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How much does Google advertising cost?

How much does Google advertising cost? Here's how to set your Google advertising budget


Here's a question we get all the time - How much does Google advertising cost?

And more importantly, how much should you spend on Google ads?

.But as a Google Partner who is really certified in this stuff, we are going to give you the agency answer to help you determine your Google advertising budget.

We are going to tell you what we do for the hundreds of Google advertising accounts that we manage.

These same strategies helped us generate tons of conversions for our customers.

Today, we are going to tell you how to set Google advertising budget.

And later in this post, we will also tell you a secret that will help you reduce the cost of your Google ads.

How much does Google advertising cost?

According to Google, you'll spend the maximum amount or as little as you would like on Google ads.

Isn't it so clear how much those ads actually cost?

We'll get to that in a moment, but first, let's see how the Google advertising budget works.

Regardless of the value, you'll set a daily budget or lifetime to allow your campaigns inside Google ads.

Daily Budget

For example, if you want to spend $ 300.00 on Google ads on a monthly basis, you will simply set a $ 10 daily budget.

This will mean that your ads will no longer appear on Google because your $ 10 daily budget has been exhausted.

And it also means that you will not exceed your monthly budget of $ 300.00 because $ 10 per day is equal to $ 30 per day to $ 300.00 per month.

How does this daily budget work

lifetime budget

A lifetime budget allows you to invest in your total spending for a campaign.

For example, suppose you are running a holiday ad that is running only for a specific period of time.

You can use the lifetime budget to enter your total allow the campaign.

And once the budget is exhausted, your ads will not run on Google.

This way you can set your budget inside Google how much you really want to spend.

But how do Google ads work?

How much do Google ads really cost you?

Let's discuss this and then we'll find out how much you should spend on Google ads.

The true cost of google ads

To understand the true cost of Google ads, you must understand how Google charges its advertisers.

The most common method by Google to advertisers on a pay-per-click basis, also known as PPC.

With PPC, you are charged only when someone clicks on your ads.

No click? no pay.

This means that if 1,000 people saw your ad, and no one clicked it, you wouldn't pay anything to Google.

It also means that if 1,000 people click on your ad, you will pay the costs associated with each click.

For example, if the cost of each click is $ 10, you will pay $ 10,000 for 1,000 clicks.

Now, a common concern is what our customers usually have if they exceed the number of clicks they can make.

If this is the case, there is no need for you to worry about it. Remember, you'll control your costs by setting a daily budget.

And once the budget is exhausted, your ads will no longer run.

It also means that you will no longer get more clicks which can increase the cost of your Google ads.


Another common concern is the cost per click. A lot of people want to know what their approximate cost per click is going to be.

Here's how your cost per click or CPC can be estimated.

The first thing you need to know is that CPC can vary depending on the keywords you target.

For example, the average CPC for the phrase "landscaping company" is $ 3.52.

Meanwhile, the average CPC for the phrase "car accident lawyer" is $ 400.00.

It is $ 400.00 for a click.

As you can see, these CPC costs are very high depending on industry and competition level.

Now, of course, you have to take into consideration the lifetime value of your customers when looking at CPC costs.

For example, a landscape may pay $ 200 for a project and a car accident lawyer may pay $ 20,000 for a case.

So you should measure the risk against your reward when deciding which keywords to use for your business.

Often, there are hidden gems that you can find that are far less competitive than other words.

For example, the phrase "motor vehicle lawyer" has an average CPC of $ 144.83. 

The phrase "car accident lawyer" has led to a 200% reduction in costs.

A good PPC agency should enable you to do keyword research based on cost and effectiveness and identify the best keywords for you.

And if you need help with this, contact us and we will be happy to help.

Anyway, if you are going to go into this single, you can do your keyword research for free using Google Ads Keyword Planner.

You can type any keyword that you are interested in and it will show you a list of words.

There are also additional paid tools that you can use for more advanced keyword research and even spying on your competitors.

For example, our agency has used SEMRush and AHREFs for a few of our clients.

These tools will help you select the best keywords to target and estimate your cost per click.

If you want to know more about it, we have some great keyword research tips here which you can read further.

And after you have your estimated CPC, it's time to figure out how much you should spend on Google ads.

How much should you spend on google ads?

Setting the budget for your Google ads is like a double-edged sword.

On one hand, if you spend insufficient, you risk not getting enough clicks to get conversions.


Sure, you can spend $ 100 and get 10 clicks.

But it's probably not going to change your life or even create a lead.

On the opposite hand, if you spend an excessive amount, you risk wasting your money.

We have seen that people spend $ 10,000 on advertisements from their small business marketing budget that are not going to the right URL.

And others, where they spent a ton of money on underperforming keywords.

The list goes on and on.

So this is what you need to do, and that's exactly what we recommend at our agency.

Spend enough money to get your first 100 clicks.

This is going to look different for each business on an average cost-per-click basis in your industry.

But in general, at least, you need to spend more than $ 600 / month for most industries.

After your first 100 clicks, view and optimize your campaign performance.

Then spend enough to generate your other 100 clicks, whatever it may be.

View, analyze, and optimize your performance.

Then spend enough to get your third 100 clicks.

Look back and analyze.

After all, your Google ads should have 300 clicks.

If your cost on each click is $ 5, it means that you must have spent $ 1500 in 3 months.

If your cost in each click is $ 10, then it will be equal to $ 3,000 in 3 months.

After about 3 months or 300 clicks, you can see yourself in the mirror and ask yourself - is it working for your business?

And by working, we are not talking about leads and sales that are hitting the roof.

No, 300 clicks are likely that your business will not explode.

What we are looking for is some sign or some positive movement towards success.

Some leads or sales will help point you in the right direction of the best optimization steps to take with your PPC campaign.

With 300 clicks and a mere 1% conversion rate, you will have 3 conversions.

So if you have it, we will say that you are moving in the right direction.

You can then twink your campaigns to increase your conversions to your level, where you eventually move on.

And once you are breaking even, aim for some high return on your investment.

Therefore we advise you to set a Google advertising budget.

In one sentence, you need to spend enough to generate enough traffic to see some conversions.

300 clicks will be the minimum. Any less and you are not generating enough traffic to measure the impact.

Now, when it comes to the cost of Google ads, that's basically how it works.

But one thing is that you can dramatically reduce the cost of your Google ads.

How you can reduce the cost of your Google ads

You can reduce the cost of your Google ads by increasing your ad quality score.

It is coming directly from Google. Higher quality ads can lead to lower prices and better ad space.

Now here's the thing - the quality score of each ad you already run. Your Quality Score is stated on a 1–10 scale.

The higher your score, the more relevant your ads are to Google.

Your Quality Score is based on things like yours:

Click-through rate,

Advertising relevance, and

Landing page experience

We work on these things for our clients to help them cut their CPC and increase their return on advertising spend (ROAS).

And if you're working on your own advertising campaigns, be sure to keep a close eye on your Quality Score, so that you don't miss out on future opportunities to increase your campaign's performance.

That said, let's plow ahead and conclude today's post.

Quick recovery

Today, we answered two questions:

1. How much does Google advertising cost? And

2. what proportion do you have to spend on Google ads?

In terms of the cost of Google ads, remember that Google charges you per click price.

Your exact advertising cost will vary depending on the exact keyword you are targeting.

You should do your research carefully on the keywords that present the most opportunities for you at the lowest cost.

In terms of what proportion you ought to spend on Google ads, you would like to form sure that you simply spend enough to get traffic.

Think of traffic just like the engine that starts your car. If you do not have it, you will never start your vehicle.

Once the car starts, you can figure out the best way to navigate the road ahead. But you have to crank the engine first.

So try to do at least 300 clicks to crank the engine, and check your performance after every 100 clicks to make sure you're on the right track.

And if you've got to settle on between spending more and spending less, spend more.

The more traffic you have, the more opportunities you have to generate conversions.

But if you want a result-driven advertising campaign, check out our PPC management services today!

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