Today, many businesses invest in PPC advertising. While Google ads offer an impressive ROI, approximately $8 for every 1 dollar spent, many companies still wonder how much they should spend on Google Ads for significant reach out. Google ads average cost is about $1 to $2 on search networks and less than a dollar on Google display network; on average, a mid-sized business will spend between $9000 and $10000 monthly minus additional software tools for ad management.
The average cost of Google ads
There is no one-size-fits-all answer because Google ads are highly customizable, and the platform where businesses subscribe to various bundled features of their choice. Companies have control over what they want to spend on ads in real-time. Pricing flexibility is one massive benefit of using Google ads for advertisement and driving meaningful traffic to websites. Certain factors influence how companies and businesses spend on Google ads, like the industry the business operates in, competitors in the niche, and the type of services offered. On average, industries with a higher CPC often pay more than those with a lower CPC.
Additional costs to Google ads companies must incur
Companies willing to pay for the cost of Google ads will have additional expenditure to bear which includes;
Professional PPC management: When a business decides to invest in PPC, they must partner with a professional PPC agency for better utilization and better results. The PPC agency is responsible for managing your paid ad campaigns on advertising platforms. The PPC agency will charge a business a monthly service fee for leading and managing their campaigns. The amount charged, excluding the Google ad fees, ranges from $350 – $5000 per month depending on the business’s size. In some cases, professional PPC management agencies charge a fixed percentage of what you spend on your advertisement.
PPC management software: Businesses use software tools, paid or unpaid, to streamline PPC management. These tools are optional, but they are handy and help businesses optimize bids, evaluate ad campaigns, and more. Paid PPC management tools will cost your company between $15 and $800 per month if you opt for paid software tools.
Insight about Google ads
Now that you understand some basics about Google ads and its costs, it is now time to dive deeper into Google ads and PPC fundamentals. So, Google ads, previously known as Google Adwords, is an advertising platform businesses can use to advertise their campaigns. First, you will have to create an advert and bid on specific keywords and how much you are willing to pay per click as Google ads operate under a real-time auction system.
When users search for a keyword, and your bid is higher than the rest of the competitors, your advert will appear on top of search results. The good thing about Google ads is that you only pay when a visitor clicks on your advert. It doesn’t take into account the number of times your ad is displayed. Many people may see it and do not connect; you don’t pay for that.
It is possible to set your monthly campaign budget, so you will run your campaign knowing the limit you have selected cannot overrun. The Google auction system design plays a significant role in determining how much you will spend on your ads.
Edge Marketing & Google Ads Management can help you manage and fully maximize the potential of Google Ads.