Google Ads Cost Overview – Factors That Affect Google Ad Costs

Are you tired of wondering how Google prices its ads introducing this lesson where you’ll learn everything that impacts your investment in Google ads?

Advertising your business on Google can result in major success. Seriously, we’ve seen increases in conversions, contact form, submission’s revenue and so much more as the result of a well optimized campaign. When it comes to the cost of your Google ads campaigns, there’s not really one number that works for all businesses. Google Ads uses a bidding system to determine the cost of your ads. So prices vary depending on a bunch of factors, which I will go over in this video before I jump in. I think it’s important to briefly explain how Google ads works, how you pay for ads on Google when you set up a Google ad campaign. It’s important to have an overall budget so that you know how much you can spend each day. How Google spends this budget depends a lot on the bidding model that you choose. There are three basic types of bidding models that you should definitely know about. Those are cost per click or CPC cost per thousand impressions or CPM and cost per action. CPA with CPC bidding, you pay for every click on your ad. So if you’re focused on getting people to your website, CPK is a great bidding method for you. CPA bidding is similar to CPC bidding because you want people to take action. However, CPA focuses more on conversions and conversion.

Could be someone filling out a form or clicking a link for this type of bidding. You decide what you want to conversion to be and you pay for each one. Google will optimize your CPA campaign so you can see the conversions within your budget. CPM is a bit different than the other two bidding models. With this model, you’re more focused on getting eyes on your brand. You pay for every one thousand impressions, which means your ad has appeared in front of people one thousand times. So if your goal is to get more people on your website, you might want to consider CPC or CPA bidding. In addition to knowing how you pay for Google ads, it’s also important to understand where your ads can show up through Google. Your ads can appear in many, many places all around the Web. Due to Google’s huge network. Some ads may show up in Google search results on other websites across the Internet, on YouTube and Gmail, or even on certain mobile apps. The cost varies between the different types of ads and their formats. Don’t worry, you can choose where you want your ads to appear when you create your campaigns. Ads can be formatted as text only using images or even videos. Just note that the format you choose can help determine where your ad appears and vice versa. I know that was a very, very brief introduction of Google ads, but that’s not what you’re here for. So let’s move on to what we’ve all been waiting for. What effects the cost of your Google ads?

There’s a lot going on under the hood when you place your bids for your ads. And unfortunately, you’re probably not the only one that Google is evaluating for that coveted ad slot. Google ads uses an auction model. So you’re competing against many, many other companies to reach people with your ads. A big factor in Google ads cost is that competition. Some industries are much more competitive than others, which can lead to higher costs. The legal field is one industry where you can expect to pay more than average for your ads, even if you’re not in a competitive industry like the legal field, the competition around your keywords that you want to target can still drive up the cost of your campaigns. Short sale keywords, for example, might get you in front of a lot of people, but you’ll probably spend a ton of money with little return. These keywords are shortened length, highly competitive and have a high amount of search volume. For example, if you’re a tennis professional advertising your lessons for adults, you would want to avoid targeting the short sale keyword tennis. People searching for that term probably aren’t looking for lessons, and you’d be left with a low performing ad. You’d be better off targeting the phrase tennis lessons for adults since there’s a good chance someone is actually in the market for lessons. Tennis lessons for adults qualifies as a longtail keyword, which has a lower amount of search volume but less competition and a higher potential conversion rate. Since it’s a lot more specific, some additional factors that can impact the cost of your ads are your bid. If your bid is too low, your ad may not appear as often as you like. A bid that’s too high might mean that your ad appears, but you don’t get a good return on your ad.

Spend the ad’s relevance to the user in the landing page. You direct people to these factors, impact your quality score, which you can learn more about on our blog. The ad format, video ads, display ads, search ads and other Google ads aren’t the same cost. How and where you advertise affects what you spend. While there is definitely a lot more to dove into about Google ads, that’s all I have.

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