If you’re new to the subject, you probably have a LOT of questions about how it all works. You may not be sure if this method is for you or just want to know how much it costs to advertise on Google Ads.
Whatever your question, we are here to help you acquire some knowledge on the subject and keep you updated on this world. In this post, we will specifically answer the question “How much does it cost to advertise on Google Ads in 2021?”.
Although we do not have a simple answer, we will divide it into steps for everyone to understand. So, no matter if you want to start advertising for your store or online business, you’ll know exactly how much you need to book for your first campaign.
How do I gain out how many a keyword costs?
Table of Contents
If you’re thinking about running a campaign on Google Ads, you probably want to have an idea of how much it will cost. While there are a number of factors that determine how expensive a campaign will be, the best starting point is the keyword. The price of the keyword itself varies from sector to sector, so getting a rough estimate is ideal.
To get a rough idea of how much a specific keyword can cost, you can use Google’s Keyword Planner tool as a good reference. Just enter a term or keyword that interests you and the tool will find many relevant keywords for you.
You can adjust the targeting below the search box to show only the cost of advertising, the United Kingdom, the USA, or any country you want. This can often have a slight impact on price, as some countries are more expensive than others.
Once the results are loaded, you’ll see a “suggested bid” column. This estimate is calculated by looking at all of the current advertisers that show ads for that keyword and averaging the network. Your actual cost can vary depending on other factors (like quality score (which we’ll cover later), but in general, it’s a good indication of how much a campaign can cost.
Depending on your industry, you’ll be able to determine whether cost-per-click is considered expensive or not. If all the keywords in the tool cost more than $ 10, you are probably in a very expensive niche. However, if you are looking for $ 1 and $ 2 keywords, then you are lucky!
You can find out more about how to reduce these costs by maintaining the results in our article: Reducing Investment in Google Ads and maintaining the results: A comprehensive guide.
Device targeting and its impact on cost-per-click
With so many options and settings available on Google Ads, adjusting just one can have a big impact on your cost per click and how much you pay. As mentioned earlier, different targeting options, such as the country you want to target, can have a big impact on your average cost-per-click. Another targeting option available on Google Ads is the ability to target different devices.
As you probably know, not everyone visits websites only on their computers. There are a variety of devices that users use regularly, that you can take advantage of. From cell phones to tablets and desktops, these are the top three devices that you can target on Google Ads.
Each of these devices will have a different cost-per-click, depending on whether you target all or just one in particular. Depending on which target you are going to directly affect your cost per click and therefore how much Google charges you.
Trying another device traffic is a good way to see if you can update your campaign or not. Some campaigns may perform better if you target only mobile traffic, while others will perform better if you get rid of mobile traffic.
The only way to find out is to do it yourself and check the results. Some sectors may find that mobile traffic converts better and, therefore, value them more. While another sector may not invest a lot in mobile traffic and focus only on the desktop. Each sector has its preference and it is up to you to find out which traffic is best for your goal.
How much does Google Ads cost?
Now that you’ve seen how expensive keywords can be and how to use Google’s tool to estimate your cost-per-click, it’s time to put everything together to calculate the cost. So, how much does Google charge for advertising on its network?
This answer may seem confusing to people new to the subject but bear with us. The answer to the question is that it is the user who decides how much Google charges. Wait, what?
Yes, you read that right. It is the user who decides how much Google charges per click (although this is not always the best idea).
Google Ads can be an automatic or manual platform. Sometimes this means that users will want Google to automatically adjust their bids. Other times, users will want to have complete control of this. Learn more about bid automation in Google Ads and how to use it.
You simply change the number of your maximum bid per click and Google takes care of the rest. However, just because you entered a low number, it does not mean that you will receive many clicks at that price. So, if you enter a very low number, you may not receive any.
To ensure that people see your ads, you’ll need to bid about 50 cents above the industry’s average cost-per-click.
As we mentioned earlier, the price you pay for the keyword will depend primarily on the industry and how competitive it is. If it’s super competitive, it’s better to let Google take care of the work and the automation of bids.
Since prices can change so quickly, a manual bid would not bring the best results. Your competitors are likely to use some kind of automated system that automatically adjusts bid prices, giving them an advantage over anyone who does everything manually. Imagine trying to manually change a 100 keyword campaign twice a day…
For smaller companies, it is quite common to be able to pay 50 cents per click. However, if you want to be in the top 4 on Google, you’ll always want to bid more than your competitors. This brings us to our next question: how much does it cost to get on the first page of Google?
How much does it cost to get to the first page of Google?
Getting to the first page of Google with your ad can be easy or difficult, depending on the keyword you are using. If a keyword has no competition, just make an ad and you’re done, you’re on the first page.
However, keywords that have been around for a long time tend to have multiple ads running. These keywords can make everything more complicated to get to the first place. As a general rule, if you want to rank higher on Google, you need to pay more.
If the keyword planner can provide the average price that other advertisers are paying, we recommend paying more. We suggest paying an additional 30% to 50% per click to see your ranking. Sometimes you will still be on page 2, while sometimes you will go straight to number 1. Unfortunately, there is no simple calculation. The only way to find out how much it will cost you to get to page 1 is to adjust your bid and play with it.
If you have to pay 50% or more to get to page 1, don’t panic. There is a smart way to reduce your cost-per-click without having to lower your bid price.
Quality index and its effect on prices
We mentioned earlier that several factors affect the price you pay per click. One of the most important factors (after the average keyword bid) is the quality score.
All advertisers and advertising campaigns on Google Ads receive this quality score metric. A good quality score means that you save money and pay less per click compared to other advertisers.
A poor quality score means that your cost per click increases and you may end up paying 100% or more just to compete with other advertisers who pay a lower price.
This system forces advertisers to ensure that their ads are relevant, as well as their landing page, to offer visitors the best user experience. The last thing Google wants is to place a bad ad at the top, as it is less likely to be clicked, that is, less likely to be paid.
To give you a brief overview of the Quality Score metric, advertisers who optimize their landing pages and ads to include their focus keyword are given a better score. In such a competitive industry, many companies will do everything possible to ensure that their quality score is good.
The main factors affecting Google Ads prices
To put it all together, let’s take a quick recap of the main factors that affect how much you pay on Google Ads.
Since Google Ads uses an auction bidding system, each industry is unique and the level of competition greatly influences the cost of keywords per click. If you are in a super competitive industry like auto insurance, finance, or payday loans, expect to pay tens, if not hundreds of dollars per click.
Compare this to a very new or less popular industry and the chances of your cost per click being much lower. Keywords with less volume and buyer intent also tend to cost less, as they require more clicks to convert a user.
Targeting many areas of the world can have a large effect on the payment of your clicks and the overall campaign. Think of countries with different layers when it comes to price.
The most developed countries in the world (United Kingdom, USA, Canada, France, Germany, etc.) are often classified as “tier 1” traffic. These countries have the highest cost-per-click due to the high quality of traffic. Compare this to a lower level for countries like India and Pakistan and the cost of clicks will be much lower.
This is because advertisers do not value these countries as much compared to others and factors such as language can also be important when choosing a destination location.
When setting up your campaign, keep an eye on the countries you’re targeting and ask yourself if you need to reach them. The exclusion of some countries can save a lot of money!
Like locations, device targeting plays an important role in the price you pay per click on Google Ads. Divided into 3 main categories of the mobile, tablet, and desktop traffic, each device has its own cost per click.
Typically, desktop traffic has the highest CPC, but depending on the industry, mobile traffic can sometimes be more expensive. Experimenting with different types of traffic for your campaign is the best way to see if you can save money or not.
You may think that Google has only one network on which they can show your ads, but you will be surprised to learn that they have two. Known as the Google Search and Display Network, these two different networks show ads in different ways.
The Google search network is what most people generally think of when they think of Google ads. These are the ads that are displayed when you search for something on the Google search engine.
On the other hand, you have a display network that works differently. This network is still controlled by Google, but it allows you to show your ads to a wider audience using other people’s websites.
Webmasters serve ads on their sites in exchange for receiving revenue from people who click on their ads. This, in turn, allows users to reach a larger audience.
As you can probably imagine, these different networks have different prices and can greatly affect the cost of advertising on Google. The search network is generally much more expensive than the display network, as the quality of users is much higher. If you want to get cheap traffic from the Google network, try their display network.