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Cost To Advertise With Google AdWords?

This is a very common question, and one you should regularly question if dealing with a new promotion channel or stand – “how much will it cost me?”

Unluckily, there’s no easy solution if it occurs to Google AdWords. But, the fact is that there’s no one-size-fits-all answer is actually one of the greatest benefits of AdWords overall. You can consider AdWords as a truly customizable ad program: You have total control over how much you pay and when you use it, and you can increase or decrease your ad use in actual time as you see fit.

Let’s take a closer look at how AdWords works, and why it’s an excellent advertisement prospect for maximum businesses.

What is Google AdWords?

AdWords is Google’s pay-per-click (PPC) advertisement platform.

You can use it to design ads, choose particular keywords to bid on, and decide how much you’re feeling to pay per click on your ad. When users hunt for a keyword you’ve selected, if your bid is higher than what other advertisers bid on that keyword, your advertisement will appear at the top of the search results with a small tag next to it indicating that it’s a paid result.

The best part of AdWords is that you just pay when a user truly clicks on your ad. It doesn’t mean how many times it’s presented or how many people see it – you only pay when someone clicks and visits your website.

You can also set daily and monthly budgets on a campaign-by-campaign basis. So, next, you find a winning keyword to bid on and a leading ad to run, you can let your campaign run remembering that you won’t go over a set budget.

How does AdWords work?

Let’s take a deeper look at exactly how Google’s AdWords platform works.

AdWords utilizes an auction model to study both commercial placement and cost. An advertisement auction begins when a user seeks for something in Google. If the search query matches up with keywords that advertisers are actively bidding on, eligible ads go to auction.

Within the auction, advertisement placement and cost per click are defined by an advertisement’s Ad Rank. Your ad’s ad rank is based on two things – your highest bid for that specific keyword, and your ad’s quality score.

We won’t get into Quality Score (QS) here – you can find more data on this page – but as a brief overview, your ad’s QS is defined by a combination of its relevance to the keyword that triggered it, its click through rate and the quality of whatever page users land on after clicking your ad.

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So how much does an AdWords campaign actually cost?

Now that we’ve dug in accurately how AdWords works, you can see why the answer is real, “it depends.”

There are specific variables you have direct command over, like your maximum CPC bid plus the quality of your ads, but there are also parts you can’t really control, like your opponents’ max CPC bids and the quality of their ads.

That’s all in the Ad Auction, though. Before you also get to that point, you have to examine how competitive your niche is and how competitive unique keywords within your niche are. This is where you can get inventive in order to keep your costs down.

Let’s say you work in insurance and you’re bidding on the keyword “car insurance.” This is a broad, extremely competitive term that gets searched millions of times per month, so your CPC bid is probably going to be very high.

Other AdWords benefits

Even if you have a big idea of what it might cost to run an AdWords campaign within a particular niche, you have to take into account several other aspects of AdWords when deciding whether or not to give it a shot.

Budget control

AdWords spends most other advertising channels clear out of the water when it comes to budget control. There is absolutely no minimum investment required to run an AdWords campaign.

Scalability

Everything you do with AdWords occurs in real time. That means you can scale up as soon as you’ve identified a strong campaign, or you can scale down as soon as you see a campaign underperforming. You’re not locked into any sort of agreement, required monthly spend, or anything like that.

You have access to all last bit of data associated with your campaign performance with AdWords. You can view accurately how many times your advertisement was served, how many people clicked on it, how many people converted after clicking on it, what time of day the advertisement is most successful, information about what sorts of users click on your advertisement, and more.

The amount of data accessible through your AdWords dashboard is truly staggering.

AdWords wrap-up

While there isn’t a definite answer to the question “how much does it cost to advertise with Google AdWords,” you can understand that it’s for good reason. How much you spend with AdWords is entirely up to you, either straight via budget control and data-driven scaling choices or indirectly through advertisement performance and how competitive your industry is.

It all boils down to the fact that AdWords is a fabulous advertising method for almost any business out there. Worst case situation, you might lose some of your funds on an unsuccessful test campaign.

But when you recognize what you stand to gain from a successful AdWords campaign, you’ll be questioning yourself why you didn’t give it a shot shortly!

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