A Guide to the Costs Involved with Google Ads

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When it comes to marketing your business through online advertising, Google Ads is a cost-effective and easy way to start seeing results quickly.  The problem is, there’s a LOT to learn about Google Ads. With so many different formats (each of which has their pros and cons) and different metrics, it’s no surprise that many business owners just want to know:  How much does it cost? 

In this article, we’ll be taking a closer look at how much Google Ads cost and how its pricing works. 

Search or Display Network? 

The first question you’ll need to ask yourself is whether or not you plan on advertising on Google’s search network or their display network. The PPC (pay-per-click) ads appear on the search engine results pages, both above and below the organic results. Google’s algorithm is designed to show ads that are highly relevant to the user’s search, which gives advertisers more qualified traffic and landing pages. 

Rather than showing your ad to anyone and everyone who may have a passing interest in what you have to offer, you can tailor your Google search ads to the precise audience that’s looking for your product or service. 

The Display Network, on the other hand, doesn’t give you as good of a click-through rate, but its sheer reach is impressive. In fact, most of Google’s display network spans 90% of the indexable and crawlable internet. Most of the ads on the display network tend to be banner ads only, but many advertisers also use animations or video. 

Search Network PPC Costs

Pay per click ads are priced based on the cost per click. This means whenever someone clicks on your ad, you pay a small amount of money. That amount of money is dynamic and changes according to an auction style of bidding. This type of bidding tells Google how much each advertiser is willing to pay to show their ad in a certain place (for example, at the very top before the organic search results, or slightly below them) as well as the price they’re willing to pay per click. 

The amount you pay depends on how many other advertisers you have competing for the same spot as well as the most you’re willing to pay for each click. Add to that your Quality Score which ranks your ads on the likelihood they are to be clicked, and you’ll have a better idea of how much you’ll have to pay. The higher your Quality Score, the less you’ll pay per click. 

Display Network PPC Costs

Display Networks have lower Click Through Rates (when was the last time you, personally, clicked on a banner ad?) but these ads can also be targeted with greater precision. The price you pay on the Display Network depends on two options: 

Cost Per Click – Like on the Search Network, you only pay when someone clicks your ad. If your goal is to drive traffic to your website, this type of pricing will be the best option for your needs.

Cost Per Thousand Impressions – You’re essentially bidding for 1,000 views of your ad and not specifically for clicks. This type of ad is best for companies that want to improve brand awareness and have their ads viewed often by visitors.

How to Lower the Cost of Your Google Ads

The good news is that no matter which type of Google Ads you choose, there are several ways that you can lower how much you spend on them. 

For example, rather than targeting really broad, non-specific keywords like “dog groomer”, choose more specific terms like “dog groomer surry hills”. In addition, raising your Quality Score, through improved ad targeting and ad copy, as well as the content of your landing page can help lower the price considerably. Quality Score however, isn’t something that can change overnight, but as you learn more about how your users interact with your ads as well as how they convert on your landing page, you’ll become more in tune with how to attract and retain more of the audience you’re aiming for. 

Is Google Ads the Most Cost-Effective Advertising Option?

There are several ways to go about marketing your business online, including through other advertising platforms like Facebook and Instagram. However, despite massive gains on the part of Facebook (which also owns Instagram) Google Ads are still one of the most cost-effective options for business owners. Due to the sheer size and reach (and omnipresence) of Google, ads on its network are a little more expensive than those on other platforms like Bing and Facebook, but Google’s reach is indisputable. 

In addition, because many people go to Google at various stages in the sales funnel process (whether they’re just learning about a brand as a possible solution, they’re comparing between different companies or narrowing down their decision), the chances are much higher for a conversion. When done right, ads can serve as the perfect vehicle to capture a sale in that very moment, or at the very least, a lead for further nurturing. 

Getting the Most Out of Your Google Ads

Creating ads that are cost-effective and have a high quality score can seem like a major challenge on top of everything else you need to do to keep your business running each day. That’s why it pays to enlist the help of one of Australia’s top search engine and PPC advertising companies. At CLIQ MC we work with brands across many different industries as well as businesses large and small, helping them to maximise their budget and get the highest return on investment on each of their campaigns. 

Contact us today to learn more about how we can help you lower your Google Ad costs while improving your Quality Score and reaching more customers. Whether you want to focus on the Google Search network, the Display network or both, working with an Australian SEO company to manage your campaigns can help you attract and retain customers at an affordable price. 

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