Did you know that in 2017, Google's ad revenue amounted to almost $95.4 billion?
If you're not using Google AdWords for your business, you need to be. Google Adwords helps attract more customers, reach the right people, and advertise locally and globally.
The best part is, you only pay for the results. Signing up for Google Adwords is free.
You can set your own budget, so your costs depend on what you are trying to accomplish. Some businesses spend thousands, some spend just a couple hundred.
But just how much does Google advertising cost? We've got the lowdown on how much you should spend and why it's the best decision for you!
The best part about using Google AdWords is that you can start or stop at any time. There is no obligation and no cancellation fees.
You can set your price.
How much are you willing to pay when a potential customer interacts with your ad? You'll get suggestions, but you can change it any time you like.
You need to get the most out of every dollar. Google AdWords provides reports and insights that will help you improve your website performance.
Finally, you can choose the payment method. Set up your payments with a credit card, debit card, whatever!
How Much Does Google Advertising Cost?
The answer varies based on the industry you're in and the audience.
Cost per clicks can be as low as $0.25 to an upwards of $20 per click.
So where do you start?
The Ad Auction
This is where you need to be one step ahead of your competitors.
How does the auction work? It begins when someone enters a search query. Google will determine whether "the query contains keywords that advertisers are currently bidding on."
If advertisers bid on the keywords, let the auctioning begin! The purpose is to determine a businesses' Ad Rank.
Have you ever seen a live auction? People are outbidding for something. That's exactly how Google AdWorks operates.
The goal is to have a successful Google AdWords campaign and for you to make as much money as possible through the traffic to your site!
Calculating Your Budget
How are you supposed to calculate your budget without figuring out what it needs to be?
A great way to determine this is by opening up keyword research tools like SEMrush or SpyFu to get more ideas. Search for terms related to your business. Put yourself in the customer shoes.
What keywords are they searching for to find a business?
For example, if they're looking for dry cleaning, they'll search "local dry cleaning" or "dry cleaning in (their location)."
Looking for a vet? Search "local vet."
If they still can't think of anything to search, use the keyword planner in AdWords for free or type searches on Google.com and see what other suggestions come up.
Everybody wants to aim high. However, in this case, starting small is better.
You don't need a huge budget to advertise on Google AdWords. Starting small gives you less room for error, and you can always adjust your budget.
Going too fast risks you losing your money. By starting slow, you can adjust based on how the performance is going.
In AdWords, you have to make sure that your conversion tracking is properly set up and that you're tracking the right things.
Invest $500, adjust based on the results, and double down if your campaigns are doing well.
PPC Budgeting Basics
Start with a figure that will represent the majority of your ad budget. Be open for leeway just in case something goes wrong.
However, if you're running multiple campaigns, think about which ones have priority.
If you're planning a monthly pay-per-click budget, calculate your daily budgets for each campaign. Allocate the funds depending on the priority of each of your campaigns.
The Most Expensive Keywords
Big companies are going to pay the most for keywords. Think about how many different insurance companies are out there. How many mortgage companies?
They are all bidding for customers.
According to Statistica, the most expensive keywords are business services, bail bonds, casino, lawyer, asset management, insurance, payday loans, restoration services, degree, rehab, and so much more!
Business services and bail bonds are over $58 per click.
Searching for a casino is $55 and a lawyer is $54.
The list just goes on and on...
Try targeting less common, but still relevant keywords, to save money on cost per click in your industry.
Start Brainstorming Other Options
Geotargeting is when you can target certain areas. It allows you to "prioritize the display of your ads to searches coming from specific areas." These areas can include an entire state to just your neighborhood.
This is a great way to catch on-the-go shoppers.
Not a lot of people are searching just on their desktops anymore. Everywhere you look, people are on their cell phones, tablets, laptops, etc.
You need to pay attention to where your leads are coming from. Are you appearing on both desktop and mobile searches? Which one is most valuable to you?
You want to devote the most money to where the traffic is coming from. Set aside a portion for desktop, but the most for mobile for example.
Set a daily budget and understand where the money will go.
Unfortunately, you can't explore Google AdWords without money. There are some ways to create an AdWords budget from scratch if you're new to this.
- Research how much your keywords are going to cost you
- Conduct a simple audit of the budget you have now
- Where is your money going?
- What platforms are you advertising on?
- Put your money where your search engine is
- Monitor your campaigns
Google AdWords now offers you to show up to 3 headlines instead of 2 and 2 90-character descriptions. This gives you a nice cushion to play around with headlines and descriptions.
See what works and what doesn't. How else will you know?
How We Can Help
At Falcon Digital Marketing, we can help you improve and grow your business. If you decide to go with our services, we use month-to-month contracts with no cancellation fees.
If you are ready to get started or need additional information on Google advertising costs, contact us!