Our advertising budget will always represent the biggest and most obvious expense of your Google Ads campaigns. But even if your ad budget is crucial, it shouldn't be your only focus when it comes to paid search. When determining whether your investment in Google advertisements is worthwhile for your business, you may also need to take into account other possible costs, based on your industry, marketing objectives, and personal circumstances.
Agencies' fees
To save time and stress, several small businesses choose to let an agency handle their PPC job. This is expensive, and regardless of ROI, even the smallest boutique firms will take a cut of your advertising budget. Agency reductions normally range from 10% to 15%, though this varies from agency to agency. Additionally, while some agencies may promise a ROI above a certain level, others won't.
Even so, hiring a seasoned pro to manage your account can help you avoid costly mistakes and ensure that you get the best possible returns on your advertising investments. Make sure you check off all the boxes when assessing an agency to make sure the investment is worthwhile. When picking an agency, there are several factors than cost to take into account.
Even while it's obviously in the agency's best interests to produce results (to decrease client churn and keep clients), you'll still be required to pay your agency even if your ads don't generate any conversions unless it's specifically stated otherwise in your contract.
What are the costs of Google Ads? Key conclusions
We've covered a lot in this article, so let's go over the main points you should remember to help you figure out how much money you might spend on Google Ads:
- The cost of Google Ads for a business will rely on its industry, customer lifecycle, and current consumer trends before any calculations are even done.
- With its auction-based model, Google Ads promotes high-quality ads with lower costs and preferential ad placement.
- Using strategies like ad scheduling, geotargeting, and device targeting, you can maintain strict control over how your Google Ads spend is used.
- On the Search Network, Google Ads have an average cost per click of $2 to $4.
- On the Display Network, the average cost per click is below $1.
- In Google Ads and Bing Ads, the priciest keywords cost $50 or more per click. These are typically extremely competitive keywords in sectors like law and insurance that have significant client lifetime values.
- Large merchants have an annual budget cap of $50 million for Google Ads paid search.
- The typical small- to medium-sized firm spends between $1,000 and $10,000 per month on sponsored search advertising on Google. That translates to $12,000 to $120,000 annually.
Is the cost of Google Ads reasonable for you?
Although there are many variables that can significantly affect the cost of operating a PPC campaign, as we've said throughout, practically any sort of business can benefit from Google Ads. Leave a comment if you have any specific questions or if you're unsure about anything we've addressed in this tutorial, we'll do our best to respond.
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