How much does Google Ads (formerly known as Adwords) cost?
The difficult question that all marketers will have undoubtedly faced at some point from their digital partners. Each business is different and there’s no one-size-fits-all approach that works for everyone. Just because it was successful for somebody else, that doesn’t mean you’re guaranteed results by adopting the same methods.
So, a short blunt answer to this question (guaranteed to infuriate the asker) is, it depends. Insightful - we know. So, this post will outline the full cost considerations of Google Ads, how it works and some key actionable tips for you to keep control of your spend.
- How does Google Ads work?
- Your keyword bid price
- Quality Score of your ads
- The use of geo-targeting, negative keywords and ad-scheduling
How does Google Ads work?
Every second there are a staggering 2.3 million Google searches and the majority of pages will be showing Google Ads. But what are they? And why are they such a valuable asset to a business’ marketing campaign? Well, if done correctly, they’re a hugely effective way of driving relevant and qualified traffic to your website.
Google Ads (formerly known as Google Adwords) is a platform that allows businesses to create paid advertisements to appear within the popular search engine and throughout websites on the Google Display Network too. This is a selection of third-party websites who have opted to work with Google and agreed to display ads.
Image Credit: Neil Patel
Google Ads display your adverts in front of the right audience, at the right time. Which is a basic principle of all digital marketing campaigns, not just paid marketing. There are over 2 million sites within the Google Display Network and it reaches up to 90 percent of the whole internet - which is an opportunity that’s simply too good to turn down, right?
However, without the correct knowledge and execution, Google Ads can be potentially expensive for your business - and that’s definitely not what you want. The main goal is to maximise your potential success whilst saving money on your ads where you can best, right?
Your keyword bid price
Your industry niche massively dictates the value for money you’ll likely achieve with your ads. FACT. Whilst this might seem a little unfair to the businesses that are up against global giants, unfortunately, that’s just the way the cookie crumbles with Google Ads.
That doesn’t mean that there’s no point investing in your ad campaign. There are PLENTY of different avenues of opportunity for you to explore to seek success. So, don’t let a little competition put you off - use it to inspire your ads to be the best they can be and make waves within your field of work.
For example, if your business sits within the highly competitive finance industry, your marketing team may find themselves pulling their hair out trying to justify the costs of popular keywords within the overall budget.
According to Wordstream, the average Cost Per Click (CPC) within the finance industry is £13.76. This can soon add up if you’re targeting multiple keywords with your ads or running various paid campaigns.
All is not lost though - not by a long shot. By using useful tools like Google Ads Keyword Performance Report, you’ll have access to a long list of keywords and will be able to see their search volumes, costs and positions for each one. From there, you’ll be able to select the opportunities that best suit your budget and present ads with a perfect target.
Quality Score of your ads
While important, CPC isn’t a matter of life and death for your ad campaigns.
Google Ads has its own way of determining how much you’ll pay for your ads - and that’s your Quality Score. This score is generated based on multiple factors. From your landing page experience, expected click-through rate (CTR) and ad relevance, Google generates a score from 1-10.
A score of 10 is the most desirable and ads with this rating are deemed the most relevant. However, achieving the highest score you can isn’t always likely. It’s common that ads hover around 5-6, so don’t be downhearted if they’re not always at the pinnacle of the scale.
Quality Score is a judgement of ad relevance. For example, if your overall ad campaign is targeted towards B2B eCommerce solutions, but your landing pages are B2C focused, it’s likely that your ads won’t leave the ground. That doesn’t mean they won’t be published though - this is where a lot of businesses who aren’t in the know end up spending more money than planned for little return.
So, if your quality score is high, you should look at improving the influential factors to help bring it down. Not only does relevant content impress Google but it helps build that all-important trusting relationship with prospects. Make their journey through the buyer’s journey seamless and you’ll find a lot more bang for your Google Ad’s spend buck!
The use of geo-targeting, negative keywords and ad-scheduling
The secret to cutting your ad spend is the use of geo-targeting, negative keywords and ad-scheduling. But what are they? And why do they help keep costs low?
Geo-targeting is often forgotten about - but that’s where your competitors are missing a trick and spending too much on their campaigns. Shh, don’t tell them! Keep the upper hand for yourselves. Limit your campaigns so that they’re only shown to relevant people in specific areas.
Think about it, if you’re advertising your business in regions that are unavailable for your business, you’re literally throwing money away. Segment your audience and only hit the regions you need to with your ads. Not only will this reduce your costs as there’ll be less worthless clicks but it’s likely to ramp up your conversion rate - sounds like a win-win to us.
On the flip side, ad-scheduling allows you to dictate who to show your ads to, not hide them from. Located in Advanced Settings, ad-scheduling allows you to target your ads wherever and whenever you like. After all, they’re your ads, you dictate where you want them to be displayed. Obviously, it’s best practice to keep them all relevant, of course.
Negative keywords are the keywords that you don’t want to rank for. Compiling an extensive list of these words ensures that your ads aren’t being displayed in irrelevant places and, therefore, enticing irrelevant clicks and hiking the price up.
The last thing you want is a shed-load of clicks that come to no avail, isn’t it? Well, by putting together a list of keywords that you want to exclude improves the chances of conversion when visitors come through to your site. Plus, it improves your Quality Score in the long-term.
Create killer ads every time and improve conversion
So, as you’ve just read, there’s no definitive price tag that can be put on Google Ads. However, you’ve now got the knowledge to keep those costs as low as possible whilst chasing that maximum return.
Now it’s time to make a start on those all-important ad campaigns. But where do you start? Well, don’t worry if you’re a little unsure, it can be particularly daunting when releasing your first one. Excitement and ideas are no doubt boiling over and can leave you a little flustered, which is where we can help.
To make sure that you position your ads perfectly every time, we’ve created a free checklist for you to follow. Guaranteed to help you create ads that BANG.
However, it’s not quite ready just yet and will be available shortly. So, in the meantime, why not book a discovery call with us? One of our expert team will be on hand to gladly advise and inform you on how we can help you produce perfect ads every time.