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How Much Do Google Ads Cost? Influencing Factors

We can set-up and optimize your Google Ads for you but let’s also test your website’s SEO potential! While Diib helps 1000s of businesses grow with Google Ads management, Diib is also one of the best SEO tools in the world and uses the power of big data to help you quickly and easily increase your free organic traffic and rankings. Diib will even let you know if you already deserve to rank higher for certain keywords.

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How Much Do Google Ads Cost? Influencing Factors

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google adword price

We can set-up and optimize your Google Ads for you but let’s also test your website’s SEO potential! While Diib helps 1000s of businesses grow with Google Ads management, Diib is also one of the best SEO tools in the world and uses the power of big data to help you quickly and easily increase your free organic traffic and rankings. Diib will even let you know if you already deserve to rank higher for certain keywords.

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Google ads can help you get ahead and leave your competition behind in your dust. However, understanding Google ads advertising costs can help finalize your budget and assist you in spending wisely to enhance your online presence. Once you understand these costs, you will not fall into any marketing traps, and will not break your financial status and overspend.

Moreover, newcomers and website owners who are interested in employing PPC for their benefit need to understand how much to spend on such ads in order to jot down a fitting financial strategy for their marketing needs. However, Google ads advertising costs depend on several variables including, but not limited to:

  • Marketing Agency Costs
  • PPC Software Costs
  • Keyword Costs
  • Commercial Intent
  • Competition for the Specific Keyword

These are only a handful of the most important variables that go into deciding Google ads advertising costs. Before understanding the costs, you will need to take a cursory look at how these ads work and what formats or options are available to the audiences. Once you understand the backdrop, the variables will fall into place like pieces of a puzzle. Let’s dive into Google ads and the associated variables that define the final costs of such ads.

FACT: 46% of clicks go to the top three paid ads in search results. What’s more, 90% of those consumers say ads influence their purchase decisions.

What Are Google Ads and How Do These Work?

Before answering the question, “how much is Google AdWords?” you need to familiarize yourself with the concept of Google ads and how these ads work in bringing home more customers and traffic for your business and website. Once you understand the working of these ads, you will be better equipped to understand the price packages for such ads and how your choices and preferences will influence the overall price.

What Are Google Ads Auctions?

Did you know Google operates on a real-time auction system where multiple users bid on specific keywords? Well, this is how Google works, and it allows more than one user to bid on specific keywords for its unique advertisement needs. When customers enter search queries related to those keywords, Google triggers a real-time auction, and users bid against one another to get that keyword and rank on top of the search results.

Multiple users bid on one keyword, and when Google encounters a relevant search query, it compares the different bid prices by different users and displays the one with the highest amount of bid. So, if you have previously bid the highest on a specific keyword, your advertisement will start appearing on top of the search results. Take a look at the example down below:

google adword price

(Image Credit: AdStage)

If you have ever Googled anything, you must have seen a few “Ads’ being displayed on the top with a green tag appearing on the left-hand side, indicating that these are paid ads and not Google search results. Those places are won through bids, and businesses pay hefty amounts of money to win those places without investing in SEO practices.

However, when one wins a place via the auction system, the ad does not stay there forever. Once a competitor outbids you, your advertisement will lose its place, and others will start showing up on the top.

There is also a quality score that determines the current score of your advertisement. The price of the bid and the quality score come together to earn you a place in top search results. The quality score is calculated on the following variables:

  • Ad relevance
  • Experience
  • Auction-time quality
  • Targeted device, demographics, and user search queries
  • Bidding methods
  • Chosen ad formats

We can set-up and optimize your Google Ads for you but let’s also test your website’s SEO potential. Takes 60 seconds!

Paying for traffic is an important way for many businesses to grow but ranking naturally in Google for your important keywords is free. While Diib helps 1000s of businesses grow with Google Ads management, Diib is also one of the best SEO tools in the world and uses the power of big data to help you quickly and easily increase your traffic and rankings. Diib will even let you know if you already deserve to rank higher for certain keywords. As seen in Entrepreneur!

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How Many Campaign Types and Options Do You Get?

Google offers you the following campaign types and options for bidding. 

  • Search campaign
  • Display campaign
  • Shopping campaign
  • Video campaign
  • App campaign

You can also invest in customized camping options, but these types cover everything from e-commerce marketing needs to app promotion needs. You need to understand the different campaign types before answering the question, “how much is Google AdWords?”

What Are Google Search Campaign Ads?

This is the most common and simplest type of Google advertisements. A search campaign is a text-based ad format that appears as a text ad when you search for a specific keyword in the search bar.

Let’s assume that you search for “smartphones.” These ads will occupy the top 3-4 search results and will be in a text format with a little tag “ad” on the left-hand side. These are among the most viewed ads on Google and are also among the number one drivers for a higher ratio of traffic and consumers towards any website. These are the ads that come up when “smartphones” is searched:

You will be interested

google adword price

When you search for high profile keywords, these ads will appear on top and are won by users by bidding on different keywords. These ads and their placement is decided in a real-time auction.

What Are Google Shopping Campaign Ads?

Do you want to promote your products in front of the right audiences? Do you want to engage the audiences with your products before they even move towards your website? Well, that is exactly what Google shopping campaign ads offer at your fingertips.

You must be wondering about the difference between these ads and the previously discussed search campaign ads. The core difference is the format as these ads not only allow you to visually promote your products but also bring home a higher level of exposure and visibility. Moreover, these ads also allow users to quickly purchase anything from your website or look up the details without having to move to your website. Here is another example using the search “smartphones”:

google adword price

These ads appear as images right below the search bar and are among the first elements that users look at. Additionally, these ads can also appear on Google shopping, and users can buy from your store from the Google shopping list.

What Are Google Display Campaign Ads?

These are those ads that you see on all websites and are displayed as visual banners on top of the website or on either side. These ads owe their huge reach to the vast network of Google partners. Your ads will be displayed on top of any website or in pre-defined advertisements spots spread evenly across the page.

Additionally, such ads are also rolled out before a YouTube video on the relevant topic, and you gain access to a wider pool of audiences with such ads. These ads also offer you the opportunity to quickly sum up your entire product line or services in a small and interactive video to entice more people into coming towards your website.

Therefore, you have the opportunity to create video advertisements or image advertisements that will be displayed on all the Google network partners, and you will have access to more people than before.

Also, your advertisements will also be rolled out on other platforms that Google owns, such as Gmail, etc. Other than third party websites that fall under the umbrella of Google network partners, your advertisement will also be displayed on Google’s own platforms, such as Gmail, YouTube, Gsuite, etc. Therefore, you will have access to all Google users, and you will have the option to maximize conversion ratios and bring home more clients than before. In this photo are two examples of display ads on YouTube:

google adword price

(Image Credit: Social Media Examiner)

One of the best benefits of using this type of advertisement is the vast reach that it offers at your fingertips without breaking your financial budget. Did you know Google is currently partnered with over 2.5 million different websites and has access to more than 90% of internet users? This means that your advertisement will be accessible by 90% of internet users who have an interest in the relevant niches of your industry.

Furthermore, you can also choose from a wide array of different ad formats for these ads. These ads will be displayed on different platforms, and therefore, you can choose from the following ad formats:

  • Gif
  • Text
  • Video
  • Image

What Are Google Video Campaign Ads?

Well, display ad campaigns allow you to use video ad campaigns as well, but video ads have their own specific category where you can only choose these ads to appear before relevant YouTube videos.

This way, you can create specific video ads and test them out to see how those bring customers to your website and increase your SEO rankings. There are two options for such ads: skip-able and unskip-able. The choice is yours. 

What Is The Average Google Advertising Cost?

The average Google advertising cost falls between USD 1 to USD 2 in the USA for pay-per-click (PPC) format ads. However, this will also vary depending upon the bid amount for the keyword and the quality of your website. Here is a chart that shows a few bids:

google adword price

Google advertising cost is $1 to $2 for the Google Search Network and lesser than $1 for the Google Display Network. On average, small businesses spend somewhere between $9000 to $10,000 as Google AdWords price. Google AdWords price also varies depending upon the interval of advertisements, but you should expect at least $8,000 for such ads.

If you decide to opt for Professional Google Ads Management, you will have to spend around 12 to 30% of your total ad spend per month. Therefore, if you are paying $9000 per month on Google AdWords, you will have to pay $1000 to $3000 per month. However, these ads will bring you an ROI of $8 on $1. Not a bad deal.

Now that we are talking about Google ads cost, you should also know that you may need professional software applications to maintain and monitor your advertisements. These software applications will cost you somewhere between $15 to $800 per month.

What Are the Different Factors That Will Influence Your Google Advertising Costs?

There are several elements, as listed below, that will have a huge impact on your final budget for Google ads. These factors are crucial in deciding the overall budget and impact of your ads, and play a significant role in bringing home more customers and conversions for you.

Keyword Prices for Different Industries

When understanding the costs associated with Google Ads, you also need to understand that your final cost will vary depending upon the average bidding amount for the keyword. Here is a list of current rates for different industries and respective ads.

INDUSTRY AVERAGE CPC (SEARCH NETWORK) AVERAGE CPC (DISPLAY NETWORK)
Advocacy $1.43 $0.62
Auto $2.46 $0.58
B2B $3.33 $0.79
Consumer Services $6.40 $0.81
Dating and Personals $2.78 $1.49
Ecommerce $1.16 $0.45
Education $2.40 $0.47
Employment Services $2.04 $0.78
Finance and Insurance $3.44 $0.86
Health and Medical $2.62 $0.63
Home Goods $2.94 $0.60
Industrial Services $2.56 $0.54
Legal $6.75 $0.72
Real Estate $2.37 $0.75
Technology $3.80 $0.51
Travel and Hospitality $1.53 $0.44

 

You can also search for the most expensive industries and keywords, and you will find a similar list on Google. If your industry is one of the industries listed above, you will have to pay a higher amount than usual since keywords here go for a really high bidding amount.

Hiring A Marketing Agency for Google Ads

Some business owners do not have the time or the required expertise to take care of their advertisement needs by themselves. This is where marketing agencies and PPC management experts step in. This is yet another influencing factor that has a huge impact on your Google AdWords cost.

These agencies are responsible for developing, publishing, and maintaining your Google ads, and are also responsible for getting more customers towards your business with rightful ad placement on the right platforms. These experts are well-versed in the art of creating bespoke marketing strategies for your business and handling your financial budget for Google ads.

However, these agencies don’t work for free. On average, these agencies will cost you somewhere between 12 percent to 30 percent of your actual budget for ads. This means that their prices are flexible and will have minimal impact on the overall budget. You can also work on a flat-fee mechanism and pay a predefined sum of amount to these agencies.

We hope that you found this article useful.

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The Cost of Ad Management Software Applications

If you want to gain maximum control over your bids and Google ads, you will have to invest money and resources into paid PPC management software applications. These will help you find the best price for keywords, optimize your bids, and track the current status of your active ads from a singular dashboard. However, this is yet another factor that will drive up the overall cost factor, and you will have to add this to your financial budget as well. Below is just one example of a PPC bid and campaign management tool:

google adword price

(Image Credit: Whitehat)

These software applications range somewhere between $20 to $800 depending upon the quality and level of customization and control offered. The more services you want, the more you will have to invest in such applications.

Why Should You Think About Google Ads?

By now, you should have a preliminary idea of the average costs associated with using Google AdWords. However, there are hundreds of other platforms and marketing agencies that come with their own unique ways of advertisements, such as Bing, Yahoo, and Facebook. So, you must be wondering about the pros of investing your financial budget in Google ads. Here are some benefits of using Google ads.

Maximum Control Over Budget

While other platforms have “minimum investment” rates that are decided by the platform, Google allows you to invest as much as you want without any minimum investment restrictions. This way, you can have full control over your investments, and you can invest anywhere from ten cents to thousands of dollars depending upon your pocket.

What’s even better is that this method allows you to test your ads, figure out the flaws, optimize them according to the response, and then invest a higher budget into launching the tweaked and perfected versions of your ads without losing a lot of money in the “test-and-trail” phase. 

Maximum Scalability

Do you want scalability and flexibility for your marketing requirements? Well, that is what you get with Google Ads. Google takes care of everything from bidding to analytics in real-time, and you do not have to wait for weeks to see the results of your ads. Therefore, you can quickly scale up or scale down depending upon the day-by-day results of your advertisements.

The real-time analysis gives you the power to scale your budget and your ads accordingly. You can quickly identify the flaws with your ads or find the plus points of your ads and focus on those.

Multiple Ad Formats

Google offers you the option of choosing from a wide array of ad formats. From pictures to GIFs, from videos to text-based options, Google has it all. You can choose any option and access more than 90% of internet users and find the target audience in a heartbeat.

Diib®: Master the Art of Google AdWords!

Google ads can bring you the exposure that you have been waiting for. With over 2.5 million partner websites and a multitude of ad formats and options, Google lets you take control of your marketing needs and customize to your heart’s extent. 

Integrating your Google AdWords account with Diib’s Customized User Dashboard will give you insights into the health and success of all your Ads, allowing you to make strategic, timely moves in the right direction. Here are some of the features we know you’ll love about Diib:

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FAQ’s

This is a paid advertising product, however, you only pay when someone clicks on the ad. This is known as cost-per-click. So, not free but definitely worth your consideration.

Google doesn’t have a minimum amount you need to spend or budget for. That being said, you get what you pay, budgeting $2-$4 a day won’t get you very far.

A good cost per click is really, in large part, determined by your target ROI. For the majority of businesses, a 5:1 of revenue to ad cost would be great.

On average, the CPC is anywhere from $1-$2 for the Google Search Network and less than $1 for the Google Display network. A small to medium sized website will spend around $10,000 per month on their ads, not including software or management costs.

Google AdWords can be highly effective for small businesses IF you properly and precisely target your audience or niche. With a good content and marketing strategy, your Google ads can be very lucrative.

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Daniel Urmann

Author Bio:

Daniel Urmann is the co-founder of Diib.com. Over the past 17 years Daniel has helped thousands of business grow online through SEO, social media, and paid advertising. Today, Diib helps over 150,000 business globally grow online with their SaaS offerings. Daniel’s interest include SMB analytics, big data, predictive analytics, enterprise and SMB search engine optimization (SEO), CRO optimization, social media advertising, A/B testing, programatic and geo-targeting, PPC, and e-commerce. He holds a Master of Business Administration (MBA) focused in Finance and E-commerce from Cornell University – S.C. Johnson Graduate School of Management.

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