Google Ads’ Costs: Understanding Google Ads pricing

 

Google Ads’ Costs: Understanding Google Ads pricing


google ads

Google Ads is Google’s pay-per-click (PPC) online advertising platform. Via the Display Network and Google’s Adsense program, advertisers place bids on specific keywords. These bids then determine the placement of ads across various search results and websites.

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How Google Ads work

Google Ads operates a keyword bidding system. Each business sets specific keywords related to its offering and target market. Google then allows you to bid against other businesses with the same keywords for ad placement. 

A single bid represents how much you are willing to spend per click on a specified keyword. Along with your bid, Google examines your quality score. This is an overall assessment of your keyword, advertisement, and landing page quality. 

These two factors combined determine your ad rank, which is where your advertisement will appear on the search engine results page (SERP). 

Understanding Google ads costs?

There is no fixed answer to the question of how much Google Ads will cost your business. 

This is because you have full control over your own budget, determining how much you are willing to pay for a single click and increasing or decreasing your ad spend as you see fit.  

Let’s take a closer look at some of these deciding factors;

1. Industry


The pricing associated with Google Ads will vary across industries. Each industry has its own average cost-per-click. Therefore, if your business belongs to a sector with a high CPC, you should expect your budget to be greater.

In 2021, the average CPC for attorneys and related legal services landed at $8.67. This was followed by dental services at $7.10. 

On the opposite end of the spectrum, real estate maintained the lowest cost by industry at $1.36 per click. This was followed by the arts and entertainment industry at $1.51. 

LocaliQ search advertising benchmarks

2. Location

The majority of businesses have expanded their services globally, meaning they run multiple international advertising campaigns. Therefore, different customers across the globe will have different search intentions. 

In a survey of 97 countries, conducted by Wordstream, it was revealed that the United Arab Emirates had the highest CPC in the world (8% above the US average of $1 to $2). 

WordStream average cost per click around the world

3. Network

There are two additional networks in operation within this process, aside from Google Ads. These are Google Search and Google Display Network. 

The Google Search platform showcases your advertisements to users looking for elements related to your keywords via the search engine. The Google Display Network presents them to a larger audience by utilizing other people’s websites, videos, and apps. 

The average cost per click (CPC) for each network is as follows;

1. Google Ads –  $1 to $2

2. Google search network –  $1 to $2

3. Google Display Network –  $1 or less

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