How to reduce advertising costs on Google Ads effectively?

Google Ads (or Google Adwords) is an online advertising tool with low cost and high effectiveness compared to others such as Facebook Ads, Zalo Ads, and many other forms of online marketing. However, advertising only becomes cheap and useful when it is effective. Although many people believe that Google Ads is inexpensive, in reality, it is not always cheap. With the explosion of e-commerce, the competition in the marketing field has become more intense than ever. Today’s businesses and companies strive to optimize and make their Google Ads campaigns more effective, reflecting the fierce competition in the commerce industry on electronic platforms. So, what is Google Ads? How to reduce advertising costs on Google Ads. Follow this article by Optimal Agency.

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About Google Ads

During the customer’s search for products and services, Google Ads is an indispensable tool to attract searches from the target customer group. In this way, you can increase the popularity of your business, website traffic, and receive more messages and calls, thereby increasing sales. Google allows you to create links and share information with the target audience via mobile devices and computers. When customers search for information about your products and services on Google’s search engine, your business will appear on the search engine results page (SERP), helping you reach your target customers. Moreover, Google Ads also allows you to adjust your ads to fit your budget. Your ad will run within the budget limit or will pause when it reaches the set budget.

Benefits of using Google Ads

Benefits of using Google Ads

The significant benefits of using Google Ads are:

  • Google Ads brings significant benefits to businesses in their ad campaigns. Firstly, it helps reach potential customers when they search for the products or services you offer, facilitating them to take action, such as clicking on the ad to learn more or making a direct purchase.
  • Google Ads allows you to control where your ads appear, from specific websites to certain locations, optimizing ad effectiveness and focusing on the target customer group.
  • Next, reaching customers while they are searching for information online gives you a significant competitive advantage in the market. You also have complete control over your advertising budget with no minimum spending commitment, helping you manage costs flexibly.
  • By using Google Ads, you can track and evaluate the effectiveness of your ad campaign through detailed reports, knowing how many new customers have connected with your business and the actions they take after clicking on the ad.
  • The Re-marketing feature helps you display ads to people who have previously interacted with your website, increasing conversion opportunities and creating potential marketing opportunities for your business.

Considerations when using Google Ads

Banned contents on Google Ads are as follows:

  • Fake goods are not allowed to be advertised on Google Ads. This applies to products or services that impersonate the brands of other products. This policy also includes the sale of fake goods on your website or app.
  • Products or services that pose dangers are not allowed to be advertised. This includes recreational drugs, drug paraphernalia, weapons, or tobacco products.
  • Google doesn’t accept inappropriate advertising content. This includes content that is shocking, discriminatory, or encourages violent behavior, such as bullying, racial discrimination, or incitement to hate.
  • Violating these policies can lead to your ads not being displayed or being rejected on the Google Ads platform.
  • Ads need to comply with legal regulations and respect user choices.
  • You need to comply with regulations on alcohol and local industry standards, so Google does not accept certain types of ads related to alcohol, including alcohol and similar beverages.
  • Google supports responsible gambling ads and complies with gambling laws as well as local industry standards. Therefore, Google does not accept certain specific types of gambling-related ads.

How to reduce advertising costs on Google Ads?

How to reduce advertising costs on Google Ads?

To optimize advertising costs on Google Ads, pay attention to the following:

Explore Google’s search partners

When you set up “Search Network only,” your Google AdWords ads will automatically appear on Google and other Google search partners. However, not all search partners positively impact your ad campaign. Therefore, conduct segmentation and review the results to assess how queries from Google’s search partners are affecting your ad campaign.

Monitor placement reports

This is a cost-effective Google AdWords advertising technique. Indeed, the cost-per-click can vary between urban and rural areas, so it’s important to monitor placement reports to make appropriate decisions. You can eliminate ineffective areas, increase bids for effective areas, or create separate ad campaigns for each location to allocate the budget reasonably.

Plan your ads

Ads will attract different attention and traffic at different times. Google allows you to track this through the Ad Schedule report, from which you can optimize your campaign by turning off ads during times of no traffic or lowering bids during high-cost times.

Customize bids on your device

Similar to monitoring location and time reports, you can also track reports by device (computer, tablet, mobile phone) and adjust bids to optimize ad performance on each device.

Use Enhanced CPC

If your website has conversions, you can set up Enhanced CPC to allow Google to automatically adjust bids for different queries, helping to optimize your ad performance.

The detailed information provided by Optimal Agency aims to assist you in learning about Google Ads and effectively optimizing advertising costs.

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Frequently asked questions

How to calculate Google advertising costs?

Google advertising costs vary based on goals, competition level, and campaign performance. There are several common payment forms in Google Ads. The first is CPC (Cost Per Click), where you only pay when someone clicks on your ad. The second is CPM (Cost Per Thousand Impressions), where you pay based on every thousand ad impressions. The third is CPA (Cost Per Action), where you only pay when a specific action is performed. Finally, there’s free advertising, where some parts of the ad can be displayed without payment, such as natural search results or Google My Business links. By choosing and combining these payment forms, you can optimize the cost and performance of your campaign on Google Ads.

Why Google Ads can be expensive?

The reasons Google Ads are expensive are:
First, Google is the most popular search engine in the world, it is competitive among businesses to appear on the search results page. This leads to an increase in bid prices for important keywords, raising advertising costs. Second, Google Ads can target ads based on many factors like location, device, user behavior, increasing effectiveness, and costs. Finally, the complexity of Google’s advertising algorithm requires a tight advertising strategy and deep knowledge, leading to increased consultancy and campaign management costs. However, despite potentially high costs, Google Ads remains a powerful and effective advertising tool when used correctly.

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