A complete guide to understanding and using google ads by advertising experts in Dubai
Table Of Contents
- What are Google Ads?
- Why advertise on Google Ads?
- Why is there no fixed Google Ad price?
- How do Google ads work?
- What is your maximum bid and ad quality score?
- How to set google ads budget?
- How does the daily budget gets spent?
- What is the average cost-per-click (CPC) in Google Ads?
- How much does a long-tail keyword cost per click?
- How to Reduce Ad Spend?
Although most companies spend somewhere between $9000 and $10,000 a month on paid advertisements, there is no one-size-fits-all solution to the question, "How much does Google Ads cost?" it is probably because Google Ads is a fully personalized ad platform.
It is a valid concern and one we hear frequently, especially from newcomers to paid search. After all, those new to PPC are probably most concerned with how much they will have to pay to advertise on Google, and whether they can afford it or not!
You have complete control of how much you spend and when you spend it, as well as the ability to increase or decrease your ad spend in real-time. One of the most significant advantages of Google Ads is price flexibility.
PPC marketing agencies providing some of the best PPC marketing services make sure that you get maximum ROI and they do it through many strategies and tactics they have learned over time. You, as a newcomer might not know much about this area as the professionals and experts at a PPC marketing company. Therefore, it is always better to consult an expert in the field to make sure maximum results from the input.
What are Google Ads?
Google Ads, formerly known as Google AdWords, is Google's PPC advertising. Since Google Ads runs on an auction mechanism that occurs in real-time, you can use it to create ads, bid on specific keywords, and decide how much you are willing to pay for each click on your advertisement.
When consumers search for a keyword you have chosen, your advertising will appear at the top of the search results with a tiny tag next to it showing that it is a paid result given your bid is better than what other advertisers bid for the keyword.
The best thing about Google Ads is that you only have to pay when someone clicks on your commercial. You only pay anytime anyone opens and uses your website, regardless of how many days it has been displayed or how many people see it.
On a campaign-by-campaign basis, you can even set regular and monthly budgets. Then, if you have found a good keyword to bid on and a winning advertisement to go with, you can let your campaign run with the assurance that you will not have to go over the estimated budget.
Why advertise on Google Ads?
Though Google Ads pricing varies and is largely dependent on the business, market, policy, and competitors, the platform provides a wide range of benefits. If you are on the fence about whether or not to use Google Ads, this list of Google Ads advantages might be of assistance.
Budget control
When it comes to budget management, Google Ads blows any other promotional outlets out of the water. There is no mandatory minimum fee to create a Google Ads account or run a Google Ads campaign. If you want to, you can start a test campaign with a $5/day budget. Your results will, once again, be determined by how competitive the niche and keywords you want are, but the idea is that you can adjust your budget if needed.
Scalability
Anything you do with Google Ads takes place in real-time. That means you can scale up as soon as a promising campaign is found or scale down as soon as a campaign begins to underperform. You are not obligated to sign a lease, pay a certain amount on a monthly basis, or anything like that.
With Google Ads, the potential to scale is really limitless. If you have a campaign that is producing excellent results with a monthly budget of $500, you can immediately raise that budget to $5,000 or more!
Analytics
With Google Ads, you have complete control over every detail of your campaign's results. You will see how many times the ad was delivered, how many people clicked on it, how many people converted after clicking on it, what time of day the ad is most effective, statistics about the types of users who click on it, and more. The amount of information available in your Google Ads dashboard is mind-boggling.
Standard ads, such as television, radio, and newspapers, has incredibly minimal analytics. You do not know the effectiveness of your campaigns and you do not know how many people have seen or responded to your advertisements
Why is there no fixed Google Ad price?
As stated earlier, there is no easy or one-size-fits-all solution to the question of how much Google Ads would cost your business. The cost of Google ads varies by market, consumer lifecycle, and recent trends (i.e., COVID-19), etc.
Industry
For example, Google Ads' business services vertical (legal, accounting, real estate, and so on) is one of the most competitive verticals, resulting in higher prices per click (CPC). Because of the complexity of the professional services market, a $50 CPC is a small price to pay for a potential customer that might bring in $1k-$10k based on your company.
Businesses in the arts and entertainment vertical, on the other hand, have lower CPCs, but they need to attract a lot of consumers to meet the $1k-$10k mark.
Customer lifecycle
You must also take into account the customer's lifecycle. It takes time for prospective clients to go into the decision-making process with larger ticket items, and the company must remain top-of-mind during the journey—which could include several trips to your page, a video update or two, attendance at a webinar, and more—before taking that final decision
Ad type
Google gives various kinds of advertisements, with each average CPCs specific.
- Search Ads: Google's most common and the highest average ads with CPC
- Shopping Ads: Free for most advertisers. Depending on the goods you market, their cost can vary
- Display Network Ads: Google advertisements in the cheapest and least powerful way
Schedule
The times you set your advertisements to air will have a big effect on how much they cost. If everyone in your business tries to market to customers at the same time, there will be fierce competition, and ad prices will spike
Advertising outside of peak hours could help you extend your budget even more, but you can keep an eye on details about where your customers are clicking—there is no point in running advertisements that no one sees.
Device targeting
When you target one device over another, certain keywords cost more. If you are targeting mobile computers, B2C keywords would surely be more costly, and B2B keywords would definitely be more expensive for desktops.
Your ROI
We have been evaluating ad costs by looking at what Google charges for each click so far. But there is another angle to explore. Rather than focusing solely on the ad's expense, we should take into account any revenue gained as a result.
Assume your advertisements lead consumers to a landing page where they can sign up for a free preview of your product. A small percentage of users who click on your ad will sign up for a trial, and others will pay for your product after the trial period has ended.
If the money earned by customers paying for your product exceeds the net expense of your Google advertising, you have made a profit on your investment.
Following the stated points will help you get maximum ROI:
- lowering your CPCs
- increasing the conversion rate of your landing page
- creating new offers
- improving your sales process
Your ROI would be higher if you convert more people for less money.
Other trends
Of course, as users and companies shift their preferences, the expense of running Google Ads gets affected—for some markets, positively, and for others, negatively.
During the peak of the pandemic, for example, the clothing industry saw a rise in conversions and a decline in prices. On the other hand, the pandemic had a major impact on many sectors, including travel and tourism, family and community, and internet and telecommunications.
How do Google ads work?
To have a true understanding of how much Google Ads can cost you, you must first understand how the system functions. One of the most common misunderstandings about Google Ads is that advertisers with the most money have the most clout. Although a larger advertising budget is often beneficial, Google Ads is actually a more even playing field than many new marketers realize.
Google’s ad auction
Google Ads works exactly the same manner as an auction does. Let us take a look at how this happens.
When a user enters a term or expression into the Google search bar, Google examines the query to see if it includes keywords on which advertisers are currently bidding. The ad auction starts if Google Ads marketers are effectively bidding on some of the keywords in the user's search query.
Ad rank
The Ad Rank of each competing ad is then calculated by Google, which decides when and where your ad will appear in the paid results section. Your overall bid and Quality Score are used to determine your Ad Rank.
What is your maximum bid and ad quality score?
The highest price you will pay for each click on your ad is the maximum bid. This is what you set when you design campaigns and can change at any moment. Big brands can benefit from the maximum price they are willing to pay, but the quality score enables everyone to compete fairly.
The importance of the keyword in question, the ad's click-through rate (CTR), and how good Google believes the page goes into calculating an ad's quality score.
There are a number of other factors that influence your Ad Rank—and, in turn, your ad spends—but the maximum bid and Quality Score are the most important to consider. The following are some of the additional variables that affect your Ad Rank:
- Ad relevance
- Landing page relevance and experience
- Auction-time quality
- The device, location, and context of users' searches
- Alternative bidding methods
- Alternative ad formats
Now that we have discussed all the essentials that need to be understood about the Google ads, we are going to move on to the next important topic of the article, which is, budgeting of these ads
Setting the Google ads budget
A typical and unfortunate situation that Google Ads users complain about is that their ad budget is being depleted much faster than anticipated. It is not only disconcerting to see your monthly budget run out in a couple of days but it is also what leads many companies to think that Google Ads is prohibitively costly. This does not always happen. Most likely it is due to an incomprehension about how the budgeting of Google Ads operates. To remove this misconception, let us get the facts straight.
You should think about your Google Ads budget in the same way you think of every other budget: You begin with a central number that is the base of your budget and then give a little flexibility if things go wrong or change. A strong approach is budgeting on a per campaign basis, particularly for Google Ads budgeting. Let us begin with daily budgets.
Daily budgeting
All of your Google Ads campaigns have their own settings tab where you can monitor unique campaign parameters independently of the other campaigns in your account. As a result, each of the campaigns should have its own budget regularly. If you are doing several ads at the same time, make sure they are prioritized so you can spend your money wisely. For example, Campaign A, which promotes content to potential buyers at the top of the funnel, could be more valuable to your company than Campaign B, which promotes the best-selling product. In this scenario, you will probably want to give Campaign A, a greater daily budget.
To schedule a monthly PPC budget, simply determine the breakdown of daily budgets for each campaign and distribute the funds based on the importance of each campaign.
How does the daily budget gets spent?
Assume you have a $0.25 CPC ad and want 300 ad clicks per day. You will measure an average daily expenditure using these figures:
$0.25 x 300 = $75.
If your highest CPC is $0.25, the most you will be paid is $0.25 in this case. However, based on the factors of each particular ad auction, the exact amount you will be paying per click may vary. Only keep in mind that if you set your default CPC to $0.25, you will never pay more than that for a click, however, you may end up paying less.
What is the average cost-per-click (CPC) in Google Ads?
The total average CPC in Google Ads is between $1 and $2. Clicks on the Google Display network are usually less expensive, averaging under $1.
Clicks, on the other hand, can become prohibitively expensive in hyper-competitive markets.
How much does a long-tail keyword cost per click?
People frequently use grand, show-stopping keywords. it is a definitive indication of how costly PPC can be. However, these keyword categories only account for a limited percentage of overall search volumes. Long-tail keywords make up the bulk of online searches.
Assume we have the words "Exterminator" as a keyword. The average CPC in this division is $44.66. Although some users may search for “exterminator [their town]” if they find their home is infested with pests, others may take a different approach—one that provides possibilities for the savvy advertiser.
What if someone searched for “How to get ants out of my kitchen” as a long-tail query?
This is the sort of chance advertisers have with a long-term keyword focus. Long-tail keywords, in addition to accounting for the vast majority of requests, are also considerably less expensive than shorter keyword-rich queries and may have almost as much — if not more — commercial purpose.
What other expenses are associated with Google Ads?
Your ad budget will still be the most significant and immediate expense to your Google Ads campaigns. Although your advertising budget is significant, it is not the be-all and end-all of your paid search efforts. Depending on your company, marketing objectives, and personal circumstances, there could be additional costs to consider.
Agency costs
Some small businesses choose to outsource their PPC management to an agency. This method has many advantages, including a low personal expenditure of time and resources in handling your PPC account. Agencies already have a lot of experience managing PPC accounts, making them reliable allies who can provide professional advice and guidance.
Many PPC marketing agencies in Dubai specialize solely in getting more ROI for your business. You can also seek assistance from certain Google Ads agencies in Dubai.
PPC management software
Google Ads is a great advertising platform. It gives marketers a lot of influence over the specific variables in their accounts, and in the right hands, it can be incredibly strong. The most common criticism we hear from our clients is that, despite its immense influence, Google Ads can be overwhelming to new advertisers.
As a result, many companies want to track and refine their Google Ads account using PPC management tools. I understand that some company owners like to handle their PPC accounts manually. In these difficult times, every penny counts. If you are short of time or don't know what you're doing (or both), investing in PPC management software is a perfect way to save time, avoid expensive errors, and focus on running the business.
How to Reduce Ad Spend?
Now that you know how Google calculates ad rates, the variables that influence them, and how to predict a keyword's price, it is time to see what you can do to reduce ad spend.
Create a Daily Budget
One of the most common reasons companies believe Google ads are costly is that it is all too easy to spend your entire monthly budget in a couple of days. Set regular expenditure limits to solve this problem. This will mean that the budget is distributed equally over the month.
Geotarget Your Ads
Be sure you are just showing advertisements to people who are interested in what you are selling. Although it makes sense for e-commerce stores to sell to shoppers around the world, small companies should not. Ads that are geotargeted will help you from spending money on users who will never become consumers.
Add Negative Keywords
It is possible that you are squandering resources on ineffective keywords. That is why Google has the Negative Keywords feature, which allows companies to delete keywords from their advertisements that they do not want to be associated with.
Making the most of this platform will help you save money on ads while also improving the level of traffic to your landing pages.
Increase Your Quality Score
It is important to get a good quality ranking. If your ranking is good, your costs are likely to be lower than those of your competitors.
Setting a budget and working efficiently with a limited budget can be overwhelming for a lot of people. Therefore, the best way to get the maximum return on your investments is to consider any qualified advertising agency. You can get services from many PPC advertising agencies in Dubai. They will ensure the maximum profit on your limited budget. Hopefully, this article would have answered the questions you had regarding Google ads and how to set a budget for them.
This is it for today’s blog. I hope that you liked reading it and that you’ve learned a thing or two. Write to us if you have any queries or comments. If you want to advertise your business and you are unsure about what to do, contact Prism, the best advertising agency in Dubai, and forget about all your advertising worries because Prism has got you covered. Thank you and Goodbye.
About The Author: Lovetto Nazareth
Lovetto Nazareth is a digital marketing consultant and agency owner of Prism Digital. He has been in the advertising and digital marketing business for the last 2 decades and has managed thousands of campaigns and generated millions of dollars of new leads. He is an avid adventure sports enthusiast and a singer-songwriter. Follow him on social media on @Lovetto Nazareth