The cost of running Google Ads ads is the amount an advertiser must pay to have their ads displayed on all Google platforms. It is undeniable that Google is a useful platform to help businesses promote products and brands. Depending on factors related to the product, industry, and how to optimize the advertising campaign, the cost of running Google Ads will vary. To know the average cost that advertisers have to spend, please take a look at this article. In this article, we will present to readers a clear understanding of how much do Google Ads cost? Let’s go find out now.
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Factors affecting advertising costs
Most Google advertisers cannot answer the question of how much Google advertising costs. Because the cost of an advertising campaign is affected by many factors. To know more factors that affect advertising costs, you need to look at some of the following examples:
Industry
The factor that has the biggest influence on Google Ads cost pricing is the industry. For highly competitive industries, advertising costs are huge even when you have optimized the campaign. For example, the business services industry (legal, accounting, real estate, etc.) is one of the more competitive industries in Google Ads, often leading to cost-per-click (CPC) and higher cost per lead (CPL). The reason is that new customers can bring in profits up to $1,000 – $10,000 depending on what your business sells. And for that reason, the cost per click is very high compared to other industries.
Keywords
Keywords are also factors that affect Google advertising costs. If an advertiser does not research keywords carefully before creating an advertising campaign, when bidding, the advertiser will lose a lot of money and will not be effective.
To avoid wasting a lot of advertising budget and not being effective, remember to research keywords carefully. This is also a good solution to optimize advertising campaigns.
Ad Position
If advertisers want their ads to be in high positions on the first page of Google, they must spend a large budget on that campaign. In addition, you will have to optimize your website because this will help reduce advertising costs and help your website get to the top easier.
CTR (Click-Through Rate)
If your sales website has a high click-through rate, it is a beneficial plus when advertising. An ad with a high CTR usually has a lower advertising cost. This is also an extremely useful method for advertisers.
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How much do Google Ads cost? How to calculate it?
Google Adwords advertising costs are calculated on the total advertising campaign, based on the keywords displayed or clicked.
This cost depends on many variables such as time, the form you use, etc. Each form of advertising will bring different effects corresponding to the goals of each business, and advertising costs will also be different.
Currently, there are 3 forms of calculating Google Ads advertising costs as follows:
CPC fee calculation form – Cost per click
The cost of running Google Adwords is paid according to the number of customer clicks: Advertisers will choose the keywords they want to display, and Google will charge a fee when customers click on the ad. In case you bid on those keywords but the customer does not click on them, you will not be charged a fee. This is the form commonly used today.
CPM – Cost per Miles calculation form
Pay-per-impression form:
- This type applies to ads running on Google’s advertising network, not appearing on Google. You will have to pay a certain amount for 1000 impressions, the lowest is 4000 VND.
- This form is often used to promote a brand or a new product or service.
CPA fee calculation form – Cost per Action
- Pay-when-converted type. It can be understood that the cost is calculated based on each specific conversion on your website after the customer clicks on the ad. This cost is agreed upon with Google.
How to optimize Google Ads advertising costs
Optimizing advertising costs on Google Ads is a continuous process and requires diligence, monitoring, and adjustment. Here are some ways you can apply to optimize advertising costs on Google Ads:
Keyword Research
+) Advertisers should choose relevant keywords, and appropriate to the content of your ad.
+) To know whether that difficult word has high search traffic or not, advertisers should use keyword research tools to find low-cost keywords that still have good interaction.
Optimize landing pages and websites
+) Advertisers must ensure that your landing page and website are optimized. Because Google appreciates optimized websites and landing pages. Optimized websites will be ranked highly by Google and are convenient for advertising.
+) The second benefit to mention when optimizing websites and landing pages is to reduce page load time to improve user experience.
>>>See more: how to make a google shopping list
Divide the campaign (Campaign) into small ad groups (Ad Groups)
+) Dividing ads into small groups helps you optimize advertising content and keywords for each group.
Using extensions and app extensions (Ad Extensions)
+) Take advantage of expansions to provide additional information and enhance your ads.
+) Expanding the application can increase interaction with mobile users.
Tracking and evaluating performance (Tracking and Analytics)
+) Use tracking codes to monitor your campaign performance.
+) Analyze data to see which keywords, ads, and ad groups are contributing the most to your goals.
Conversion Rate Optimization (CRO)
+) Optimize landing pages to increase conversion rates.
+) Test and test page variations to review performance.
Reducing costs is not effective
+) After setting up a campaign, you will see the traffic of the keywords you are bidding on. After viewing, advertisers will remove keywords, ads, or ad groups that do not bring results.
+) Next, advertisers should adjust the budget for more important advertising goals.
Use discounts and offers
+) Take advantage of promotional programs and discount codes to reduce costs.
Continuous testing and optimization
+) Perform A/B tests to review performance across variations.
+) Continuously monitor and adjust your campaigns based on new performance data.
See more articles:
- Instructions for Google keyword advertising effective
- Top 20+ basic Google Ads terminology advertisers need to know
- How are Advertising and PR different?
Conclude
In summary, the article has presented the reasons that affect your Google advertising costs. If you are a new advertiser who does not understand costs, read the article to learn how much do Google ads cost. In addition, you can find more information on marketing and advertising on the Optimal site.
