Marketing

How Much Does It Cost to Advertise on Google?

Last updated by

June 2, 2020

You may be asking, “How much does it cost to advertise on Google?” Well, that’s a pretty broad question for a specific answer.

Nonetheless, we will try our best to provide an outline of the factors that affect the advertising cost.

In this article, we will cover the various faculties of price differentiation, so that you can better understand the process behind advertising cost. Keep reading to get the necessary information to start advertising.

Table of Contents

Factors Influencing Advertising Costs On Google

When it comes to Google Ads costs, numerous factors influence the final number. In simple words, Google determines the price based on the metric of market competition and quality score.

What Is Quality Score?

The quality score is determined via landing page quality, click-through rate, keyword relevance, and account performance. This presents the necessary information for understanding why every business will have a different cost per click on a single search term.

So the factors influencing the quality score are:

Keyword relevance – a metric of how relevant a keyword and landing page is to the search intent of a user.
Click-through rate – the number of times an ad was clicked, when compared against the time of being displayed.
Landing page quality – the metric for how relevant a landing page is to the search query of a user.
Account performance – ads and campaigns with a history of successful search results.

Another way of optimizing your ad spend, and getting a better return on your campaigns is to hire a Google Ads specialist company. By doing so, your campaigns are can be fully managed, giving you more time to focus on more important things.

How Does Quality Score Affect Ad Position?

Advertisers often determine the success of an add if it can appear on the first page of results. How well an ad ranks in comparison to others, depends on the quality score.

Google uses a 1-10 metric system, with 10 being 100%. Therefore, the most significant factor influencing CPC is relevancy in terms of content. When an ad is being served, and the landing page is relevant to the intent, Google will reward you with better rank, and lower CPC.

What Are Keywords?

Keywords are used to show Google which queries you want your ads to show for. Three factors go into selecting keywords, such as the length (long vs short-tail), match types, and negative keywords.

Each of them will affect the final CPC. If you don’t know how to start researching keywords, there are plenty of tools for this that you can use instantly. Or simply hire an expert to do the research for you.

Ad Placement

The location in which your ads will be located is called ad placement. Ad placements include the network in which your add has to be displayed on, location-targeted, and device types involved.

Each of the options will influence your placement, cost of clicks, and completion level.

The Network

The network is where the ads are qualified for being shown. Under the settings, you can select the Google Search Network or GSN with partners. The former means your ad will only show in google search. The latter means your ad will display on AOL, ASk, EarthLink, etc.

Usually, including search partners will cost you less.

Device Type

Ads can be used to display on various devices, and these are tablets, mobile devices, and desktops. Some businesses will find that some devices perform better, and each machine will have a different cost for the same terms.

Usually, desktops are the most expensive and tablet the lest.

Location

The location allows Google to target your ads to a specific audience. By selecting particular cities or radius – you can provide a better result for the user, leading to better CTR and more conversions.

Location tailored ads will cost more.

Market Competition

As mentioned prior, market competition impacts advertising costs quite a bit. Google won’t place the highest-bid ads on the first page, but the more bidders there are, the more costly it will be.

So keep that in mind.

How to Reduce Google Ads Costs?

When it comes to reducing the overall cost for Google AdWords, there are multiple ways to approach this. Knowing the previous information can help you determine which faculties of price factors you can adjust to reduce the cost.

Specific Keywords

Oddly enough, the more specific your keyword selection is, the less expensive the overall cost will be. Specific keywords have lower CPC, because they have less competition, and provide users with better search results.

Negative Keywords

A negative keyword is one that is similar to the keywords you’ve selected but is one you don’t want your ad to show for. Negative keywords help reduce ad spent by removing irrelevant clicks.

Keyword Matches

Selecting affordable keyword match types can actually come at a detriment to you. Quality and expensive match types often perform better and provide you with a better ROI.

Bid Strategy

An appropriate bid strategy can help you test and discover which approach is most cost-effective for your ad campaign. For more information on these strategies, click here.

Quality Score

Improving your quality score is an effective way of reducing your overall costs and improving performance. AS mentioned earlier, QS is a combination of ad quality, landing page, conversion rate, and speed.

Device Adjustment

Adjusting your bids by the device will significantly improve the traffic you get and reduce your costs. By analyzing your current interactions with your ad by device, you can see which is performing better and invest more money into that.

Radius Targeting

Geotargeting, such as states, countries, and cities is useful. But radius targeting is even more useful. If you want your ads to display to those within close proximity, then radius targeting will decrease your costs, and attract potential clients.