How much do Google ads cost? – Nowadays, 65% of small and medium-sized enterprises (SMEs) invest in cost-per-click (CPC) advertising.
What is Google AdWords?
Google Ads (formerly known as Google AdWords) is the advertising platform for Google’s search engine, enabling businesses to display concise ads, videos, product listings, or service offers to potential customers.
- When a person performs an internet search, they often encounter Google’s cost-per-click (PPC) ads.
- Google ads can take various forms: advertisements on search engines, ads on websites external to search engines, videos on YouTube, or even ads integrated into certain mobile applications.
- One of the primary advantages of Google Ads lies in its operation based on the cost-per-click (PPC) model, which means that advertisers do not have to bear the cost of advertisements simply because they are displayed.
- On the contrary, the advertiser is charged a small fee for their Google ads only when a user clicks on them.
- The cost per click varies depending on several factors that influence the final price.
How much do Google Ads cost?
Although businesses invest, on average, between $9,000 and $10,000 per month in paid advertising, there is no single answer to the frequently asked question: “How much does Google Ads cost?”
- This is because Google Ads is a truly customizable advertising platform.
- You have complete control over how much you spend and when you spend it; furthermore, you can increase or decrease your advertising investment in real time, depending on your needs.
- This is why the pricing flexibility of Google Ads is one of its key strengths.
How much are trade-ins applied in Google Ads?
Although most companies invest between $9,000 and $10,000 per month in Google Ads, they tailor their advertising spend in various ways.
Factors such as their industry, products, services, and competitors influence their advertising costs on Google.
However, industries with higher CPCs allocate larger budgets to Google Ads. The customer service sector, for example, pays an average of nearly $7 per click, which can lead companies in this field to increase their monthly advertising spend on Google.
1. Pay Per Click Management Software
- Companies can also streamline the internal management of their PPC campaigns using compatible pay-per-click software, such as WordStream, Shape, or Acquisio.
- While optional, these tools can help your business optimize its bids, evaluate its ads, and much more.
2. Professional PPC Management
- When businesses invest in PPC, it is not uncommon for them to partner with an agency specializing in this field.
- Specifically, a PPC agency—such as WebFX—handles the launch and management of your paid advertising campaigns on platforms like Google Ads and Microsoft Advertising.
- As part of the monitoring and management of your PPC campaigns, your agency will charge you a monthly management fee. These fees typically range from $350 to $5,000 per month and do not include the monthly budget allocated to the advertising itself.
- In some cases, the agency’s management fees will be structured as a percentage of your advertising spend.
- As a general rule—for instance—this percentage falls between 12% and 30% of the company’s advertising budget.
Consequently, if you have an advertising budget of $5,000 and your agency stipulates that its fees will represent 12% of that investment, you will pay $600 per month to the agency, in addition to the $5,000 you allocate to the advertising itself.