Things to Know About Google Ads Pricing

Google’s PPC advertising platform is called Google Ads. Previously known as Google AdWords, it is a paid platform where you have to pay per click or impression on an ad. It is an effective way to boost your business by driving qualified traffic, receiving more phone calls, and increasing in-store visits.

With Google Ads, you will be able to create well-timed ads for your target audience so that they will show up on their SERP when they look for products and services similar to yours via Google Search or even Google Maps.

When someone searches for a keyword that you have selected, your advertisement will appear at the top of search results if you have bid the highest on that particular keyword. There will be a small tag next to the result to indicate that it is paid. What comes on the top of the list of benefits of advertising with Google Adwords is the fact that you only need to pay when someone actually clicks on your ad and visits your website despite wherever it is displayed or how many people see it. 

The minimum budget for Google Ads in India is dependent on your industry and strategy. Some businesses can get competitive results with a small budget while others might need to spend a large amount of money to see proper results. While trying to understand the pricing of google ads, you should first know how they work.

Google Ads makes use of an auction model to determine both its placement and cost. The process of auctioning begins as soon as a user searches for something on Google. If there are ads with keywords that advertisers are actively bidding on and the user’s search matches with these keywords, then those ads go to auction.

How does Google Determine your Ad Cost?

How does Google determine your Ad Cost

As we all know, Google makes use of an auction model where companies bid on each keyword when they create campaigns. You can edit it at any time. This means there are a number of bids going on at any given time. 

The placement of your ad and the cost of google ads per click (CPC) are determined by your ad’s Ad Rank. Your ad rank is based on your maximum bid for the specific keyword and your ad’s quality score (QS). Your ad’s QS is determined by its relevance to the keyword, click-through rate (CTR), and the quality of the landing page. This is what levels the playing field for anyone to compete for top placement on SERPs. The Ad Rank formula is

Max CPC bid * ad’s QS 

The ad with the highest Ad Rank ends up coming on top of the SERP. Google Ads cost calculator makes use of this Ad Rank to calculate your CPC, the formula being

Ad Rank of the ad below yours/ QS + $0.01

Factors that Affect Google Ads Pricing in IndiaFactors that affect Google Ads pricing in India

There are a number of factors that impact your quality scores and ad ranks which will eventually determine how much you pay.

  • Ad Type

On Google, different types of ads have varying CPCs. Search Ads are the most popular ones with the highest average CPC. Then comes Shopping ads that are free for most advertisers. Their rates change depending on the product you are selling. Display Network Ads are the cheapest and least expensive ones.

  • Schedule

Ad costs differ according to your schedule. If everyone in your industry schedules their ads for the same time period as you have done, there will be huge competition and the costs will rise rapidly. Advertising during high-demand hours requires a large budget. On the other hand, there is also no use in running ads when no one will see them. So you need to find a balance in scheduling your timing according to your budget and when your target audience is more likely to engage. Also, Check: What are PPC Services and What Do PPC Management Services Include

  • Device Targeting

The cost of keywords changes depending upon the device you target. B2C keywords usually cost more if you target mobile devices and B2B keywords cost more if you target desktops.

  • Bidding Strategy

There are eight types of automated or smart bidding strategies on Google that can impact the cost of your ads in different ways. They all have different goals with different goals. 

  • Industry

If your business is in a high-demand industry, then your competition will also be very high. Which eventually means that you will have to pay a higher amount of money.

  • ROI

There is another way to look at the cost of your Google ads other than what Google charges you for each click. If you succeed in generating more revenue than the cost of your ad, then you have made an ROI, which means that Google practically costs you nothing. The larger your ROI, the better.

How to Reduce the Amount you Spend on Google Ads

Here are some tips on how you can reduce your Google Ads budget.

Create a Daily Budget

This will prevent you from blowing through your monthly budget within the first few days. With daily budgets, you can ensure that your budget is spread evenly across the month.

Geotarget your Ads

It will prevent you from wasting money on people who will never become customers. This is beneficial, especially for local businesses whose target audience is a smaller circle.

Update your Negative Keywords

Google offers the Negative Keywords tool for you to be able to remove specific keywords that you don’t want your ad to relate to. It helps you from wasting money on irrelevant keywords.

Increase Quality Score

The higher your quality score, the lower your Ad Cost. So start working on increasing your Quality Score.

Consult an Agency

A digital marketing agency that offers PPC management services has many tactics they have learned from experience, especially in improving your Quality score. They can help reduce Ad Costs and significantly improve your campaign’s ROI. This not only saves you money, but will also give you more time to focus on your products and services.

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