How much does Google Ads cost? This is the most common and reasonable question asked by most of our clients. The business owners who are new to PPC Advertising are probably most interested in knowing the ROI, then they think about whether they can afford such a budget on a monthly basis. But there’s no easy, one-size-fits-all answer. The most common answer given by the SEM service providers is: It depends.
This is because the spending on Google Ads depends on various parameters. Some of the clients don’t understand:
1. Exactly how the Google Ads auction works
2. The variables that influence the cost of a Google Ads campaign
3. Cost control or setting Ideal budgets for daily and monthly spends
Why is there no clear-cut answer for Google Ads cost?
Google advertising costs can vary depending on various factors like:
1. Industry
The first factor and the highly effective one is your Industry. For example, the business services verticals like legal, accounting, and real estate are costly services and also are highly competitive verticals in Google Ads. This generally translates into more expensive costs per click (CPC). So the budget will be in thousands of dollars every month. But for some Industries like Health, Nutrition, Education, Electronics will have medium competition and the CPC will not cost you much. The Industry verticals like entertainment and arts will have lower CPCs across the year. So that will cost you very low for Google Ads.
2. Customer lifecycle
If the customer has to go through a decision-making process instantly on your website, then you have to be at the top in search engine ads to make a sale or generate a lead. You also have to take into account the lifecycle of your customer. Because your customer makes multiple visits to your website, they might add the product to cart, or download some content, or they sign up for a webinar, and more—before taking that final step. So, here more than spending, business owners look at the ROI that they’re getting at the end of the month.
3. Current trends
In recent times, even Google Ads Advertising has been impacted by the COVID-19 pandemic. For some industries, the pandemic gave the best business and others got shut down for a while. Because the search trends on google have changed. For example, the apparel industry saw an increase in conversions online and a decrease in cost per click during the peak of the pandemic. Because the demand from online buyers has drastically decreased.
The other important factor that every advertiser must keep in mind is Google Ads is based on an auction system that rewards high-quality ads with lower costs and better ad placement. The advertiser can exercise tight control over how your Google Ads budget is spent using tactics like ad scheduling, audience selection, geotargeting, and device targeting.
