Most small businesses invest in Google ads and understandably so. Google ads provide you with an effective marketing strategy wherein you are in control of the budget. You can ensure that you never go beyond your decided amount and can put a stop to it as per your convenience.
Naturally, you will be intrigued to know all about this marketing tool by now. So let’s deal with the two most commonly asked questions regarding Google ads.
How Much Does It Cost To Google Ads?
This is undoubtedly a reasonable question. Those unaware of how PPC work will surely want to know the amount they will have to invest in advertising on Google and whether it would be within their budget.
Up to 65% of small to medium-sized businesses opt for pay-per-click advertising. This is enough evidence to prove how helpful this mode of marketing can be.
But if you want a clear-cut answer on how much it would all cost, you will be disappointed. Because there is no fixed amount. It depends on a variety of factors.
The thing is, Google ads pricing works on the action-style of bidding. But if your ads and campaigns are high quality, you can expect to get better deals and placements.
You have complete control over the budget for Google ads. The average cost-per-click or CPC for Google ads is within the range of $1 and $2. For Google display ads, the cost is less than $1.
The expensive keywords can go beyond $50 per click as well. Typically, these keywords belong to industries like law, insurance, and finance.
While deciding on the budget for Google ads, you will also have to factor in the cost of management tools. These tools are pivotal for the performance of your ads. Furthermore, you will also have to consider agency management costs.
Small businesses typically spend somewhere within the range of $1000 and $12000 monthly on Google paid search campaigns. Thus, you can expect to invest up to $10,000 to $150,000 on Google ads annually.
How Do Google Ads Work?
Small businesses will always find it beneficial to understand the concept of Google ads and how they can use it to their advantage.
Google ads refer to those paid advertisements that appear in search results on Google.com. Google advertisements also appear on other websites via the AdSense program and Display Network.
The Google Display Network is quite extensive and comprises those third-party websites that partner with Google and serve Google Ads. These ads can be displayed in the form of images, text, or even video. Remarketing and banner ads can also be included in this.
Auction style bidding is held for Google ads for keywords. During this, the advertisers select the list of keywords relevant to their field. They target those words their audience is likely to search for.
They bid on this list of keywords, depending on how much they want to pay to the Google user clicking on their ad. The quality score, along with the bid, determines which Google ad will be showcased on the platform. When any user clicks on the ad, the advertiser pays the cost per click according to a CPC formula.
Having a high-quality score increases your chances of winning the bid. Various factors influence the quality score, including
- The link between your ad and the search query
- How relevant the keyword is to your ad group
- The link between your ad and its landing page
- The CTR of the ad and related group
- Overall performance of the account
Having a high-quality score enables your CPC to get lowered, which in turn improves your ROI. This is a reward by Google for your good performance.
The high score also ensures that your ads are displayed with more frequency and a better position on the SERPs. Thus, the exposure of your ad depends on your quality score. A high score will give you more exposure, which will enhance the chances of getting more clicks and that too, without raising the bids.
Google retargeting can also be of help in your marketing. This refers to the marketing message or ads sent to those users who didn’t convert despite clicking on your previous ads.
By retargeting, you try to bring them back. Google offers impressive custom audience options, along with remarketing software, to make the job easier.
To use the display network, you simply have to target the keywords or audience. You have to make sure that your ads are showcased on the sites that your potential customers usually browse.
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References
1- Impactplus .
2- Wordstream .
3- adespresso