cost you.
Thus, even if we already mentioned how many factors determine the price of a campaign, there is a very important one that stands out among all the others: The keyword. Because of this, we will explain how the price of the keyword, which is different depending on the industry and its popularity.
To get a general idea of how much a keyword can cost, Google has a tool for you. This tool is called Keyword planner.
You just have to enter a term or keyword and the tool will give you all the related keywords. Furthermore, you can even adjust the search so that it only shows you the cost of ads in a specific country. For example, Mexico or the United States. As a result, this can have an impact on prices as advertising in certain countries is more expensive than in others.
Bidding for keywords
Once the results are loaded, you will see a column with the name “suggested offer”. Here’s your first indicator of how much does a Google Ads campaign cost.
Furthermore, this is an estimate based on all advertisers that have ads for that keyword. As a result, this approximate is only based on an average.
The cost of your ad can vary depending on other factors, such as the quality value that we will talk about next. Nonetheless, it’s still a good way to estimate how much you are going to pay for your marketing campaign.
Depending on the industry, you will be able to determine if the cost per click is considered expensive or not. If all your keywords cost over $9.92, then you are probably in a fairly expensive area of the market. On the other hand, if the price is 0.50 to a dollar per click, you’re in luck.
Google’s Keyword Planner
The Keyword Planner is a Google tool whose function is to be a search engine for the right words of your audience and industry.
These searches also show you what the CPC cost is for each of them. As a result, you will be able to plan within your budget.
This Google tool is free in most of its functions. However, some of the features are now paid, an action that many experts and users of the tool didn’t like.
Some features of the Google Keyword Planner are:
Makes it easy to search for keywords. Thanks to this tool you can enter a word, phrase, or link from a website similar to yours in the search engine and get the keywords that best suits this content. However, you are limited to 2000 suggestions at a time along with the competitor information, the average searches per month, and the search ranges (from highest to lowest)- Allows you to analyze the search volume. Users will have all the information they need about the number of searches monthly. This allows you to compare different words. For example, which ones worked best and thus choose the most appropriate one.
- You can predict what the number of clicks and impressions will be. The tool allows you to see a section with the predictions of the results containing your chosen keywords. As a result, you can estimate how well your ads and websites will do over the next 30 days. This tool is very easy to use. All you have to do to start planning your keywords for your Google Ads campaign is visit their page. Once there, press the blue button that says “Access the Keyword Planner” and that’s it. Continue with the following steps to find out the best keywords.
Advertising on Google: How much does a Google Ads campaign cost in Canada?
Now you’ve seen how much keywords can cost and how you can use Google’s tool to estimate cost per click.
It’s time to move on to other elements that will help you measure the cost of your ad more accurately.
So, how much does a Google Ads campaign cost according to what Google charges you? This is a pretty simple question.
Even if it sounds hard to understand for those new to PPC, the answer to this question is that you decide how much Google charges you. That’s right, it’s the user who determines how much their ads cost depending on which option they choose.
The user has the power
Google Ads can be an automatic platform or a manual platform. As a result, users can allow Google to adjust their bids automatically.
But some users want to have full control over what they are going to pay. This is because, by being in control, you get to decide how much Google will charge you per click. For this, all you have to do is choose the number of your maximum bid and Google will take care of the rest.
Its cost depends on your business marketing objectives and your maximum bid. However, just placing a low bid doesn’t mean you will get a lot of clicks for that price. In fact, if your bid is very low, no one may see your ads. Why? Because Google is going to send them to the subsequent pages of the search results or they will only appear at low traffic hours. Because of this, if you want to receive a lot of clicks, you must make offers of around 1 dollar over the recommended offer.
You can check with a marketing agency like BluCactus which offers only the best to suit your goals to boost the effectiveness of your ad in Google Ad
s. Besides, we offer you a free quote for your Google Ads campaign.
How to create a budget for your Google Ads Campaign
Define your sales goals
What do you want to achieve with your campaign? This will be the first step to create your Google Ads budget.
If you really want to increase your sales or if you want to make yourself known and position your business.
Depending on the goals you have as an organization, you can budget based on these approaches.
Remember that your objectives must follow the SMART objectives. As a result, they must be specific, measurable, achievable, realistic, and timely.
Measure the value of your customer
Depending on your objective, measuring the value may be easier or more complex than the other.
On the other hand, based on the life cycle of your client, its value will be different.
In the same way, depending on the number of purchases that a customer makes throughout a year, the value will be modified.
Thus, the next step that you must take into account is the value that your client will have in mind to buy your products, services or to position your business with the competition.
Big corporations versus small businesses
As we said before, the cost of Google Ads depends on the type of business you run. If your business belongs to a very competitive or popular industry, it’s better to let Google take care of everything. As a result, this will ensure that your offers are automatic. You should do this because some prices can change very quickly. Thus, making manual offers won’t give you the best results.
Many large companies rely on the automated Google Ads system to always outperform their competitors. Hence the fact that by working manually you won’t ever reach their level.
In contrast, it’s common for small businesses to achieve their goal with only $ 0.50 per click. However, if you want to be among the top four ads on the first page of results, you will need to bid higher than the competition.
At BluCactus, we develop highly effective Google Ads campaigns to boost your business. Click here and get the price of your personalized Google Ads campaign.
The quality score and its effect on prices.
There is a concept that we have mentioned a lot throughout the article. This is the quality score, one of the most important factors affecting the cost of a Google ad.
The cost is determined by the quality rating. Because of this, every advertiser and ad campaign on Google Ads has a quality rating. Furthermore, having a good quality score means that you will save money and pay less per click compared to other advertisers.
A poor quality score means that you are going to pay more per click. In fact, a bad rating can lead you to pay 100% more than the competition.
In an industry as competitive as online advertising, many businesses will do everything they can to ensure a good quality rating. After all, this will considerably lower the cost of their ads.
How to calculate ROI level in Google Ads
Measuring the return on investment is vital if you want to be sure that your investment in a Google Ads Campaign was worth it. Besides, thanks to it you will be able to see its profits for your business. Thus, no matter the reason behind your ads, measuring this ROI is something that you must do.
There is a simple little formula to measure ROI in this Google tool. It consists of ROI = [Revenue generated by advertising – cost of advertising (investment)] / cost of advertising * 100%
Why is this important?
It’s vital to measure and study the ROI in your Google Ads campaign because it allows you to carry out the following.
- Assign the value to the goals in Google Analytics
- Establish better tracking of conversions in Google Ads
- Let’s link Google Ads and Google Analytics accounts
How to check your Quality Score
First, you must know what the “Quality Level” is. This level of quality is a score that ads of advertising campaigns obtain in Google Adsto measure the quality of their advertising. This score ranges from 1 to 10 and every keyword is seen within the ad. As a result, each keyword has a score and a campaign takes at least three days to get one.
If you want to know how to verify if your ad has a good quality level, you should follow the following steps:
- Make sure your campaign ad and landing page make sense.
- Offer a sincere ad, don’t make the people who click it not get what they were looking for.
- Check the quality of your landing page.
- Don’t be afraid to test and see how your ad fares from different submissions.
Want to invest efficiently in a Google Ads campaign? Get the results you are looking for by hiring the services of BluCactus. Fill out the form and we’ll reply in less than 48h.
Conclusion: How much does a Google Ads campaign cost?
The cost depends on the size of your business, the quality of your ads, and the popularity of the keywords you are going to use to advertise on Google.
Furthermore, you can usually calculate an estimate of how much your ad will cost on Google Ads using the Google keyword planning tool.
However, to get the best price, your best option is to use a professional digital marketing team to develop the best strategies to boost your business. Because of this, at BluCactus we will ensure that your marketing campaign is a real success.
Already have your Google campaigns optimized? Leave us a comment with a “Yes” if so or a “No” if you still don’t use them to promote your business
If you’re looking to get the best Google Campaign management in Toronto, Ontario, we’re your best option.
BluCactus, your ally in Digital marketing
BluCactus international marketing agency serves clients all over the world. Our specialty? The creation of web designs and SEO positioning in online searches. Besides, our group of experts is dedicated to helping businesses and brands succeed in one of the most competitive sectors in the market, the digital world.
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