How Much Does Google Cost To Advertise – Growing your business through online advertising has never been easier. That said, there’s a lot of information to sift through, and for those new to online advertising, it can be at least a little intimidating.
Each online advertising platform has its own strengths and weaknesses, and there are dozens of ad formats, campaign types, and performance metrics that advertisers need to consider. However, behind all this, there is always an enigma:
How Much Does Google Cost To Advertise
Today we’re going to take an in-depth look at the cost of advertising on three of the biggest online advertising platforms: Google AdWords, Facebook Ads, and Instagram.
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We will analyze the relative costs of advertising on Google, Facebook and Instagram, as well as the strengths and weaknesses of each online advertising platform. Finally, we’ll dig into how each platform measures up in terms of performance, and there’ll be plenty of real-world data and research.
The forefather of Internet advertising, Google Ads is not only the world’s largest online advertising platform, but also an integral part of the Internet.
You may have heard it joked that Google is an advertising business that owns a search engine, but that’s not far from the truth. Google derives most of its billion-dollar annual revenue from online advertising, which has allowed the company to stay at the forefront of search technology.
Before we can answer that question, we need to determine which part of Google’s vast empire we’re talking about: the search network or the display network.
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The Google Search Network is where pay-per-click (PPC) ads appear, above and below the organic search results for a user’s search query. Because Google serves online ads that are highly relevant to search queries, businesses that use Google Ads can drive high-quality traffic to their websites and landing pages. Instead of showing your ads to a huge audience that may or may not have a market for your products (like when you buy billboard space), you can target your ads to people who are looking for a specific type of product or service that you offer.
The Google Display Network is where ads are shown. The Display Network covers most of the indexable web. Although advertisers can include rich media in a variety of display ad formats (such as animation and video), most display ads tend to be expressive ads.
As the name suggests, PPC ads are priced based on cost-per-click (CPC), meaning the advertiser is paid a small amount each time someone clicks on the ad.
Your cost per click is quickly calculated each time your ad appears in a process known as an ad auction. The ad auction is Google’s way of deciding which ads to show when someone does a keyword search, the order in which they should be ranked, and how much each online advertiser pays per click.
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Ad position and cost per click are determined in part by the competitive landscape and in part by your own maximum bid (the most you’re willing to pay per click) and quality score (a measure of the 1 to 10 the quality of your ads). are). A higher Quality Score will increase your ad rank while lowering your CPC.
There are many other factors that will affect your CPC and other Google Ads costs. For example, CPC can vary greatly from geographic location (even for closely related keywords and search terms) and industry to industry.
For example, CPCs for financial keywords tend to be significantly higher than CPCs for other verticals (we’ll learn more about this soon).
Display ads on the Google Display Network (and other networks in general) tend to have a significantly lower click-through rate (CTR) than PPC ads. In fact, according to Solve Media, you’re 475 times more likely to survive a plane crash than to click on a banner ad, a truly worrying statistic.
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However, the CTR of your online display ads will increase dramatically when combined with smart targeting options such as remarketing and vital event targeting. Like search ads, display ads provide more ROI as you can achieve higher click-through rates.
Now that we’ve broken down the key differences between these two ad types and their typical pricing models, let’s dig into all of these interesting facts.
Online advertising costs vary widely not only by platform but also by advertiser’s industry. With that in mind, let’s take a look at the average cost of Google Ads ads across 20 industries:
The average CPC for Google Ads across all industries is $2.32 on the Search Network and $0.58 on the Google Display Network.
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As you can see, some of the most expensive keywords on the Google Search Network are in the legal industry, with an average CPC of $5.88. This is not too surprising given how expensive legal services can be and there are often large sums of money at stake in high-profile lawsuits. In other popular industries, the average cost per click for an ad varies from 19 cents to $3 to $4 per click. In general, the more expensive a product or service is for sale, the more expensive it is to advertise.
To put this data into context, the average monthly PPC spend for clients is $9,813. But keep in mind that larger companies tend to spend more, adding millions in online advertising costs each year.
You can lower the cost per click of your campaigns by increasing your Quality Score. Quality Score is largely the result of achieving a higher than expected click-through rate, so increase your click-through rate by writing highly relevant ads that engage users in a way that they can’t help but click.
For tips on how to write really high CTR ads, check out our research on the factors that influence the best performing ads in Google Ads.
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The first is a technique known as time of day or ad scheduling. This allows you to specify the times of the day when your ad can be shown. For example, a brick-and-mortar retail business may want to maximize traffic to its brick-and-mortar locations, and using time of day allows advertisers to limit advertising to hours or days when the store is open.
In addition to providing greater control over when ads are shown, time of day can be used to reduce costs, even during “suboptimal” periods. If you look at the image below, you’ll see that the average cost per action (CPA) can vary greatly depending on the time of day. This gives savvy advertisers an opportunity to cut costs if ad budgets are stretched.
CPA by time of day, for both weekday and weekend searches. Note that weekend CPA tends to be significantly higher than weekday CPA.
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To continue with our real-world retail business example above, the same business that expects to drive physical store visits may not get much return from ads that are shown to users who live outside of the business of this company.
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Geo-targeting is available in Google Ads. This example shows a physical radius of 20 miles around Boston.
This is what makes geo-targeting so powerful; allows advertisers to target placements that can have the greatest impact. Combined with the time of day, this gives advertisers much greater control over where and when their ads can be shown.
However, another method you can use to control your advertising budget in AdWords is device targeting. Again, using our brick-and-mortar store as an example, device targeting allows advertisers to—you guessed it—target specific devices with their ads and bid high for searches performed on mobile devices.
In the image above, the advanced campaign bid adjustment is used to modify the location-based bid. Advertisers can use bid adjustments on the Devices tab.
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This means that advertisers can bid on more expensive keywords, such as potentially lucrative “near me” searches, because these keywords tend to have high intent. Commerce is much stronger and indicates a much higher likelihood that the searcher will follow up their search to visit a nearby store: in our example, advertise the store in AdWords.
Although certain keywords cost more than others, Google Ads offers an excellent return on investment for advertisers of all sizes. The average cost you can expect to pay will vary based on your budget and industry, but contrary to common misconception, paid search marketing isn’t just for big brands. Rich budgets, even small parent companies and subsidiaries can increase the cost of their business. – work with AdWords.
Although Google ads tend to be more expensive than online ads on Bing or Facebook, search intent is hard to beat and these ads are extremely effective at generating sales as soon as people are ready to buy. This makes it worth the cost. .
As the largest and most used social network in the world, Facebook is a true giant in the world of online advertising. It’s not unusual for a business to run multiple online advertising campaigns in both PPC and paid social media, and Facebook ads are a great way to diversify your digital strategy and drive sales, leads and sales.
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Basically, the pricing model for Facebook ads works similarly to advertising on Google. Advertisers can order daily
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