How Much Do Google Ads Cost? A Complete Budgeting Guide

Google Ads Management

Introduction

Any big decision comes with some budgetary constraints in place. Even with a lavish budget, one’s curious to know how much something can cost in total? The same thing happens when you plan on advertising with Google Ads. Now, the answer mostly depends on numerous factors, like what you plan on promoting, how competitive the general market is, and how the campaigns would be managed.

In this easy guide, you’d know everything related to Google advertising cost factors and how you can set your budget smartly. Let’s begin!

Google Ads and Their Value

Google Ads were formerly called Google AdWords. It’s basically a paid search platform where businesses bid on different keywords so their ads appear on Google partner sites or the OG Google’s search results. It’s one of the best ways to advertise online, giving your brand instant visibility in front of your targeted end users.

Alongside this, you must know that there is no fixed price tag being placed on Google Ads. If you talk about the CPC (cost per click) cost, it varies on the type of industry you’ve chosen and its competitiveness most of the time. Therefore, your CPC depends on your bidding strategy, as well as ad quality, and targeted audience.

How Well Does It Function?

Mostly, you’d find Google using an auction-based model. This means that you as an advertise only have to pay when someone clicks on your ad. If it’s not being clicked upon, no charges of posting the ad apply. Some factors to take into consideration are:

  1. The Quality Score of the ads, with better ads lowering down the CPC over time.
  2. The Keyword Competitiveness, with high in demand keywords costing more than the average ones.
  3. The Bidding Strategy being used, as an automated smart form of bidding will differ in results from a manual CPC tactic.
  4. The Ad Ranking, which combines your bidding amount with the ad relevance.

What’s The Minimum Budget Required for Google Ads?

If you’re running a small business, then starting with somewhere around AED 50-100 per day is a good enough budget. To be honest, there are no restrictions applied here and you can literally how much you can. When you get in touch with a Google Ads Management company like Redberries, you’d come across a PPC ad spend calculator. The team will align your spend with expected clicks, impressions, and conversions with the help of this calculator so you know beforehand how much you must set aside for Google Ads.

Here’s an easy way to set forth a Google Ads daily budget to control your spendings on a daily basis:

  1. Come up with a goal in mind with a targeted number of leads or sales to generate daily.
  2. Identify the low cost keywords versus the high cost ones and find the right balance of using them within your budget
  3. Estimate the traffic volume you might have on your ad and you can use Google Keyword Planner for this.
  4. Set daily limits and go small and scale gradually with performance-driven insights.

For example, if your average CPC is $1.5 with the target of 50 clicks per day, then in an ideal world your daily budget would be $75. Basic maths!

Factors Influencing Your Google Advertising Costs

Some factors that might interplay with your Google Ads are:

  1. Geography of the targeted ads. For instance, ads targeted to users in Dubai or Abu Dhabi would cost more because of the fierce competition there.
  2. Targeted device being use, with mobile ads costing less as they have lower CPCs.
  3. Formatting of the ads, with search ads being more affordable than Display or YouTube ad campaigns.
  4. Scheduling and timing of the ads, with ads posted on peak hours costing more but with typically better quality leads.

How To Control or Trim The Google Ads Cost?

Some easy and pragmatic ways to do this are listed below:

  1. Be super efficient at monitoring conversions and don’t just focus on clicks alone.
  2. Try to block irrelevant or bot clicks with the help of negative keywords in place.
  3. Make real-time adjustments and leverage Google Ads Management to do that.
  4. Improve your quality score by optimizing the ad copy as well as landing pages as much as possible.

Conclusion

It’s best to set a benchmark when it comes to Google Ads spend. Your monthly spending should be around 4,000 to 20,000 AED. Your average CPC can be in the range of 1.5 to 8 AED and your daily budget can come around 150 to 600 AED, especially for small to medium enterprises. Lastly, the targeted conversion rate is good enough if it’s in the range of 5 to 12%.

As much as you plan and budget, success only comes from being consistent with your optimization tactics and professional management. Either you can hire the agency like Redberries to do the job for you or set a realistic budget within your organization to achieve good ROI.