The PPC
(pay-per-click) industry is rapidly growing with more and more businesses
spending huge amounts with a goal to reach their potential customers and
convert them into paying
customers. When it comes to spending money on an online advertisement
platform then Google Ads always ranks on the top due to its active monthly
searches and users. But the question is How Much Does Google Ads Cost?
Many newly started
businesses and new beginners wonder how much they need to put in to get started
with Google advertisement. If you are
scrolling the internet for the same, then you have landed on the right article
where we are going to highlight some of the important points on how Google
Adwords and every small detail about Google Ads cost.
Table Of Content:
- An Overview of Google Ads (Formerly known as Google Ad words)
- Why Advertise on Google?
- How does Google Ads work?
- How much does Google Ads Cost?
- 7 ways you can lower your CPC cost in Google Ads
- Conclusion
- Frequently Asked Questions
An Overview of Google Ads (Formerly known as Google Ad words)
Google is one of the
leading search engines with more than 259 unique visitors and more than 5
billion daily searches. Google ad was introduced in the year 2000 as “Google
Adwords” and in the year 2018 it was renamed as “Google Ads”. With billions of
daily interactions, the possibility of your potential customer searching for
your products and services is very high.
That is the reason why
most of the small and large businesses prefer to use google ads because it
offers a magnificent return (ROI) of $3 for every $1 spent on the ads. So with higher
reach chances of your web pages getting discovered by your potential
customer are high and you will be able to generate good revenue
when it comes to ROI.
If you are new to
google ad then you might be having a lot of questions about it’s working the
money you need to put in and more. Well if these questions are troubling you
then don’t worry we are here to help you with every small answer you need
related to Google ads.
In this article, we
are going to give every small detail about how Google ads work, various tips
that you can use to optimize your google ad campaign, and most importantly the
Google Ads cost. So make sure you stick till the last to discover every small
detail about Google ads.
Why Advertise on Google?
As mentioned earlier
Google is one of the most widely used search engines that receive more than 5
billion search queries every day. Not only that but the platform was made
available to the user in the 90’s making it the oldest paid advertising
platform. Nowadays Google is becoming a source for finding answers or solving
problems. Whenever a user comes across any small query or problem the first
thing that pops up in their mind is to use Google to find the answer.
In search results, the
users are represented with a mixture of paid advertisement and organic results
so if you think your potential customers are not searching for business or
product or service as a solution then you must reconsider your thinking. Google
is being used to find answers for every small question and also to make
purchases.
Many advertisers claim
that they make $8 for every $1 they spend on google ads. Apart from that, your
competitors are also making use of google ads to drive traffic on their
website, generate leads, sell products, increase brand awareness, and more.
There are hundreds and thousands of businesses and brands that are using google
ads to promote their business and product/services.
That means even if
your web pages are ranking organically on the search engine result page there
are chances that your competitors might be ranking above your web pages and
driving potential customers on their web pages. So if your business and company
are already using paid advertising then make sure Google ads are part of your
paid strategy.
Remember we are not
saying that ranking organically is not a good option because organic ranking
can offer you more value in a cost-effective way. But running PPC ads help you
to generate more leads and acquire more customers.
How does Google Ads work?
Most of the new
beginner and newly started businesses wonder how google ads work so before we
identify the cost lest understand how it works. Understanding how google ads
work will give you a brief idea of how the auction process world will be
beneficial when it comes to creating the budget for your campaign.
Businesses and
individuals that are not aware of google ads often think that the advertiser
and market with more money have more influence and get better results.
Undoubtedly the more budget you have the longer you will survive in the race
but businesses should think about the return. If you are spending $1000 to get
500 new clicks but your competitor spends $1500 or more to get 500 customers
then your ad is performing much better than your competitors.
Google ads are all
about how smart you are able to select the right keyword and able to rank for
that keyword on the top in SERP with less bidding amount. So let’s take a look
at a few factors that determine how the ad works.
Google Ads Auction
The google ad auction
functioning is very much related to the normal auction. So this auction begins,
whenever a user types a keyword or query in the search box and hits the enter
button google records the term user is using to look for their answer. Next
google matches the query with the keyword advertisers and markets are bidding
on. So if the user query matches the keyword used by advertisers, then the
auction begins because google or any other search engine does show ads for
every keyword until and unless they determine that the query is already being
used by the user.
In the auction, ad
placement and CPC (cost per click) is determined by an AD Rank. The ad rank is
depending on two important factors: the maximum bid for the keyword you are
targeting and the ad quality score. So let’s understand what is Ad rank? Read more on
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