Running a Google Ads campaign is a common step for advertising your business online. So, you might have also created your Google Ads account to start your PPC campaign. But how much do you need to invest in this advertising campaign? Some PPC marketers and remarketing professionals find it challenging to make a budget. The cost varies with several factors like current trends, customer lifecycle, and your business niche. It also depends on how efficiently you manage your advertising account. Let us discuss the Google Ads campaign cost.
All about Google Ads campaign cost
Industry or business niche
Your industry is the most significant factor influencing Google Ads pricing. For instance, the real estate, accounting, and legal industries are highly competitive. That is why the cost per click for their advertisements may be slightly high. The nature of services also makes a difference in the cost of every click. A client of your business can bring you more than $5,000. So, it may not be difficult to pay $50 as CPC.
Customer lifecycle
Most PPC marketers do not focus on the customer lifecycle while making the Google Ads campaign. If it is a big deal, customers take longer to make the final decision. In this case, your brand name should always be on their front throughout the buying journey. Without multiple visits, customers do not make a purchase. For instance, they may like to download digital content, participate in a webinar, and buy your service/product.
Latest trends in the market
The advertising industry, including popular advertising platforms, is never stable. You have to check the current trends in your business niche. For instance, the average CPC for the garment industry during the pandemic was around $1.40. However, later it reached $0.70 with the increase in the average conversion rate. Again, it has risen a bit due to some other factors.
How do you manage your Google Ads account efficiently?
Google has revealed that the average revenue on Google Ads is around 800%. Thus, you can earn more with the best management of your account. Do not think that you will get the desired result only after publishing and activating your ads. You can check for some tips to maintain a lower cost of your Google Ads and gain a higher amount.
- Maintain the structure of your Google Ads account.
- Focus on the keyword list.
- Read the performance report and make a data-driven decision for optimizations.
- Audit your account regularly.
Calculating CPC for your Google advertisements
Google ads calculate CPC in various ways
Quality Score of your ads
When visitors search for your business on Google, the engine tries to find advertisers bidding on the keywords related to the query. When it has been identified, the auction gets activated. Google enters relevant advertisements into the auction. Google checks the ad and keywords to assign a Quality Score to every ad.
Ad rank
The search bot will calculate the Ad Rank of every contending advertisement. It helps the bot to place your ads in a particular section. Ad Ranks refer to something which is obtained by multiplying your maximum bid by your Quality Score. So, the bid is the highest amount you are ready to pay for every ad. Your ad will be visible to your target audience if it has achieved a high Ad Rank.
If your advertisement is displayed, you pay only when someone clicks it. However, there is no obligation to pay the highest bid. How do you then determine the CPC for your Google Ads? Add a cent to the amount obtained when you divide the total advertising spend by the number of clicks.
Other variables related to the Google Ads campaign cost
- Your landing page experience and relevance
- Your bidding techniques
- Different ad formats
- The location, context, and device of users’ searches
- Auction-time quality
You can easily make your budget if you know the Google Ads campaign cost. Budgeting is crucial to ensure you get the most out of your investment in the PPC campaign. Google Ads is a popular platform for publishing your paid ads. Moreover, you can use social media platforms to post your paid advertisements. These paid ads are also effective in running a remarketing campaign. Capture is an automated remarketing software that lets you integrate various tools for your campaign. Use this web-patented software to simplify your campaign.