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Google Ads

How Much Does Google Ads Cost?

April 2, 2019

Without any doubts, this has been a common question for any business owner willing to advertise on Google.



Reading time: 5 minutes.

Without any doubts, this has been a common question for any business owner willing to advertise on Google.

You might have a limited budget for marketing and you don’t want to risk it on a new platform that you didn’t see it’ results.

Or you don’t consider a budget for digital marketing and you want to try a new method of advertising that shall increase your sales and put your business in a better place.

Advertising on Google is a great method to start your digital marketing, but how much does it cost?

To answer this question, there are many factors that calculates how much you should pay for your Google Ads campaign as listed below:


1- The bid price of Keywords in your Industry or Niche

Something many inbound marketing agencies, cannot stress enough, is the niche you’re in will determine the value for money you’re most likely going to achieve. Unfair? Yes, but that’s just the nature of Google Ads.

For example, if you’re one of the unlucky PPC souls to work within the Gambling industry, Adwords may not be worth it for you. With keywords costing in excess of 122.87 pounds per click (yes you heard that right, per click) for the keywords “live blackjack”, it may put you slightly out of pocket to get those 6 people around the table!

But don’t let me put you off, your industry can actually ensure you pay next to nothing for some keywords. Using some nifty tools, we can see every keyword your competitor is targeting through AdWords.

Then you can simply see the search volume, costs and positions for each keyword, in real-time. By sorting in terms of CPC, you’ll find various keywords, with traffic, which cost next to nothing. You can then use these keywords in your own AdWords campaigns.


2- Your Quality Score

Luckily, CPC (Costs Per Click) are merely an indication and are not the be-all and end-all.

These figures provided by Google are not the definite costs and won’t determine accurately how much your AdWords campaign is going to cost.

Google has its own method of determining how much you’ll pay for each click, which is known as your “Quality Score”

The Quality Score ranges from 1-10, with 1 being the most desirable. However, in most cases, you’ll hover around the 6 marks, which is considered average.

Quality Score judges the relevancy of your advertisement against the keyword you want to show for. This means, for argument’s sake, if you’ve got a landing page dedicated to van hire yet you’re targeting “cars for sale”, you’re not going to get very far.

But Google isn’t going to just reject your advertisement because, after all, this would stop money being spent at the end of the day, They’ll just charge you more to show your advertisement and it’s a big reason Google’s Revenue in Paid Clicks was up 31% year-on-year for 2015, contributing to 72% billion in global revenue.

How Quality Score is calculated?

Quality Score is calculated by a host of external factors, but primarily by Google is judging your keyword relevancy and the user experience of your desired landing page. As your ads continue to be live, it will fluctuate as your clicks rate and ad text changes.

This highlights just how many moving parts there are when it comes to working out how much your AdWords Campaign will cost.


3- Your Ad Rank

How does this affect what you pay?

Google then takes your Quality Score and multiplies it by the maximum you’re willing to pay to give you your ad rank, your ad rank is the position in which your ad appears within the search engine results page.

Quality Score (out of 10) x Maximum CPC = Ad Rank

Then for Google to calculate how much you pay is determined by this formula:

The Ad Rank of the person below you (in the auction) / Quality Score + £0.01 = What you pay

So, if your quality score is 10 and the next bidder’s Ad rank is 15, you will get the following:

15 / 10 + 0.01 = £1.51


4- Whether You use Negative Keywords Geo Targeting and Ad Scheduling

TIP: This is how you can cut AdWords Spend

You didn’t think I was going to leave you with no actionable takeaways, did you?

Here are some ways you can limit your spend:

Negative Keywords

One of the key features of AdWords is the idea around making sure you remove the keywords you don’t want to show for, otherwise known as Negative Keywords.

Stopping your ad showing for things not related to your advertisement can stop unrelated clicks coming through, both minimising your cost and improving your CPR (Click-Through-Rate) and this improves your Quality Score in the long run.


Geographical Targeting

This is often overlooked but you can limit your campaigns so they only show to people in a certain geographical area.

Reduce irrelevant clicks and drive more local conversions – what’s not to love about that?


Ad Scheduling

We’ve discussed who to prevent showing your ads to, but you can also choose when to show your ads.

Using campaigns with the all features setting enabled (shown within the settings tab), You can then make a schedule best to suit you, whether it’s when you’re in the office to take calls, or when people have some leisure time to do some shopping – your ads, your choice!


It’s Complicated

Truth to be told, you’ll never be able to put an accurate cost of running an AdWords campaign because it’s a complex series of fine tunings and external factors.

The highly competitive nature of PPC and AdWords means that the playing field is always changing. The best way to work out a cost before a campaign is to decide on your maximum budget, then try to get the best possible ROI through effective planning and execution.


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