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In fact, according to Google, the average marketer on their platform makes two dollars for every dollar they spend. That means most people on the platform double their investment.
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So, how much will Google ads cost your business? How much does it really cost to get a customer?
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In this article, we’ll cover the latest click data for your business and how to use Google tools to estimate your ad spend.
That way, you’ll know what to expect and can start Google ads with realistic goals and expectations.
Google Ads (formerly AdWords) uses an advertising advertising model, so there is no fixed price per ad.
Companies create campaigns, and what they are willing to pay affects their ad rank (which controls whether their ad is successful and visible) and relevance and other factors.
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This means that Google Ads prices are fluid, depending on what your competitors are offering for the keywords, placements and audience you choose.
Depending on your industry, location, and competition, keywords can cost as little as a few cents or as high as two hundred dollars.
If you target high competition keywords with high sales intent (and high potential value), you will end up spending a lot of money. But the potential ROI is also very high.
So businesses with a high customer lifetime value and a very short sales cycle are highly competitive for Google ads.
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Insurance, online education, marketing, and advertising, legal services, internet and telecommunications, are the most expensive businesses, with the highest insurance in the pack at wp $18.57 avg CPC.
Companies in many of these industries often sell subscription services, where the customer pays a monthly fee over a long period of time.
Because one customer can be very valuable, this increases the search for Google PPC Ads.
The figures below show the combined average CPC from Google Ads, Bing Ads, and other SEM platforms by country:
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Switzerland and Norway, the two most expensive countries, lead the charge, in the average CPC of paid search at $ 0.8 and $ 0.77 per click piece.
There are also significant differences in CPCs in different regions, cities, and neighborhoods within the same country for the same reason.
But since these high CPCs often indicate increased spending power, you shouldn’t avoid them unless you test them and see a negative ROI.
The combined average of display and search ads shows the combined trend in which mobile clicks are less expensive.
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In Q1 2019, the average CPC for mobile digital advertising was $0.42, and one desktop click cost $0.73.
All of this data should give you a decent idea of what a single ad might cost.
But, when trying to answer the question of how much Google ads will cost, it’s not enough to look at the average.
One of the biggest mistakes when launching a PPC campaign is failing to do proper research before jumping in.
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Depending on your business, you can pay anywhere from a few cents per click to twenty bucks.
To get some more relevant information, you should research the keywords that your business is targeting for your site.
If you’re not sure what keywords to search for, try discussing what people usually search for to find your business.
For example, do you own a flower shop? If so, people can search for “local flower delivery” or “local florist.”
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If you can’t think of anything, you can use Google Ads Keyword Planner for free.
You can go to your home page or landing page (if you have one) to help you get keyword ideas based on your website:
If you have a delivery service, you will need to set up a location in your city, state or local delivery area. For example, we can set it in New York City.
The results will show you the average monthly search volume, and the top resources on the page.
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If you use your homepage to search, you will find a list of keywords that are targeted for the services you offer.
You can see historical monthly research volumes by hovering over the graph next to the average volume number.
Once you have this data in your hands, it’s time to choose a few keywords that are relevant to your business.
Just check the box next to keywords, and click the “Add keywords” button. (By default, the option is set to “Add to plan”).
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After you’ve added keywords, you can instantly estimate your campaign costs by clicking the “Schedule a display” link in the sidebar.
Google estimates that a campaign targeting the five keywords selected above in NYC, the average cost per click will be $ 3.18.
You can take the full price and conversion with a grain of salt as it doesn’t take into account budget constraints.
If you were to set up this ad campaign all over NYC without a budget limit, you would spend about $21,000 for 390 conversions.
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You also want to maximize some of that budget on remarketing ads, and other platforms and not spend it all on one search ad.
You can’t make money in thin air, unfortunately, so finding money to spend on Google ads can be difficult.
And if you’re not willing to reinvest in your business or take money out of your bank account to do it, it has to come from somewhere.
Anyway, if you don’t have money left in your budget and you can’t withdraw it from your bank account, you have one option:
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The easiest way to audit a Google Ads campaign is to check the keyword report and find keywords that are not working.
To get better returns from your advertising campaign, you should target these keywords and spend more money on keywords that bring good returns.
If you are using broad match keywords, you should add any negative keyword you see as a negative keyword as well.
You can do the same with places. Open the “Locations” tab, and go to the “Geographic report” view.
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From there, you can choose how you want the analysis to be, for example to narrow down the data by country.
You can identify countries, cities or entire regions that are difficult to convert. (Perhaps a competitor is nearby, or perhaps has poor local delivery policies.)
Adjusting your bids for these placements, or removing them from your campaign altogether, can help you spend more where your money makes a difference.
It’s not always as cut and dry as analyzing a concrete number like advertising on platform X.
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So if you spend ten hours a week on social media campaigns, even cutting back to five hours can free up a ton of room in your budget.
To calculate this, you need to take your hourly rate and multiply it by the number of hours you spend on the job.
Let’s assume your hourly rate or service fee is $50 and you spend ten hours a week on social media campaigns.
Now you can use that extra time and money to invest in a new platform, like Google Ads.
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One sure way to budget for a small windfall is to simply trade one platform for another.
The trick here is to analyze some conversion data to see which platforms are taking the most time and money and have the lowest impact on your overall revenue.
The goal here is to find out where you can trim the fat, where you can eliminate efforts to spend budgets that don’t drive sales.
If you don’t have fixed prices, you can still calculate your costs by using the average lead price:
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Are the direct labor and costs more than the average lead value or the total monthly revenue from those leads?
The last option is to do a quick audit of your current ovahdi expenses in the form of a tool.
Most marketers will have a different set of tools they use: keyword research tools, monitoring tools, social planning, and more. There is literally a SaaS tool for everything.
For example, I use several tools every month that cost money: Evernote premium, Mailshake, Slack premium, Moz, and more.
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Now, if I needed room in my budget, I would cut a tool like Evernote because it’s not essential to my business. I can take notes on it for free. I just remember doing something. But if that means spending an extra $50 on Google Ads, it might be worth it.
Try to eliminate resources that aren’t important or don’t help you convert users into customers and use that extra room to budget for Google ads.
Earlier in this post, I gave you an example of how much a sample campaign would cost me each month.
Instead, you can target the same keywords, but reduce your budget, and bid lower, because your budget is limited.
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By targeting the most relevant ads and landing pages, you can drive sales and results with just a few hundred dollars a month as your budget.
Starting small is better
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