Advertising via Google's ad program can be a lucrative choice for your business. Formerly known as Google AdWords, the program has been rebranded as Google Ads. The recent rebranding isn't simply a new name for this popular advertising option. The name change is part of a broader directional shift, designed to streamline the overall process for those who use Google's advertising products. The changes indicate a new direction for the group of products that so many businesses utilize. According to TechCrunch contributor Anthony Ha, Google Ads now serves as the port of entry for advertisers who seek to purchase ads for any Google surface.
Many people prefer SEO for small businesses, but obtaining strong organic results often takes time. If you need instant traffic, you'll want to consider paid advertising.
If you are thinking about taking advantage of the opportunities Google Ads offers, you need to know how much this product will cost your business. Because the platform provides a great deal of flexibility and choices, there is no single answer to this question. However, you can determine how much you spend by setting a budget for Google Ads that fits your business.
How Does Google Ads Work?
To get the most from what you spend on this advertising option, you need a basic understanding of how Google Ads works. Since Google is widely recognized as the leading search engine worldwide, it makes sense to buy ads via its platform. Instead of waiting for your website to rise in rankings on search pages, you can pay for the desired results. Your ads are placed on search engine results pages (SERPs), so your intended audience can find you more easily.
Anthony Ha asserts that Sridhar Ramaswamy, the person in charge of all of Google's advertising and commerce products, has stated that businesses can pay for Google Ads that appear in places such as YouTube videos and app ads in Google Play, for example. One of the most common places to find these ads is in SERPs and in location listings for Google Maps.
A major part of the appeal of Google Ads is that the platform is totally customizable. You decide when you spend money on the ads, and you also choose how much you spend. You can decrease or increase how much you are spending, and you even have the capacity to do this in real time.
As described at WebFX, Google Ads offers users an auction function, which establishes how much ads will cost and where they will be placed. When someone performs a search via Google, an ad auction is initiated. When a search reflects keywords that are being bid on by advertisers, ads that are eligible are entered in the auction. Ad Rank determines where an ad will be placed and how much it will cost the advertiser per click. Various factors have a bearing on your ad's ranking, such as the amount of your bid, the Ad Rank thresholds, how relevant your ad is to the content, and the nature of the search being performed. Since factors other than the amount of a bid have an impact on how your ad ranks, you can still gain a higher place for a cost lower than your competitors' bids. This position may fluctuate, as well, since the variables that give your ad its ranking can change with every auction.
Once you are more familiar with how Google Ads auctions work, it can be helpful to see some exact figures in terms of pricing. WebFX provides a convenient cheat sheet to give an idea of how much you might spend (all of the following average costs are based on this cheat sheet):
Google Ad Spend costs an average of $9,000 to $10,000 per month. Depending on your budget, you decide the maximum amount that you will spend on cost-per-click (CPC). The average CPC on the Google Search Network is $1 to $2 per click. The average CPC on the Google Display Network is $1 or less per click. The cost for professional Google Ads management per month is 12 percent to 30 percent of the cost of Ad Spend per month. PPC (pay-per-click) costs an average of $15 to $800 per month.
Only you can determine a realistic budget for your Google Ads campaign. An important consideration is the types of keywords you are targeting. Keywords that sustain high numbers in searches will naturally cost more. This is a good reason to research keywords for your industry before you get started. According to AdEspresso by Hootsuite, your CPC could be as low as 19 cents or as high as $5. Even then, there can be variables within an industry that lead to a wide range of average CPCs and keyword costs.
If you are uncertain or confused about how to budget for Google Ads, a Google Ads expert can assist you in creating an account and determining your budget. This is a free service provided by Google. Just try to remember a few key points: You are the one who decides your monthly budget, and you don't have to spend more than the limit you have selected. You won't be forced to commit to a contract, and you can make changes to your budget as you see fit. You can also put a hold on your ads at any time. Additionally, you may be happy to know that you only pay for the ads when users click on your ads to take concrete actions, such as contacting your business or going to your website.
Optimizing for Conversions
You can also take steps to ensure that you are maximizing your Google Ads allowance. One way is to optimize for conversions and conversion values. If your goal is to optimize for specific conversions, such as email subscriptions or purchases of your products/services, you can use the Google Ads Maximize feature. This function applies advanced technology to automatically optimize your bids to secure the most conversions for your particular campaign. Another option is the Google Ads Target CPA feature. This is a bidding strategy that employs Smart technology to optimize bids automatically. The feature can be used for one campaign or for multiple campaigns simultaneously.
You may also utilize a specific Google Ads feature to optimize your campaigns for conversion values. This means that the focus is targeted to increase the value of your returns after people click on your ads. This feature is called Target ROAS (target return on ad spend), and it can be integrated with your bidding process.
Run Split Tests Often
Don't forget to run split tests on a regular basis, so you know which ads are producing the results you seek. The Google Ads platform makes this easy for you by providing tools to run drafts and experiments. The drafts function enables you to test changes to your original campaigns. These modifications don't affect a real campaign because they are only made to the draft, which serves as a duplicate of the original. When you have made the changes you want to test, you can then run an experiment to see how they would work if implemented. Like Google Ads' other features, you enjoy much flexibility when using this product tool. By running split tests frequently, you can identify areas that need improvement. This also helps to ensure that you don't waste money on ads that aren't working well.
Keep Quality Score in Mind
Another consideration to remember is the Quality Score in your Google Ads account. Because the system is designed to reward ads of high quality, it literally pays to keep this score as high as possible. While this score doesn't directly affect your Ad Rank, quality ads can ultimately lead to a better ranking. Other possible advantages of a good Quality Score include better positions for your ads, lower costs for your ad clicks, and qualifying for ad extensions. Factors that affect ad performance include the potential an ad has of being clicked, as well as how much it relates to the reason for a search. Once a person clicks on an ad, it's also important that the web page be easily navigated, and that the page is both relevant to the search and transparent.
Always Monitor Your ROI
To get the most from your Google Ads budget, you should always keep track of your return on investment (ROI). You can calculate this by subtracting your total costs from the revenue earned by your ads. Next, take that figure and divide it by your total costs. This is vital information for advertisers. It is a quantifiable measurement that demonstrates how much your ads impact your business.
Final Thoughts on the Cost of Google Ads in 2019
Google seems to work continuously to improve its products for users. This ensures its relevance as a search engine, as well an entire platform. By streamlining their advertising options, the company is enhancing the user experience for advertisers and consumers. This is good news for your business! When you make use of all the features that Google Ads has to offer, this newly rebranded product can be a powerful marketing tool for your business in 2019.
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