How much does it cost to advertise on Google Ads?
Posted: Tue Dec 03, 2024 7:03 am
The online advertising market has been growing steadily for several years now, and more and more uk phone number list entrepreneurs and marketing managers are choosing Google Ads as a platform to promote their products and services. However, from what we have been able to see by talking to our clients and those who contact the agency for advice on Google Ads, there is a topic on which, in our opinion, there is a lot of confusion and which we can summarize in a single question: "But how much does it cost to advertise on Google Ads?"
In this article, we will try to answer this question by analyzing in detail the main themes related to the costs of Google Ads campaigns and providing useful advice to optimize the budget and maximize results.
Is it possible to establish a promotional budget to invest in Google Ads in advance?
The short answer, without beating around the bush: yes, it is possible to set a maximum budget for your Google Ads campaign in advance. This feature of the platform allows advertisers to control costs and plan their advertising expenses in advance.
The budget can be set at different levels : for the campaign as a whole, for a specific ad group or for a single ad. You can define both a daily and a monthly budget, depending on the needs and marketing strategies of each advertiser.
Want to learn more? Read here: Google Ads: the 5 most common mistakes that entrepreneurs make
What determines the cost of campaigns?
Let's start with a key concept: the cost of advertising campaigns (and therefore the minimum budget to invest to make the campaigns effective and not make them cost more than they would earn) is determined above all by one factor: competition. Let's try to go deeper to understand how it works.
When you create any campaign, you need to select the keywords for which you want your ads to appear. Each keyword has an average cost per click (CPC), which varies based on supply and demand in the market. The more advertisers competing for a keyword, the higher the CPC.
In fact, the Google Ads system uses an auction to determine the position of the ads. Advertisers then compete with each other, offering a maximum CPC for each keyword. The quality score of the ads and the CPC offered are combined to determine the position of the ad. Therefore, a campaign with a high quality score and a competitive bid will have a better chance of reaching higher positions and achieving better results.
CHOOSE A QUALIFIED AGENCY FOR YOUR ADVERTISING ON GOOGLE ADS!
Mistakes that can divert your campaign from the correct budget
However, when creating and managing campaigns on Google Ads, it is possible to make some mistakes that will lead to expenses greater than the planned budget. A non-exhaustive list of the mistakes that we have seen over the years to be the most common includes:
Keywords that are not very relevant or too generic : choosing keywords that are not strictly related to the products or services being promoted can increase the CPC without bringing concrete results. It is important to select relevant and specific keywords that reflect the users' search intentions and that are in line with the company's offer. For example, if you sell awnings, using only the keyword "awnings" will certainly bring a lot of irrelevant traffic to the site, with a consequent lowering of the quality of the campaign and costs that rise without obtaining the desired results.
Lack of Ad and Landing Page Optimization : A well-optimized ad and landing page are essential to achieving a high quality score and, consequently, reducing costs. An effective ad should have a catchy title, a clear description and a visible URL, while a landing page should be easily navigable, contain relevant information and have an attractive design.
Too broad targeting : Setting too broad a targeting target on Display campaigns can result in your ads being shown to people who aren't interested in your products or services, increasing your costs without delivering results.
Setting daily or monthly budgets that are too low : If your campaign budget is too low, your ads may not appear often enough or in the best positions, which can hurt your campaign results. It’s important to carefully consider how much budget you need to achieve your marketing goals and to continually monitor your campaign performance to make adjustments to your budget.
Budget: Is it possible to determine one that works for everyone?
Let's say it clearly and once and for all: it is not possible to talk about a one-size-fits-all advertising budget, since every company has different needs, objectives and resources. Therefore, the answer to the question: "How much does Google Ads cost for companies?" cannot have a good answer for everyone. To determine the advertising budget that best suits your needs, it is important to evaluate various factors, including the size of the company, the market sector, the products or services offered and the marketing objectives.
WHAT IS THE RIGHT AMOUNT FOR YOU TO INVEST ON GOOGLE ADS? ASK US FOR A CONSULTATION AND LET'S EVALUATE IT TOGETHER
How to Calculate Google Ads Budge
In this article, we will try to answer this question by analyzing in detail the main themes related to the costs of Google Ads campaigns and providing useful advice to optimize the budget and maximize results.
Is it possible to establish a promotional budget to invest in Google Ads in advance?
The short answer, without beating around the bush: yes, it is possible to set a maximum budget for your Google Ads campaign in advance. This feature of the platform allows advertisers to control costs and plan their advertising expenses in advance.
The budget can be set at different levels : for the campaign as a whole, for a specific ad group or for a single ad. You can define both a daily and a monthly budget, depending on the needs and marketing strategies of each advertiser.
Want to learn more? Read here: Google Ads: the 5 most common mistakes that entrepreneurs make
What determines the cost of campaigns?
Let's start with a key concept: the cost of advertising campaigns (and therefore the minimum budget to invest to make the campaigns effective and not make them cost more than they would earn) is determined above all by one factor: competition. Let's try to go deeper to understand how it works.
When you create any campaign, you need to select the keywords for which you want your ads to appear. Each keyword has an average cost per click (CPC), which varies based on supply and demand in the market. The more advertisers competing for a keyword, the higher the CPC.
In fact, the Google Ads system uses an auction to determine the position of the ads. Advertisers then compete with each other, offering a maximum CPC for each keyword. The quality score of the ads and the CPC offered are combined to determine the position of the ad. Therefore, a campaign with a high quality score and a competitive bid will have a better chance of reaching higher positions and achieving better results.
CHOOSE A QUALIFIED AGENCY FOR YOUR ADVERTISING ON GOOGLE ADS!
Mistakes that can divert your campaign from the correct budget
However, when creating and managing campaigns on Google Ads, it is possible to make some mistakes that will lead to expenses greater than the planned budget. A non-exhaustive list of the mistakes that we have seen over the years to be the most common includes:
Keywords that are not very relevant or too generic : choosing keywords that are not strictly related to the products or services being promoted can increase the CPC without bringing concrete results. It is important to select relevant and specific keywords that reflect the users' search intentions and that are in line with the company's offer. For example, if you sell awnings, using only the keyword "awnings" will certainly bring a lot of irrelevant traffic to the site, with a consequent lowering of the quality of the campaign and costs that rise without obtaining the desired results.
Lack of Ad and Landing Page Optimization : A well-optimized ad and landing page are essential to achieving a high quality score and, consequently, reducing costs. An effective ad should have a catchy title, a clear description and a visible URL, while a landing page should be easily navigable, contain relevant information and have an attractive design.
Too broad targeting : Setting too broad a targeting target on Display campaigns can result in your ads being shown to people who aren't interested in your products or services, increasing your costs without delivering results.
Setting daily or monthly budgets that are too low : If your campaign budget is too low, your ads may not appear often enough or in the best positions, which can hurt your campaign results. It’s important to carefully consider how much budget you need to achieve your marketing goals and to continually monitor your campaign performance to make adjustments to your budget.
Budget: Is it possible to determine one that works for everyone?
Let's say it clearly and once and for all: it is not possible to talk about a one-size-fits-all advertising budget, since every company has different needs, objectives and resources. Therefore, the answer to the question: "How much does Google Ads cost for companies?" cannot have a good answer for everyone. To determine the advertising budget that best suits your needs, it is important to evaluate various factors, including the size of the company, the market sector, the products or services offered and the marketing objectives.
WHAT IS THE RIGHT AMOUNT FOR YOU TO INVEST ON GOOGLE ADS? ASK US FOR A CONSULTATION AND LET'S EVALUATE IT TOGETHER
How to Calculate Google Ads Budge