How much do Google Ads cost? If you've ever looked at the Google search page and have seen the paid ads at the top, you may have wondered: how much would it cost to get my small business there?
Overall the average cost per click for Google Ads is about $1-2 on the Search Network and less than $1 on the Display Network. But in some industries businesses can spend $10, $20, or even more per click and they spend tens of thousands of dollars every single month.
Why does the cost of Google Ads vary so much and what's a realistic budget for your small business? To find out keep watching.
How Google Ads Work
To understand how much Google Ads costs you need to know a little bit about how they work. The price depends because Google Ads uses an auction system.
Now imagine you're at an art auction and you want to buy a painting. How much does the painting cost? Well, it doesn't have a fixed price. It's going to depend on how many other people are bidding and what each bidder is willing to spend. You can bid whatever you want, but that doesn't guarantee that you're gonna win the painting.
Google Ads are similar. When you bid on a keyword, the cost depends on how popular the keyword is and how much your competitors are willing to bid.
Some industries and some keywords are much more competitive than others. Like the difference between bidding on a local artist painting or bidding on a Van Gogh. Google Ads also let you set your budget to whatever you want, but if the dollar amount's too low your ads might not win the best spot.
The good news is unlike a normal auction the winner in Google Ads isn't just determined by who spends the most money. Google factors in how effective your ad is. They look at things like your keywords, your landing page. And how many people click on your ad.
We have articles that go into a lot more detail but the bottom line is: the better your campaign, the less you're going to pay for the ads themselves.
How much should Small Businesses spend on Google Ads?
To get back to the main question: how much money should your small business spend on Google Ads?
You're going to want to make sure that you're investing enough to actually see meaningful results. Don't try to spend a hundred bucks at a time, it's only going to get you a handful of clicks and it's going to waste your money. For most small businesses we recommend investing at least a $1,000 a month in your Google Ad spend.
Also, it's important to make sure you're investing in managing your Google Ads campaign. Again, the more effectively you run the campaign the less you're going to spend per click which means better return on your investment. You need someone who can research the best keywords, write effective ad copy, and design a great landing page, and of course to constantly monitor your campaign for success.
If you don't have those skills in-house invest in a digital marketing agency like ours who can really help you through this. We have Google Ads certified specialists who manage your entire campaign from start to finish.
Get a Google Ads Estimate for Your Business
So how much Google Ads costs ultimately depends on how much you want to spend. It's flexible, but we usually recommend investing at least a thousand dollars a month in ad spend plus paying someone to manage your campaign.
If you want to get pricing for your business and your industry schedule a consultation with us and we'll be happy to help.
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