What is the price of Google Ads? It's a valid query that we frequently get, especially from people new to paid search. After all, you'll want to be sure you have the money to pay for it. You can, which is fantastic news. The bad news is that there isn't a simple, universal solution. The most straightforward (and annoying) answer we can give is: it depends.
But do not fret. To help you determine how much Google Ads will cost your company and how to set a reasonable budget, we'll examine all the factors affecting Google Ads price in this guide.
Factors that affect the cost of Google Ads
As was already said (and is precisely the reason this guide was created), there is no easy or universal solution to the question of how much Google Ads will cost your company. Your sector, customer lifetime, current trends, and how effectively you manage your account all affect the cost of Google Ads.
1. Industry
Industry has the most impact on Google Ads price. For instance, one of the more competitive verticals in Google Ads is business services (legal, accounting, real estate, etc.), which typically results to higher costs per click (CPC). This is due to the nature of the professional services sector: a $50 CPC is a tiny amount to pay for a client whose revenue could range from $1,000 to $10,000, depending on your firm.
Businesses in the arts and entertainment vertical, on the other hand, have lower CPCs, but they must reach a lot more consumers to achieve the $1,000–$10,000 mark. Here are our most recent standards for paid search advertising.
2. Client lifecycle
The lifecycle of your consumer is another important factor to consider. The decision-making process for larger ticket offers takes more time, therefore it's important for your company to remain top-of-mind during that period. Before making that last decision, this can entail several visits to your website, a few content downloads, attending a webinar, and more.
3. Existing patterns
Online advertising platforms and consumer trends are never at a standstill. It's critical to stay current with both emotive and empirical developments in your field and within your sector. Consider COVID as an example. The average cost per click for the apparel sector was around $1.40 at the height of the pandemic. When average conversion rates increased in April, it fell to $0.70 before rising to $0.89 in May.
4. How effectively you run your account
According to a recent Google study, the average return on investment (ROI) for Google Ads is 800%, or $8 for every $1 spent. Naturally, everything depends on how effectively you handle your account. You cannot simply turn on your advertisements and relax. Keep your Google Ads expenses down while increasing your profits by:
- Maintain a structured Google Ads account.
- Inform others about your performance and implement data-driven improvements.
- Keep your keyword lists current.
- Conduct routine account audits, among other things.
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